Mohammed Moinuddin (Project) Aaiclas TRV

“IMPACT OF COVID-19 ON LOGISTICS SYSTEM WITH SPECIAL
REFERENCE TO AAI CARGO LOGISTICS”
INTERNSHIP STUDY
&
PROJECT REPORT
Submitted To
SRINIVAS UNIVERSITY
COLLEGE OF MANAGEMENT AND COMMERCE
CITY CAMPUS, PANDESHWAR,
MANGALORE
In partial fulfilment of the requirements
For the award of
BACHELOR DEGREE IN BUSINESS ADMINISTRATION

(Logistics and supply chain management)
(B.B.A)
BY,
MOHAMMED MOINUDDIN
Register No: 2SU18LS014
Under the guidance of
PROF. C RANJITH BHAT
SRINIVAS UNIVERSITY
COMPANY CERTIFICATE (SCANNED CERTIFICATE)
DECLARATION
I, MOHAMMED MOINUDDIN hereby declare that this internship study and

project report titled “Impact of covid-19 on logistics system with special reference
to AAI cargo logistics.” has been prepared by me under the supervision of Prof. C
Ranjith bhat, lecturer in College of Management and Commerce, SRINIVAS
UNIVERSITY, affiliated to Srinivas University, in partial fulfilment of the
requirements for the award of the BACHELOR DEGREE IN BUSINESS
ADMINISTRATION during the year 2020-2021.
I have undergone an internship for a period of 4 months, I hereby also declare

that this Internship Study & Project Report has not been submitted to any other
university for the award of any other degree, fellowship, associate ship or any other
similar title.
DATE: MOHAMMED MOINUDDIN

PLACE: MANGALORE
GUIDE CERTIFICATE
This is to certify that the internship study & project report titled “Impact of covid-19
on logistics system with special reference to AAI cargo logistics” Submitted to the
SRINIVAS UNIVERSITY-MANGALORE for the award of BACHELOR OF
BUSINESS ADMINISTRATION is a record of original and independent work
carried out by Mr. MOHAMMED MOINUDDIN a student of SRINIVAS
UNIVERSITY under my supervision and guidance. This has not been previously
submitted for the award of any Degree, Post-Graduation Degree or Diploma of any
other universities.
DATE: Prof. C RANJITH BHAT

PLACE: MANGALORE LECTURER, CMC,
SRINIVAS UNIVERSITY
CERTIFICATE
This is to certify that Mr. MOHAMMED MOINUDDIN is a bonafide student

of B.B.A final semester (2020-2021 batch) at SRINIVAS UNIVERSITY,
College of Commerce and Management, Pandeshwara, City Campus, Mangalore.
This internship study & project report titled “Impact of covid-19 on logistics
system with special reference to AAI cargo logistics” has been prepared by her
in partial fulfilment of the requirement for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION under the supervision of
Prof. C RANJITH BHAT, Lecturer, CMC, of this institute.
Date: Dean
Place: Mangalore
Srinivas University
AKNOWLEDGMENT
I, Mr MOHAMMED MOINUDDIN express my sincere thanks and
gratitude to all those who have directly or indirectly helped me to
complete my Internship Report successfully.
This project work is completed with immense amount of commitment,

advice, encouragement and guidance of the people whom I could
personally acknowledge.
I would like to express my sincere gratitude to Dr. P.S Aithal, Vice

Chancellor, Srinivas University, Mangalore, for his active support and
guidance during the course of my studies in this Institute.
I am greatly indebted to Prof. Keerthana Raj, Dean, Srinivas University for

her encouragement for preparing this Project work.
I am also grateful to NELSON PEREIRA, Course Coordinator, Srinivas University

for his support
for preparing this Project work.
I am also thankful to Prof. . C RANJITH BHAT , Guide, Srinivas

University for her/his kind cooperation, help, guidance, encouragement
supervision and feedbacks which enabled me to prepare a well-executed
report.
Then, I specially want to acknowledge Shri. K.A. SREENIVASAN, Sr.

Manager (Cargo), AAI Cargo and logistics & Allied Services Co. Ltd
Trivandrum Airport, Trivandrum for his tremendous support,
guidance and patience. Without their kind supervision, preparing this report
would be very difficult. I am also thankful to them for providing me all
the relevant and available information to have a clear concept on the
subjects. They provide me the guidance and counseling during my entire
internship program. Their continuous and well-thought feedback enabled
me to make this report a comprehensive one.
I take this opportunity to extend thanks to all who has helped me and
encouraged me all throughout in bringing the best of this project.
MOHAMMED MOINUDDIN
TABLE OF CONTENT
Sl. No Title Page number
1. Chapter 1- Introduction to Internship Study 1-3

Research Design
2. Chapter 2 – Industry and company analysis 4-34
 Industry & Company Analysis

 Vison . Purpose
 Products & Services
 Network
 Functional Areas
 Competitor Profiling
 SWOT Aanalysis
 Future Growth & Prospects
3. Chapter 3- Theoretical Framework and practices 35-100
4. Chapter 4- Internship report 101-160
161-164
5. Chapter 5-Findings, Suggestions
165
6. Conclusion
7. Bibliography 166
8 Appendix 167-170
LIST OF TABLES
Table No Titles Page number
4.1 Table showing age of the respondents 135
4.2 Table showing gender of the respondents 136
4.3 Table showing income of the respondent 137
4.4 Table showing education of the respondent 138
4.5 Table showing awareness of logistics 139
4.6 Table showing competitors for AAICLAS 140
4.7 Table showing importance of job among 141

respondents
4.8 Table showing logistics be part of the company’s 142
strategy
4.9 Table showing opinion about working condition 143
before pandemic
4.10 Table showing job preference during lockdown 144
4.11 Table showing air-freight traffic during pandemic 145
4.12 Table showing impact of covid-19 in cargo 146

delivery system
4.13 Table showing rank the influence of the problem 147
in logistics
4.14 Table showing challenges faced by air transport 148
system
4.15 Table showing technology help to cargo system 149
4.16 Table showing delay in transportation of cargo 150

during pandemic
4.17 Table showing delay in paper documents 151
clearance during covid-19
4.18 Table showing respondents valuation about 152
maintenance of storage facilities
4.19 Table showing growth rate of organization 153
4.20 Table showing satisfaction regarding customs 154

clearance and freight forwarding services
4.21 Table showing method of payment done during 155
lockdown
4.22 Table showing growth rate in air cargo price 156
4.23 Table showing payment issues in salary 157
4.24 Table showing shortage of storage facilities 158
4.25 Table showing responsible for loss of the 159

organization
4.26 Table showing information verified through the 160
computer system
LIST OF GRAPHS AND CHARTS
Figure No Titles Page number

4.1 Chart showing age of the respondents 135
4.2 Chart showing gender of the respondents 136
4.3 Chart showing income of the respondent 137
4.4 Chart showing education of the respondent 138
4.5 Chart showing awareness of logistics 139
4.6 Chart showing competitors for AAICLAS 140
4.7 Chart showing importance of job among 141

respondents
4.8 Chart showing logistics be part of the 142
company’s strategy
4.9 Chart showing opinion about working 143
condition before pandemic
4.10 Chart showing job preference during 144

lockdown
4.11 Chart showing air-freight traffic during 145

pandemic
4.12 Chart showing impact of covid-19 in cargo 146
delivery system
4.13 Chart showing rank the influence of the 147
problem in logistics
4.14 Chart showing challenges faced by air 148
transport system
4.15 Chart showing technology help to cargo 149
system
4.16 Chart showing delay in transportation of cargo 150
during pandemic
4.17 Chart showing delay in paper documents 151
clearance during covid-19
4.18 Chart showing respondents valuation about 152
maintenance of storage facilities
4.19 Chart showing growth rate of organization 153
4.20 Chart showing satisfaction regarding customs 154

clearance and freight forwarding services
4.21 Chart showing method of payment done 155
during lockdown
4.22 Chart showing growth rate in air cargo price 156
4.23 Chart showing payment issues in salary 157
4.24 Chart showing shortage of storage facilities 158
4.25 Chart showing responsible for loss of the 159

organization
4.26 Chart showing information verified through 160
the computer system
CHAPTER 1
INTRODUCTION TO INTERNSHIP STUDY
1.1 INTRODUCTION
The logistics industry viewed as an auxiliary for trade and commerce enables industries
to deliver the goods and services to the ultimate consumers by facilitating mobility
throughout the supply chain. The supply chain disruptions in the COVID-19 outbreak had
a direct impact on the logistics industry with detrimental factors as labour shortage,
fragmented supply lines, weak infrastructure, and ambiguity with respect to the rules and
regulations for mobility of goods. In the pre-COVID-19 scenario, the Logistics sector is
pivotal to the global manufacturing industry which is elusive and scattered across the
globe to urban to rural remote areas. For example, automotive companies such as BMW
operates at the global level with 31 production and assembly sites across 15 nations with
sales network spanning across 140 countries. So, to maintain the supply of such capital-
intensive goods globally, the logistics sector must be streamlined and efficient.
In Covid-19 scenario, China being the most affected global manufacturing hub has spread
operational difficulties across the globe during the initial stages. The supply chains
disrupted for the companies having manufacturing facilities in China and the overall trade
i.e., exports of manufacturing goods and imports of agricultural commodities to and from
China declined. The receding supply for components manufactured in China for other
industries was affected too. The contagion halted the cargo ports, shortage of labour of
loading/ unloading, carriers were docked. Gradually, Automotive, Electronics, Medical
supplies affected. As per the World Bank Reports, In China between January and
February, the trucking sector volumes under logistics fell below 15% to that of 2019
levels before showing recovery signs in March. The revival was associated with relaxing
of lockdown norms and government actions towards logistics industry.The pandemic has
exposed the limitations prevailing in the industry such as lack of health security and
protection for the workers at dock stations and drivers facilitating trucking deliveries, the
debt burden piled up due to which logistics companies lost the recurring cashflows to
undertake the operations.
1.2 RESEARCH DESIGN
A detailed explanation of how a study should be performed. A research design typically

involves how data are collected, what tools are used, how the tools are used, and the
means for analyzing data collected. The design of research can be divided into two
groups: exploration and interpretation. According to its name, exploratory research aims
simply to investigate particular aspects of the research area. There are no full and
definitive responses to study questions from exploratory science. However, according to
new information gathered during the analysis process the researcher could also alter the
course of the study in many respects, not fundamentally.
o The essence of the study
o The aim of the study
o The position of behavior of the analysis
o The essence of the data
o collect the appropriate data
o How long will the analysis be?
o The type of sample design used
o The data collection methods used
o The data processing approaches to be followed
o The manner of preparing the report
1.3 Objective of the study

 Overall study of the organization
 To find out impact of covid-19 on cargo delivery system
 To identify challenged faced by the organization during lockdown
 To study transportation barriers regarding air cargo
 To analyze air cargo development during the pandemic
1.4 Research Methodology

The research approach is one way to address the problems of science systematically; it
takes into account not only the methods of study but also the reasoning behind them.
Methodology involves more than just methods for collecting data. The principles and
hypotheses that underline the approach
Also have to be taken into account. A method of analysis is a data collection procedure
for the purpose of finding out. For study and inference purposes, the compilation of data
separated secondary and primary data including a summary of the target population, a
survey process, a questionnaire design and presentation and demonstrated. The work can
be conducted in various ways that satisfy the dissertation requirement. This may differ
from one discipline to another. Expectations and prospects for work in the area must be
taken into account. The research methodology study for the project creation gives us the
requisite training in the collection and preparation of information, involvement in
fieldwork if needed as well as training in data collection techniques for specific problems.
The value of any research is in the method adopted; it is the different methods which are
used in research studies applying the theoretical subject to the study. There are two types
in this study:
1.4.1 Primary data

o Information collected through questionnaire method
o Interaction with the workers and employees
1.4.2 Secondary data

o Company records such as financial statements
o Company administrative reports and journals
o Company websites, magazines, newspapers etc.
1.4.3 Sample size
Universe of the study constitutes all the selected employees of the organization in AAI
cargo logistic & allied services company ltd Trivandrum. Sample size of 31 employees
selected from the total employees in AAICLAS. For a greater representation of the
universe a convenience sampling was adopted.
1.4.4 Tools and Techniques of Interpretation
Questionnaire method is a set of questions or series of questions prepared by the
investigator to know the behavior pattern of the respondents. In short questionnaire
methods are formulated series of questions.
o Closed response questions
These types of questions are relatively easy to answer and the tabulation of the feedback
is done quickly.
o Dichotomous questions
Here, two fixed alternative of the type such as “yes or no” in favor etc. are available.
o Multiple choice questions
Here, several sets of alternatives are made available to the respondent.
o Open ended questions
A type of question that requires participation to respond in his/her own words without
being restricted to pre-defined response.
1.5 Scope of the study

To consider logistics in practice to see how a company uses logistics as a wonderful
resource for achieving loyalty from its customers, reducing overall costs and increasing
productivity AAI Cargo logistic & Allied Services Company Ltd Trivandrum offering
full logistics services. The research discusses the performance of logistics networks in
AAI CARGO LOGISTICS. In order to explain logistical principles as far as employee
job satisfaction in the organization. The analysis would demonstrate how the organization
is effectively using logistics framing in its market and how it will impact the employee
satisfaction. The study is limited to understand the perception of an alien member
concerning their participation in the project.
1.6 Limitation of the study
Following are the limitation of the study.
 Because the target research community is a large number of workers, the study is
limited to a few workers
 In certain situations, respondents were not able to give such details.
 Although the employee's work schedule was kept assured, and timely details
cannot be collected
 The data collected was time consuming
 The study is limited only to AAI Cargo Logistics Trivandrum
 The time and other resources are limited.
 The study will have all limitation of convenience sampling.
CHAPTER-2
INDUSTRY AND COMPANY ANALYSIS
2.1 INDUSTRY AND COMPANY ANALYSIS
The following are the industry and company analysis.
2.1.1 AIRPORT AUTHORITY OF INDIA
Airports Authority of India (AAI) was constituted by an Act of Parliament and came into
being on 1st April 1995 by merging erstwhile National Airports Authority and
International Airports Authority of India. The merger brought into existence a single
Organization entrusted with the responsibility of creating, upgrading, maintaining and
managing civil aviation infrastructure both on the ground and air space in the country.
AAI manages a total of 137 airports which include 24 International airports (3 Civil
Enclaves), 10 Custom Airports (4 Civil Enclaves) and 103 Domestic airports (23 Civil
Enclaves). AAI provides air navigation services over 2.8 million square nautical miles of
air space. During the year 2019-20, AAI handled aircraft movement of 1314.23 Thousand
[International 156.0 & Domestic 1158.23], Passengers handled 159.59 Million
[International 22.26 & Domestic 137.33] and the cargo handled 909.32 thousand MT
[International 452.46 & Domestic 456.85]. Further, all Indian airports taken together
have handled aircraft movement of 2587.05 Thousand [International 431.85 & Domestic
2155.20], Passengers handled 341.05 Million [International 66.54& Domestic 274.51]
and the cargo handled 3328.63 thousand MT [International 2003.12 & Domestic
1325.51].
Passenger-Facilities
The main functions of AAI inter-alia include construction, modification & management
of passenger terminals, development & management of cargo terminals, development &
maintenance of apron infrastructure including runways, parallel taxiways, apron etc.,
Provision of Communication, Navigation and Surveillance which includes provision of
DVOR / DME, ILS, ATC radars, visual aids etc., provision of air traffic services,
provision of passenger facilities and related amenities at its terminals thereby ensuring
safe and secure operations of aircraft, passenger and cargo in the country.
Air-Navigation-Services
In tune with global approach to modernization of Air Navigation infrastructure for

seamless navigation across state and regional boundaries, AAI has been going ahead with
its plans for transition to satellite based Communication, Navigation, Surveillance and
Air Traffic Management. A number of co-operation agreements and memoranda of co-
operation have been signed with US Federal Aviation Administration, US Trade &
Development Agency, European Union, Air Services Australia and the French
Government Co-operative Projects and Studies initiated to gain from their experience.
Through these activities more and more executives of AAI are being exposed to the latest
technology, modern practices & procedures being adopted to improve the overall
performance of Airports and Air Navigation Services.
Induction of latest state-of-the-art equipment, both as replacement and old equipment’s

and also as new facilities to improve standards of safety of airports in the air is a
continuous process. Adoptions of new and improved procedure go hand in hand with
induction of new equipment. Some of the major initiatives in this direction are
introduction of Reduced Vertical Separation Minima (RVSM) in India air space to
increase airspace capacity and reduce congestion in the air; implementation of GPS and
Geo Augmented Navigation (GAGAN) jointly with ISRO which when put to operation
would be one of the four such systems in the world.
 Security
The continuing security environment has brought into focus the need for
strengthening security of vital installations. There was thus an urgent need to
revamp the security at airports not only to thwart any misadventure but also to
restore confidence of traveling public in the security of air travel as a whole,
which was shaken after 9/11 tragedy. With this in view, a number of steps were
taken including deployment of CISF for airport security, CCTV surveillance
system at sensitive airports, latest and state-of-the-art X-ray baggage inspection
systems, premier security & surveillance systems. Smart Cards for access control
to vital installations at airports are also being considered to supplement the efforts
of security personnel at sensitive airports.
 Aerodrome-Facilities
In Airports Authority of India, the basic approach to planning of airport facilities

has been adopted to create capacity ahead of demand in our efforts. Towards
implementation of this strategy, a number of projects for extension and
strengthening of runway, taxi track and aprons at different airports has been taken
up. Extension of runway to 7500 ft. has been taken up to support operation for
Airbus-320/Boeing 737-800 category of aircrafts at all airports.
 HRD-Training
A large pool of trained and highly skilled manpower is one of the major assets of
Airports Authority of India. Development and Technological enhancements and
consequent refinement of operating standards and procedures, new standards of
safety and security and improvements in management techniques call for
continuing training to update the knowledge and skill of officers and staff. For
this purpose AAI has a number of training establishments, viz. NIAMAR in
Delhi, CATC in Allahabad, Fire Training Centers at Delhi & Kolkata for in-house
training of its engineers, Air Traffic Controllers, Rescue & Fire Fighting
personnel etc. NIAMAR & CATC are members of ICAO TRAINER programmer
under which they share Standard Training Packages (STP) from a central pool for
imparting training on various subjects. Both CATC & NIAMAR have also
contributed a number of STPs to the Central pool under ICAO TRAINER
program. Foreign students have also been participating in the training program
being conducted by these institution
 IT-Implementation
Information Technology holds the key to operational and managerial efficiency,
transparency and employee productivity. AAI initiated a program to indoctrinate
IT culture among its employees and this is most powerful tool to enhance
efficiency in the organization. AAI website with domain
name www.airportsindia.org.in or www.aai.aero is a popular website giving a
host of information about the organization besides domestic and international
flight information of interest to the public in general and passengers in particular.
The functions of AAI are as follows:

 Design, Development, Operation and Maintenance of international and domestic
airports and civil enclaves.
 Control and Management of the Indian airspace extending beyond the territorial
limits of the country, as accepted by ICAO.
 Construction, Modification and Management of passenger terminals.
 Development and Management of cargo terminals at international and domestic
airports.
 Provision of passenger facilities and information system at the passenger
terminals at airports.
 Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway
etc.
 Provision of visual aids.
 Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar
etc.
AAI manages 137 airports, which include 24 International Airports (including 3
International Civil Enclaves), 10 Customs Airports (including 4 Customs Civil Enclaves),
80 Domestic Airports and 23 Domestic Civil Enclaves at Defense airfields. AAI also
provides Air Traffic Management Services (ATMS) over entire Indian Air Space and
adjoining oceanic areas with ground installations at all Airports and 25 other locations to
ensure safety of Aircraft operations.
All major air-routes over Indian landmass are Radar covered (29 Radar installations at 11
locations) along with VOR/DVOR coverage (89 installations) co-located with Distance
Measuring Equipment (90 installations). 52 runways are provided with ILS installations
with Night Landing Facilities at most of these Airports and Automatic Message
Switching System at 15 Airports.
AAI's successful implementation of Automatic Dependence Surveillance System
(ADSS), using indigenous technology, at Calcutta and Chennai Air Traffic Control
Centers, gave India the distinction of being the first country to use this advanced
technology in the South East Asian region thus enabling effective Air Traffic Control
over oceanic areas using satellite mode of communication. Use of remote controlled VHF
coverage, along with satellite communication links, has given added strength to our
ATMS. Linking of 80 locations by V-Sat installations shall vastly enhance Air Traffic
Management and in turn safety of aircraft operations besides enabling administrative and
operational control over our extensive Airport network. Performance Based Navigation
(PBN) procedures have already been implemented at Mumbai, Delhi and Ahmedabad
Airports and are likely to be implemented at other Airports in phased manner.
AAI has undertaken GAGAN project in technological collaboration with Indian Space
and Research Organization (ISRO), where the satellite based system will be used for
navigation. The navigation signals thus received from the GPS will be augmented to
achieve the navigational requirement of aircrafts. First Phase of technology
demonstration system has already been successfully completed in February 2008.
Development team has been geared up to upgrade the system in operational phase.
AAI has also planned to provide Ground Based Augmentation System (GBAS) at Delhi
and Mumbai Airports. This GBAS equipment will be capable of providing Category-II
(curved approach) landing signals to the aircrafts thus replacing the existing instrument
landing system in the long run, which is required at each end of the runway.
The Advanced Surface Movement Guidance and Control System (ASMGCS), installed at
Delhi, has upgraded operation to runway 28 from CAT-IIIA level to CAT-IIIB level.
CAT-IIIA system permits landing of aircrafts up to visibility of 200mtrs. However, CAT-
IIIB will permit safe landing at the Airports at a visibility below 200mtrs but above
50mtrs.
AAI's endeavor, in enhanced focus on 'customer's expectations', has evinced enthusiastic
response to independent agency, which has organized customer satisfaction surveys at 30
busy Airports. These surveys have enabled us to undertake improvements on aspects
recommended by the Airport users. The receptacles for our 'Business Reply Letters' at
Airports have gained popularity; these responses enable us to understand the changing
aspirations of Airport users. During the first year of the millennium, AAI endeavors to
make its operations more transparent and also make available the instantaneous
information to customers by deploying state-of-art Information Technology.
The specific training, focus on improving the employee response and the professional
skill up-gradation, has been manifested. AAI's four training establishments’ viz. Civil
Aviation Training College (CATC) - Allahabad, National Institute of Aviation
Management and Research (NIAMAR) - Delhi and Fire Training Centers (FTCs) at Delhi
& Kolkata are expected to be busier than ever before.
AAI has also undertaken initiatives to upgrade training facilities at CATC Allahabad and
Hyderabad Airport. Aerodrome Visual Simulator (AVS) has been provided at CATC
recently and non-radar procedural ATC simulator equipment is being supplied to CATC
Allahabad and Hyderabad Airport.
AAI is having a dedicated Flight Inspection Unit (FIU) and it has fleet of three aircrafts
fitted with latest state-of-art fully automatic flight inspection system capable of
inspecting.
 ILS up to Cat-III
 VOR (CVOR/DVOR)
 DME
 NDB
 VGSI (PAPI, VASI)
 RADAR (ASR/MSSR)
In addition to in house flight calibration of navy aids, AAI also undertakes flight
calibration of navy aids for Air force, Navy, Coast Guard and other private Airfields in
India.
2.1.2 AAI CARGO LOGISTICS AND ALLIED SERVICE COMPANY
LTD
The strong relationship between growth in international trade and logistics infrastructure
is widely acknowledged. As product life cycles have shortened and demand of rapid
delivery has increased, the demand of air cargo transportation has grown significantly
over the last few years. 35% of global trends moves by air in terms of value of goods,
which represents almost US 6.4 Trillion globally. Changing business environment where,
speed to market is a competitive imperative, movement of inventory is no longer viewed
as compartmentalized process.
In fast growing countries like India an efficient logistics infrastructure acts as an
economic catalyst contributing directly to the global competitiveness. . Indian market has
maintained its growth momentum both in terms of passengers and cargo traffic with the
rapid growth achieved in the recent years. India is poised to take big leap in
manufacturing sector with make in India initiative, for which development of
infrastructure and logistics play a vital role. Since its inception Airports Authority of
India has been pioneering the development of International cargo operations in the
country at various metro and non-metro airports. AAI has capability of handling needs of
express and general cargo with facilities for temperature sensitive cargo, perishable,
pharmaceutical and dangerous goods. Further to this Ministry of Civil Aviation is looking
forward for developing domestic air cargo in the country by setting up common user
domestic cargo terminals.
Keeping in mind the current economic boom, the importance of air cargo and its impact
on the overall economy of India, AAI proposed to demerge and corporatize the cargo
department into functionally and administratively independent organization, which is
professionally driven and responsive service enterprise. With a vision to become the
foremost integrated logistics network in India, AAI Cargo Logistics and Allied Services
Company Limited (AAICLAS) was incorporated on 11th August 2016. It will work as
multi modal interface linking air, surface & water transport. Thus becoming the largest
networked and fastest logistic solution provider company of India. AAICLAS will
promote, represent, organize, undertake, establish, conduct, handle, arrange, own,
operate, participate, facilitate, sponsor, encourage, and provide the business as Cargo
Terminal Operator, Free Trade Zone, Air Freight Station and Inland container depot for
cargo and passengers.
Company Profile
AAI Cargo Logistics & Allied Services Company Limited(AAICLAS) is a Public Sector
Undertaking incorporated on 11 August 2016. It is classified as Union Government
Company and is registered at Registrar of Companies, Delhi. Its authorized share capital
is Rs. 2,249,999,870 and its paid up capital is Rs. 250,000,000. It is involved in Business
activities n.e.c.AAI Cargo Logistics & Allied Services Company Limited's Annual
General Meeting (AGM) was last held on 27 December 2019 and as per records from
Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2019.
Directors of AAI Cargo Logistics & Allied Services Company Limited:

 Vandana Aggarwal,
 Vidya Vaidyanathan,
 Arvind Gaurishankar Singh,
 Anil Kumar Pathak.
AAI Cargo Logistics & Allied Services Company Limited's Corporate Identification
Number is (CIN) U74990DL2016GOI304348 and its registration number is 304348.
Its Email address is apil@aai.aero and its registered address is AAICLAS Complex Delhi
Flying ClubRoad,Safdarjung Airport, NewDelhi, SouthDelhi DL110003IN.
Current status of AAI Cargo Logistics & Allied Services Company Limited is - Active.
Company Details
CIN U74990DL2016GOI304348
Company Name AAI CARGO LOGISTICS & ALLIED SERVICES

COMPANY LIMITED
Company Status Active
RoC RoC-Delhi
Registration Number 304348
Company Category Company Limited by Guarantee
Company Sub Union Govt company

Category
Class of Company Public
Date of 11 August 2016

Incorporation
Age of Company 4 years, 10 month, 15 days
Activity Business activities n.e.c.

Director Name Designation Date of
Identification Appointment
Number
08013771 VANDANA AGGARWAL Nominee 20 March 2020

Director
08366688 VIDYA VAIDYANATHAN Nominee 07 March 2019

Director
02780573 ARVIND GAURISHANKAR Director 28 November

SINGH 2019
08213061 ANIL KUMAR PATHAK Nominee 11 September

Director 2018
2.2 Vision and purpose
The following are the vision or purpose of the industry and company.
2.2.1 AAICLAS
 To become the foremost Integrated Logistics network operator in India with

primary focus on Air cargo handling and allied services achieving
 1.25 million tons air cargo handled with a turnover of INR 7500 million
 And establishing 1 working Free Trade Warehousing Zone By 2022-23
 Brand equity enhanced through Trust, professionalism, Integrity, Respect and
Teamwork
2.2.2 AAI
 To be the pre-eminent Air Navigation Service Provider with global recognition
 To adopt state of art technology to drive navigation in the Indian airspace.
 To maintain highest standard of excellence in providing sustainable, modern and
robust airport infrastructure;
 Support in improving air connectivity at unserved and underserved airports;
 Have an effective organization equipped to face the emerging challenges from the
exponential air traffic growth
 Focus on profitable operations at major airports through continuing efforts on cost
reduction and enhancing non-aeronautical revenue.
2.2.3 AAI Cargo Logistics & Allied Services Company Limited
(AAICLAS) CORPORATE SOCIAL RESPONSIBILITY &
Sustainability POLICY (CSR) (As on 20 March, 2020)
This policy encompasses AAICLAS’s philosophy for delineating its responsibility as a
corporate citizen and lays down the guidelines and mechanism for undertaking socially
useful programmes for welfare & sustainable development of the community at large.
This policy shall apply to all CSR initiatives and activities taken up preferably in the
local area and around various workplace(s) and locations(s) of AAICLAS for spending
the amount earmarked for CSR. This Corporate Social Responsibility & Sustainability
Policy (CSR Policy) is in consonance with, the Guidelines on CSR for Central Public
Sector Enterprises issued by the Department of Public Enterprises, Government of India
(DPE Guidelines, 2014), the provisions of the Section 135 of Companies Act, 2013 (the
Act) and the Companies (CSR Policy) Rules, 2014 notified by Ministry of Corporate
Affairs, Government of India.
2.2.4 OBJECTIVES
The objectives of this policy are: -
 To establish and lay down the basic principles and general framework of action
for AAICLAS to undertake and fulfill its corporate social responsibility; -
 To identify the CSR thrust areas and projects or programs which AAICLAS plans
to undertake;
 Modalities of execution of such CSR projects or programs; -
 Monitoring process of such CSR projects or programs; -
 To make the stakeholders aware about CSR practices in AAICLAS;
 To work keeping in mind the larger objective of sustainable development in
conduct of business and in pursuit of CSR agenda.
.
2.2.5 CSR & Sustainability vision, mission
To sincerely & effectively discharge AAICLAS’s responsibility in the CSR thrust areas,
as identified by the Corporate Social Responsibility Committee / Board from time to
time.
CSR THRUST AREAS AAI Cargo Logistics & Allied Services Company Limited
(AAICLAS) is continuously working on providing a better tomorrow and is committed
towards holistic welfare of the society by undertaking CSR activities within the ambit of
Schedule-VII of the Act, as amended from time to time. However, thrust areas for CSR
activities will be:-
 Skill India: Imparting vocational skills w.r.t. Warehousing, Cold Chain
Solutions, Courier and Express Industry, E-Commerce, Air Cargo Handling
and Supply Chain Solutions.
 Healthy and Clean India: Promoting health care including preventing health
care and sanitation including contribution to the Swachh Bharat Kosh set-up
by the Central Government for the promotion of sanitation and making
available safe drinking water, maintain quality of soil, air and water including
contribution to the Clean Ganga Fund set-up by the Central Government for
rejuvenation of river Ganga.
 Responsible India: Rural Development Projects and Slum Area Development
Projects; For the purpose of Slum Area Development Projects, ‘slum area’
shall mean any area declared as such by the Central government or any State
Government or any other competent authority under any law for the time
being in force
 .  Heritage India: Protection of national heritage, art and culture, promotion
and development of traditional arts and handicrafts;
 Promotion Gender Equality: Empowering women, setting up homes and
hostels for women and orphans, setting up old age homes, day care centres
and such other facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward groups.
 Ensuring environmental sustainability: Ecological balance, conservation of
natural resources including waste management.
 Training to promote rural sports: National recognized sports and Olympic
sports.
 Contribution to funds provided to technology incubators located within
academic institutions which are approved by the Central Government.
 Disaster Management including relief, rehabilitation and reconstruction
activities.
 Flagship Government Programmes, to effect efficient synergies and enhanced
impact;
 Contribution to any fund set up by the Central Government for socio-
economic development and relief and welfare of the Schedule Castes, the
Schedule Tribes, other backward classes, minorities and women; In the above
thrust areas priority will be given to the under privileged, neglected and
weaker sections of the society.
AAICLAS shall give preference to the local areas for spending at least 75% of
the amount earmarked for CSR activities. The remaining amount may be utilized
beyond local areas. However, contribution(s) made to the Central Government
Schemes and/or any fund(s) set up by the Central Government for the aforesaid
CSR activities will be excluded while arriving 75:25 ratio. It is desirable that CSR
initiatives should be taken up in project mode, to the extent possible. Periodic
review of this policy shall be done to ensure its continued suitability, adequacy
and efficacy. The word “Local Areas” in this Policy would mean the District in
which the workplace(s) and location(s) of AAICLAS are situated and the districts
contiguous
2.3 Products and Services
AAI has drawn plans to upgrade ATM infrastructure in the country both in terms of
conditional provision of automation systems and upgradation of technology which also
involves shifting from ground based navigation to satellite based navigation.
2.3.1 ANS services
 Modernization of Air Traffic Services
At Mumbai and Delhi
Up gradation of automation systems to (Auto Track-Ill) with new Air Traffic Controller
assistance features such as Arrival Manager, Departure Manager, is almost complete and
is at various levels of testing prior to declaring operational.Advanced Surface Movement
Ground Control Systems (ASMGCS) added to improve efficient handling of Aerodrome
Traffic. Automatic dependent surveillance I CPDLC has enhanced the surveillance of
suitably equipped aircraft over the entire Flight Information Region.
At Hyderabad and Bangalore
Advanced integrated automation systems, that integrates state of the art Radars, flight
data processors, air situation display Advanced Surface Movement Ground Radars, have
been installed by SELEX Integrity for providing effective Air Traffic Management.
At Chennai / Kolkata
ATS modernization project is underway for replacing old Radars, surveillance systems by
the latest state of the art technology one par with Mumbai I Delhi to provide a common
platform for integration of the entire systems over Indian Airspace, which will effectively
increase Air Traffic capacity and bring synergy in ATS operations.
At Other Area Control Centers (Nagpur/ Varanasi/ Ahmedabad/ Trivandrum/

Mangalore)
Integration of Radar with flight data processors has been completed by ECIL in
collaboration with AAI for providing indigenous automation solutions for effective Air
Traffic Management within the designated airspace.
Initiatives to Enhance the Standards of AT

Performance Based Navigation: (PBN), Standard· Instrument Departures (SIDs) and
STARs (Standard Terminal Arrival Routes) have been introduced at Delhi, Mumbai,
Ahmedabad and Chennai order to reduce delays to aircraft. Established a number of ATS
Connector routes in Mumbai and Chennai airspace to facilitate PBN operations.
AAI has drawn the concept of future India Air Navigation (FIAN), and is on the
threshold of introducing Air Traffic Flow Management over busy routes, dedicated
helicopter routes, providing automation systems at 35 non metro control towers, and the
use of space based augmentation system (GAGAN).
2.3.2 CNS Services
Planning, procurement and commissioning of all Communication, Navigation &

Surveillance (CNS) facilities and support systems for air navigation based on short term
and long term requirements to synchronize the organizations plan with ICAO's approved
plans is managed by CNS Planning Department. Preparation of qualitative requirements
and system specifications in coordination with all concerned agencies / organizations,
preparation of estimates, invitation of tenders, tender evaluation of technical and
commercial bids, placement of orders factory inspection of equipment and its subsequent
installation and commissioning are the responsibilities discharged by the CNS Planning
Department. Conducting site surveys for equipment location, from technical and
operational suitability point of view, coordination with planning, civil and electrical
engineering departments for associated construction activities for installation and
commissioning, post installation performance checks and organizing flight calibration
before equipment commissioning are the aspects intrinsically involved in the process.
To meet the challenges posed by ICAO CNS ATM transition plans for SATCOM based
Air Traffic Management, the CNS Planning Department has already accomplished.
 Automatic Dependent Surveillance (ADS)
Automatic Dependent Surveillance (ADS) ADS has already been installed and
successfully tested for operations at Chennai, Kolkata, Delhi & Mumbai airports.
 SAT COM. Network
Implementation of a dedicated Sat.Com.Network amongst 80 airports all over India to

support data and voice communication, including remote controlled air ground VHF
communication to provide VHF coverage over the entire Indian air space, networking of
Radars and ATS data communications is in progress.
 Area Augmentation System
GAGAN, the space based augmentation systems for airspace has been taken up in
collaboration with ISRO. Initial technical demonstration phase has been successfully
completed & the total operational phase is schedule to be completed by 2013.
2.3.3 Airport Services

 Site selection/Technical Feasibility
 Topography Surveys, Cartography and Soil & pavement Investigation Facilities.
 Airport Obstruction Clearance Surveys.
 Air Traffic Forecasts & Normative Surveys.
 Airport Development Services
 Concept to commissioning service for new green filed airports
 Preparation of TOR.
 Preparation of DPRS.
 Mandatory ministry clearances.
 RFP for module implementation/Scrutiny /Award
 Airport Commercial Viability Studies/Airport Audit Services.
 Airport Master Planning.
 Designing, Evaluation & Construction of:
 Air Passenger Terminals/Air Cargo Terminals.
 Airport Pavements.
 Design of Aircraft Hangars and Supporting Infrastructure.
 Airport Electrical Installations/Approach and Night Landing Facilities.
 Remodeling, Modernization of Airports.
 Planning, Installation, Operation & Maintenance of:
 Radars, Navy Aids, Visual & Non-Visual Landing Aids and Com. Facilities.
 Air Space & Air Traffic Management, Air Route Re-Structuring
 Development of SIDS, STARS, IAL Procedures, Obstruction Charts.
 Planning & Design for Airport Fire Safety Services.
 Computerization
 Cargo Handling.
 Integrated Passenger Information System.
 Automatic Self Briefing System.
 Airport Terminal Information System.
 Air Traffic Management and Airlines Billing.
 Automatic Message Switching System.
 Training
 Air Traffic Controllers.
 Airport Air Side Management (Ground Flight Safety).
 Radar & Nav. Aids & Communication Equipment.
 Engineers.
 Airport Terminal Management.
 Airport Fire Services.
 Flight Calibration of Airport Ground Facilities
 Commissioning & routine flight check of RADAR System, VOR, DME, NDB,
ILS, VASI, PAPI etc.
2.3.4 Passenger facility

 Airport Audit
Annual performance audit of each individual airport has, in fact, been a regular feature in
the AAI. These are predominantly conducted by the departments themselves. Over the
years, specific people in each department have developed expertise on conducting airport
performance audits to highlight the systems change necessary to orient towards the
organisation's Mission and to achieve the annual goals set by the Borad of AAI.
AAI can quickly organize a team of experts from Planning, Engineering, Operations,
Commercial, Cargo and Corporate Planning & MS Deptt. To undertake airport audits for
specific areas of concern at any airport or for airport as a whole.
 Commercial
Economic viability of airports has assumed utmost importance and the trend to privatize
airports and make them economically self-sustained has gained worldwide momentum.
The capital intensive nature of airport establishment throws up challenges of
unprecedented magnitude to generate revenues to sustain operations and maintain
growth.
With limited scope for enhancement in traffic related revenue, the emphasis world over
has been to increase the non-traffic revenue by increased commercial exploitation of
available airport infrastructure, improved and competitive passenger shopping facilities,
advertisements etc. are subjects necessitating professionalism in managing commercial
aspect of an airport.
From non-traffic revenue of 10-15% of total AAI revenue in early 90s, the AAI has
moved to a regime of non-traffic revenue in the range of 20-30% of total revenue while
the British Airport Authority (BAA) generates 70% of its revenue from non-traffic
sources. Cargo revenue has seen a growth of almost 300% in last 5-6 years.
AAI has over the last 10 years or so developed a team of experts in the field of
commercial aspects and based on the experience gained, can provide assistance to other
airport operators in improving the financial viability of the airports.
Cargo
The Department of Cargo with 157 Professional Executives, with average of 10 years,
has grown gradually with establishment of Gateway Air Cargo Terminals at Kolkata
(1975), Chennai (1978) & Delhi (1986). The capacities have been augmented keeping
pace with air cargo growth.
The Integrated Air Cargo Terminal at Delhi provides for export/import transit cargo
handling facilities. The Cargo Management System here has been upgraded to a fully
computerized "On Line'' Integrated Cargo Management system with Electronic Data
Interchange (EDI) and Bar Coding Capabilities. The Cargo Management Systems at
Mumbai, Chennai & Kolkata are also computerized though not yet "On Line system''. At
Delhi, the Multi-level ETV system for handling loaded pallets & containers is being
augmented by an additional ETV system enhancing the present 284 slot capacity by
almost 50 per cent.
A perishable Cargo handling terminal with `Pre-cooling' chambers, independent
chambers for Fruits, Flowers, Frozen Products etc., has been in operation at Delhi. A
much bigger Perishable Cargo Terminal is planned at Mumbai Airport where perishable
cargo constitutes 40% of total air cargo.AAI Air Cargo Terminals provide for Truck
Docks, Strong Rooms, Live Animal Sheds, Hazardous Cargo Godown, Palletisation
Station, Offices for Airlines, Government Regulartory Agencies, Multi-model Cargo
Operators, Break Bulk Agents, Consolidators for ease of operation and user convenience.
To meet safety standards CCTV Systems, X-rays Scanners etc., are provided.The
gateway airport cargo terminals together are capable of handling One Million Tonnes of
import/export/transit cargo annually. Present capacity utilization is about 75%-80%.The
design and construction of all air cargo terminals has been undertaken by Planning &
Engineering Departments of AAI in liaison with Cargo Department. Feasibility study for
Air Cargo Terminal at Kathmandu, Nepal was undertaken by AAI. AAI is capable of
undertaking not only design, development and construction of cargo terminals, but also
management and operations.
2.4 Functional areas and networks
ORGANIZATION STRUCTURE-AAI
(As on 01-04-2021)
CHAIRMAN
ED CHIEF ED
AVIATION SAFETY VIGILENCE OFFICER PMQA/C
PMQA CA/CS
CHAIRMAN
1. MEMBER HR
 ED HR
 ED ADMIN
 DIRECTOR IAA
 ED COMMERCIAL/LM
 ED SIU/BDU
2. MEMBER FINANCE
 ED FINANCE I
 ED FINANCE II
 ED JVC/PPP/TARIFF
 MEMBER PLANNING
 ED ENGG NR
 ED ENGG WR
 ED ENGG HR
 ED ENGG ER
 ED ENGG NER
 ED ARCHITECT
 ED PLANNING
 RCS
3. MEMBER ANS
 ED CAP
 ED ATM
 ED ATM-ASM
 ED ATM –ATFM
 ED CNS-OM
 ED CNS PI
 ED CNS PII
 ED FIU RCDU
 CATC
4. MEMBER OPERATION
 ED OPERATION
 RED NR
 RED WR
 RED SR
 RED ER
 CIO
 RED NER
2.4.1 Airport Audit, Commercial And Cargo
Airport Audit Annual performance audit of each individual airport has, in fact,
been a regular feature in the AAI. These are predominantly conducted by the
departments themselves. Over the years, specific people in each department have
developed expertise on conducting airport performance audits to highlight the
systems change necessary to orient towards the organisation's Mission and to
achieve the annual goals set by the Borad of AAI. AAI can quickly organize a
team of experts from Planning, Engineering, Operations, Commercial, Cargo and
Corporate Planning & MS Deptt. To undertake airport audits for specific areas of
concern at any airport or for airport as a whole. Commercial Economic viability
of airports has assumed utmost importance and the trend to privatize airports and
make them economically self-sustained has gained worldwide momentum. The
capital intensive nature of airport establishment throws up challenges of
unprecedented magnitude to generate revenues to sustain operations and maintain
growth. With limited scope for enhancement in traffic related revenue, the
emphasis world over has been to increase the non-traffic revenue by increased
commercial exploitation of available airport infrastructure, improved and
competitive passenger shopping facilities, advertisements etc. are subjects
necessitating professionalism in managing commercial aspect of an airport. From
non-traffic revenue of 10-15% of total AAI revenue in early 90s, the AAI has
moved to a regime of non-traffic revenue in the range of 20-30% of total revenue
while the British Airport Authority (BAA) generates 70% of its revenue from
non-traffic sources. Cargo revenue has seen a growth of almost 300% in last 5-6
years. AAI has over the last 10 years or so developed a team of experts in the field
of commercial aspects and based on the experience gained, can provide assistance
to other airport operators in improving the financial viability of the airports.
Cargo The Department of Cargo with 157 Professional Executives, with average
of 10 years, has grown gradually with establishment of Gateway Air Cargo
Terminals at Kolkata (1975), Chennai (1978) & Delhi (1986). The capacities have
been augmented keeping pace with air cargo growth. The Integrated Air Cargo
Terminal at Delhi provides for export/import transit cargo handling facilities. The
Cargo Management System here has been upgraded to a fully computerized "On
Line'' Integrated Cargo Management system with Electronic Data Interchange
(EDI) and Bar Coding Capabilities. The Cargo Management Systems at Mumbai,
Chennai & Kolkata are also computerized though not yet "On Line system''. At
Delhi, the Multi-level ETV system for handling loaded pallets & containers is
being augmented by an additional ETV system enhancing the present 284 slot
capacity by almost 50 per cent. A perishable Cargo handling terminal with `Pre-
cooling' chambers, independent chambers for Fruits, Flowers, Frozen Products
etc., has been in operation at Dehi. A much bigger Perishable Cargo Terminal is
planned at Mumbai Airport where perishable cargo constitutes 40% of total air
cargo. AAI Air Cargo Terminals provide for Truck Docks, Strong Rooms, Live
Animal Sheds, Hazardous Cargo Godown, Palletisation Station, Offices for
Airlines, Government Regulartory Agencies, Multi-model Cargo Operators,
Break Bulk Agents, and Consolidators for ease of operation and user
convenience. To meet safety standards CCTV Systems, X-rays Scanners etc., are
provided. The gateway airport cargo terminals together are capable of handling
One Million Tonnes of import/export/transit cargo annually. Present capacity
utilization is about 75%-80%. The design and construction of all air cargo
terminals has been undertaken by Planning & Engineering Departments of AAI in
liaison with Cargo Department. Feasibility study for Air Cargo Terminal at
Kathmandu, Nepal was undertaken by AAI. AAI is capable of undertaking not
only design, development and construction of cargo terminals, but also
management and operations.
2.4.2 Overview of AAI managed Airports
 AIR CARGO COMPLEX, CHENNAI Airport,
The Cargo Terminal at Chennai Airport, was established on 1st February 1978 for
processing of import, export, transshipment cargo and unaccompanied luggage and
Spread over an area of 19.5 acres..
 Tonnage and Annual Handling Capacity:-
The existing covered area of cargo terminal in occupation of AAI is 58600Â Sqm and its
annual handling capacity is 11,02,373 MT
Tonnage Handled During the year 2013-14 2,20,401 MT
 Value Added Services:-
The Air Cargo Terminal is equipped with the Â Â modern cargo handling equipment
like Elevated Transfer Vehicle, forklifts, high mast stackers, Power hydraulic pallet
trucks etc. are used for handling cargo. A state of art Centre for flowers, fruits and
vegetables has been commissioned on 23.9.1999. Three wide-bodied aircrafts can be
parked simultaneously in an exclusive Cargo Apron. Cargo Terminal provides all range
of services & facilities, under one roof, at par with any international airport. AAI & AI
are the Custodian appointed by Customs. The import cargo of all the Airlines is handled
by AAI. The export and Import Cargo is being handled by AAI on behalf of the Airlines
through the SGHA appointed by AAI.
The Cargo Terminal has four wings for processing, Export Cargo, Import Cargo and
Unaccompanied Baggage (Import) besides Disposal Unit for disposal of unclaimed / un-
cleared cargo and Transhipment Cargo.
Assistance and additional information required, if any, may be sought from -
AAI-Duty Manager - Ph: 044-22564513, 044-22561645and
Customs PRO - Ph : 044-22564351

Cargo can be cleared either by self or by licensed Customs House Clearing Agent.
No demurrage charges are leviable on cargo if cleared within prescribed free period.
 AIR CARGO COMPLEX, NSCBI Airport, Kolkata
The International air cargo terminal at Kolkata Airport was the first air cargo terminal in
the country, which was commissioned on 5th October, 1975.
The international air cargo complex is located 1/2 km north of international terminal
building with well-connected road infrastructure for smooth functioning of air cargo
services.
 Tonnage and Annual Handling Capacity:
The total covered area of Air Cargo Terminal is 21,906 square meter
Annual holding capacity including transshipment is 3,80,987 MT.
Tonnage handled during the year 2013-14 129782 MT (84300 MT Domestic)
There are four parking bays exclusively for freighter fleet, which can accommodate up to
B-747 type of aircraft.
AAI has created this air cargo terminal with various facilities for processing air cargo in
the terminal building at par with any international airport.
All airline agencies and other agencies, which connected with the clearance and pre-
shipment formalities, are in-housed in the air cargo complex.
AAI was appointed as a Custodian of Import and Export cargo as per Custom notification
2/78 under section of 45 of Customs Act, 1962.
Most of the regulatory and facilitation were established under one roof.
The cargo terminal has three wings for processing of Export, Import cargo and
Unaccompanied Baggage (Import) besides Disposal Unit for disposal of unclaimed / un-
cleared cargo. Kolkata International Air Cargo Terminal provides air cargo services to
entire Eastern and Northern-Eastern region for transshipment cargo. In international
freight transactions it connects six regions in the world, which are enriched in global
market - South-Asian, South-East Asian Countries, Western Countries, Middle-East
Countries, Central Asia. Cargo could be cleared Â Â either by self or by a licensed
Customs House clearing Agents.
No demurrage charges are leviable on cargo if cleared within prescribed free period.
A Centre for Perishable Cargo with a handling capacity of 60 MT. is operational.
Assistance and additional information required, if any, may be sought from -
AAI-Duty Manager: Ph:91-33-39874405 Extn-4428

 AIR CARGO COMPLEX, COIMBATORE Airport
AAI, cargo complex commissioned w.e.f. 1.12.2001.

The total covered area of air cargo terminal is 3383 sqm
Annual holding capacity including transshipment is 31240 MT.
Tonnage handled during 2013-14: 7112 MT (6115 MT Dom. Cargo)
Walk-in type Cooler - 5 MT.- 1 No. Major commodities:Â
Export: Garments, Textiles, Spares, Castings, Tools & Equipments, Fruits, Vegetables &
Jewellery
Import: Garments, Accessories, Gold Bar, Un-accompanied baggage, Electronics Items,

Machinery components etc.
Full fledged Plant Quarantine office started functioning from Nov.,2013 onwards.
M/s Spice Jet & M/s Jet Airways opened office near Cargo Terminal exclusively for
cargo operations.
AAI has taken the Domestic cargo operations w.e.f.Â 05.4.2013 in a dedicated area near
International Cargo Terminal
 AIR CARGO COMPLEX, TRICHY Airport
AAI Cargo Terminal commissioned w.e.f 01-12-2011

Tonnage handled during 2013-14: 4751 MT
Tender action in progress for procurement of Walk-in type Cooler of 5 MT.- 1 No.
Major commodities:
Export:Â Vegetables, Flowers, Fruits, Fish, Leather garments, Household goods etc.
Import:Â Airline Store, Spare Parts etc.

Dedicated Air Cargo Customs set up available for Export & Import Clearance ;
Plant Quarantine available
X-Ray scanning\
Facilities for Perishable Cargo, Heavy cargo, Valuable Cargo, Hazardous cargo shed &
Weighing Scale are available
 AIR CARGO COMPLEX, MANGALORE Airport
Commisioned in March, 2013

 Tonnage and Annual Handling Capacity:
The total covered area:
International Cargo: 1400 sqm. One time handling capacity: 140 MT.
Domestic Cargo: 1094 sqm. One time handling capacity: 110 MT.
Tonnage handled during 2013-14 87 MT
Major Commodities:
Fresh Vegetable
Chilled Fish
Ornamental Fish
Cashew Nut
Flowers and Machinery Parts

 AIR CARGO COMPLEX, GUWAHATI Airport
Interim International Cargo Terminal commissioned in September 1999.
The total covered area of air cargo terminal is 150 sqmÂ
Tonnage handled during 2013-14: 36MT
Major Commodities: Mobile Phone, Garments, Glass Beads, Electronic items etc.
Walk-in Cooler- 2 MT. - 1 No.
 AIR CARGO COMPLEX, VEER SAVARKAR Airport, PORT BLAIR

Commissioned in Oct., 2010
Tonnage handled during 2013-14: 2687 MT(Domestic)
Cold Storage available
Major commodities:
Inbound: Electronics, Vegetables, Courier etc.
Outbound: Fish, Courier, Un-accompanied baggage

 AIR CARGO COMPLEX, LUCKNOW Airport
Interim Cargo Terminal commissioned in July, 2000, cold storage facility available.
Walk-in type Cooler -3 MT. - 1 No. Procurement process is on for 10 MT. Walk-in type
cooler
Major commodities:
Export: Chilled Meat, Flowers, Embroidered Fabric.
Import: Aircraft parts, Readymade garments, Un-accompanied baggage
 AIR CARGO COMPLEX, JAIPUR Airport

Domestic Cargo facility commissioned on 24.07.2013
The total covered area of air cargo terminal is 1500 square meter (Sterile Area: 400 sqm.)
Annual holding capacity is .. MT.
Tonnage Handled during 2013-14 6480 MT (Dom)
X-ray machines
Storage space
Cargo Two wheeler trolleys
Manpower (Sr. Manager 1, Manager 1, Supervisor 1)
Nos. of Airlines: 2 (Go Air, Indigo)
 AIR CARGO COMPLEX, GURU RAMDAS JEE Airport, AMRITSAR

Commissioned on 20.11.2004.
Cold Storage -1311 sqm. maintained by CVAHP
X-Ray machine available.
Major Commodites:
Export:Tobacco products, RMG, Sports Goods, Leather Goods, Engineering goods
Import: Airline stores, Engineering goods, un-accompanied baggage, medical equipment.
2.4.3 Airport Information’s
The Air Cargo Complex at Chennai Airport was established on 1st February 1978. It is
undertaking functions such as: Air Cargo Custodian related services for storage and
processing of both Import and Export cargo on behalf of the Customs. Cargo terminal
services for the airlines to facilitate both Export and Import operations. Provide customer
facilitation for exporters, importers and their representatives for freight forwarding and
Customs clearance of cargo including postal mail handing. Completely Air-Conditioned
Public Transaction Counter- cum -Waiting Area for Documentation works for Customs
House Agents.
Standard Canteen facility on 24 x 7 basis.
Medical facility for first aid 24 x 7 basis.
CCTV cameras surveillance at strategic locations.

Infrastructure Facilities Available. The Air Cargo Complex consists of two major
divisions which are Export Cargo Facility and Import Cargo Facility. Under the Phase-I
& II infrastructure for Export cargo operations and under Phase-III for Import cargo
operations were enhanced to meet the air cargo needs.
A. EXPORT CARGO FACILITY
The export facility consists of 17,828 Sqm. of modernized and mechanized terminal for
air cargo handling. The main features of export terminal include:
 02 Elevated Transfer Vehicles (ETVs) with 178 multilevel stackers for storage of
built up ULDs.
 18 mechanized embedded ULD "build up" positions with inbuilt UNIT load
weighing facility.
 Centre for Perishable Cargo (CPC) storage facility with a holding capacity of 40
MT.
 Strong Room and safe custody of Valuables.
 Separate storage facilities for dangerous and hazardous goods (DGR).
 10 X-ray scanning machines for scanning of export cargo.
 Embedded Electronic and manual weighing scale facilities.
 Availability of various types of cargo handling equipment.
 Scissors lifts for BUPs handling.
 Explosive Trace Detector (ETD)
 CCTV coverage at strategic locations.
 Cargo safety related signages displayed at all conspicuous points.
B. IMPORT CARGO FACILITY
The import facility consists of 42,000 Sqm. of covered area for storage and processing of
Import cargo. The major facilities available in import include:
 A temperature controlled cold storage consisting 03 chambers for storage of
perishable cargo such as Pharmaceuticals, Fruits, Vegetables, Meat, etc.
 Strong room for storage of Import valuable cargo.
 Separate isolated storage area for dangerous and hazardous Cargo (DG).
 Separate examination area for Un-Accompanied baggage unit equipped with
X-BIS.
 Adequate number of various cargo handling equipment such as trolleys, tow-
trucks, tractors, forklifts, etc.
 State of the art ASRS (Automated Storage and Retrieval System) having 8000
storage Bins with annual holding capacity of 5,84,000 MT spread out in an area of
6700 sqms. up to 17 meters in height.
 CCTV coverage at strategic locations.
 Cargo safety related signages displayed at all conspicuous points.
 New cold storage facility has been commissioned at Import Phase-III effective
from May 2014 which have a temperature of 0 – 10 Deg. C to store the Perishable
Cargo.
2.4.4 Working System of Air Cargo Operations
The cargo operations are managed through Integrated Cargo Management System
(ICMS) Software application got developed by AAI for conducting the Air Cargo
activities in an online mode. The system is integrated with 10G Oracle data base and
customer interface is provided through web-based EDI. In fact, the customer agents are
facilitated to do the online transactions with AAI from the comforts of their offices using
the web-based EDI without having the need to contact cargo complex counter.
Cargo Profile of Both Export and Import
Garments, leather and electronics constitutes the major export commodities, whereas,
electronics, machineries, automobile components, telecommunication equipment,
computer hardware, goods, etc. consists of major import commodities. As on date, on an
average 700 MT (Export 350 MT and Import 350 MT approximately) is being handled on
a daily basis at Chennai Air Cargo Complex depending upon the economic conditions in
the world economy.
Cargo Handling Equipment Available

A. Type of equipment used for cargo operations
 Forklift – 12 MT
 Tractor (Diesel)
 High Mast Stacker
 Hydraulic Pallet Trucks
 Tow Trucks
 Four Wheel Trolleys
 Two Wheel Trolleys
 Electronic Weighing Scales
 Manual Weighing Scales
 X-Ray Machines
 Balance stacker (to be added shortly)
B. Cargo Handling Agencies

 AAICLAS have taken over the export /Import cargo operations July, 2017 who
has been taking care of complete cargo ground handling services.
 AAI has drawn plans to upgrade ATM infrastructure in the country

both in terms of conditional provision of automation systems and
upgradation of technology which also involves shifting from ground
based navigation to satellite based navigation.
2.4.5 Modernization of Air Traffic Services

 At Mumbai and Delhi
Upgradation of automation systems to (Auto Track-Ill) with new Air Traffic Controller
assistance features such as Arrival Manager, Departure Manager, is almost complete and
is at various levels of testing prior to declaring operational. Advanced Surface Movement
Ground Control Systems (ASMGCS) added to improve efficient handling of Aerodrome
Traffic. Automatic dependent surveillance I CPDLC has enhanced the surveillance of
suitably equipped aircraft over the entire Flight Information Region.
 At Hyderabad and Bangalore
Advanced integrated automation systems, that integrates state of the art Radars,
flight data processors, air situation display Advanced Surface Movement Ground
Radars, have been installed by SELEX Integreti for providing effective Air
Traffic Management.
 At Chennai / Kolkata
ATS modernization project is underway for replacing old Radars, surveillance systems by
the latest state of the art technology one par with Mumbai I Delhi to provide a common
platform for integration of the entire systems over Indian Airspace, which will effectively
increase Air Traffic capacity and bring synergy in ATS operations.
 At Other Area Control Centers (Nagpur/ Varanasi/ Ahmedabad/ Trivandrum/

Mangalore)
Integration of Radar with flight data processors has been completed by ECIL in
collaboration with AAI for providing indigenous automation solutions for effective Air
Traffic Management within the designated airspace.
Initiatives to Enhance the Standards of AT
Performance Based Navigation: (PBN), Standard· Instrument Departures (SIDs) and STARs
(Standard Terminal Arrival Routes) have been introduced at Delhi, Mumbai, Ahmedabad and
Chennai order to reduce delays to aircraft. Established a number of ATS Connector routes in
Mumbai and Chennai airspace to facilitate PBN operations.
AAI has drawn the concept of future India Air Navigation (FIAN), and is on the
threshold of introducing Air Traffic Flow Management over busy routes, dedicated
helicopter routes, providing automation systems at 35 non metro control towers, and the
use of space based augmentation system (GAGAN).
2.4.6 Grievance redressal system of AAI for its clients in the Cargo
Department
The Help Desk at the Cargo Complex has been introduced by AAI to facilitate users of
cargo terminal in resolving their day to day problems / complaints / grievances
expeditiously at the airports. The grievances can be addressed in writing to the In-charge
at Air Cargo Complex(s) or Airport Director for prompt action and appropriate reply by
AAI therein. In case undue delay is experienced by any customer, the concerned duty
officer (available on round-the-clock), may be contacted for redressal of
grievance/complaint. Acknowledgement of written complaint within 2 working days and
respond to such communications within 15 working days of its receipt. Provide complaint
registers with the Duty Officers and suggestion boxes at conspicuous places at all Cargo
Terminals. Officials at the AAI Managed airports may be contacted on normal working
hours for registering complaints/grievances for contact details please Refer AAICLAS
web portal aaiclas-ecom.org/contact us :-
In case of non-redressal of grievances/complaints, the office of General Manager (Cargo)
at Hqrs, Delhi, may be contacted at Tel. No. 011-24657919, FAX No. 24657929.
Registration Process:
User has to fill up the physical registration form along with relevant documents and
submit to Airports Authority of India (AAI). AAI would ascertain the correctness of the
details submitted. Users are requested to fill valid E-Mail address and Phone Number(s)
in Registration form to enable AAI to perform further communications regarding User ID
and Password allocation. Users are requested to immediately change the password(s)
assigned by AAI.
Non Registered Users are not restricted from functionalities pertaining to Consignment
Status, Charges Calculation Estimate Sheet and Cargo Procedures. Same features are
available for registered users. In addition, Registered Users enjoy the privilege of
accessing functionalities related to Printing of Charge related Documents, Payment
transactions and Pre- Deposit account related statements.
2.4.7 AAI CSR POLICY
Airports Authority of India aims to achieve consolidate and strengthen good corporate
governance including socially and environmentally responsible business practices that
balance financial profit with social wellbeing.
AAI acknowledges that there are or can be expected and unintended outcomes and
impact of its core business which is to build and operationalize airports. Given the nature
of its work the primary impact is on the environment and communities in the immediate
vicinity of the airports. Therefore our inspiration and approach for CSR has been- to
bring empowerment opportunities for the underprivileged communities near our airports
in order to create an environment of inclusive growth.
Airports Authority of India (AAI) has been a socially responsible enterprise, taking a lead
to serve the society and is committed to enhance the quality of life of people from
marginalized sections of the society, especially those people who reside in proximity to
the airports. Though in recent years, it has not only adhered to areas near the airports but
expanded its reach to every nook and corner of our country. The CSR projects by AAI
are monitored centrally at the corporate headquarters but the execution takes place by the
officials posted at its various airports thereby enhancing employee engagement and
making them socially responsible. AAI is committed to gradually increase its expenditure
on Corporate Social Responsibility and contribute towards Nation Building. The
thematic/ programmer focus of the AAI’s CSR work includes, but is not limited to:
Education, including formal and informal education and vocational training that
contribute towards sustained income generation and self sufficiency
Health as an integral component of better quality of life with special focus on women and
girls.
Integrated community development that fill the gaps in the statutory resettlement and
rehabilitation programmers of the government and ensure that the quality of lives of
communities are positively impacted
Disaster Management including preparedness, capacity building as well as emergency
response leveraging core competency of the AAI in situations of disasters.
Environment conservation
The Department of Public Enterprises (DPE) has assigned the theme of “Healthcare and
Nutrition” as the theme of CSR projects for AAI in FY 2020-21. In FY 2019-20, the
themes assigned by DPE were of Education, Healthcare and Nutrition wherein AAI spent
around Rs 120 crores on various CSR projects in 25 states and UTs.
AAI is expanding its CSR activities to aspirational districts identified by NITI Aayog
which are highly under-developed. Though it runs programs in almost all verticals, the
main area of focus has been School Education, Healthcare and Nutrition. AAI has been
allocated 16 aspirational districts by DPE in various Indian states, and AAI has stepped
up its efforts towards development in these aspirational districts. It has a community
development project running in Ranchi in collaboration with United Nations
Development Program (UNDP). Recently, AAI also signed a MoA with District
Administration, Aurangabad in Bihar which is an aspirational district for updation of 55
Anganwadi Centres (AWCs). Apart from these two projects, AAI is building toilets in
government schools of Mamit (Mizoram) and Chandel (Manipur) both of which are
aspirational districts as well. Out of the CSR budget, AAI ensures to spend 60 % of it on
the theme decided by the Department of Public Enterprises (DPE).
2.4.8 CSR structure
Following Committees shall be overseeing all activities related to CSR & Sustainability
projects / programs undertaken by AAI and shall be responsible for planning,
implementation, monitoring and reporting of these projects / programs.
 Corporate social responsibility committee (board level csr committee)
The Board Level CSR Committee shall be comprised of three or more Directors, out of
which at least one shall be independent. The CSR Committee shall:-
(a) formulate and recommend to the Board, a Corporate Social Responsibility &
Sustainability Policy which shall indicate the activities to be undertaken by the Company
in areas or subject, specified in Schedule VII of the Companies Act, 2013;
(b) recommend the amount of expenditure to be incurred on the activities referred to in
clause (a) above; and
(c) monitor the Corporate Social Responsibility Policy of AAICLAS from time to time.
The composition of the CSR Committee shall be governed by the provisions of Section
135 of the Act read with the relevant rules made thereunder and the DPE Guidelines,
2014. Decision with regard to change in composition or reconstitution of the CSR
Committee shall be within the purview of the Board.
 Tier ii csr committee (chq level) tier ii committee shall:-
(a) Formulate criteria for selection of projects submitted by applicants keeping in view
the Act, AAICLAS’s Policy on CSR & Sustainability, DPE Guidelines, 2014 for CSR
and directions from CSR Committee & the Board;
(b) Review CSR proposals and submit a report to CSR Committee;
(c) Monitor the process and study impact of CSR programs / activities periodically, with
support from AAICLAS’s workplace(s) and locations(s);
(d) Approve the format of agreement and/or need based changes in the agreement format
(to be signed with the agency after approval of the project);
(e) Give suggestion(s) relevant to CSR programs/ activities whenever required.
Tier II CSR Committee (CHQ Level) shall be headed by Chief Operating Officer and
shall comprise of Chief Financial Officer, one officer from the ranks of
JGM(HR)/DGM(HR)/AGM(HR)/Mgr.(HR) and one Manager (Cargo) posted at CHQ. In
case there is more than one Manager (Cargo) posted at CHQ, any one of them will be
nominated by Chief Executive Officer with the approval of Chairman, AAICLAS.
In case of vacancy at the office of Chief Operating Officer/ Chief Financial Officer/
JGM(HR)/DGM(HR)/AGM(HR)/Mgr.(HR)/Manager (Cargo) posted at CHQ, any two
will form the Tier II CSR Committee (CHQ Level). In case of non-availability of Chief
Operating Officer due to absence or vacancy at the office of Chief Operating Officer,
Chief Financial Officer will head Tier II CSR Committee (CHQ Level). Decision with
regard to change in the composition or reconstitution of the Tier II CSR Committee
(CHQ Level) will be with the approval of the Chairman, AAICLAS.
 Funding & Allocation
As per the provisions of Section 135 of the Act, the Companies (CSR Policy) Rules,
2014 and the DPE Guidelines, 2014, two percent of the average net profits of AAICLAS
(to be calculated in accordance with the provisions of the Act) during the three
immediately preceding financial years will be allocated for CSR activities every year.
CSR budget for the relevant financial year computed as above shall be submitted to the
Board by the CSR Committee
. In case, the allocated amount could not be spent, the reasons for not spending the CSR
amount shall be disclosed in the Annual Report.
Further, the unspent CSR amount would not lapse and would instead be carried forward
to the next year for utilization for the purpose for which it was allocated, as far as
possible.
Any surplus arising out of the CSR projects or programs or activities shall not form part
of the business profits of AAICLAS.
Budget will be utilized for implementing CSR projects approved by the Board on an
annual basis. The budget allocation to the CSR Schemes shall be made in the beginning
of every financial year after considering the CSR budget for that year.
Capacity Building including Administrative Overheads In line with the Companies (CSR
Policy) Rules, 2014, and the DPE Guidelines, 2014 up to 5% of the AAICLAS’s CSR
expenditure of the year may be kept as a reserve for capacity building including
administrative overheads. This fund shall be utilized for capacity building of AAICLAS’s
CSR personnel, if any, as well as those of its implementing agencies (through Institutions
with established track record of at least three financial years), baseline survey & Impact
assessment and CSR staffs’ salary.
Baseline Survey/ Need Assessment Baseline/ need assessment survey is desirable prior to
the selection of any CSR project or program or activity. The expenditure on baseline/
need assessment survey shall be met from the administrative expenditure limit of 5% of
overall annual CSR budget.
Impact Assessment It is mandatory to get Impact Assessment study conducted by an
external agency/third party identified by AAICLAS for the CSR mega projects
undertaken within a reasonable time frame after completion. The time frame is to be
decided depending on the nature of work involved. Decision of head of Tire II CSR
Committee (CHQ Level), will be final in this regard. The third party will also evaluate
overall performance of the implementing agency and suggest improvements required, if
any, for future reference. CHQ may empanel qualified agencies and maintain their list to
conduct impact assessment for the completed projects aligned to them. The expenditure
on impact assessment study shall be met from the administrative expenditure limit of 5%
of overall annual CSR budget. “Mega Project” in this Policy would refer to be a project
where the total cumulative value of the project (whether or not extending over one or
more FYs) is more than Rs. 50 Lacs. However, contribution to the Prime Minister’s
National Relief fund or any other fund set up by the Central Government will be
excluded from the definition of the mega project even if value exceeds Rs. 50 Lacs.
Renewal/ Extension of ongoing CSR Projects Request for renewal of completed or
extension of ongoing CSR projects, submitted by specialized agencies having
recommendation of Tier II CSR Committee (CHQ Level), will be taken for review &
approval. CSR Budget will be utilized for such projects. Before a request of renewal of
project is raised, its impact assessment should be conducted and report to be submitted
along with the proposal. 4.2.5 Proposal through Registered Trusts/ Societies/ Govt.
Agencies etc. Proposals received from registered Trusts/ Societies (having established
track record of minimum three years in undertaking similar programs or projects)/ Govt.
Agencies/ CPSEs etc. will be considered for review depending upon availability of
budget during the year and on the merit of the proposal. Proposals received from Govt.
Agencies/ CPSEs will generally be given preference over that of Trusts/ Societies.
Implementing agencies will submit CSR proposals in thrust areas specified in the
AAICLAS’s CSR & Sustainability Policy and in the format provided by AAICLAS.
(Refer “Annexure A”) Proposals from only those NGOs (Registered Trusts / Societies)
will be entertained who fulfil the Criteria specified in “Annexure B”. Decision of
AAICLAS for acceptance or rejection of proposals will be final.
 Implementation, Monitoring & Reporting
Implementation CSR
Implementation & Sustainability activities may be implemented by AAICLAS itself or
through specialized and experienced agencies such as Government / Semi-Govt.
Organizations, Educational /Academic/ Autonomous Institutions, Non-Government
Organizations (NGO), Employee Volunteering Organizations, Trusts, Self Help Groups,
Professional Consultancy Organizations, Contracting Agencies etc. Advertisements /
Notices inviting CSR proposals may be published by AAICLAS through Print and/or
electronic media including displaying on AAICLAS’s website, if any. After approval of
the project, following points shall be followed during implementation:
 If a project under implementation entails installation of equipment/systems then the
possibility of sourcing the same from the AAICLAS’s concerned workplace/location may
be explored during finalization of the budget for that project;
 Agreement format and/or need based change(s) in agreement format without
compromising the interest of AAICLAS (to be signed with the agency) will require
approval of Tier II CSR Committee (CHQ Level) for CSR;
 Concerned AAICLAS’s workplace/location shall ensure monitoring, coordination and
supervision of the project during its implementation;
 The agreement with project implementing agency will be signed either by Chief
Operating Officer/Chief Financial Officer or such other person as authorized by the
Chairman, AAICLAS;  AAICLAS may dovetail/participate on a joint/collaborative
mode for any central/state government or any CPSE sponsored initiative. Provided that
such projects, programs, proposals are covered under the Thrust Areas for CSR activities
mentioned in this Policy.
Monitoring
Monitoring will be done to ensure timely completion of activities and to achieve
deliverables. Regular reviews would be done, wherein bottlenecks would be identified
and remedial measures would be taken. For all CSR & Sustainability projects/ activities,
close supervision and monitoring will be done through Tier II CSR Committee (CHQ
Level). Management Information Report in the prescribed format (as specified in
Annexure of the Companies (CSR Policy) Rules, 2014, enclosed as “Annexure – C”),
will be furnished by AAICLAS’s workplace/location to Tier II CSR Committee (CHQ
Level) every month and on half yearly basis. In addition, Regional Manager or
workplace/station head will submit status reports on need basis, as and when required.
After completion of the Project, concerned AAICLAS’s workplace/location shall ensure
that a detailed Project Completion report (covering all aspects of project implementation
from its inception up to its completion) is prepared and submitted by the implementing
agency in consultation with the concerned AAICLAS’s workplace/location.
Reporting
CSR & Sustainability activities undertaken by AAICLAS would be disseminated to the
stakeholders through AAICLAS’s Annual Report. The abovementioned report(s) and the
Policy for CSR & Sustainability may be made available in public domain by uploading
them on AAICLAS’s website. CSR & Sustainability initiatives may be communicated to
stakeholders through local/ national print & visual media, conferences, workshops and
other forums. Internal workshops, training, news bulletins, brochures, intranet etc. may
also be extensively used to create awareness about CSR & Sustainability initiatives,
among internal stakeholders.
 Sustainability Initiatives
Aims in taking many more initiatives at its workplaces/locations including the
following:-
 Air & Noise Pollution Control – Moving from fuel based equipment to battery operated
equipment. Usage of Rooftop of Cargo terminals to generate solar power for further
reduction in air pollution and carbon emission.
 Public Awareness – Promotion of Public Transport, All Environmental related days
such as World Environment Day, Earth Day, Ozone Day, etc., may be observed with total
support of the stakeholders.
 Continuous Environmental Quality Monitoring – Integrated online continuous
environmental monitoring station may be commissioned, third party environmental
quality monitoring may be done in and around the airports at regular intervals.
 Rain Water harvesting; Clean energy use; GHG emissions management; Green
Buildings etc. AAICLAS look forward to invest in technology and innovation that will
drastically change the future of energy consumption. The above initiatives will enable
AAICLAS to conduct its expecting businesses to engage in responsible activities that will
limit, as well as reduce their social, ethical, and environmental adverse impacts on society
and the community.
 Employee’s Co-Operation And Participation
Any CSR / Sustainability program must involve the employees in order to achieve
success. It is not enough for senior management to devise new ways to engage
stakeholders, to make these programs work; they must involve employees at all levels.
This means ensuring that everyone in AAI is informed about the CSR & Sustainability
policies and practices and are involved in implementing them. Management understands
that employees working at the AAICLAS’s locations/workplaces are well versed with the
societal / environmental concerns in the local areas and therefore, suggestions from the
employees are very important in identifying the appropriate CSR proposal(s). AAICLAS
Employees should be encouraged by way of recognition and/or other methods inviting
their suggestions in this regard.
 Miscellaneous Provisions
As clarified by the Ministry of Corporate Affairs vide General Circular no. 21/2014
dated June 18, 2014, CSR activities mentioned in Schedule-VII are to be interpreted
liberally. Further, one-off events such as marathons/ awards/ charitable contribution/
advertisement/ sponsorships of TV programmes etc. would not qualify as CSR activities.
The CSR projects or programs or activities that benefit only the employees of AAICLAS
and their families shall not be considered as CSR activities.
As per the DPE Guidelines, 2014 Sustainability initiatives will not be considered as CSR
activities as specified in the Companies (CSR Policy) Rules, 2014 and the expenditure
incurred thereon would also not constitute a part of the CSR spend. Nevertheless, CPSEs
are encouraged to take up such sustainability initiatives from their normal budgetary
expenditure as it would demonstrate their commitment to sustainable development.
AAICLAS may also collaborate with other CPSEs for undertaking projects or programs
or CSR activities in such a manner that the CSR Committees of the respective concerns
are in a position to report separately on such projects or programs in accordance with the
Companies (CSR Policy) Rules, 2014.
No amount out of CSR funds / budget shall be contributed to any political party, directly
or indirectly. 9. REVIEW OF THE POLICY The policy may be reviewed from time to
time and any changes, if necessary, be recommended by the Board Level CSR
Committee and approved by the Board.
2.5 SWOT Analysis
 Key Strengths And Weaknesses
While large land holdings, network of airports across the country, expertise in
providing air navigation services, consistent portability and financial resources, and
experienced manpower are the key strengths of AAI, low share of non-aeronautical
revenue, low growth of cargo business, skilled manpower shortage and training,
limited focus on MIS and marketing are its key weaknesses.
 Major Opportunities And Threats
AAI has exciting aspirations as it moves into a new era of development. AAI is
focusing on +ve priorities which are NCAP, RCS, AAICLAS, UAH & MRO that
will enhance its reputation and position on a global platform. Traffic is expected
to grow in the coming years and AAI has the opportunity to translate the
increasing passenger numbers into higher terminal revenues. Providing value
added services within the terminal, having retail capture at the airports, and
enhancing the food and beverage (F&B) setup at the airports are some of the
opportunities available to AAI. There has been significant growth over the past
Few years in the air cargo business and the trend is only likely to strengthen with
the growth of e-commerce and manufacturing industry. As discussed earlier AAI
operates (through AAICLAS) cargo terminals at its airports using both the
cooperation and maintenance and self-handling models, and is suitably placed to
capitalize on this potential growth in air cargo. AAI has access to large land
holdings that currently are not under operational use. Like other airport
Operators, AAI can monetize a part of its land holdings and exploit them for
commercial developments, MROs, etc. Such developments can help enhance
revenues and improve the overall passenger experience. Technology in airport
operations has changed over the years. Airports globally are adopting
State-of-the-art technology such as e-gates, mobile applications for customers,
automated storage and retrieval processes, radio frequency identification (RFID)
tags, etc., to improve operations, efficiency in passenger movement, improving
passenger experience, etc. Further, a number of airports have also implemented
data analytics tools to help them collect and analyses data to better understand
customer behavior and predict passenger behavior etc. This has helped airports
design and operate airports better and enabled them to optimize the retail / F&B
mix at airports to enhance revenues. Engaging with customer s, airlines and
Passengers, has become critical for airport growth. Globally, it is seen that
airports make significant efforts to connect and engage with their customers and
promote services and offerings through social media, marketing promotions at
Airports, organizing shopping festivals, etc. An effective marketing strategy can
help AAI promote new and existing services across businesses. AAI has
significant expertise in and is well recognized for its expertise in providing air
Navigation services. A number of countries in the South Asian region are known
to be not very advanced in terms of expertise available for air navigation services.
AAI can leverage its expertise to provide services such as consulting and
calibration of air navigation equipment to such countries. AAI also has vast
human capital having in-depth knowledge of airport planning and engineering,
airport development, and airport operations. AAI can leverage human capital to
Explore opportunities for providing services such as consulting, developing,
operating and managing airports outside the country, focusing on developing
countries (the South Asian, South-East Asian and African region). Reliance on
revenues beyond the control of AAI; Obligation to implement RCS; Competition
from other airport developers and operators; stricter environment & safety norms
and Terrorism are being considered as major threats. Also, Airport Industry is
highly Capital-intensive Industry and it takes much longer term to recover the
higher cost of capital, which has an impact on airport lease terms. This along with
Regulatory hurdles are also threats to AAI. A very less percentage of the
country’s total aircraft feet is presently deployed on regional routes. Unless
aircraft suited for regional routes by these routes in big numbers, the idea of
linking metros to non-metros would remain largely under achieved. More than
3/4th of the top 40-50% routes are connected only to metro airports, and for
UDAN to be successful, a concrete push with regard to aircraft suited for regional
routes needs to be made.
2.6 Future Growth and Prospectus
We may divide the risks and concerns in four major categories i.e. operational risks,
Strategic risks, financial risks and Compliance risks. Operational Risks – Hazardous
activities affecting safety, inadequate financial processes and IT back-up systems are
amongst the most typical operational risks within the Aviation industry. Other
Operational risks identified include potential degradation of service delivery standards
and maintenance challenges to aging facilities. Aviation industry is increasingly
dependent on technology in its operations, and if technology fails or if we are unable to
continue to invest in new technology, our business may be adversely affected.
Unforeseen disruptions to slow management including interruptions or disruptions in
service at one of hub airports could have a material adverse impact on our operations.
Further, we are at risk of losses and adverse publicity stemming from any accident
involving any aircraft. Insurance costs have increased substantially, and further increase
in insurance costs or reduction in coverage could have a material adverse impact on our
business and operating results. Aviation industry is dependent on the availability and
price of aircraft fuel. Significant disruptions in the supply of aircraft fuel or continued
periods of historically high fuel costs will materially adversely affect our industry.
Further, Employee strikes and other labor-related disruptions may adversely affect our
operations. Strategic risks like decisions related to pricing, development of airport
infrastructure (either new airports or expansion of existing airports), funding new
products or markets, entering into JV’s, alliance decisions would impact AAI’s growth
and provability. Compliance risks regard the adherence with external regulations and
legislations, and any non-compliance may lead to heavy penalties and above all loss of
reputation. Also, breach of contract, even though unintentionally, may bring legal
consequences impacting AAI. The aviation industry is subject to extensive government
regulation, and new regulations may increase our operating costs. We are facing
significant litigation(s), and if any such significant litigation is concluded in a manner
adverse to us, our financial condition and operating results could be materially adversely
affected. Financial risks - AAI’s operations are exposed to a variety of financial risks too
like credit risk, liquidity risk, interest rate risk and foreign currency risk. Aviation
industry is vulnerable to external factors, such as political tension and economic
conjunctures. Any negative development in geopolitical and economic environment may
adversely impact our operational and financial performance. AAI understands the
significance of risk management and its criticality for organization’s success and business
continuity. Thus, in AAI the Risk Management has been embedded in each function to
ensure its effective implementation. Furthermore, the decisions at every level including
Board level are taken considering the risk involved. Also, Audit function reports the
efficacy of risk management controls which helps the management in improving the
measures required to be taken in this regard.
2.6.1 Future initiatives:
 Remote ATC Tower:
Remote and Virtual Tower (RVT) is a new concept where the air traffic service at an
airport is performed at remote location then in the local control tower. Benefits
Remote Tower Solutions provide a smarter approach to air traffic control by
digitizing and integrating airport functions and provides the data AAI is planning to
set-up Remote ATC Tower at Bhavnagar Airport to control the Air traffic of nearby
Airports
 SITC of ASR-MSSR (06 Nos): -
AAI is planning to implement new ASR-MSSR (qty 03 Nis) at Navi Mumbai, Goa
(qty 01) Airport & also planning to replace outli ved ASR-MSSR at Bangalore &
Hyderabad Airport.
 SITC of ATC Automation system with ACSMGCS:
AAI is planning to implement new ATC Automation system with ACSMGCS at Navi
mumbai & Mopa(Goa) Airport & also planning to replace outlived ATC Automation
system with ASMGCS at Hyderabad, Bangalore & Mumbai airport.
 Supply of VHF Tx/Rx 598 Nos:-
AAI is planning to procure total 598 Nos of VHF Tx/RX.
 Supply of NDB: -
AAI is planning to 49 procure 24 Nos of NDB.
 SITC of FSTD at CATC, NIATAM
Gondia & Hyd (estimated cost: ` 49.21 Cr): AAI has oated a tender on CPP portal for
SITC of FSTD at CATC Paryagaraj, NIATAM Gondia & Hyderabad.
2.6.2 Central Maintenance Cell (CMC)
CMC is Administrative body of all SMUs. It implements policies for SMUs & provides
technical support to all SMUs like identi fication & procurement of tools & test
equipment’s. It also projects manpower & training requirement for SMUs. The following
are the achievements of the Cell during FY 2019-20: - 1. Establishment of new unit
ELDIS RADAR SMU for in-house repair and maintenance of modules/cards of ELDIS
RADAR (PSR &MSSR) installed all across the Indian Airports. 2. Specialized
Maintenance Unit (SMU) was inaugurated on 24 June 2019, for In a country Repair
Facility of ELDIS Radar. This in-house repair & maintenance facility helps in
minimizing downtime of ELDIS Radars and a fast turnaround-time (TAT) of faulty
modules. Online & on-site technical support also being provided to all ELDIS Radar
sites. This SMU provides component level repair support & service to 14 held stations
having ELDIS Radar at present. The approximate cost of this project was INR 30 Crores.
Notional Revenue Earned during the year is INR 19.141 Crores. At present, total 27
SMU’s are functional to provide component level repair support and service to CNS
facilities 3. Central Maintenance Cell organized the two days SMU Performance Review
Meet at Hyderabad on 27 & 28 February 2020. In this meet, in-charges of all SMUs
delivered presentation on their achievements, challenges ful filled, Research &
Development work, Cost saving analysis & bottlenecks observed by SMUs to achieve
their goals. Establishment of new SMUs for ADS-B, New VCCS, ASMGCS,
INTELCAN DME, New VHF & GBAS are proposed & will be established in future. To
enrich currently exi s ting SMUs with sophisticated tools & test equipment so that
exposure to new R&D activities may be bloom up as per ICAO standards.
CHAPTER-3
THEORATICAL FRAMEWORK & PRACTICES
3.1 The COVID-19
The COVID-19 pandemic, also known as the coronavirus pandemic, is an
ongoing global pandemic of coronavirus disease 2019 (COVID-19), which is caused
by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The virus was
first identified in December 2019 in Wuhan, China. The World Health
Organization declared a Public Health Emergency of International Concern on 30
January 2020, and later declared a pandemic on 11 March 2020. As of 24 June
2021, more than 179 million cases have been confirmed, with more than 3.89 million
confirmed deaths attributed to COVID-19, making it one of the deadliest pandemics
in history.
The severity of COVID-19 symptoms is highly variable, ranging from unnoticeable to
life-threatening. Severe illness is more likely in elderly COVID-19 patients, as well as
those who have underlying medical conditions. COVID-19 transmits when people
breathe in air contaminated by droplets and small airborne particles. The risk of
breathing these in is highest when people are in close proximity, but they can be
inhaled over longer distances, particularly indoors. Transmission can also occur if
splashed or sprayed with contaminated fluids, in the eyes, nose or mouth, and, rarely,
via contaminated surfaces. People remain contagious for up to 20 days, and can
spread the virus even if they do not develop any symptoms.
Recommended preventive measures include social distancing, wearing face masks in
public, ventilation and air-filtering, hand washing, covering one's mouth when
sneezing or coughing, disinfecting surfaces, and monitoring and self-isolation for
people exposed or symptomatic. Several vaccines have been developed and widely
distributed in most developed countries since December 2020.
Current treatments focus on addressing symptoms, but work is underway to develop
medications that inhibit the virus. Authorities worldwide have responded by
implementing travel restrictions, lockdowns and quarantines, workplace hazard
controls, and business closures. Numerous jurisdictions have also worked to
increase testing capacity and trace contacts of the infected.
The pandemic has resulted in significant global social and economic disruption,
including the largest global recession since the Great Depression of the 1930s.[9] It
has led to widespread supply shortages exacerbated by panic buying, agricultural
disruption, and food shortages. However, there have also been decreased emissions of
pollutants and greenhouse gases. Numerous educational institutions and public areas
have been partially or fully closed, and many events have been cancelled or
postponed. Misinformation has circulated through social media and mass media, and
political tensions have been exacerbated. The pandemic has raised issues of racial and
geographic discrimination, health equity, and the balance between public health
imperatives and individual rights.
3.2 Causes
Infection with the new coronavirus (severe acute respiratory syndrome coronavirus 2,
or SARS-CoV-2) causes coronavirus disease 2019 (COVID-19).The virus that
causes COVID-19 spreads easily among people, and more continues to be discovered
over time about how it spreads. Data has shown that it spreads mainly from person to
person among those in close contact (within about 6 feet, or 2 meters). The virus
spreads by respiratory droplets released when someone with the virus coughs,
sneezes, breathes, sings or talks. These droplets can be inhaled or land in the mouth,
nose or eyes of a person nearby.
In some situations, the COVID-19 virus can spread by a person being exposed to

small droplets or aerosols that stay in the air for several minutes or hours — called
airborne transmission. It's not yet known how common it is for the virus to spread this
way.It can also spread if a person touches a surface or object with the virus on it and
then touches his or her mouth, nose or eyes, but the risk is low.Some reinfections of
the virus that causes COVID-19 have happened, but these have been uncommon.
3.3 Risk factors
Risk factors for COVID-19 appear to include:
 Close contact (within 6 feet, or 2 meters) with someone who has COVID-19

 Being coughed or sneezed on by an infected person
3.4 Complications
Although most people with COVID-19 have mild to moderate symptoms, the disease

can cause severe medical complications and lead to death in some people. Older
adults or people with existing medical conditions are at greater risk of becoming
seriously ill with COVID-19.Complications can include:
 Pneumonia and trouble breathing

 Organ failure in several organs
 Heart problems
 A severe lung condition that causes a low amount of oxygen to go through your
bloodstream to your organs (acute respiratory distress syndrome)
 Blood clots
 Acute kidney injury
 Additional viral and bacterial infections
3.5 Prevention
The U.S. Food and Drug Administration (FDA) has given emergency use
authorization to some COVID-19 vaccines in the U.S. A vaccine can prevent you
from getting the COVID-19 virus or prevent you from becoming seriously ill if you
get the COVID-19 virus. Also, if you are fully vaccinated, you can return to many
activities you may not have been able to do because of the pandemic — including not
wearing a mask or social distancing — except where required by a rule or law.If you
haven’t had the COVID-19 vaccine, you can take many steps to reduce your risk of
infection. WHO and CDC recommend following these precautions for avoiding
exposure to the virus that causes COVID-19:
 Avoid close contact (within about 6 feet, or 2 meters) with anyone who is sick
or has symptoms.
 Keep distance between yourself and others (within about 6 feet, or 2 meters).
This is especially important if you have a higher risk of serious illness. Keep in
mind some people may have COVID-19 and spread it to others, even if they
don't have symptoms or don't know they have COVID-19.
 Avoid crowds and indoor places that have poor ventilation.
 Wash your hands often with soap and water for at least 20 seconds, or use an
alcohol-based hand sanitizer that contains at least 60% alcohol.
 Wear a face mask in indoor public spaces and outdoors where there is a high
risk of COVID-19 transmission, such as at a crowded event or large gathering.
Further mask guidance differs depending on whether you are fully vaccinated or
unvaccinated. Surgical masks may be used if available. N95 respirators should
be reserved for health care providers.
 Cover your mouth and nose with your elbow or a tissue when you cough or
sneeze. Throw away the used tissue. Wash your hands right away.
 Avoid touching your eyes, nose and mouth.
 Avoid sharing dishes, glasses, towels, bedding and other household items if
you're sick.
 Clean and disinfect high-touch surfaces, such as doorknobs, light switches,
electronics and counters, daily.
 Stay home from work, school and public areas if you're sick, unless you're going
to get medical care. Avoid public transportation, taxis and ride-sharing if you're
sick.
If you have a chronic medical condition and may have a higher risk of serious illness,
check with your doctor about other ways to protect yourself.
3.6 Impact of Covid-19 on Indian economy
The impact of coronavirus pandemic on India has been largely disruptive in terms of
economic activity as well as a loss of human lives. Almost all the sectors have been
adversely affected as domestic demand and exports sharply plummeted with some
notable exceptions where high growth was observed. An attempt is made to analyze
the impact and possible solutions for some key sectors.
3.6.1 FOOD & Agriculture

Since agriculture is the backbone of the country and a part of the government
announced essential category, the impact is likely to be low on both primary
agricultural production and usage of agro-inputs. Several state governments have
already allowed free movement of fruits, vegetables, milk etc. Online food grocery
platforms are heavily impacted due to unclear restrictions on movements and
stoppage of logistics vehicles. RBI and Finance Minister announced measures will
help the industry and the employees in the short term. Insulating the rural food
production areas in the coming weeks will hold a great answer to the macro impact of
COVID-19 on Indian food sector as well as larger economy.
3.6.2 AVIATION & TOURISM
The contribution of the Aviation Sector and Tourism to our GDP stands at about 2.4%
and 9.2% respectively. The Tourism sector served approximately 43 million people in
FY 18-19. Aviation and Tourism were the first industries that were hit significantly by
the pandemic. The common consensus seems to be that COVID will hit these
industries harder than 9/11 and the Financial Crisis of 2008. These two industries
have been dealing with severe cash flow issues since the start of the pandemic and are
staring at a potential 38 million lay-offs, which translates to 70 per cent of the total
workforce. The impact is going to fall on both, White and Blue collar jobs. According
to IATO estimates, these industries may incur losses of about 85 billion Rupees due to
travel restrictions. The Pandemic has also brought about a wave of innovation in the
fields of contactless boarding and travel technologies.
3.6.3 TELECOM
There has been a significant amount of changes in the telecom sector of India even
before the COVID 19 due to brief price wars between the service providers. Most
essential services and sectors have continued to run during the pandemic thanks to the
implementation of the ‘work from home’ due to restrictions. With over 1 billion
connections as of 2019, the telecom sector contributes about 6.5 per cent of GDP and
employs almost 4 million people. Increased broadband usage had a direct impact and
resulted in pressure on the network. Demand has been increased by about 10%.
However, the Telco’s are bracing for a sharp drop in adding new subscribers. As a
policy recommendation, the government can aid the sector by relaxing the regulatory
compliances and provide moratorium for spectrum dues, which can be used for
network expansions by the companies.
3.6.4 PHARMACEUTICALS
The pharmaceutical industry has been on the rise since the start of the Covid-19
pandemic, especially in India, the largest producer of generic drugs globally. With a
market size of $55 billion during the beginning of 2020, it has been surging in India,
exporting Hydroxychloroquine to the world, esp. to the US, UK, Canada, and the
Middle-East.
There has been a recent rise in the prices of raw materials imported from China due to
the pandemic. Generic drugs are the most impacted due to heavy reliance on imports,
disrupted supply-chain, and labour unavailability in the industry, caused by social
distancing. Simultaneously, the pharmaceutical industry is struggling because of the
government-imposed bans on the export of critical drugs, equipment, and PPE kits to
ensure sufficient quantities for the country. The increasing demand for these drugs,
coupled with hindered accessibility is making things harder. Easing the financial
stress on the pharmaceutical companies, tax-relaxations, and addressing the labour
force shortage could be the differentiating factors in such a desperate time.
3.6.5 OIL & GAS
The Indian Oil & Gas industry is quite significant in the global context – it is the
third-largest energy consumer only behind USA and Chine and contributes to 5.2% of
the global oil demand. The complete lockdown across the country slowed down the
demand of transport fuels (accounting for 2/3rd demand in oil & gas sector) as auto &
industrial manufacturing declined and goods & passenger movement (both bulk &
personal) fell. Though the crude prices dipped in this period, the government
increased the excise and special excise duty to make up for the revenue loss,
additionally, road cess was raised too. As a policy recommendation, the government
may think of passing on the benefits of decreased crude prices to end consumers at
retail outlets to stimulate demand.
3.7 BEYOND COVID-19: THE NEW NORMAL
In view of the scale of disruption caused by the pandemic, it is evident that the current
downturn is fundamentally different from recessions. The sudden shrinkage in
demand & increased unemployment is going to alter the business landscape. Adopting
new principles like ‘shift towards localization, cash conservation, supply chain
resilience and innovation’ will help businesses in treading a new path in this uncertain
environment
3.8 Impact of COVID-19 on people's livelihoods, their health and our

food systems
The COVID-19 pandemic has led to a dramatic loss of human life worldwide and
presents an unprecedented challenge to public health, food systems and the world of
work. The economic and social disruption caused by the pandemic is devastating: tens
of millions of people are at risk of falling into extreme poverty, while the number of
undernourished people, currently estimated at nearly 690 million, could increase by
up to 132 million by the end of the year.
Millions of enterprises face an existential threat. Nearly half of the world’s 3.3 billion
global workforce are at risk of losing their livelihoods. Informal economy workers are
particularly vulnerable because the majority lack social protection and access to
quality health care and have lost access to productive assets. Without the means to
earn an income during lockdowns, many are unable to feed themselves and their
families. For most, no income means no food, or, at best, less food and less nutritious
food.
The pandemic has been affecting the entire food system and has laid bare its fragility.
Border closures, trade restrictions and confinement measures have been preventing
farmers from accessing markets, including for buying inputs and selling their produce,
and agricultural workers from harvesting crops, thus disrupting domestic and
international food supply chains and reducing access to healthy, safe and diverse
diets. The pandemic has decimated jobs and placed millions of livelihoods at risk. As
breadwinners lose jobs, fall ill and die, the food security and nutrition of millions of
women and men are under threat, with those in low-income countries, particularly the
most marginalized populations, which include small-scale farmers and indigenous
peoples, being hardest hit.
Millions of agricultural workers – waged and self-employed – while feeding the

world, regularly face high levels of working poverty, malnutrition and poor health,
and suffer from a lack of safety and labour protection as well as other types of abuse.
With low and irregular incomes and a lack of social support, many of them are
spurred to continue working, often in unsafe conditions, thus exposing themselves and
their families to additional risks. Further, when experiencing income losses, they may
resort to negative coping strategies, such as distress sale of assets, predatory loans or
child labour. Migrant agricultural workers are particularly vulnerable, because they
face risks in their transport, working and living conditions and struggle to access
support measures put in place by governments. Guaranteeing the safety and health of
all agri-food workers – from primary producers to those involved in food processing,
transport and retail, including street food vendors – as well as better incomes and
protection, will be critical to saving lives and protecting public health, people’s
livelihoods and food security.
In the COVID-19 crisis food security, public health, and employment and labour
issues, in particular workers’ health and safety, converge. Adhering to workplace
safety and health practices and ensuring access to decent work and the protection of
labour rights in all industries will be crucial in addressing the human dimension of the
crisis. Immediate and purposeful action to save lives and livelihoods should include
extending social protection towards universal health coverage and income support for
those most affected. These include workers in the informal economy and in poorly
protected and low-paid jobs, including youth, older workers, and migrants. Particular
attention must be paid to the situation of women, who are over-represented in low-
paid jobs and care roles. Different forms of support are key, including cash transfers,
child allowances and healthy school meals, shelter and food relief initiatives, support
for employment retention and recovery, and financial relief for businesses, including
micro, small and medium-sized enterprises. In designing and implementing such
measures it is essential that governments work closely with employers and workers.
Countries dealing with existing humanitarian crises or emergencies are particularly

exposed to the effects of COVID-19. Responding swiftly to the pandemic, while
ensuring that humanitarian and recovery assistance reaches those most in need, is
critical.
Now is the time for global solidarity and support, especially with the most vulnerable
in our societies, particularly in the emerging and developing world. Only together can
we overcome the intertwined health and social and economic impacts of the pandemic
and prevent its escalation into a protracted humanitarian and food security
catastrophe, with the potential loss of already achieved development gains.
We must recognize this opportunity to build back better, as noted in the Policy

Brief issued by the United Nations Secretary-General. We are committed to pooling
our expertise and experience to support countries in their crisis response measures and
efforts to achieve the Sustainable Development Goals. We need to develop long-term
sustainable strategies to address the challenges facing the health and agri-food sectors.
Priority should be given to addressing underlying food security and malnutrition
challenges, tackling rural poverty, in particular through more and better jobs in the
rural economy, extending social protection to all, facilitating safe migration pathways
and promoting the formalization of the informal economy.
We must rethink the future of our environment and tackle climate change and
environmental degradation with ambition and urgency. Only then can we protect the
health, livelihoods, food security and nutrition of all people, and ensure that our ‘new
normal’ is a better one.
The COVID-19 outbreak has triggered a world economic disruption of significant

magnitude with an escalating pace, resulting in steep recessions in many countries.
The COVID-19 pandemic has caused an unprecedented global economic impact at an
astonishing rate, leading to rapid economic downturns in many countries. Despite
exceptional policy support, the baseline forecast envisages a 5.2 percent decline in
global Gross domestic product (GDP) in 2020, the deepest global recession in eight
decades. With the widespread social-distancing initiatives, sharp contractions of
financial conditions, a slip down in foreign demand depress activity is observed.
Advanced economies are expected to shrink by 7 percent. In 2020,
Emerging Markets and Developing Economies (EDME) GDP was predicted to
contract by 2.5 percent. News findings present a dismal picture of the number of
affected supply chains. With more than 90% of EMDEs indicated to encounter per
capita income contractions this year, several thousands of people are likely to slip
back into poverty. The global economy is undoubtedly lead to a halt with the outbreak
of coronavirus.(1)
3.9 The economics of the pandemic: shocks and
spillovers
 Demand shortfalls – Although initiatives adopted by the government,
consumers, and enterprises to minimize social interaction have been crucial in
reducing the spread of the virus; economic activity has dramatically disrupted
in the first half of the year, losing a significant share of private consumption
involving social interaction. In several model-based projections of the
pandemic’s impact, declining consumption of goods and services has been
critical drivers of lost production.
 Disruption in supply: According to the ILO, labour supply has decreased due
to travel and human interaction restrictions, employees’ and family members’
illnesses, and school closures. Staff employed at home have been encouraged
or advised to do so in many nations. Still, in EMDEs, fewer jobs can be
performed remotely than in advanced economies, partially due to more
restricted internet access. Operational challenges for companies have been
caused by delays in input deliveries and limited access to finance,
compounded by increased reliance on global supply chains.
 Global spillovers to EMDEs: These disruptive demand and supply
fluctuations have resulted in multi-channel cross-border spillovers of EMDEs-
real channels, including disturbances in global trade, supply chains, travel,
tourism, and financial media, including steep declines remittance flows and
massive outflows of capital amid a March flight to protection. The sudden
drop in demand, and with oil the most affected, has depressed commodity
prices. By plunging confidence and confusion, these cross-border spillovers
have been exacerbated.
3.10 Impact on GDP
According to IMF 2020 estimates, global GDP growth for 2020 was projected to be
1.6 percent, a figure that was 2.9 percent in 2019. The United Nations Conference on
Trade and Development estimated that the virus’s spread 2020 could cost the global
economy up to $2 trillion. The pandemic could cause a recession in some countries,
causing global economic growth to fall below 2.5%. Ever since 1870, the global
economy has experienced 14 global recessions. Current projections suggest that the
worldwide recession of COVID-19 would be the fourth deepest and most extreme
since the Second World War during this time. It is estimated that per capita output
contractions are involved in an unprecedentedly high proportion of countries.
3.11 Impact of pandemic on primary, secondary and tertiary sectors
3.11.1 Primary sectors:
 Agriculture: A global market downturn for hotels and restaurants has seen
agricultural product prices plunge by 20 percent in 2020. The supply chains
have failed to operate accurately, and vast amounts of food have started to be
wasted, resulting in substantial losses for Indian farmers.
 Petroleum and oil: The oil-price war is expected to have significant
consequences for the global economy in the light of the pandemic, which is
already dampening oil demand.
3.11.2 Secondary sectors:
 Manufacturing industry: Due to the instability of supply chains and self-
isolation policies, import problems and personnel shortages stood out as the
main challenges for companies.
3.11.3 Tertiary sectors:
 Education: UNESCO reports that the closing of educational institutions has
impacted up to 900 million students. COVID-19 has affected social mobility,
with schools no longer being able to afford free school meals, social exclusion,
and school dropout rates for children from low-income families.
 Healthcare: For healthcare systems worldwide, the COVID-19 pandemic has
caused an unparalleled problem. One of the most significant drawbacks in
healthcare systems worldwide is the risk to healthcare staff.
 Pharmaceutical industry: Opportunities have concurrently arisen for
companies involved in vaccine and drug production.
 Hospitality, tourism, and aviation: Currently, the tourism sector is one of the
hardest hit by the COVID-19 outbreak, affecting travel supply and demand.
The World Travel and Tourism Council have warned, as a direct consequence
of COVID-19, which 50 million jobs in the global travel and tourism sector
could be at risk. It is projected that if the COVID-19 pandemic continues into
the second quarter of 2020, Vietnam’s tourist industry will experience a
$5billion loss. The Asia Pacific Aviation Centre (CAPA) has assessed that the
Indian aviation industry will report staggering losses worth almost $4 billion
this year.
Although in 2021, current vaccine arrangements have raised expectations of a
turnaround concerning the economic impact later this year. However, renewed surges
as well as the new variants of the virus pose problems for the viewpoint. Amid the
sparse uncertainty, the global economy is forecasted to rise 5.5% in the year 2021 and
to 4.2% in 2022.
In 2019, the global logistics market recorded 1.2% in export trade volume growth due
to the sluggish global economy, geopolitical uncertainties, trade disputes, and
environmental regulations. In Q1 2020, the COVID-19 outbreak reversed the growth
change in every section of the economy, including the global supply chain.
Additionally, as economies across the globe are actively focusing on containing the
outbreak, the global supply chain and trade is taking a severe hit owing to a rapid drop
in global investment flow.
The global maritime industry has been affected by the COVID-19 outbreak, both
directly and indirectly. Slumping manufacturing confidence and declining demand for
raw materials and commodities are increasing the ambiguity for the ocean freight &
transportation market. Stringent containment actions imposed by government bodies
across the world and protective measures to lessen the outbreak impact have led to
declined cargo volumes and trade across ports in North Europe and the West US.
China accounts for two-thirds of the top 10 busiest ports across the world and is
responsible for more than 40% of the maritime trade in the world. The lockdown in
the country has resulted in supply deficiencies as the pandemic is taking a toll on
several global maritime segments from container lines to oil tankers. The drop in
cargo volume has led to increased carrier service delays and cancellations.
Considering the uncertain market situation, this trend is anticipated to continue to
cause demand/supply imbalance. If the situation persists, carriers are likely to opt for
substantial capacity reduction actions, which is expected to impact the fleet-order
The airfreight segment of the logistics market has been a crucial partner in ensuring
that the global supply chain remains effective for important and time-bound
shipments. As the COVID-19 outbreak has spread across the world, many air carrier
companies have grounded their fleets owing to travel restrictions and reducing
demand. Air cargo demand fell by 3% year-on-year in the first two months of 2020
due to the COVID-19 crisis. This deterioration has been partially offset by augmented
demand for air shipments of crucial relief supplies and other transitional goods. The
air carrier companies based in the US, South Korea, and countries in Europe have
begun offering their idled aircraft and passenger jets to transport food supplies and
medical/pharmaceutical essentials across important international freight centers.
Government bodies are likely to eliminate economic barriers and terminal slot
limitations for air cargo actions, ensuring the flow of sensitive and essential goods.
Apart from the factors mentioned above, consumer purchasing behavior sentiments
are also expected to impact the overall logistics market as people are not willing to
invest in any business deals owing to limited per capita income and fear of market
fluctuations. Thus, considering the current scenario, logistics services are not
expected to remain affordable for the stakeholders
The coronavirus pandemic has severely impacted the logistics sector, both in India
and globally, as marketplayers say that global capacity has gone down 70 per cent and
freight rates have shot up by 6-8 per cent.
Further, in India, with the 21-day lockdown, the sector is likely to see much more
hardships.
Ambrish Kumar, Founder, Logycode Tech Solutions Private Ltd, was of the view that
although the lockdown was necessary, the flip-side of the lockdown measure has also
caused a kind of mess for most of the businesses. The logistics and supply chain
sectors are also impacted, he added.
"With the closure of international flights, the belly capacity reduction has impacted
the movement of the cross-border trade by air. Only cargo aircraft are operating," he
said.
"The overall capacity has gown down by almost 70 per cent. This has led to global
freight rates shooting almost 6-8 times from the usual. This is expected to further
increase as the global supplies need to be replenished through trade and the demand
will only increase," Kumar told IANS.
He said that due to the lockdown, movement of essential commodities such as
medicines, medical goods, vaccines and drugs, medical equipment, hand sanitizers
and perishables, including their import and export, are also impacted as there is a
shortage of manpower at airports and seaports.
Further, the road transporters are unable to get the goods from the manufacturing units
to the ports due to the closure of state borders, affecting first and last-mile
connectivity. Other most-traded commodities such as garments, automotive parts,
leather products, home furnishings, and handicrafts are not moving at all.
"In a nutshell, the demand and supply gap has increased a lot," he said.
Rajesh Neelakanta, Executive Director & CEO of BVC Logistics, was of the view
that although on paper, the logistics industry dealing with food products, pharma and
medical equipment among other essential items are allowed to operate, things are not
really the same on the ground.
"In some cities, the authorities have clamped down on all kinds of movement, while
in most others, restrictive movement is allowed, which is still acceptable," he said.
Neelakanta noted that livelihood of a major portion of the logistics industry is
impacted and the industry is facing a huge employment loss situation during and in
the immediate aftermath of the lockdown.
A report by Clickpost and Shadowfax shows that the demand in the e-commerce
segment has increased in pharma, beauty and electronic items while that of apparels
has declined.
It said the number of stuck shipments has increased by 9 per cent and order delays
have increased by 21 per cent. The report showed on March 23, return-to-origin
reached a record high of 230 per cent.
The report noted that companies could make a plan for alternative fulfillment
locations in case a few warehouse locations become unserviceable, and a completely
touchless delivery process can be created using technology.
Sector players have also sought support from the government to tide over the difficult
times.
Kumar of Logycode Tech Solutions said that regarding the vendor payments, like that
of the airlines, shippinglines and other vendors, a deferral needs to be extended for at
least three months as the flow of money is hugely affected.
"In addition, to ensure the employees are given their salaries, it is suggested if the
government can insist on banks assist with 50 per cent of the salaries for some time.
BVC Logistics' CEO Neelakanta said that fuel prices, which form a key element of
the sector' operating cost, should be reduced.
"Fuel prices, a key element of our operating costs, should most certainly be reduced
for the next one year as the global crude prices are perhaps at an all-time low, in these
past couple of decades or perhaps more. In the general public interest, the OMCs (oil
marketing companies) can sustain a no-profit situation for a few quarters,a he said.
3.12 Impact on logistic industries
Logistics companies connect firms to markets by providing various services,
including multimodal transportation, freight forwarding, warehousing, and inventory
management. They are important for global manufacturing, which is complex and
multilocational. Apple’s iPhone, for example, uses components from more than 200
suppliers in 43 countries. As a result, today’s global value chains require greater
resilience and efficiencies in the flow of goods between and within countries. These
can be achieved by firms outsourcing their logistics functions to third-party logistics
services providers, especially those with integrated, end-to-end solutions capabilities.
The relationship between logistics performance and higher incomes (Figure 1)
demonstrates the sector’s contribution to productivity and economic development.
The cost of logistics as a percentage of GDP can be up to 25 percent in some
developing economies—as compared to 6–8 percent in OECD countries. Better
efficiency in the sector can, therefore, boost competitiveness and stimulate economic
growth in emerging markets.
The impact of COVID-19 was first felt in China due to the role it plays in global
manufacturing (with Wuhan, the epicenter of the pandemic, playing a particularly
significant role—more than 200 of Fortune Global 500 Firms have a presence there).
China is also a major consumer of global commodities and agricultural products.
Disruptions to manufacturing in China rippled through global supply chains. Cargo
was backlogged at China’s major container ports, travel restrictions led to a shortage
of truck drivers to pick up containers, and ocean carriers canceled (or blanked)
sailings. The resulting shortage of components from China impacted manufacturing
operations overseas. Major industries around the world, including automotive,
electronics, pharmaceuticals, medical equipment and supplies, as well as consumer
goods, were affected. Although manufacturing picked back up—by end-February,
about 70 percent of large industry had restarted operations—a return to full
production capacity is unlikely in the short term because of the spread of the
pandemic to China’s trading partners. The long-haul trucking sector—which carries
more than 80 percent of the country’s goods— illustrates the effects of the lockdown
on Chinese logistics. Between January 24 to February 26, 2020, the volume for long-
haul trucking fell below 15 percent of 2019 levels before recovering to 50 percent by
the end of February and 92 percent in March (see Figure 2). The rapid recovery was
driven by the ability to contain the virus quickly and the government’s policy towards
trucking (such as waiving national highway tolls and quarantine requirements for
trucks shipping essential goods). The pandemic spread to the rest of the world,
leading to lockdowns and border closures that restricted the movement of goods.
Additional protocols (such as social distancing at warehouses) introduced to ensure
the safety of workers contributed to bottlenecks for freight. For example, in the
European Union, trucks formed 37-mile-long lines on the A4 highway after Poland
closed its border with Germany in mid-March. In India, the lockdown created a
shortage of truck drivers, which resulted in over 50,000 containers piling up in the
ports of Chennai, Kamajarar, and Kattupalli.
We can observe the impacts on freight capacity in three key global transportation
segments— ocean, land, and air.
● Ocean freight: Total container volumes handled at Chinese ports dropped by 10.1
percent in the first months of 2020. Agility Logistics reports considerable constraints
to ocean freight around the world, impacting both key exporters, like Brazil, China,
India, and Mexico, as well as importers like the European Union. According to DHL,
weak demand will continue to affect routes between Asia and Europe, the United
States, and Latin America. Consequently, additional blank sailings are expected in the
coming weeks.
● Land freight: Unlike ocean and air transport, land transport has generally remained
partially available globally as roads have remained in operation, except in countries
under severe lockdowns, according to Agility Logistics’ tracking tool. Trucking
capacity is strained because of additional demand for their services—especially food
and medical supply transportation— under lockdown, combined with reduced
employee availability (due to COVID-19-related restrictions), leading to higher rates.
Other economic sectors that require land transport, such as manufacturing, are
generally not at full capacity because of lockdowns. As a result, spot road freight rates
have fallen in some markets. Demand for rail services has grown because of higher air
cargo freight rates, blank sailings, and longer transit time for trucks.
● Air freight: Volumes fell by 19 percent in March 2020 due to a sharp reduction in
passenger flights (which carry freight as belly cargo) and the drop in manufacturing in
China. However, as shippers and governments turn to air cargo for essential goods, air
freight rates have increased—some carriers are seeing delays with increased
congestion at airports. Mid-April saw an increase in capacity, as well as a recovery in
volumes transported (although they are still down, year-on-year). The overall
reduction in capacity is greater than the net reduction in demand, which supports
higher air freight rates. The economic recession will be a second demand shock. The
full effect of the pandemic on global supply chains is not yet known. As the IMF is
predicting a 3 percent contraction for the global economy in 2020, the expected
recession will deliver a second hit to demand and, thus, logistics companies,
highlighting logistics’ exposure to trade, manufacturing, and demand for goods.
Supply chain disruptions and the lockdowns are already affecting logistics companies.
Operational constraints are expected to lead to delivery delays, congestion, and higher
freight rates. However, not all segments will be impacted equally—companies that
serve e-commerce are seeing increased activity as consumers opt for online shopping
of essentials, while those that serve other sectors (such as auto and consumer goods)
will see a downturn. One mitigant: record-low fuel prices should provide some relief
to transport operators. Overall, the uncertainty will exert downward pressure on
revenues.
● The impact is severe for small players: Small trucking businesses are being severely
hit because they tend not to have any backup, recovery plan, or intermittent operation
plan. Lack of technology, as well as tools to follow health guidelines (for example,
disinfecting deliveries), further complicate their response.
● Top players are experiencing a strong impact: In April, both DHL and CEVA
Logistics declared Force Majeure—a clause that allows contracts to be declared null
and void due to acts of God or other unexpected circumstances—on all their contracts
due to COVID-19. Other companies’ credit metrics are likely to deteriorate, triggering
downgrades, as has already been seen in the sector.
For the most part, governments have responded to the crisis by designating ports,
shipping, and trucking services as essential—and thereby exempt from lockdown
measures. For example, the Indian government exempted the movement of cargo
through ports, supply chains, and the transport of essential commodities from
lockdown rules. Although many airports around the world are closed to passenger
flights, most are still open to cargo, which can be essential to the COVID-19 response
(for example, to transport medical supplies). Closer collaboration between
governments and third-party logistics companies has also been necessary to address
supply chain bottlenecks and facilitate clearances. Third-party logistics companies
have adopted a range of responses to these uncertainties, including: a. New safety
protocols: To protect their staff’s health, some companies have introduced new
protocols on social distancing at warehouses, disinfecting work areas, or providing
protective gear, while giving staff unlimited unpaid time off. However, these efforts,
which come at a higher financial cost, cannot guarantee protection against outbreaks
in confined warehouses. b. Alternative modes of transport: Many companies are using
creative alternatives to their go-to transport modes. Since the reduction of passenger
flights has reduced airplane belly cargo capacity, companies such as DHL have used
charter flights to transport shipments to and from China. Airlines are also repurposing
passenger aircraft for cargo. Some observers are even forecasting a boom for the
China-Europe rail as 60 percent of the air freight capacity between China-Europe has
vanished. c. Adapting service offerings to current demand and safety protocols: Some
larger players have been playing an important role in delivering medical supplies. For
example, UPS provided free air transport for two million masks and protective gear to
Wuhan in February. Companies are also adapting to demand. Warehouses and
retailers are focusing on grocery deliveries since demand is high for essential
products, while companies in the last-mile segment are offering no-contact delivery
options (some of which include robots).
The recovery and long-term impact of the pandemic on logistics may be affected by
adaptions and factors, as described below:
● Increased dedicated air cargo capacity: The airline industry is already reallocating
fleet to exclusively serve air cargo demand.
● Increased cargo inspections and cross border control protocols: Governments have
responded to the crisis with temporary trade embargoes and export restrictions for
sensitive cargo (such as medical supplies, pharmaceuticals). In the longer term,
logistics costs may increase due to tighter cross-border processes and controls fueled
by concerns regarding the transmission of diseases.
● Technology and e-commerce rise: Logistics has been in the midst of a tech-driven
revolution. Companies with robust digital capabilities that allow them to provide
cargo visibility/traceability and do business online are at an advantage. This would
entail investments in technology, such as the Internet of Things (IoT), cloud
computing, automation, and data analytics. In the long term, robotics, drones, and
autonomous vehicles might reduce logistics services providers’ exposure to labor
shortages.
● Reconfiguration of global value chains: The pandemic has exposed the
vulnerability of extended and complex value chains to production disruptions,
particularly in the East Asia Pacific region. As a reaction, many of these supply chains
may shorten or diversify through reliance on alternative partners (for example,
nearshoring) or intensified efforts to bring home (such as reshoring) strategic value
chains. The shortening of supply chains may benefit countries with capable
manufacturing sectors and beneficial exports’ policy (for example, Colombia, India,
and Mexico) to partially substitute China over the medium term. There may also be a
trend towards placing additional warehousing capacity or dry ports near demand
centers to shorten the time to get goods to market.
● Recovery prospects will vary by country, subsector: As logistics is a diverse sector,
recovery prospects will vary depending on the length of lockdowns and the duration
of the subsequent economic crisis. Large companies with a diversified business (such
as multiple clients, serving different sectors in various countries/states) will be better
placed to weather the storm.
The logistics industry viewed as an auxiliary for trade and commerce enables
industries to deliver the goods and services to the ultimate consumers by facilitating
mobility throughout the supply chain. The supply chain disruptions in the COVID-19
outbreak had a direct impact on the logistics industry with detrimental factors as
labour shortage, fragmented supply lines, weak infrastructure, and ambiguity with
respect to the rules and regulations for mobility of goods.
In the pre-COVID-19 scenario, the Logistics sector is pivotal to the global

manufacturing industry which is elusive and scattered across the globe to urban to
rural remote areas. For example, automotive companies such as BMW operates at the
global level with 31 production and assembly sites across 15 nations with sales
network spanning across 140 countries. So, to maintain the supply of such capital-
intensive goods globally, the logistics sector must be streamlined and efficient.
In Covid-19 scenario, China being the most affected global manufacturing hub has
spread operational difficulties across the globe during the initial stages. The supply
chains disrupted for the companies having manufacturing facilities in China and the
overall trade i.e., exports of manufacturing goods and imports of agricultural
commodities to and from China declined. The receding supply for components
manufactured in China for other industries was affected too. The contagion halted the
cargo ports, shortage of labour of loading/ unloading, carriers were docked.
Gradually, Automotive, Electronics, Medical supplies affected. As per the World
Bank Reports, In China between January and February, the trucking sector volumes
under logistics fell below 15% to that of 2019 levels before showing recovery signs in
March. The revival was associated with relaxing of lockdown norms and government
actions towards logistics industry.
Apart from China, Logistics holds major share of employment in emerging markets
such as India and is considered as the barometer for gauging economy as it plays vital
role in driving inflation, GDP, and employment status. With the onset of the
pandemic, the panic buying on the market floor had shown peak in the logistics
traffic. The heat of the pandemic leading to travel restrictions, flow of goods, social
distancing norms at warehouses etc. has led to the decline in the logistics activities.
For instance, in India the outbreak led to shortage of drivers which resulted in
containers piling up, in ports around Chennai, Maharashtra and other ports.
The pandemic has exposed the limitations prevailing in the industry such as lack of
health security and protection for the workers at dock stations and drivers facilitating
trucking deliveries, the debt burden piled up due to which logistics companies lost the
recurring cashflows to undertake the operations.
3.13 Impact on Logistic Industry segments
As per IFC reports on logistics Industry, under ocean freight the container volumes at
Chinese docks declined by 10.1% in first quarter of 2020. The brunt has been suffered
by both exporters such as Brazil, China, India, and Mexico, and importers such as
European Union. The scenario depicted weak demand for the routes between Asia and
Europe, United States and Latin America. However, the land logistics remained
operational with minimalistic use for supplying essentials such as medicines etc. This
also increased dependence on trucking sector which could not meet the demand and
eventually truck logistics soared up. On the other hand, spot road freights rates have
taken decline with falling demand from manufacturing sector. Considering the
limitations across various modes, railways transport demand seemed favorable. Air
freight operated solely for government necessities and working with low volumes
exorbitantly raised fares.
For instance, In South Africa, the pandemic has impacted companies like Transnet
which only had half of its workforce operating, in order to maintain the operations,
the firm undertook the deliveries leaving profit margins to protect reputational
damage.
3.14 Challenges to Logistic Industry due to lockdowns
Supply chain disruptions have led to delay in deliveries, traffics, surge pricing etc.
However, the impact is volatile and unequal as ecommerce shipping at intra-region
level has seen upward shift with increase in online transactions while those which
facilitated through offline networks have taken a setback.The impact has been seen on
unorganized trucking businesses as they don’t have structured path to follow for
recovery. Lack of technology and burden of adhering to preventive measures have led
to collapse of the small trucking logistics firms. As per the IMF report, the effect of
the pandemic is expected to cast an exaggerated impact with 3% contraction in global
economy. The expected downfall in the economy will be a blow to the industry
demand for logistics, manufacturing, and the demand for the goods.
The pandemic has disrupted supply chains around the world. It presents vast logistics
challenges everywhere. But there are solutions. And at their heart are technology and
people – and the tools, communications and data that link them.
The essential nature of logistics has been highlighted by the Coronavirus crisis, from
getting personal protective equipment (PPE) to healthcare workers, to replenishing
stocks in supermarkets.
The challenges are imposing. From much-reduced air and ocean cargo capacity and a
rapid shift from in-store buying to e-commerce to the COVID-19 “bullwhip effect” on
inventories and supplies, never have so many businesses and consumers had to adjust,
improvise and innovate so rapidly.
Here are four key logistics challenges that spurred the search for new solutions.
3.14.1 Capacity
Capacity evaporated. In normal times, ocean freight is typically around 90% of global
trade volume. But the pandemic initially curtailed the supply of manufactured goods
out of Asia, then rippled across the world and sent demand for goods shipped by
ocean freight plummeting. Ocean carriers responded by removing shipping capacity
from the market: cancelling sailings and eliminating “strings” where vessels call on
several ports before reaching a final destination. Air freight capacity also dropped, in
large part because a significant portion of air cargo flies in the bellies of passenger
flights, many of which were cancelled as passenger traffic dried up. Meanwhile,
driver shortages and cross-border restrictions shrank road freight capacity in certain
places and led to long backups and delays.
Ocean freight capacity is starting to bottom out and stabilize. In the meantime, a
number of other answers have emerged, including:
Shift of ocean cargo to air, despite higher shipping rates and a scramble for space.
Makers of tech products – laptops and headsets – saw demand soar as millions around
the world left the office and began working from home for extended periods;
Use of air charters for urgent, high-value cargo that would otherwise go aboard
freighter aircraft or in the belly of widebody passenger flights;
Conversion of empty passenger aircraft to “passenger-freighters” that can carry cargo
in specially packed passenger cabins, in addition to belly cargo;
Charter sharing and freight consolidation among forwarders or shippers that might
normally be competitors;
Alternative modes such as rail from China to Europe, then long-haul trucking across
borders;
Alternative airports, ports, and trucking routes where there is extra capacity.
3.14.2 Fluctuating demand
COVID-19 has turbocharged the consumer shift to online buying. In Italy, e-
commerce sales of consumer products rose by 81% in a single week; McKinsey
forecasts that 55% of consumers in China will continue shopping online as the crisis
eases – for example, buying cars without ever visiting a showroom. Businesses
weathering the storm include those with omni-channel inventory strategies that have
pivoted to BOPIS (buy online, pick up in store) models, and smaller firms such as
restaurants that transformed their websites into points-of-sale and converted
themselves into delivery-led operations.
The retail-to-go approach presents logistics hurdles. E-commerce demands rapid
fulfillment and delivery that is also inexpensive for the consumer. Among the
solutions is alternative inventory storage: more warehousing close to point-of-origin
or destination, conversion of stores into storage as distribution and fulfillment hubs, or
strategic use of ocean freight as “floating storage” through careful timing of orders
and deliveries.
3.14.3 Geographic risk
The crisis also provides an opportunity to re-evaluate supply chain locations. At the
start of the pandemic, when China shuttered production, some US fashion retailers
said more than 70% of their stock was sourced from the country. Disruption to its
industries have left electronics retailers facing delays of 10 weeks on shipments. The
same is true for brands producing in other nations.
Will the crisis alter global production and sourcing patterns? Will it prompt
companies producing or sourcing in Asia to diversify by spreading production, or to
adopt near-shoring or reshoring strategies? There are signs some US manufacturers
are looking at bringing production closer to home, mainly in Mexico.
For many, it will be hard to cut or loosen ties to China. Supply chains there are highly
efficient, the labor force large and skilled, the market vast and growing. Chinese
production is deeply integrated with inputs from and production in other Asian
markets. China, for instance, is a major source of fabric for garment manufacturers in
the region, making it hard to remove from the equation altogether. And a “China+1”
strategy to spread supply chain risk is also potentially expensive.
Many companies with the flexibility to move have already done so, as the result of
US-China trade friction that began in 2016, or because labor costs in China were
rising. Pre-COVID-19, the Agility Emerging Markets Logistics Index 2020 found
70% of those with operations in China were planning to stay put, despite global trade
tensions and other headwinds. This sentiment may endure after the pandemic,
suggesting a logistics-led solution, smoothing supply and demand issues, is the best
approach.
3.14.4 Inventory management
Consider the COVID-19 “bullwhip effect” – the changes in consumer demand that
ripple through the supply chain at ever greater magnitudes, creating long-term
problems for production and supply. This can be seen in the one-off surges in demand
for toilet paper – stockouts one week, then excess inventory buildup the next. From
goods delayed to goods unwanted, the pandemic has created inventory chaos.
Some solutions exist in creative logistics:
Improving visibility tools and using advanced data analytics for better modeling;
Moving stock closer to key markets;
Working out whether smaller volumes of inventory are needed in order to be more
responsive to fast-paced trends;
Demand planning and ordering in shortened, more frequent cycles.
One lesson of this crisis is that without people, technology is of little value.
Companies that reacted quickly to the supply chain disruption caused by the pandemic
typically did so because, as Biju Kewalram, Chief Digital Officer of Agility GIL,
says, “Technology doesn’t make itself useful. People make technology useful.”
“We’ve found that the customers that have a high degree of digital supply
chain already built in were able to flex a lot better and more quickly with us. But they
also had agile organizations where internal collaboration and collaboration with
customers and suppliers were already part of the culture, data and visibility were
shared, and people were empowered to be nimble in how they responded.”
3.15 Measures for the revival of Logistics Industry

facilitated through offline networks have taken a setback.The impact has been seen on
unorganized trucking businesses as they don’t have structured path to follow for
recovery. Lack of technology and burden of adhering to preventive measures have led
to collapse of the small trucking logistics firms. As per the IMF report, the effect of
the pandemic is expected to cast an exaggerated impact with 3% contraction in global
economy. The expected downfall in the economy will be a blow to the industry
demand for logistics, manufacturing, and the demand for the goods.
facilitated through offline networks have taken a setback.
The impact has been seen on unorganized trucking businesses as they don’t have
structured path to follow for recovery. Lack of technology and burden of adhering to
preventive measures have led to collapse of the small trucking logistics firms. As per
the IMF report, the effect of the pandemic is expected to cast an exaggerated impact
with 3% contraction in global economy. The expected downfall in the economy will
be a blow to the industry demand for logistics, manufacturing, and the demand for the
goods.
3.16 Supply chains struggle with logistical bottlenecks
One of the biggest challenges for countries in the current climate of COVID-19 is to
get real-time visibility into what is happening. Governments and health organizations
lack insight into the real-time status of the disease, the exact number of patients and
the spread of cases around regions and countries. Similarly real-time visibility into the
logistics network is challenging supply chain companies.
In this research, we will describe scenarios showing the value of real-time
transportation visibility and how these technologies can help companies better protect
themselves from issues around the network and gain better insight into estimated
product delivery times.
By Mode
 Ocean
 Land
 Air
1. By Application
 Industrial
 Retail
2. By Geography
 Americas
 USA
 Others
 Europe Middle East and Africa
 United Kingdom
 Germany
 France
 Others
 Asia Pacific
 Japan
 China
 Others
The COVID-19 outbreak that started engulfing various nations across the globe is
forcing governments, national and international authorities to take unprecedented
measures such as lockdown of cities and restricting the movement of people to check
and control the exponential spread of the pandemic. This has consequently affected
global trade and supply chain which has come to almost a standstill.
 Most countries have restricted or stopped international flights and air travel,
which has led to a deferred slowdown as far as the movement of goods are
concerned. This has in turn shrunk the air freight capacity limited to the
available and operational cargo aircraft and ferry passenger flights carrying
only cargo. The shipping sector has also been hit as vessels are placed under
quarantine for weeks before being allowed into the ports thereby slowing
down processes. Shipping containers are stuck at the ports and on transit at
state borders.
 At the same time, raw materials or manufactured goods are unable to reach
ports due to the lockdowns. Moreover, the demand for raw materials has
reduced for the most traded commodities as most countries now require
medicines, pharmaceuticals, medical supplies and medical equipment. Hence,
shipping lines are operating underloaded thereby disrupting the balance of the
ratio between revenue and the operational costs. Furthermore, there is a severe
shortage of manpower at the air cargo facilities, terminals, shipping ports,
inland container depots, warehouses, customs, government authorities and so
on due to lockdowns which again hinders any scope of supply chain
movement.
 The first- and last-mile transportation and intermodal connectivity of goods
within the domestic segment of the supply chain has come to a standstill
during the lockdown. This has affected the movement of supplies that is
directly proportional to the increase in the cost of commodities.
 Only essential commodities are permitted to move. The apparel, fashion,
electronics and other sectors serving non-essential categories of goods are
severely impacted with lesser or no demand during the lockdown. India’s
online retail industry is worth around $60 billion out of which the essential
commodities are a small percentage. The concerns are delayed deliveries,
delay in procuring goods, unexpected transit halts and shortage of manpower.
In a nutshell, the demand and supply gap has increased.
 There will be a phenomenal reduction in the desire for consumable goods and
products and more demand for essential goods in trades between nations. The
only trading commodities that we can assess in the forthcoming months would
be pharma, vaccines, medical goods and supplies, hospital items, perishables
and food products.
 Prediction of the forthcoming market conditions and how much the growth
rate of the global supply chain is affected is not feasible due to the uncertainty
of the pandemic spread. The global supply chain management market was
recorded to be worth $14.5 billion in 2018 and growing at a CAGR of 10.5 per
cent to reach almost $24 billion by the year 2024. However, it is a fact that this
average growth rate will definitely come down and reaching the targeted
figures will get deferred by a couple of years. There is a deceleration to the
movement of goods across nations causing a considerable gap in demand and
supply.
The Coronavirus crisis has placed stress on supply chains as never before. Whilst
most of the attention has focused on the response of the transport industry and the
difficulties it has faced in moving product on an international and domestic basis, the
warehouse sector has also experienced enormous challenges. One of the features of
the crisis has been the impact of erratic customer behavior on supply chains causing
an increase in volatility and unpredictability. This has meant that some product lines
have seen extraordinary demand whilst the collapse in demand for many ‘non-
essential’ items has led to previously ordered and shipped cargo piling up at many
warehouses, ports and airports around the world. According to some sources the
problem is becoming critical, with only a few weeks spare warehousing capacity left
in some markets.

The problems were exacerbated by the phases in which the Coronavirus took hold in
different locations. Demand for many Chinese made products in the West was still
strong when the country exited lockdown in February/March. This led to a wave of
products being shipped arriving a few weeks later just as demand in Europe and North
America collapsed. In many cases, this has led to a huge surplus of inventory being
held in warehouses, awaiting an upturn in consumer and business demand. There is no
doubt that once lockdowns are lifted renewed economic activity will lead to some of
these backlogs being drawn down, resulting in a surge in transport demand as goods
are moved to end markets. This will be followed by short term over-capacity in
warehouses due to a hiatus in replenishment due to many orders having already been
cancelled with Asian suppliers.
However, the impact of Coronavirus on warehousing will be far from transient. This
paper will deal with the longer lasting consequences of the pandemic and how it will
accelerate a structural transformation in the way businesses deal with inventory. Many
companies and executives are changing their view that ‘inventory is fundamentally
evil’ (as espoused by Tim Cook, Apple’s CEO) to a far more nuanced analysis of its
attributes – positive and negative. After all, holding inventory has proven to be a
critical tool in supply chain managers’ strategy in keeping customers supplied during
these times of social and economic disruption. Just look at the success the ‘high days
of inventory on hand’ pharmaceutical sector has had in maintaining supplies of
medicines to consumers and contrast that with the problems experienced in sourcing
Personal Protective Equipment (PPE).Nobody is suggesting a return to Just-in-Case
manufacturing or building up large stocks of goods which could rapidly become
redundant. Such a policy would mean commercial suicide in many sectors not least
due to the compression of modern product life cycles. Nor is such a ‘blunt’ approach
required. To a degree, the need for inventory is created by the uncertainty caused by
imperfect supply chain and market knowledge. Visibility systems will play a
fundamental role in addressing this void, allowing supply chains to become more
agile – replacing inventory with visibility and the ability to make informed
decisions. This paper highlights twelve ways in which the warehousing market is set
to undergo a transformation. Some of these changes will be driven specifically by
Coronavirus; others will be trends that pre-existed the pandemic but which will be
accelerated by the social and economic changes which it wrought.
1. Lean to higher inventory
The first major trend – possibly the defining trend of the entire crisis – is that of
increased inventory holdings. Warehouses are nodes in the supply chain where
inventory builds up as in insurance policy against unforeseen peaks and troughs of
demand. The more uncertain the market or the external environment, the greater the
need for buildings in which to store goods and the services required to process, pick,
pack and dispatch them. In the future there will be less LEAN and more safety stock.
Of course, an economic downturn will mean fewer volumes overall in the short term,
but the metric of inventory to economic activity will rise.
The increased levels of inventory will need more warehouse capacity in which to
store them. This additional capacity may come from larger warehouses or from more
warehouses or both. This will depend on individual sectors and the inter-relation of
many of the dynamics addressed below.
2. in-house to third party logistics
Following the crisis, manufacturers and retailers will be more likely to regard large
numbers of warehousing staff on their payroll as a risk as much as an asset, especially
with the ever present possibility that Coronavirus may return at some point. Many
may be tempted to believe that this is a challenge it would be better for a third party
logistics provider to deal with. One of the key strengths of 3PLs is their ability to
manage large work forces and these challenges will only increase in the coming years
from a health and safety perspective.
Third party providers also often have existing networks of facilities in multiple
geographic locations. As detailed below, it may be that downstream distribution
requirements start to fragment, with the growing importance of local and urban
markets as well as the increase in protectionism. If this is the case manufacturers and
retailers will not necessarily want to build their own networks of distribution facilities
required to meet the needs of these markets, instead relying on logistics providers to
do this for them.

3. Dedicated to multi-user
Market turbulence is a strong challenge to dedicated, long term warehouse operations

which, to a large degree, work best in times of stability and predictability of demand.
This may mean that there will be a move from dedicated facilities to multi-user
operations. The new market environment will require greater levels of flexibility
which allow manufacturers and retailers to ‘plug’ into existing warehousing
operations. Short set up times, quick training of staff and off-the-shelf technology will
be essential to allow customers to move into new markets as and when demand
occurs. The growing requirement to serve smaller localized markets will also favour
operations within existing distribution centres.
4. Long term to shorter term logistics contracts
Fourthly, there will be a move from longer term to shorter term contract lengths. One
of the challenges of a highly volatile market is that warehouse capacity is often
secured by manufacturers and retailers on a medium- term basis (3-5 years). Some
contracts are longer – up to 10 years. This may be satisfactory in a stable economy,
especially in sectors such as consumer goods, where demand year-on-year for
logistics services is consistent. However, if the market ‘new normal’ is wild
variability then such a model will leave companies exposed to the risk of having too
much (or too little) inventory as well as warehousing capacity located in the wrong
markets.
5. Growth of on-demand warehousing
As a follow up to this trend, for a niche part of the warehousing industry Coronavirus
has presented opportunities – the so-called ‘on-demand’ sector including companies
startups such as FLEXE, Cubework, Stord, Stowga, W2G and Flowspace. I wrote
about this sector in more detail in a whitepaper back in 2019 and the huge demand
created for warehousing in some sectors by Coronavirus has led to more
manufacturers, retailers and 3PLs making more use of short term and flexible
warehousing capacity.
The business models of these companies varies, some, like FLEXE, offering a pay-as-
you-go service, and others offering co-warehousing spaces. However, they all offer an
alternative to the longer term lease options which take time to negotiate and lock the
warehouse user into a solution which might become out-of-date almost immediately
in these days of volatility and uncertainty. Another part of these companies’ offering
is the technology infrastructure which allows for ‘virtual’ warehousing. That is,
allowing the visibility to store inventory in multiple locations across a wider
warehousing network.
6. Low inventory to availability of product
Like many of the trends outlined in this paper, the growing priority for availability of
product (as opposed to the minimization of inventory) has not been caused by
Coronavirus, but it will be accelerated.
Amazon and other online retailing platforms have created a consumer ‘need’ for
immediate, or near-immediate fulfilment of their orders. This change in consumer
behaviour is not confined to the e-retail sector – it is influencing all of retail. The best
example of this is in the US where Walmart is focused on matching Amazon’s ability
to deliver in very short times scales. This has pushed up its inventory holdings as it
increasingly holds stock in multiple locations, close to the end market. Whilst
allowing the company to deliver on a very short timescale, this does mean that
inventory levels have felt an upward pressure.
The Coronavirus lockdown of consumers has driven up e-commerce volumes
(although not necessarily profits, as in the case of Amazon) and engrained customer
expectations of the level of service. Many believe that this will now become the
‘norm’. If retailers are to match the service provided by e-retail platforms, they too
will need to devise strategies that either increase the level of stock in store from which
to make home deliveries, or develop a network of smaller, more local facilities.
7. Increase in specific e-commerce/Omni-channel facilities
As mentioned above, Coronavirus has helped to accelerate e-commerce sales. The

requirements of e-commerce warehousing are quite different from those of facilities
serving grocery retailing, High Street shops or Department Stores. They must be
designed for the fast flow of small, individual items often delivered by a variety of
trucks and vans to the end-user. This is in contrast to the more infrequent delivery of
consolidated items to a single store by truck and trailer. This means that warehouses
are getting bigger as more room is required for the physical handling of so many
smaller packages. Also, e-retail facilities are often open around the clock, picking and
packing shipments for next day delivery.
Whilst the e-commerce model requires warehouses with larger footprints, it will also
be the case that there will be more of them. Whilst some service levels – such as next
day delivery - can be provided through the efficiency of transport networks from more
centralized distribution facilities, same day or quicker deliveries need hyperlocal
fulfilment centers. This will require many more satellite warehouses from which
shipments of a limited number of SKUs can be dispatched on an on-demand basis.
8. global/regional to national/local
Many supply chains involve the flow of containers from remote manufacturers based
in Asia through ports in Europe or North America and on to distribution centres, from
where the goods are distributed to other manufacturers or retailers. This entire process
has come under scrutiny as various parts of the supply chain and the logistics which
underpin it have failed at times over the last few months.
This has led politicians to call for the re-shoring of the production of essential goods
(such as PPE and medicines). This argument has also been extended to the
introduction of much broader industrial strategies which would promote the
development of national supply chains. Hand-in-glove with this policy is
protectionism. Relations between the world’s largest trading partners are as bad as
they have been for many decades. US and China are in the midst of a protracted trade
dispute and other major exporters to the US, such as Germany, will not be immune
from ratcheting up trade tensions.
What is the impact of this on warehousing? Logically this should mean that there will
be a migration of warehousing away from major shipping gateways to locations which
are geographically more central and nationally based. Brexit will have similar results
in the UK, as supply chain managers become wary of the risks involved in bringing
goods through bottlenecks, such as the Port of Dover, from the EU. In the US, there
will be a re-balancing of volumes away from West Coast ports in particular.
Of course, this will be a gradual process. Much of Europe’s and North America’s
manufacturing capacity has been lost over the last two decades and before.
Consequently any repatriation of industrial production is likely to occur slowly.
9. From centralized to fragmented
Centralization of warehousing has many benefits, not least the reduction of the overall
inventory requirement within a supply chain by reducing levels of safety (buffer)
stock required in individual distribution centers. However, by consolidating stock in a
single (or at least fewer) warehouses, levels of external risk increase. These risks
include:
• Fire or flooding

• Industrial action
• Natural disaster
• Disruption of transport and, of course,
• Pandemics
The latter has had a major impact on many warehouse operations throughout the
world. The industry is highly labour intensive and therefore susceptible to an outbreak
of disease, especially in crowded warehouses. The reaction of warehouse operators
has been to segment workforces and keep shifts separate as well as a host of other
hygiene initiatives. However, as a response to Coronavirus, many may prefer to
migrate to a greater number of smaller warehouse operations where outbreaks of
disease can be contained and limit the impact of the spread of contagion on entire
operations within the supply chain node.
10. from market-wide to city-focused
The significant drop in both CO2 emissions and those that effect human health (NO
and particulates) during the Coronavirus crisis, will re-double efforts by campaigners
to maintain much lower levels of pollution. This will encourage governments to move
forward with diesel bans in urban areas, in effect erecting a barrier to the distribution
of goods to urban markets direct from a regional or national-based logistics facility.
To meet this dynamic, distribution networks will have to become more complex and
multi-layered. National distribution centres will likely serve Urban Consolidation
Centres (UCCs) at the edge of urban areas. Goods will then be transhipped for
delivery to logistics facilities located in the metropolitan area or delivered direct to
consumers, in both cases, on alternative fuel powered vehicles. Logistics facilities in
urban areas will necessarily be smaller due to higher rent costs and often located in
residential areas, limiting access.
11. Increasing automation
The threat of Coronavirus – or for that matter, any disease – will encourage
warehouse operators to increase levels of automation within their operations. Once
again this is not a new trend, but one which will be accelerated by the crisis. The low
cost of borrowing money and government incentives for capital purchases will make
the return on investment case attractive. Running contrary to this, in the short term
unemployment levels and the migration of workers from the high street retail sector to
logistics will make labour abundant and cheap. However, in the longer term the
sector’s adoption of automated materials handling equipment and robotics is
inevitable.
This will have implications for the design and type of warehouses. Few are up to the
modern standard required for autonomous vehicles to move products around the
facility (for instance, uneven flooring) and so there will have to be considerable new
investment in the building stock.
12. More green warehousing
Following the crisis, there will be renewed focus on sustainability, as mentioned

above. The drop in carbon emissions during ‘lockdowns’ will encourage
environmental lobby groups and governments to put in place policies which prevent
(or at least slow) pollution levels from returning to their previous highs. These
policies will be mostly aimed at the transport element of logistics (having implications
for supply chains and hence the location and type of warehousing as detailed above in
Point 10) but warehousing will also be expected to contribute. This will mean that
new buildings will have to conform with increasingly proscriptive energy standards
and good practices such as LED lighting.
3.17 COVID-19: The Impact on the Cargo Industry
The impact of the COVID-19 outbreak on supply chains will affect the cargo industry
in several ways. Some of the effects might not have been anticipated, and could leave
cargo owners and cargo carriers less insured than they imagine.As countries look to
manage the spread of COVID-19 and implement quarantines and travel restrictions,
production of goods could be delayed, while goods in transit may be delayed,
rerouted, or discharged short of their final destination as a result of port/country
closures or restrictions.
Even after quarantines end and production and transportation recommence, it could
take months to unravel the backlog. Even where cargo is available to ship, the
availability of containers in the right locations may be problematic.Losses and costs
stemming from such delays are unlikely to be insured and, in most cases, neither a
logistic company nor carrier could be held liable.More tonnage of container ships is
now idled around the world than during the global financial crisis, according to
Alphaliner, a shipping data service. Many ports and their customs offices are
operating fairly smoothly, but getting goods to and from the docks is proving
difficult.The slowdown in China is felt in the US and elsewhere. In January, for
example, container volume dropped 2.7% at American ports, according to Panjiva, a
research unit of S&P Global Market Intelligence. Much bigger declines are expected
as the outbreak continues, perhaps as much as 20%.So what are the insurance
implications for cargo owners and cargo carriers?
Cargo insurance generally excludes loss/damage due to delay. Carriers and cargo
insurance are also not generally responsible for additional costs incurred as a result of
cargo being discharged short of the intended final destination, or delayed in
warehouses, although cargo insurance will usually continue to provide physical
loss/damage coverage on the goods.Perishable goods may have coverage for spoilage
if caused by a peril, but may not have coverage for loss of market/deterioration as a
result of late/delayed delivery.Coverage is provided for general average expenses if
triggered by the carrier, but insurers will expect cargo to be managed in a way that
mitigates/minimizes potential losses. As it is difficult to predict where restrictions on
shipments may be imposed or how losses may develop, it will also be very hard for
insurers to provide specific advice on every situation, so insureds should act sensibly
and maintain records of decisions and the costs incurred.
Recent history has shown it can take months to unravel the potential losses when the
supply chain is impacted by a significant event — the Hanjin bankruptcy in 2017, for
example, left containers and cargo stranded on ships and at ports around the world.
With the Hanjin bankruptcy, most cargo policies provided extra expense coverage as
insolvency is listed as a covered peril within the "landing and warehousing" clause. It
may prove far more challenging to point to COVID-19 as a covered peril to goods
and/or merchandise, and also to avoid cargo policy exclusions such as delay and loss
of market. With respect to the liability of a carrier or logistics services provider, the
inability to perform services as a result of COVID-19 quarantines will likely be
governed by the force majeure provisions included in most contracts of carriage —
either per a standard bill of lading or under custom contract.
In China, force majeure certificates are being issued in recognition that manufacturers
are unable to meet delivery commitments due to quarantines. As quarantines expand
globally — affecting the movement of goods and logistics companies’ ability to meet
contractual expectations — individual contractual terms and provisions will be under
review.Standard bills of lading/contracting terms will likely absolve logistics
companies of liabilities arising out of their inability to provide services during the
outbreak. But there could be situations where contracts have inconsistent approaches
to force majeure provisions that could create disputes.Given the amount of contracting
that takes place in the logistics industry, however, and the potential financial impact
of the transit delays, in time cases will likely be brought against logistics companies
questioning their ability to limit liability for customer.No-one can say how quickly
shipping activity will return to normal. Insureds should therefore remain aware of
their contractual terms with customers, and act prudently when moving customer
goods and deciding cargo prioritization as quarantines lift or change.The impact of the
global pandemic, COVID19, has largely been disruptive. It is exacting a terrible
human toll and menacing the world economy. The logistics industry is no stranger to
the havoc. It is the industry responsible for producing, obtaining and distributing
products and goods to the right place in the appropriate quantities. It uses the process
of planning, controlling and implementing procedures for the efficient storage and
transportation of goods, right from the point of source to consumption.
3.17.1 Post COVID Analysis
The Logistics industry has taken a major hit in its growth projection due to the
pandemic. According to the report “COVID-19 Impact on Logistics & Supply Chain
Industry Market by Industry Verticals (Automotive, FMCG, Healthcare, Energy &
Utilities, Industrial Machinery & Equipment), Mode of Transport (Roadways,
Railways, Airways, Maritime), Region – Global Forecast to 2021”, COVID-19 impact
on logistics & supply chain industry market is worth $3,215 billion in 2021. The 60-
page report states that post COVID-19, the global logistics market size is projected to
grow at a Y-O-Y (year over year) growth of 17.6% from 2020 to 2021, to reach USD
3,215 billion in 2021 from USD 2,734 billion in 2020. The projection for 2021 is
estimated to be down by over 10-15% as compared to pre-COVID-19 estimation. The
projection for 2021 is estimated to be down by over 10-15% as compared to pre-
COVID-19 estimation.The major drivers of this market are growing supply of
essential commodities, formation of supply chain stabilization task force to fight
COVID-19, and rising demand and distribution of personal protective equipment.
3.18 Logistics emergency in India
In their latest report, “The Covid-19 War: How India can win faster leveraging its
supply chains and logistics?” LogisticsNow, the logistics intelligence platform,
shared insights on the current scenario of the logistics sector in India. It recommended
building digital supply chains using AI (artificial intelligence) and enabling digital
payments as the solution to deal with emergencies such as COVID-19 pandemic. It
predicts a timeline of at least 1-2 months for the industry to recover post lifting of the
lockdown, which could be longer if action is not taken immediately. The highlights of
the report are:
 50% + of India’s (organized long haul) trucking fleet is stranded without
drivers.
 Local (short haul) transport, though less impacted, is working with reduced
capacities.
 Trucks (including those carrying essentials) are still stuck for reasons
including want of labour to load and unload, check-posts etc.
 Railways is stepping up and can serve a few sectors, but the gap is large, with
first mile and last mile being a challenge
 Raj Saxena, Founder and CEO, LogisticsNow affirmed, “The logistics
network nationally, from long haul to last mile, has been impacted and the
lack of available logistics capacities and planning is likely to impact essential
supplies and the common man, unless we act now.”
3.18.1 Global e-commerce logistics
The pandemic has been a shot in the arm for major e-commerce companies around the
world. The biggest names in the industry, including Amazon and Walmart, have
blocked all shipments of non-essential items to their warehouse as the orders for
essential items have significantly increased. FedEx Corp. and Microsoft Corp. have
teamed up to provide commercial shipping with early warnings of delays from
weather, traffic and other mishaps, giving the courier and the software maker another
weapon to compete with Amazon.com Inc. While the online sale of some products
has drastically risen, others have seen a huge decline in demand. E-commerce for
goods and services trade has been adversely impacted by the same factors that have
caused disruption in supply and demand overall. Such disruptions have resulted in
delivery delays or outright cancellation of orders.
Nonetheless, the pandemic has tested logistics services and other features of supply
chains like no other event in recent history. All the frenzied activity has resulted in a
huge strain being put on the E-commerce firms’ supply chain thereby resulting in
shipment delays, technical problems, and also labour shortages. Logistics now hold a
more vital position than ever for E-commerce firms. In these challenging times,
logistics can make or break customer satisfaction.
3.18.2 Remedies
Advanced technologies need to be put to use to combat the challenges posed by the
pandemic. India created the India stack for payments, ensuing digital payments
revolution unparalleled in our history. A similar digital logistics revolution based on
the “logistics stack” is required in our supply chains and transportation to power our
supply chains with intelligence, visibility and agility. As a majority of payments
become online, the data generated, in sync with CIS and Digital Supply Chains, will
be a critical part to identify trends including spread of pandemics before they become
evident and keep citizens safe.
Transport capacities have been disordered by stranded trucks and a lot of drivers are
left without basic facilities. There is a need for thousands of trained drivers and trucks
to move essential supplies. Options including the Army Supply Corps (ASC), Indian
Railways, CONCOR, Freight Marketplaces, and Freight Intelligence networks along
with large fleet owners/ truckers who can provide transport capacity from long haul to
the last mile, need to be aligned quickly. As scientists persevere to develop a vaccine
for the virus, a plan needs to be in place to ensure when it is ready to be distributed to
the mass communities, transporting it to the farthest districts. An unprecedented level
of planning is of utmost importance to ensure the transportation of essential
commodities and to save lives.
3.19 Logistics
Logistics is the management of product or services from the point of origin to the
point of consumption to meet the requirements of customers or corporations. The
properties which are managed in logistics may include tangible goods like materials,
equipment’s, and supplies, foods and other consumable items. The coordination of
movements, material processing, manufacturing, packaging, distribution, storage, and
storing and protection is typically part of the logistics of physical products.
Management of logistics is part of the Supply Chain Management, which designs and
tracks the efficient and successful movement of goods, services, storage and
information between sources and customer points. It is possible to model, evaluate,
imagine and develop the completeness of logistics. Resource minimization is a main
factor in all fields of logistics. Logistics co-ordinates and transfers resources from one
place to the intended destination, such as individuals, goods, inventories and
equipment. The companies that offer products transport services to producers,
retailers and other industries. Logistics is commonly used to understand how
resources are managed and exchanged in the business sector. Efficient logistics lead
to cost savings and repair and performance enhancement. Management of the logistics
chain is part of the supply chain management that aims to enforce and monitor the
effective and productive movement of products, services, storage and information,
from source to customer. It is possible to model, evaluate, imagine and develop the
completeness of logistics. Resource minimization is a main factor in all fields of
logistics. Seven "R"s are right commodity, right quality, right location, right time,
right number, right price and right customers in logistics management. Logistics
operations have increasingly grown to include industry and operation. The area of
logistics is to provide consumers with the right product at the right time. It varies from
the supply of the appropriate subsystems to an inventory on the retailer's shelf to the
correct volume. The main problem to solve is how and when items are to be
purchased, transported and processed, semi-completed and finished goods. In
businesses and public agencies that provide services like e-mails, public utilities and
post-sales facilities, logistics management is also important. The task for any
company is to bring the right materials at the right time.
The holistic, interconnected view of all its operations is a basic feature of logistics.
Therefore, all essential components are production, stock control, warehouse control
and distribution. In order to provide full value to the overall scheme, logistics is
primarily concerned with integrating certain activities. More and more dynamic
markets need more effective management of logistics systems. For modern cultures,
transportation is one of the most important tasks. During the 1950s, company logistic
grew. The secure and effective entry, outflow and storage of products in business
logistics planning, enforcing and managing. This was because the transport of the
company's materials and shipping of the finished goods became more complex. A
network of logistics consists of a variety of transportation services related facilities.
Such services move goods between machinery, including trucks, tractors, containers,
buses, and trains. Such transport services work between facilities.
3.19.1 Definition of Logistics
The Oxford English Dictionary describes logistics as "the military sciences division
relating to material acquisition, repair and transportation, personnel and services."
However, A logistics "detailed coordination of a complex operation involving many
people or equipment" in the New Oxford American Dictionary Logistics defines.
Logistics consists of the preparation, execution and regulation of procedures for the
safe and reliable transfer and storing of goods from point of origin through to market
information for the purposes of complying with customer needs, including inbound
information in and out bound by the Board of Supply Chain Manager, Professional
Supply Chain Management Specialist.
The American Board of Logistics Management defines logistic services as "the
process of planning, implementing and controlling efficient, economic flow, storage
and stockpiling in the inventory of processes, finished products and associated
information for the purpose of complying with customer requirements from source to
point of consumption."
Philip Kotler identifies logistics as the planning, implementation, and control of
materials and finished products' physical flows from point of origin to point of use to
satisfy customer requirements for profit.
3.19.2 Historical development of logistics

Logistics have been playing a central role in universal development for almost 5,000
years now. Since the time of ancient Egypt, the construction of pyramids has made an
outstanding works. Time and again the logistics results formed the basis for the
evolution to ancient and economic period. This include the origination of the sea
cargo container and the formation of different service systems during the 20th century.
Both are important parts of globalization today. Around 200 B.C, material handling
knowledge in pyramid creation. Lumps of stone weighing several loads were
transported and collected at the construction site. To build the Great Pyramid of Giza,
which is 146 meters high and weighs 6 million tons, the Egyptians needed classy
material transport equipment capable of moving huge construction lumps and putting
them into place. Around 300 B.C, revolutionary Greek rowing vessels to the new
groundwork of global trade. The revolutionary development of rowing vessels created
the basis for quick travel across the high seas. This creation formed the foundation
for the formation of vast logistics supply systems required by moveable military
camps. Using these logistics capacities, Alexander the Great started operations with
his troops, their families and their weapons of war that extended all the way to India.
Around A.D. 700, procurement logistics in the construction of the Mesquite Mosque,
the pillars came from all parts of the Islamic empire. It is known as Europe's largest
mosque. The foundations of the mosque were shipped from all parts of the Islamic
Empire through extraordinary buying logistics. Around 1200, The universal network
known as the Hanseatic League in the city of Hamburg, Germany, was originated as a
base on the North Sea to make travel on the sea more protected and to represent
commercial interest abroad. Up to 200,000 pelts were transported by a single
hanseatic cog ship. Hanseatic trade extended from the Black sea to Rival. From a
modern-day vantage point, the league’s cross border trade accepts strong likenesses to
the European Union. Around 1500, advanced postal service in Europe for the first
time. Under an agreement with Philipp of Burgundy, Franz von Taxis organized the
first postal service with strictly defined periods. Letters were sent to places such as
Paris, Ghent, Spain and the imperial court of Vienna. In view of infrastructure of the
times and the political destruction created by the collection of small domains, the mail
reached its destination with very little delay. Around 1800, the practical use of the
steam engine, the invention of vehicles, railroads and ships as well as the finding of
crude oil accompanied in a new economic era that created new missions, tools and
openings for logistics.
Around 1940, during World War Ⅰ, military logistics was the dynamic link in the
network that complete troops with rations, weapons and equipment. With the
beginning of World War Ⅱ, logistics was more advanced. As a result, logistics gained
a vital place in the business world. Around 1956, the discovery of the sea container by
the American Malcom P McLean changed production conditions for nearly all
businesses around the world and as a result different people’s consumption habit.
Even today the sea container remains to confirm that harbors gain more contracts,
new countries and regions commercial booms, markets arise and products from all
parts of the world can be bought and sold at reasonable values. The container has
significantly contributed to globalization. Around 1970- 1980, The Kanban and Just
in time (JIT) concepts were established and introduced at Japan’s Toyota Motor Co.
by Taiichi Ohno with the objective of successfully linking logistics to other operative
functions. Around 1990, The quick response and efficient customer response,
technologies were developed and applied by many retail and wholesale companies.
These technologies had a major influence on logistics. As a result of this technology,
supply centers are tasked with moving goods instead of storing them. This allows
companies to accelerate reaction times to market growths and to set up well-organized
supply systems.
Today supply chain management is a term that has grown extremely in use since the
late 1980s. Supply chain management is viewed as a full consideration of key
business processes that extend from the seller’s dealer to the end user. Supply
chain management is an enormously
Cooperating, complex system requiring instantaneous monitoring of many
contradictory objectives. Global competition began to arise and spread in the 1970s
and enhanced in the 1990s. Globalization is still advancing today. Effective logistics
creates a vital competitive edge for companies that are increasing in global markets.
Successful logistics efforts in transnational supply chains can fuel the development of
worldwide markets.
3.19.3 Future of Logistics
Today corporations are looking not just for growth, but also for survivors for
sustainable competitive advantage. The rivalry is so lethal that businesses need to
evaluate their business processes as they offer the goods and services to clients who
seek rising value for the money they invest. Concurrence interests have shifted from
the commodity to the supply chain. The system concept and cost approach are the
basis for today's logistics management. Transportation, warehousing, handling of
material, inventory management and order processing are the major logistics
activities, which impact the customer cost and the operation. Integrated logistics helps
in taking the cost out of the supply chain and also enhance the customer service level
When considering the macro level, economic growth in a country depends on the
availability of excellent logistics infrastructure. The speed of transport of goods is
primarily dependent on the various modes of transport, such as road, rail, air and sea.
The logistics industry, particularly in India, has a bright future but it is important to
take care of some pressing issues such as abolition of levies, customer streamlining,
better infrastructures for roads and railways, the establishment of modern warehouse
facilities and other things. India's geographical location is also well situated to be an
excellent center for a range of goods.
3.19.4 Logistics fields and activities
There are two types of logistics which are
 inbound logistics and
 outbound logistics
Entry logistics is the method of buying and coordinating the transport from the
manufacturers to manufacturing of inbound products, components or semi-finished
inventories. The method of storage and moving the finished product and information
flow from the end of the manufacture to the end user is outbound logistics. The main
fields of logistics are:
 procurement logistics
 distribution logistics
 green logistics
 digital logistics
 production logistics
 domestic logistics
Activities such as market analysis, preparation, decision-making or purchasing
criteria, supplier management, ordering, and contracting include procurement
logistics. The goal of procurement logistics may be contradictory by focusing on core
competences or minimizing procurement costs while optimizing security in the supply
chain.
The method of the supply of the goods to the consumer is distribution logistics. This
includes collection of requests, transport and storage. Due to the time, place and
volume of production, it is important for distribution logistics to vary with
consumption period, location and quantity.
Global distribution is the method of management of the movement of goods from the
manufacturing center to other areas of the world, which are called the supply chain.
Often this includes ship, rail, air or road transport networks. This is one of the longest
and most complicated logistics.
Green logistics to mitigate the environmental effects of logistics. Both forward and
reverse flow operations are included. Intermodal freight transport, road optimization,
depletion of vehicle and community logistics can be used for green logistics.
Digital logistics is a modern wedding logistics generation. The inventory, orders and
consignments throughout the supply chain are finished to end visibility. All
information can be exchanged through an electronic network. It is the most
economically secure, scalable and transparent business process and offers excellent
customer services.
Logistics is a value-added network mechanism to ensure that the correct product is
obtained at the right time in the right quantities and price at every computer and
workstation.
Domestic logistics is a country-wide distribution operation. They may use a variety of
moving goods transport methods.
3.19.5 Military logistics

To military science it is crucial that one maintains its supply lines while destroying
the supply lines of the enemy, as the armed forces without equipment are defenseless.
The legendary leaders Hannibal, Alexander the Great and the Duke of Wellington are
known as logistical geniuses. Alexander's expedition has greatly benefited from his
diligent attention to the preparation of his army, Hannibal is acknowledged as having
taught logistics to the Romans during the Punic Wars, and the success of the Anglo-
Portuguese force in the Peninsula War was attributed to the flexibility of
Wellington's
supply system, given the numerical disadvantage. Some scholars attribute the British
defeat in the American War of Independence and the defeat of the Axis in World War
II's African theater to logistical failures. Militaries have a significant need for logistics
solutions and so advanced technologies have been developed. Integrated Logistics
Support (ILS) is a methodology used in the military industry to ensure an easy-to-
support program with a reliable (logistic) customer service model at the lowest cost
and in line with (often high) reliability, availability, maintenance and other
requirements as specified in the project. Logistics Officers determine how and when
to transfer resources to the positions they need in military logistics. Management of
the supply chain in military logistics often addresses a number of variables in
predicting costs, deterioration, consumption and future demand. The categorical
supply classification of the United States Armed Forces has been developed in such a
way that supply categories with similar consumption variables are grouped for
planning purposes. For example, the peacetime consumption of ammunition and fuel
will be significantly lower than the wartime consumption of these items, while other
supply classes, such as subsistence and clothing, will consume relatively consistently
regardless of war or peace. Most supply groups have a linear relationship to demand:
as more troops are recruited, more supply items are needed; or as more equipment is
used, more fuel and ammunition are consumed. Other supply classes must consider a
third variable, in addition to use and quantity: time. As the equipment grows older
more and more replacement parts are required over time, even if the use and quantity
remain consistent. Through documenting and evaluating these trends over time and
adapting them to future scenarios, the US Armed Forces can provide troops with the
necessary items at the exact moment they need. History demonstrates that a compact,
powerful battle force is generated by effective strategic preparation. The absence of
this can lead to too much or too little supply of clumpy, slow and ill-equipped forces.
3.19.6 Business logistics
One concept of business logistics speaks of having the right item in the right amount
at the right place for the right price in the right condition for the right customer at the
right time. business logistics encompasses all sectors of the industry and aims at
managing the outcomes of the project lifecycles, supply chains inconsequent
efficiencies. Based on the growing difficulty of the delivery of products to businesses
and transporting goods within an increasingly globalized delivery chain, the term
'industrial logistics' has evolved since the 1960s, resulting in a market for specialists
called the supply chain logisticians. In industry, logistics can either have an internal
focus or external focus, covering material movement and storage from point of origin
to point of consumption. A professional logistician's main functions include inventory
management, sourcing, distribution, warehousing, consulting and the coordination
and preparation of these activities.
To order to organize services within an organization, logistic practitioners incorporate

technical experience of each of these roles. Two radically different types of logistics
exist: one optimizes steady material movement through a distribution network and
storage points, while the other manages a series of resources for such projects.
3.19.7 Nodes of distribution network
Factories where goods are produced or assembled.
A depot or storage, a common type of warehouse for storing merchandise (high
inventory level).
Distribution centers for order processing and order fulfillment and also for receiving
return items from customers.
Transit points for cross-docking activities consisting of reassembly of load units based
on scheduled deliveries.
Modern supermarket retail stores, hypermarkets, discount stores or also regional
chains, business cooperatives, consumer groups with collective buying power.
Tochter companies will mostly be owned by another corporation and franchisors,
although they will still own the point of sale using other business names.
3.19.8 Logistics families and metrics
A logistic family is a group of items that share a common characteristic: weight and
volumetric characteristics, needs for physical storage, needs for handling, frequency
of delivery, package size etc. The company may use the following metrics to organize
its products into different families.
Physical metrics used to measure inventory systems include storage capacity,
selectivity, surface utilization, volumetric usage, transport capacity, use of transport
capacity. Other metrics, such as the regular Stock turnover, may present themselves in
both physical and monetary type.
3.19.9 Handling and order processing
Unit loads are combinations of individual items pushed by handling systems,
generally using a pallet of uniform dimensions. Order processing is a systematic
process involving: withdrawal list collection, selection (selective removal of items
from loading units), sorting (assembly of items based on destination), packaging
formation (weighting, marking and packaging), order consolidation (assembly of
packages into loading units for shipment, testing and lading). Choosing can either be
manual or automatic. Manual picking can be either man-made to goods, operator
using a cart or conveyor belt, or man-made goods, operator benefiting from the
presence of an ASRS mini load, a vertical or horizontal carousel or an Automated
Vertical Storage System (AVSS). Automatic picking with dispenser or robot
depalletize.
 Logistics outsourcing
Logistics outsourcing includes a partnership between a client and an LSP (logistics
service provider), which has more specialized solutions compared to traditional
logistics providers, incorporates a wide range of service operations, is distinguished
by a long-term focus and therefore of a strategic nature.
Outsourcing does not have to be complete externalization to an LSP, but can also be
partial:
A single contract for supplying a specific service on occasion
Creation of a spin-off
Creation of a joint venture
Third-party logistics (3PL) requires the use of external entities to conduct logistics
tasks that have historically been conducted within an entity itself. According to this
concept, logistics by third parties includes any type of outsourcing of logistics
activities that had previously been performed in the home. Of example, if a
corporation with its own warehousing facilities chooses to hire external transport, this
would be an example of logistics from a third party.
In many countries logistics is an evolving business area. Andersen Consulting (now
Accenture) first described the idea of a fourth-party logistics provider (4PL) as an
integrator that assembles the resources, planning expertise, and technology of its own
organization and other organizations to develop, create, and operate comprehensive
supply chain solutions. Whereas a service provider for third party logistics (3PL) is
targeting a single function, a 4PL is targeting the entire process management. Some
have defined a 4PL as a general contractor managing other 3PLs, truckers,
forwarders, custom house agents and others, effectively assuming responsibility for
the customer for a complete process.
 Horizontal alliances between logistics service providers

Horizontal business partnerships also occur between suppliers of logistics services,
i.e. the collaboration between two or more theoretically competing logistics
companies. Such partners will profit double in a horizontal alliance. In this situation,
by incorporating the capital, we will expand traditional transport networks, their stock
facilities and the ability to provide more complex service packages. They are "directly
exploitable capital." On the other side, partners may "access intangible, non-directly
exploitable resources." This typically encompasses information, expertise and
imagination.
3.20 Objectives of Logistics
Logistics has the following objectives:
 Reduction of inventory: Inventory is one of the main factors that can greatly
influence a company's profit. In the conventional method, businesses had to
bring a lot of stock to customer loyalty and to have outstanding customer
service. However, funds can not be used for any other useful purpose while
they are trapped in inventory. These costs would drain the income of the
company. Logistics help to manage stock at the lowest level so that the
customer's target is accomplished. This is achieved by small but frequent
supplies.
 Economy of freight: Transport is an important logistics cost source. This can
be minimized by steps such as choosing the right transport mode,
consolidating freight, planning roads, longer-haul transport, etc.
 Minimum damage to products: Incidental packaging, regular handling of
consignments and other causes may often harm goods. This damage increases
the cost of logistics. This damage can be minimized by the use of adequate
logistic packaging, mechanized material handling, etc.
 Quicker and faster response: In the shortest possible time, a firm must be
able to expand the customer's service. Through using the latest information
technology, a communication would strengthen the decision taking process
and allow the organization to be more agile to fulfill consumer demands in the
shortest possible period.
 Reliability and consistency in delivery performance: The customer must
deliver products on time, not before or after the deadline. This is assured by
proper transport modes preparation with inventory availability.
3.21 Functions of Logistics
 order processing: Processing customer orders is an activity of great
importance and takes a great deal of time and paperwork. That requires checks
of the order for any anomalies in the accepted or signed terms, quality,
payment and distribution dates, checks for supply of stock supplies,
processing and timing of scarce resources, and even the recognition by notice
of anomalies by the owner of the products.
 Inventory planning and management: The inventory preparation will help
an organization, and can help satisfy the customer, to maintain an optimal
inventory level. This includes tasks such as stock prediction, order quantities
engineering, service level optimization, proper inventory deployment etc.
 Warehousing: It is the place to store the finished products until they are
finally delivered to the customers. This is the biggest cost center and
inadequate management of warehouses is causing several problems. The more
warehouses a business has the less time it takes to serve its customers at
various places, but the higher the costs of warehousing are.
 Transportation: helps to transfer the product physically to the customer's
venue. The network adds time and place to the goods handled and increases
their economic value through different models such as rail, road, air and water
transport. The cost and benefit conditions of the infrastructure and service
offered must be sufficient, routine, secure and fair
 Packaging: A key element in the physical distribution of the commodity,
which also affects the logistic system output.
 Customer service: In all logistics management operations, customer support
serves as a guiding and unifying force. The portion of the logistics system
affects whether the client receives the right product in the correct position at
the right time at the right cost. Customer care allows the integrated
management structure to be implemented successfully in order to ensure
customer satisfaction at the appropriate level
 Information monitoring: physical distribution managers are constantly in
need of up to date inventory, transport and warehousing information. Until
selecting a carrier, information is required on the availability of various modes
of transport, their prices, capabilities and suitability for a particular product.
An efficient management information system use would be of tremendous use
in controlling costs, improve services and evaluate the overall effectiveness of
distribution in order to receive all of the above information. The cost of
physical distribution operations is difficult to assess correctly. But if the
information is correct it can be evaluated systematically and a great deal.
 Facilities: Manufacturing plants, warehouses, cross-dock operations and retail
stores provide distribution facilities. It is incredibly necessary to locate pants
and warehouses, whether they are leased, rented or rented. The strategic
location of the plant and warehouse helps companies improve customer
satisfaction rates. A good location of the facility will also allow customers to
move from plant to warehouse in relation to their volume.
3.22 Indian logistics industry current scenario and future outlook
Logistics is seen as the backbone of the economy, offering reliable and cost-effective
flow of products that other business sectors rely on. The logistics industry in India is
rapidly evolving, the interplay between infrastructure, technology and new types of
service providers is what determines whether the logistics industry can help its
customers reduce their logistics costs and provide efficient solutions. The logistics
industry continues to see growth despite weak economic sentiments due to growth in
the retail, e-commerce and manufacturing sectors. By 2019, the logistics industry
is expected to
exceed 2 billion US dollars. The rise of e-commerce logistics and increased domestic
consumption in the coming years will lead the way for the industry. The service-
oriented logistics industry is ready to expand beyond the horizons in the latter half of
this decade with a promise of growth and improvements.
3.22.1 Recent scenario
The recent Indian logistics sector consists of the production and utility supply chains
inbound and outbound parts. Latest of all, the logistics network has received
tremendous attention from both the sector and policy makers. To compete effectively,
the task of maintaining this infrastructure has been somewhat under-emphasized.
Lack of logistics infrastructure has the effect of creating bottlenecks in an economy's
growth.
3.23 Challenges faced by the recent logistics industry
The industry's most critical challenge today is inadequate integration of transport
networks, information technology, and warehousing and distribution facilities.
Trained manpower is important for both the logistics sector of third parties as well as
the manufacturing and retail industries, which are very poor at a practical level, i.e.,
IT, driving and warehouse, and at a higher strategic level as well. The disorganized
nature of India's logistics sector, its image as a manpower-heavy industry and lack of
adequate training institutions have led to a shortage of skilled management and
customer service staff. There is a lack of the IT standard, services and weak
integration of systems. Weak facilities and management are the reason why stock loss,
damage and degradation are high, mainly in the perishable market. The practitioners
and the academics are now aware of the importance of the logistics and supply chain;
but, as far as study is concerned, the sector is still under penetration.
3.23.1 Solutions to the challenges
infrastructure is the bedrock of growth and prosperity in every country, and special
emphasis must be put on building world-class road networks, integrated rail corridors,
modern freight facilities at airports, and the creation of logistics parks that need to be
given an equivalent status to Special Economic Zones in order for the logistics
industry to flourish. It is necessary to realize that the advantages that can best be
achieved in the logistics industry can be brought about by the companies by
incorporating training intuitions, so that the overall quality of service in the sector is
enhanced. Good storage and warehousing facilities are key to logistics industry
growth. As the transportation of perishable goods increasing, the logistics companies
need to add great importance to improving the warehousing facilities. Warehousing
will hit the next stage in light of the changing complexities of JIT production, global
procurement and modern sales and distribution models. Research and development
focus are important mainly because it promotes the use of indigenous technologies
that can make the industry competitive in costs and can also lead to improved services
using cheaper, more effective and more productive facilities. Particular focus needs to
be on process excellence research which can help eliminate inefficiencies and adapt
Indian logistics to global practices.
3.23.2 Future prospects
The logistics companies are moving from a conventional system to the incorporation
of IT and technology into their activities in order to reduce the costs incurred as well
as meet the demands for service. The growth of the Indian logistics sector depends
just as much on the hard infrastructure as on its soft infrastructure, such as schooling,
training and policy framework. It is very important to help India's fast-growing
logistics industry growth economy. The Indian logistics industry is expected to
continue to show robust growth of 10-15 percent per annum, leading the economy's
growth rate at large. The global economic outlook, indeed that of India is expected to
improve dramatically as India Inc begins to address the slowdown. With a new
government, several policies are expected to be introduced that will give India's
growth engine a fresh impetus, particularly in the corporate and SME sector, which in
turn will increase demand for the logistics sector. With the introduction of GST, the
logistics companies that are currently forced to set up several small warehouses across
multiple cities can set up just a few large warehouses region wise and can follow the
hub-and-spoke model for freight movement from the warehouses to the various
manufacturing plants, wholesale outlets, retail outlets and the various POS. This rise
is backed by the boom in the e-commerce sector and expansionary policies of the
FMCG firms. This has improved the logistics companies ' business geography but
they also have to meet the demands of fast delivery and tight service level
agreements. The industry has moved from being a mere service provider to the place
that provides its customers with end-to-end supply chain solutions.
3.23.3 Aims of logistics
Logistics is responsible for the products passing through a supply chain. This role is
also called managing the supply chain. Some people argue that logistics is somewhat
narrower, concentrating on movement within a single organization, while supply
chain management takes a broader view of movement through related organizations.
Many people also speak about the management of logistics, company logistics,
delivery management, product management, merchandising, or a variety of other
words. With our broad view, there are two main goals for logistics managers. The first
is to move capital as efficiently as possible into, through and from their own
organization. Additionally, leading to an optimal flow through the entire supply chain.
Traditionally, managers concentrate on the first of these, concentrating on those parts
of the supply chain which they control directly. Ideally, if each company properly
cares for its own logistics, goods will travel through the entire chain effectively,
thereby achieving the second objective. That is true to some extent. Nonetheless, it is
not necessary
and organizations do need a more constructive approach to cooperation. Each
organization’s success ultimately depends on customer satisfaction. If it does not
please consumers, long-term sustainability is impossible, let alone making a profit,
having a high return on investment, increasing shareholder value or achieving any
other measure of success. But companies have to offer customer pleasing goods.
Every organization, if it is prepared to devote adequate money, can provide
outstanding customer service. The question, of course, is that higher costs will bring
in more money. There is a limit to the amount that customers pay for a product, and
hence the satisfaction that can be provided. Then a realistic logistics goal blends the
customer service with the expense of achieving it. Logistics adds value by producing
goods in the right place and at the right time. Logistics is said to have added location
utility when a product is available at the place it is needed; if delivered at the right
time, logistics has added time utility. Then we can phrase the logistics target in terms
of getting the highest perceived value or consumer utility. People often summarize the
objectives of logistics as delivering, at the right time, from the right source, with the
right quality, at the right price,' the right materials.' That's generally right, but it
depends on how we interpret' right.' Logistics is measured on completely different
performance measures under different circumstances. Sometimes when you post
letters you want them to be delivered quickly, sometimes as cheaply as possible,
sometimes with high security, sometimes at a specified time, etc.
3.23.4 Current trends in logistics
 Improving communications
Logistics continually meet new challenges, and in the past, it is changing faster now
than ever. The most obvious change perhaps is the increasing use of technology.
Some of this occurs directly in the movement of goods– such as electronic package
recognition, lorry satellite tracking and automated guidance systems– but
communications have been the biggest impact. If a company wants to buy something,
it generally needs to generate a summary of the goods, pricing request, purchase
order, order confirmation, contract terms, shipping papers, financial arrangements,
delivery information, special conditions, invoices, etc. In the past few year’s
technology has revolutionized these interactions. Initial development came with fax
machines which were able to send electronic copies of documents over seconds rather
than days between distant locations. The downside with fax machines is that
documents produced by one computer still have to be written, fed into a fax machine.
By the 1990s the next obvious step with the electronic data interchange (EDI) had
arrived. Which allowed remote computers to exchange data without any
intermediaries passing through. Early users were supermarkets which directly linked
their stock control systems to the order processing systems of the suppliers. Efficient
knowledge sharing has been particularly useful for buying, which has developed into
e-purchasing or e-procurement. It comes in many forms, all based on the direct
data exchange between the machine of a manufacturer and that of a customer. To help
EDI two related technologies have been developed. The first is object coding, which
gives an identifying tag to every packet of material moved. Typically, the tag is a bar
code or magnetic stripe that can be read automatically when the packet goes through
its journey. The second technology is the transfer of electronic funds (EFT). On
receipt of the supply of goods, EFT automatically debits the bank account of the
customer and credits the supplier's account. This completes the loop by placing
orders, recording element coding and EFT for payment.
 Improving customer service
It is usually in the interests of everyone to keep the transportation costs as low as
possible. Transportation administrators want to keep low prices competitive and their
customers want to pay as little as possible. Most companies have reduced their
logistics costs to levels which have an effect on their entire operations. For example,
lower transport costs make it possible to sell products over a larger geographic area.
Similarly, efficient transport can quickly move goods over long distances, so there's
no need to build large warehouses near customers. Though pushing for lower costs,
companies inevitably have to preserve their level of service. Improved logistics means
providing the service which customers want at the lowest cost possible. Of course,
one problem is finding the functionality consumers really want and the level of
service they're willing to pay for. In different circumstances, these vary widely but the
lead time is a key factor. This is the total time between buying and shipping items,
and making them available for use. Again, making this wait as short as possible is
usually in everyone's interests. Ideally the lead time should be as close as possible to
zero and one solution to this uses coordinated movement of content. This makes
information available concurrently to all areas of the supply chain, so that companies
can co-ordinate inventory movements instead of waiting for messages to travel up and
down the chain. Personalized goods are another key factor of customer satisfaction.
This uses B2C to communicate directly between a final user and a supplier, and it
requires flexible supply chains, moving products very quickly, and adapting to
different conditions.
 Other significant trends
There are several other significant logistics developments besides growing technology
and emphasis on customer satisfaction. The list below comprises some of the most
significant ones.
 Globalization: Improved communication and increased transportation mean
physical distances are becoming less relevant. Organizations can become
competitive in terms of outlook, production, storage, manufacture, movement
and distribution of products in a single, global market. As a result,
international commerce and rivalry continue to rise. Organizations used to
hunt in the same town for competitors but now they are
just as likely to come from another continent. Efficient logistics makes a global
market feasible, and other factors encouraging international trade include less limited
financial systems, consumer demand for imported products, elimination of import
quotas and trade barriers and the expansion of free trade areas. You can see the effects
of manufacturing, where factories with large facilities located in areas with low cost
of production are looking for economies of scale. The cost of unit output is low, and
the delivered price is kept down by effective logistics. That is why German firms
open large plants in Poland, American firms work in Mexico and Japanese firms work
in China.
 Reduced number of suppliers: Organizations have used a considerable
number of manufacturers in the past. This promoted rivalry, ensured they had
the best deal and held stable delivery if one supplier ran into trouble.
However, the current trend is to cut suppliers and build long-term relationships
with the best. Working closely with a small number of organizations, as we
will see below, would bring significant benefits.
 Concentration of benefits: Large enterprises can reach economies of scale,
and many supply chains have come to dominate. There are many shops and
transportation companies, for example– but the biggest ones continue to grow
at the detriment of the small ones. The consequence is a growing ownership
concentration that can be seen in many logistics markets, from food
wholesalers to cruise lines.
 Outsourcing: More businesses recognize that they can benefit from taking
over some or all of their logistics by using specialist companies. The use of a
third party for transporting materials leaves a company free to concentrate on
its core activities. McKinnon says,' Outsourcing was one of the dominant
market trends of the 1980s and 1990s, and studies show that around 30% of
logistics spending is outsourced throughout the EU.
 Postponement: Manufacturers usually move finished goods out of production
and store them in the distribution system until they become necessary. This
can give high stocks of similar products when there are many variable limits
on a basic product. Postponement pushes near-finished products into the
distribution system and prevents final changes or customizations until the final
moment necessary. You can imagine this with' package-to-order' where a
company keeps a product in stock, but only places it in a box written in the
appropriate language when it is about to ship an order. Electrical equipment
manufacturers such as Phillips and Hewlett-Packard used the transformers and
plugs needed by different markets to be integrated into their products. They
then had to keep separate inventories of products intended for each region.
Now the transformers and cables are made as separate, external units. They
just keep stocks
of basic, regular products and tailor them for various markets by adding the correct
last-minute transformers and plugs. Of course, the effect is much lower stocks.
Likewise, Benetton used different colors to dye wool, knit sweaters and keep stocks
of each color to meet different demands. Now they knead sweaters with undyed yarn,
hold these stocks much smaller and dye the finished sweaters to meet actual orders.
 Cross docking: Modern warehouses move goods into storage, retain them
until they are needed, and then send them out to meet demand. Cross-docking
combines supply and distribution so that goods arrive at the receiving area and
are immediately transferred to a loading area where they are loaded on
vehicles for delivery. That dramatically reduces stock levels and
administration associated with them. There are two basic, cross-docking types.
Packages are moved directly from the arrival and departure vehicles in the first
place. Actually, this doesn't need a warehouse and a simple transfer point is
sufficient. In the second form there is some additional work as products arrive
through larger packages which are opened, broken down into smaller
quantities, sorted out, divided into collections for different customers and
transferred to vehicles. Cross-docking can grow to the point where nothing
moves through a warehouse for reality. Some stock is stored inside the trucks,
stockpiling on wheels. A similar system uses drop-shipping, where
wholesalers do not stock themselves but coordinate the delivery of goods to
downstream customers directly from upstream suppliers. Since warehousing is
costly and time-consuming, these methods can provide much more efficient
flows and allow methods such as fast response and efficient customer
response.
 Direct delivery: Many customers buy online or find other ways of dealing in
the supply chain sooner, such as mail order or purchasing directly from
manufacturers. This has the benefits of minimizing lead times, lowering
shipping prices, making suppliers speak to their final customers directly,
allowing customers access to a broader range of products, and so on. It also
means that logistics must quickly move small supply companies to final
customers. It has encouraged courier growth and express mail delivery
companies like FedEx, UPS, and DHL.
 Other stock reduction method: Holding stock is costly and companies are
continually searching for ways to reduce the amount contained in the supply
chain. Just-in-time operations are used by one method to organize tasks and
reduce stock levels. One strategy involves inventory managed by retailers,
where producers manage their own stocks as well as those held down the
supply chain further. Good coordination reduces operating costs and can result
in economies of scale.
 Increasing environmental concerns: Air pollution, water pollution, energy
consumption, urban development and waste disposal are increasingly of
concern. Logistics has no good reputation for environmental protection–
shown by pollution from heavy lorries, use of green field sites for warehouses,
demands for new road building, use of excessive packaging, ships illegally
flushing their fuel tanks, oil spills from tanker collisions, etc. Logistics on the
positive side is heading towards' greener' activities. Operators use more
energy-efficient vehicles, control exhaust emissions, reuse packaging, turn to
transport modes that are environmentally friendly, increase recycling by
reverse logistics, add safety features to ships, build brownfield sites, and so on.
We are becoming increasingly aware that careful management will offer
environmental protection as well as lower costs. A fair assessment could be
that logistics is growing on environmental issues, but there is some way to go.
 More collaboration along the supply chain: Supply chain companies are
gradually realizing that they have the same priorities– which please final
customers. Therefore, they should not compete with each other but instead
work together to achieve final customer satisfaction. That is a big point. This
means that rivals within the same supply chain are not other companies, but
are organizations in other supply chains. Christopher sums up this by saying'
supply chains are competing, not companies.'
3.24 Progress in logistics

Logistics, despite its obvious importance, has not always received its fair share of
attention. Historically, companies have made every effort to produce products and
have paid little consideration to the advertising revolution associated with them.
Managers recognized the need for transportation and storage, but they were seen as
technical issues that weren't worth much consideration– they were simply the
inevitable cost of doing business. In the 1920s some early work began to look at the
transport of finished goods more carefully. Nevertheless, in 1962, Drucker was still
able to describe logistics as' the dark continent of the economy' and say that it was' the
most unfortunately overlooked, most exciting area of... company.' There have been
significant changes since then. The key reason for the change may have been the
realization that logistics was costly. Surveys of the 1970s and 80s indicated that
material movement and storage usually accounted for 15–20 per cent of revenue. We
said it was difficult to get accurate figures for this in the last chapter, and in 1994 Hill
could still say,' most distributors are unaware of the cost of the distribution service
they provide.' Logistics, however, had been established as a high cost feature and one
where companies could make substantial savings.
3.24.1 Pressures to improve logistics
In addition to possible savings, several other factors motivate companies to develop
supply chain management. Several of these stresses are indicated in the following list:
Customers are more educated and expect higher quality, lower prices and improved
service.
Competition is getting fiercer and any chance for companies to stay competitive must
be looked at.
The supply chain is power-changing. Very large supermarket chains like Wal-Mart,
Tesco, Toys-R-Us and McDonald's claim their suppliers tailored logistics.
Other retail industry developments include the rise of 24-hour opening, home
delivery, out - of-town shopping centers, retail parks, mobile and online stores.
International trade continues to grow. This is encouraged by free trade areas such as
the European Union and North American Free Trade Area
Companies are implementing new forms of operations, such as just-in-time
operations, lean operations, time compression, agile production, mass customization,
virtual operations etc.Many companies switch from product focus (where they
concentrate on finished goods) to process concentrate (where they focus on how
goods are manufactured). This promotes organizational changes, including
logistics.Considerable changes have been made to communication. It allows for
electronic data interchange (EDI), item labeling, transfer of electronic funds (EFT), e-
commerce, mutual information systems, and other emerging activities.
Organizations outsource external functions, and concentrate on their main operations.
Logistics is a valuable field for third-party providers with a variety of services being
provided by specialist companies.Organizations are increasing their cooperation by
means of alliances, collaborations and other agreements. This integration is essential
for logistics, which is typically the key link within a supply chain between
organizations.Managers agree that the supply chain is strategically significant.Traffic
perceptions are shifting due to increased road congestion, air quality and emissions
problems, wider environmental issues, government policies on the real cost of
transport
3.25 Activities of logistics

 Separate activities
When goods travel through the supply chain, transportation is responsible for the
transport and storage. Following activities are usually integrated in the logistics cycle
by following other materials traveling through an organization.
 procurement or purchasing: When the purchase order is sent to a
manufacturer, the flow of products through a company is typically started.
This ensures that the acquisition process finds suitable vendors, negotiates
terms and conditions, supports associations, arranges insurance and payments
and does all necessary to bring the goods into the organization. In the past, it
was considered a mostly clerical job in the handling of orders. It is now
recognized and given more attention as an important connection to upstream
operation.
 inward transport or traffic: Transportation or traffic in transit from
producers to the receiving area of the product. It must choose the type of
traffic (road, rail, air, etc.), find the best carrier in transportation, plan a route,
ensure all safety and legal requirements are met, obtain delivery time and at
reasonable cost, etc.
 receiving: The receipt ensures that the supplied materials corresponds to the
order, recognizes the delivery, unloads vehicles, inspects and sorts damage
materials.
 warehousing or stores: Warehousing or stores move and take care of
materials into storage until it is necessary. Some products require specific
treatment, such as frozen food, drugs, bonded alcohol, fumes-emitting
chemicals, animals and dangerous goods. As well as the fast availability of
products as needed, the warehouse also ensures that they are in good
condition, are processed and packed.
 Stock control: The inventory policies are set by stock control. This takes into
account the stock components, total investment, customer service, stock
levels, order size, timing and so on.
 order picking: Order set discovers and deletes shop items. Normally
customer orders materials are found, identified, checked, removed from the
shelves, fastened into one box, sealed, and moved for loading in delivery
trucks into a departure area.
 material handling: The handling of materials moves money through an
organization's activities. It transfers materials from operation to operation and
also transfers materials collected from stores to the point that it is needed. The
purpose of the handling of the products is to efficiently travel, make short
journeys, use appropriate equipment, and use special packaging and handling
when necessary.
 outward transport: Transportation from outside brings goods from the
departure area and delivers them to customers.
 physical distribution management: Physical distribution management is a
general term for activities, including external transport, that deliver finished
goods to customers. It is often marketing related and constitutes an important
link with downstream activities.
 Recycling, returns and waste disposal: Returns and disposal of waste. The
delivery process can not be completed even though the products have been
delivered to customers. There may be issues with the items provided, for
example– perhaps they have been faulty or too many, or they have been the
wrong type– and they need to be retrieved and returned. Also, similar products
such as pallets, distribution boxes, cable carriers and containers, which are
reused by manufacturers, (standard 20-foot-long metal boxes for moving
goods). Most materials, such as metals, glass, paper, plastics and oils are not
reused, but recycled for recycling. Eventually, materials, including harmful
chemicals, are not used again, but returned to safe disposal. Reverse logistics
or reverse delivery is referred to as operations returning supplies to an
Organization.
 Location: Some of the operations can be carried out in various places. Stocks
can be held at the end of manufacturing, moved to neighboring warehouses,
put in stores that are close to customers, moving to other organizational
divisions or a number of alternatives, for example. Logistics must find, or at
least play an important role in decisions, the best places for these activities. It
also considers the size and number of facilities related questions. These are
key decisions that affect the overall design of the supply chain.
 communication: The associated flow of information is in addition to the
physical movement of materials. It links all aspects of the supply chain,
including product information, customer demand, moving products,
scheduling, inventory levels, quality, issues, costs, levels of service, etc.
Information flows can be very difficult to organize, and logistics managers
often identify themselves as information processing rather than goods moving.
Christopher endorses it position by saying that' the profitability of the supply
chain is based on an information exchange based on value added.'
Many other activities can be included in the logistics according to the circumstances.
Sales forecasts, production schedules, customer service management, overseas liaison,
third-party companies and so on can be part of an organization. It is necessary not to
differentiate between functions arbitrarily, but rather realize that all of them must
work together to obtain an effective material flow.
3.26 Organizing logistics
The logistics operations in a supplier of forklift trucks unloading pads from lorries
and moving them around the warehouse are probably easiest to picture. However, the
same rules apply to every other organization
We carry enormous amounts of equipment if a Rock Band goes on tour. Procurement
purchases everything required on the road, transportation picks it up to the next
destination, collects everything, ensures that everything happens safely, keeps
warehousing secure until it is needed, handling materials transfers items to between
trucks and on stage. Even the most intangible service makes the same types of
decisions. For example, insurance firms decide what type of network they have, how
they can identify their location, who can purchase telephones and other facilities, how
to provide consumers with details, and so on. In every company you can see logistics
and certainly in a huge array of different ways. In an organization the activities can be
organized in many different ways and definitely no "right" arrangement is possible.
One person can take care of everything in a small organization. One department with
separate parts for acquisitions, storage, stock control, distribution, etc. may be a
medium-sized company. A large organization could have a logistics division that
employs thousands of people and operates large fleets of transport. Sometimes all
operations are grouped under a single department and report to a logistics manager;
they often are part of a larger department, such as marketing or manufacture; they are
distributed throughout the company in small bags; at times they are contracted out to
third parties. The present trend is towards an organization with a single centralized
logistics task, led by or equivalent to a logistics director. The logistic director deals
with the manufacturing, finance, sales, human resources and so on supervisors of the
company's production, finance and sales. This is an increasing range of organizations
organized around products or programs. There are several combinations. There could
then be logistics in each division with a matrix structure that allows the overall
function to be organized.
3.26.1 Integrating logistics within an organization
 Problems with fragmented logistics
View of logistics within an organization, which adds value to the final product by a
number of related activities. Traditionally, these operations are handled to provide a
separate buying operation, a transport department, storage, the fleet of distribution etc.
These operations were handled sea entirely. This, unfortunately, causes a number of
problems by breaking the logistics. Buying will check for the most trustworthy
suppliers, low unit cost inventory control, high turnover warehousing, easy-to-use
materials management, full load transport... etc. All these aims seem worthwhile, so
each operation may be prone to determine its own success as well. Unfortunately,
when the objectives come into conflict, we soon encountered problems. Warehousing,
for example, could save money by reducing the stock of raw materials, which leads to
more shortages and increases the cost of shipping for buying and transport emergency
supplies. Similarly, transactions can reduce their administrative costs by moving
fewer, higher orders to suppliers, which increases inventory levels and reduces the
amount of warehouse capital. The cost of shipping by sea rather than air freight is
reduced– but the quantity of stock in the supply chain is increased. Actually, the
various logistics activities are closely connected and policies ultimately influence
operations in one section. As logistics is separated into
separate functions, the problems with RP Turner are almost inevitable. There is a
duplication of effort and wasted resources in all parts in a different direction. Picture a
wholesaler with a fleet of vehicles that handle materiel to deliver manufacturers '
products and a separate fleet that sell the same products to its customers. It could
work, but in operating two different car fleets you can see the doubling effort and
waste. Another company, each run by different departments with different standards
and processes, may have three stocks of raw materials, work under way and finished
goods. The management of the flow of information through various systems is also
difficult due to a fragmented supply chain. Assume a production department knows
that a service is lacking and that a new supply is required. Such information should be
passed on to transactions seamlessly. If, however, the risks of mistake, confusion,
delay and inefficiency are increased from one system to a different system– leading
zoom late delivery, emergency order, expediting and shortages.
To put it briefly, the drawbacks of fragmenting logistics into various parts are:
 To minimize communication between the parts
 decrease the performance, the expense and worse customer service
 increase the incertitude and delays along the supply chain
 make it more difficult to schedule
 implementing specific, frequently contradictory, priorities in the company
 replicating effort and decreasing profitability.
3.26.2 Bringing activities together
Logistics can not be seen to be a set of separate activities but rather as a single
integrated process as the easiest way to avoid these problems. All the components
then work together for the business to achieve the best overall result. That is why
Sheehy, BAT's former Chairman, would say' I think a well-designed, integrated
logistics network is an important precondition for the success of the business
community.'
All logistics within an enterprise is difficult to implement in practice. There are many
different processes in the supply chain, using various systems, and with specific types
of operations. The conventional approach is to improve integration over time. One
department can gradually take over all aspects of raw mate reception. Another
department may slowly take over all aspects of the customer supply of finished
products. Many companies are tempted to stop at this stage and have two functions:
Control of materials, consistent with manufacturing process, with internal flow and
movement through activities of raw materials; and physical delivery, in line with
marketing and with external
flows of finished products. However, the loss in what is basically a continuous
process is still artificial. The obvious step is to combine the two into a single function
which is responsible for the transition from and into the organization. It completes the
integration of the operations of an organization. Despite the apparent benefits of
integrated logistics, practical difficulties can still occur. Maybe the answer is to find
someone who can make these changes through experience, passion, skill and
authority. It includes a senior manager who has the requisite power to start the
changes– with results that percolate across all organizational levels. New practices
and ties are developed through the creation of a culture which is centered rather than
self-interest and conflict on teamwork and cooperation. According to custom, each of
these individual costs are considered as separate, which implies that the cost of
transport decreased the total cost automatically. In the 1960s, companies started
looking at logistics ' systems' and evaluating the connections between operations. The
reduction in one activity's costs raised the costs of another and the total cost of
logistics could be reduced if certain tasks are spent more. It has found that transport
by air is significantly costlier than other types of road transport, but quicker deliveries
have eliminated the need for local stocks and warehouses and have resulted in
substantial overall savings. Managers need a system to collect, archive, evaluate and
distribute information and present information for all transactions, ranging from the
company's strategic objectives to details. For this purpose, most businesses use local
networks or the Internet as an efficient route to expertise in logistics. The data should
be used by a management system that analyses current situations, actions are made
and the tests are carried out. An information system can show that stocks are small
and that the information is used to order from suppliers by a control system.
3.26.3 Stages of integration
We have now explained how logistics has changed from a low priority,
fragmented role to an integrated, strategic one. It is a big shift, usually moving
through the following stages:
Stage 1: Separate logistics operations are not given much consideration or considered
significant. Stage 2: Realizing that separate logistics operations are essential to the
organization’s success.
Stage 3: Enhance the different tasks, ensuring each is as effective as possible.
Stage 4: Internal integration-recognizing the advantages of mutual collaboration and
integrating the different roles into one.
Stage 5: Developing a logistics plan to set logistics ' long-term course.
Stage 6: Benchmarking-comparing the performance of logistics with other companies,
learning from their experiences, recognizing areas that need to be strengthened and
discovering ways to accomplish this.
Stage 7: Quality improvement–acknowledging the inevitability of more
improvements and constantly searching for new ways to manage logistics.
By Stage 4 an organization has integrated logistics and the last three stages show how
to improve the function. Stage 5 highlights the need for a strategic view, Stage 6 looks
at other organizations for comparisons and lessons, and Stage 7 acknowledges that
logistics must evolve continuously. When a company has secured, streamlined and
strategic logistics, further integration in the supply chain will begin to be looked at.
3.27 Logistics strategy
The logistics strategy forms a link between the more abstract, simpler, and
comprehensive supply chain operations. While the organizational and business
strategies define general goals, the logistics strategy is concerned with the actual
movement of materials required to achieve those goals. UPS ' business strategy calls
for' exceptional service' for its customers, and this translates into a logistics strategy to
organize a very fast parcel delivery service to nearly any point in the world. The
higher strategies lie the logistics strategy sense. But logistics managers don't just
respond to this context, they are actively contributing to its formulation. One of the
inputs to developing higher strategies is their views on what levels of efficiency are
actually achievable across logistics. Recognizing that it can potentially accomplish
effective logistics makes it possible for UPS to provide a corporate plan targeted at
excellent quality. Of course, there are other things to consider in developing a
business plan other than logistics. However, the amount that logistics contributes to
formulating higher strategies will impact operations significantly. There are
companies at one end of a continuum where logistics contributes little to the higher
strategies.
3.28 Focus of the logistics strategy
Only by offering goods that consumers view as something superior than those from
rivals can organizations thrive. Logistics affects lead time, availability, cost, customer
support, damage, and so on - and hence the view of a product from the customers. In
this sense, logistics is actually contributing to a product's design, price, perceived
value and performance. But what reasons for this contribution are most relevant and
should be highlighted in a logistics strategy? We may begin to respond by taking a
conventional marketing view that says companies are competing by concentrating on
the' four Ps'–commodity, location, promotion, and price. Logistics plays a role here in
the' product' through its contribution to the overall product package,' location' through
material delivery and' price' through its effect on operating costs. Such features could
be usefully underlined by a logistics strategy. A broader view says customers are
concerned with cost, quality, level of service, reliability, availability, flexibility, speed
of delivery, location, sourcing, relationships with suppliers, environmental impact,
recycling and a whole host of other things. They all rely on the various logistics
aspects. Therefore, in different situations, nearly every aspect of logistics can be
essential to customer satisfaction, and the logistics approach should emphasize it. For
reality, the following is more likely to be stressed by a logistics plan:
Cost: more companies want low costs, but others take a proactive approach to reduce
their logistics costs. This leads to higher corporate revenues, and lower retail costs.
Customer support: Logistics controls stock rates, delivery times, response speeds
and other customer service steps. Through focusing the logistics approach on
customer satisfaction, companies may achieve a strategic edge in the long term.
Timing: As a general rule, consumers want goods as soon as possible, so a growing
logistics plan ensures quick delivery. Timing may also mean rapid supply of new
goods, or distribution by a customer at the time specified.
Quality: All products require higher quality from the customers. A typical logistics
strategy guarantees high-quality service, although it can be hard to know exactly what
we mean by' high-quality logistics '.
Flexibility of the product: this is the organization's ability to tailor products to
requirements. Another logistics approach is based on a specific or customized service,
such as removals by Pickford’s.
Flexibility of the volume: Changing rates of activity can cause severe logistics
issues, as you can see in every major city during the morning rush hour. The
versatility in volume helps a company to adapt rapidly to increasing demand levels.
Technology: Logistics uses a wide range of communications technologies, load
tracking, parcel sorting, product identification, stock movement recording and so on.
Many companies have a plan to implement and employ the new technology.
Location: In general, customers want to supply as near as possible products. This
could mean a book club can deliver directly to your house, a shop will have a
convenient location in a city center, or a wholesaler may have a regional logistics
center near major cities. One logistics approach is to have the best possible place for a
service, such as bus stations in town centers.
Organizations can do it well, providing low cost, strong customer service, quick
distribution, versatility, high-tech use, etc. That is impractical in reality. Organizations
will balance, maybe matching the quality of service with the cost of delivering it.
Effectively, they select a particular emphasis for their logistics approach, showing the
most important aspect they consider. Some organizations, like Ryanair, focus on
quality, offering a low-cost service, others like FedEx, focus on delivery speed; others
focus on reliability; or a personalized service, etc. For logistics managers one of the
main decisions is to select the strategic direction.
3.29 Logistics processes
3.29.1 Rational management and logistics processes
All processes should be reasonable and efficient, including logistics. Note the Poles,
including O, were scholars. Lange and T, Lange and T. The key problems in sound
management theory were proposed by Kotarbinski. First, moral conduct was
interpreted as processes aimed at determining the circumstances and means of
intervention. The theory is that when the minimum influx of funds creates full
understanding of the goal the highest degree of accomplishment is achieved.
Otherwise, the least number of moneys will be used at a specified stage of the
deployment process. The more successful the more useful results it provides with
given losses, T Kotarbinski represented logical management. The better it is the less
the cost charges to reach a product25 are calculated. However, analysis of these
problems calls for the rationality principle to be established in advance. Actions based
on reasonable reasoning and successful behavior or logical and purposeful behavior
are recognized under this definition. In this context we discern two forms of action
rationality, namely
substantive rationality and procedural reasonableness. The first–the serious rationality
–arises when the allocation of resources correlates to the true, empirical condition,
Acts and connections current facts. Methodological rationality, on the other hand,
implies the action is moral in terms of experience, the logical intuition deciding the
preference of means, regardless of whether this knowledge complies with the
empirical state of affairs, is right in their understanding.
T. Kotarbinski notes that many economic institutions consider themselves in action
sometimes in a condition that causes the need for a judgment on suitable productive
steps to fulfill the fundamental needs of life, safety, loss of physical pain. This may
also be an operation that sells items of value to other classes of consumers. This may
be achieved in two ways: directly–or implicitly–in the context of the commodity
itself, or in the type of procurement of this drug, i. e. The mode of transportation and
distribution of products, instruments and facilities may be a single activity or a
collaboration between the subjects.
Optimization in effect, is: · assignment by the implementation of mathematical
techniques, assisted by computational technology (quantitative management) to
provide a solution that is optimal (e.g. most desirable, best) for the specified problem,
taking into account the chosen criteria.
The above-mentioned meanings mean: the optimization means the safest, most
desirable outcome; ̈ ̈ the determination of this outcome (solution) is obtained by
computer-based mathematical methods; ̈ ̈ the best solution is chosen (the correct
decision), which allows the use of machine analysis with acceptable parameters and
requirements. The fair and efficient movement and related knowledge of goods and
resources can be carried out by, among other factors, the careful handling of logistics
systems. A consistent description of a process as such, let alone of the logistic
process, is impossible to find in the technical literature. A process may be defined as:
· an organized time series of successive changes and conditions (the carrier of each
phase is always some physical condition, and each new system state is induced by the
previous state / change or by external effect on the system. a sequence of tasks or
events which are logically linked with achievement of a given business outcome; · a
transition that is accomplished by converting input data and taking account of the
added value, risk and knowledge. The key function is to generate the added value for
a good or service through economic institutions. In addition, logistics processes are
interpreted as defined in time and location in the field of the physical movement of
goods, resources, and knowledge and risk, as well as in the sense of sequential facts.
Such facts can concern: the physical flight of goods and services from places of origin
to places of destination, source, manufacturer, transport, etc. Processes in logistics
may be categorized into different forms. According to the form of added-value
creation P Blaik suggested: · direct production of added value through direct and
personal interaction through customers–the so- called central (primary) processes; ·
indirect generation of added value with indirect contacts with
customers–secondary processes from the view point of view of the generation of
added value. No added value, no consumer interactions–so-called future waste
manifestations.
The approach to procurement and supply chain management is also aspect of the
distribution processes. The analyst has defined three types of processes ̈ the executive
processes covering the most critical tasks undertaken by the organization with a high
added value-including tasks such as transport facilities, storage, availability, etc.
Method of help provide required but not added benefit practices (e.g., packaging,
labeling); production methods aimed at improving management productivity and
marketing processes (e.g. recruitment of staff, market analysis, creation of new goods,
etc.)
The basic components of logistics processes include:
 material goods flow processes
 information and decision-making processes
 maintaining stock
 logistics flows infrastructure
 the costs of logistic processes; They are carried out by, among others
 forecasting the supply
 making orders
 procurement, warehousing and inventory management
 provision of work-posts in materials, raw materials and components
 packing and packaging
 transport
 packaging economy
 waste production management
 information flow
 service
 collecting, processing and transmission of information related to these
activities.
The primary and secondary process are usually a logistic process. The first party
consists of:
 transport operations
 warehouse operations
 transshipment
 materials management.
 packaging
 labeling
 tagging
 preparing orders
 preparing shipping documentation etc.
3.29.2 Locating facilities Importance of location

Whenever a company opens new buildings, location choices are important. Toyota
would have to make decision on the right locations when constructing the next
production line, or Carrefour opening a new store or Burger King opening a new
restaurant or Pfizer moving into other markets. They are essential actions that affect
the success of the company for several years. If a company has an error, it can't just
shut down and relocate in a new place, even after millions of euros of investment.
Being in the right position can be very ineffective so it can be almost as difficult to
switch. Of all, the only answer is to first of all choose the correct spot. When Nissan
opened an establishment in Sunderland to the north-east of England, they sought to
find the right location and today have the most successful automobile factory in
Europe. Yet if they had wanted to have a bad venue, they would have low efficiency,
weak supplies, bad materials. The right position is not successful, but the wrong place
will definitely ensure failure. This is why nightclubs are not located in residential
areas where most people retire, big gas stations on country roads where tourists are
unable to draw passers-by, factories in urban centers with too much traffic, or oil
refineries far from ports, where transport into the country would be too costly.
Nevertheless, you can find examples of organizations that work wrongly – and leave
business. Often, people don't know that the place is bad, so a variety of cafes or
clothes stores shut down in certain places around town centers. Some organizations
forget that decision-making on locations is long-standing and tented by short-term
benefits, such as development aid, temporary rental reductions or tax breaks. These
sweeteners can be enticing, but they never form the basis of successful decisions.
There are also situations where companies take the best decisions, but conditions
change - like garages in good places before a new circumvention opens. Decisions on
the venue are often complicated and other considerations needs to be taken into
account by organizations. Many of them, including labor expenses, wage rates,
taxation, currency exchange rates, the number of rivals, distance from existing areas,
growth incentives, population and supply efficiency, can be calculated
or at least projected. Many other factors, such as infrastructural quality, political
stability, social attitudes, industrial relations, the judiciary, future economic trends,
etc. are unquantifiable. When analyzing all the situations, companies frequently come
to identical conclusions. This has led to the popularization of certain areas or trading
estates as many companies identified them as the best location. This adds to certain
urban phenomena. In the Maquiladoras on the northern border of Mexico, for
example, thousands of plants have opened. The aim is to reduce Mexican running
costs when closely connected to the key United States market. China, Central Europe
and the Pacific Rim are all rapidly rising regions. Relevant areas such as Shanghai,
Warsaw and Singapore are common
in these large regions. The area is also witnessing developments, such as a growing
number of business centers, malls and retail properties. A significant shortening
pattern is the elimination of intermediate strata and the concentrating of logistics on
fewer facilities. For example, free trade and good transport within the European
Union encourages businesses to substitute a single European logistics center for
domestic warehouses. Call Centers give an interesting example of how operations are
concentrated in fewer sites. Good connectivity – with a low cost for business
telephones – ensures that companies are not small call centers, but can open a big,
secure facility in a convenient location in any nation or region. For starters, in its
center in Greenock near Glasgow, IBM employs 800 people who answer customer
questions in ninety countries. The company is now expanding to employ a quarter of
one million people in Delhi. You do not even know which continent you call, let
alone what country you call, when you contact a customer service center of some big
business.
3.29.3 Alternatives of selecting location
One of the most common problems facing organizations is choosing a good location.
There are many reasons for considering the spot, including:
 the expiration of a contract on existing property
 the expansion of new metropolitan areas
 customers'/customer position changes
 business changes − including the relocated power provider from coal to gas
 modernizing infrastructure • likely the implementation of emerging
technologies
 transport improvements – e.g. the transition from rail to road
 network shift
 Mergers or purchases which involve duplicate operations to be streamlined.
You may assume that it is merely by modifying existing ones that you prevent the
question of finding new facilities. But it is still a decision on the location because the
current site is supposed to be the best available. In reality, if an organization wants to
change its facilities – whether expanding, relocating or contracting – there are three
options:
Expand or alter current installations at an existing site
open new installations at another site while retaining all the existing installations
shut existing operations and transfer.
Roughly 45% of companies are expanding at the same site and a similar number are
opening up additional facilities and 10% closing existing operations and moving. The
most radical option of relocation is often very costly and disruptive. There is little
downside which will result in economies of scale in the most restrictive form of
extending existing facilities. There are many ways to handle
modern buildings, even though it is absolutely necessary. Imagine a growing
manufacturer who wants to work on a new market. The dilemma is, it appears, the
only location for new buildings, but some options aren't too expensive. Five options
for rising investment are given in the list below:
Licensing or franchising: in exchange for a share of income, local companies
manufacture and sell the goods of the business.Exporting: in its current plants, the
company manufactures and markets the drug to a local business distributor.Regional
production and sales: in its current factories the firm manufactures the goods but
creates in the emerging market its own manufacturing and selling force.Local
assembly and finishing: in existing premises, but limited facilities are opened in the
new sector for finishing or assembling the final product, the company makes most of
the productTotal local production: in the new sector, the company opens complete
services.
If the company is opening new retail factories, it will benefit from greater leverage of
goods and the supply chain, improved revenues, elimination of import duties and
restrictions and better relations with local consumers. Investment, danger and
dynamic, unknown activities are on the other side greater. The best decision relies on
many considerations, such as the money available, organization’s approach towards
risk, target return on investment, current projects, timescale, market awareness,
shipping costs, taxes, trade regulations and available manpower. Warehousing
fundamentals Missions of a warehouse. A warehouse can play one or more of the
following functions in a delivery network:
Raw material and component warehouse: Hold raw materials at or near the
induction point into a process of fabrication or assembly.
Work in process warehouses: Hold components and goods partly assembled in a
manufacturing line or assembly line at various stages.
Finished goods warehouses: Hold stock used to offset and to tampon the variability
in supply and demand schedules. To this end, the warehouse usually sits close to the
production point and is always distinguished by the movement of complete pallets
into and out of pallets because the volume and scale of the product guarantee pallet
loads. A warehouse that only serves this function may require from a monthly to a
quarterly inventory recharge to the next distribution level.
Distribution warehouses and distribution centers: Cumulate and consolidate

products for combined shipments to common customers from different manufacturing
points within one single company or from several companies. Such a facility may be
centrally situated to either the manufacturing center or the customer base. In full cases
or split case numbers the movement of product could be typified by full pallets or
cases. The facility usually answers weekly or monthly requests on a daily basis.
Fulfillment warehouses and fulfillment centers: Receive, pick, and mail limited
orders for individual customers.
Local warehouses: Distributed on-site to reduce delivery distances so that consumer
demand can be easily addressed. Frequently, single items are selected, and the same
item can be sent to the customer every day.
3.29.4 Functions of warehouse
No matter the name or function, a fundamental collection of activities is shared
amongst warehouse operations. The list below lists the activity in most warehouses.
Receiving: The compilation of the activities involved shall be provided (a) on
ordinary reception of all materials entering the warehouse; (b) on assurance that they
are ordered to be of quantity and quality; and (c) on the delivery of materials to
storage or to other organizational functions which require them.
Prepackaging: In a warehouse, pre-packing is achieved as goods are purchased bulk
from a manufacturer and either separately, commercially or in combination with other
components to form packages or sets. The packaging is done in a warehouse. Both
products can be obtained at once, or a portion can be kept in bulk form for later
delivery. It can be done when packaging significantly increases the requirements for a
storage cube or when several kits or sizes are common to a part.
Put away: Put away is the process of processing the goods. It includes material
management, verification of location and placement of products.
Storage: Storage is the physical containment of the goods waiting for a request. The
type of storing relies upon the scale and quantity of the items in store and their
handling resources.
Order picking: The method of order selection is the withdrawal of items from stock
to satisfy a particular need. It is the basic service provided by a warehouse for
customers, and it serves as the basis of most warehouse designs.
Packaging and pricing: After the picking process, labeling and prices can be done an
optional step. As with the pre-packaging function, individual articles or packages are
more conveniently boxed. Waiting before these tasks are chosen has the benefit of
making the
inventory more robust. Individual products are available until required for use in any
packaging setup. At the time of sale, pricing is current. In the case of pre pricing on
delivery or receipt in the factory, there is usually some repricing when stock lists have
been updated when the goods are processed.
Sortation: Sortation of batch picks into individual orders and aggregation of
dispersed picks into orders must be performed where an order has more than one item
and the aggregation are not achieved because the picks are made
Packaging and shipping: • packaging and shipping includes: Test order for fullness,
Packaging of goods in an appropriate shipping container, Preparation of delivery
papers, including the packing list, address label and stickers, weighing of packages in
order to assess shipping costs, Selection of outbound order, Checking of trucks.
3.29.5 Warehousing profiling
A warehouse activity profile primarily consists of a list of orders and an object

performance list.
 Order mix distributions
 Lines per order distributions
 Cube per order distribution
 Line and cube per order distribution
 Order mix distribution
These are a number of orders together, which are important for developing the
business plan for the warehouse. The family blend delivery, delivery of the handling
unit and order boost distribution are three of the most beneficial.
 Family mix distribution
In many cases, the warehouse 's overall operational strategy is governed by the order
mix — how far orders require objects from several families. If the orders are pure, in
other words, just one of the family of products on them, the zoning of the warehouse
on this basis will create a virtual warehouse inside the warehouse and contribute to
good efficiency and customer satisfaction.
 Full or partial pallet mix distribution
We seek to decide whether separate spaces are needed for pallet collection and
cassette collection with the full / part pallet mix delivery. Pallets and case picking are
done from the same item, aisle and/or warehouse area in many warehouses. In
general, it is a smart practice to set up specific areas for picking pallets and cases —
replenishing the picking line / area from the picking area of the pallet. This delivery
allows clearly to improve the location and recognize storage openings inside the
storage.
 Full or broken pallet mix distribution
Full and broken cases are picked at the same location, alley and/or area of the
warehouse in some warehouses. In general, it would be useful to create separate areas
for full and broken case collection
— replacement of a broken line of case picking by a box / collection area. This
delivery allows clearly to improve the location and recognize storage openings inside
the storage.
 Order increment distribution
The overarching philosophy is that the manufacturer should schedule the product for
pick up and transfer as well as he can, in developments that are likely to be purchased
and to enable consumers to order intelligent handling intervals. After negotiation that
the supplier should do our utmost at the receiving dock, we should make the product
ready to be delivered and packing, as we have the biggest time window available at
the moment for the preparation of the pick-up and shipping. Once the order for that
product has been decreased, the product should be handled and prepared at a
minimum to meet the ever-shrinking product delivery time window.
 Lines per order distribution
First of all, individuals can be backorders. Backorders are a great way to cross-dock.
Secondly, individuals may be low, urgent orders. We can group these picking orders
together on single line picking tours, and we create highly effective picking tours by
printing single line orders on the series of locations. Moreover, the order lots of
course divide the warehouse into areas specified by the duration of the picking walk.
Third, single line commands may also be a means of constructing a complex forward
picking line. In this operational situation, an automatic look at the orders of day or
change may generate at least one single-line order value for a variety of stock-keeping
units (SKUs). These SKUs can be picked and set up in a fast way. In order to decide
for any item (1) which storage mode should be assigned to the object, (2) which room
to assign to the object in the warehouse mode and (3) where to find the item in the
storage mode, this is the primary objective of the item management operation log.
 Item popularity distribution
The main principle is that the most popular articles are assigned to the most accessible
warehouse sites. Sadly, many warehouse managers are using the wrong reputation
metric. Some use dollar sales, others use dollars, and some use the number of item
requests. All is false, eventually. The number of requests for an object is the true
indicator of success. There is also not ample knowledge for storage modes to classify
objects or to even locate objects in storage modes. The right allocation of objects to
storage modes and space allocation within the assigned storage mode depends on the
popularity distribution and the distribution of cube movement.
 Popularity cube movement distribution
The cardboard flow rack was allocated to objects above a certain cube movement
level. Objects with high cube stability, constant rotation, must be regularly reused and
a greater storage area than items with small and medium cube movement must be
used. It is also important that they are put in a story mode that makes it possible for
the pick-line-carton rack to restock and condenses large storage locations. Low-cube
movement items and high popularity produce many selections per unit of space that
they occupy and take up little space on the selection line. They must be picking in a
highly productive way. In this case we suggest light-directed carousels, as the picking
rate is high and carousels can be used for items which do not need large storage units
on the pick side, and which do not need repetitive storage. Participations with low
visibility and small cube motions can not justifiably be stored in expensive
warehouses. Therefore, they are eligible for bin racks and modular drawers for
storage. The favored regions for each storage mode are their popularity-cube
distributions after storage mode allocations have been made.
 Item order completion distribution
The completion delivery of goods recognizes small categories of products that can fill
large orders. Such small clusters of articles will also be allocated to specific order
delivery fields, which are two to five times more effective than those seen in the
general store. The item-finishing distribution is established by classifying products
from the most to the least common. Beginning with the most populous object, then the
two most popular items, then the three most popular items, etc., the items will be
countered in order to determine which portion of the orders should a given object sub-
set complete.
3.29.6 Warehouse quality performance
Four key warehouse performance indicators are recommended for implementation:
Put away accuracy: The proportion of products is correctly omitted
Inventory accuracy: The number of storage sites without product gaps
Picking accuracy: The proportion of the order lines was error free
Shipping accuracy: The proportion of shipping lines was error free
Warehouse cycle time performance
We suggest the efficiency of the warehouse in two main areas for cycle times:
Dock to stock time (DTS): the time from the time of shipment arrival at the factory
to the date of delivery.
Warehouse order cycle time (WOCT): The time taken from the point of putting an
order on the factory floor to pick up, packing and ready to ship
Receiving principles
The reception is the place for the other holding operations. It is very difficult to
manage the goods properly in put away, transport, picking, or shipment because we
do not collect them properly. Unless we authorize damaged or inaccurate deliveries
inside the gates, damaged or inaccurate packages are likely to be delivered. The
principles of reception of the world class presented here should serve as guidelines for
simplification of reception operations. The goal is to optimize the information flow
through the receiving process and ensure minimal work content. Reducing handling
steps leads to the reduction of job materials, delays, time and injuries in logistics. the
improvement in managing measures that can be accomplished by implementing
specialized receiving techniques.
Direct shipping • Cross-docking • Receiving scheduling • Pre receiving • Receipt
preparation
Direct shipping
No receipt is the safest receipt. In direct shipment (or decline), vendors totally skip
our warehouse and ship directly to the customer. All the job, time, equipment and
mistakes that normally take place in the warehouse are thus removed. Shipments are
loaned to big, heavy objects to fall. For e.g., a major mail order manufacturer for
camps and sportswear dispatches all the canoes and large tents sold in the catalog
rather than shipped from their central DC. More direct distribution is now taking place
in the food industry. When totally bypassing the factory, all manufacturing procedures
and the chances of misusing the drug are removed.
Cross docking
The next best choice could be crossdocking if content can not be delivered directly.
Loads are prepared for shipment from suppliers into the facility. Delivery inventory is
automatically delivered in the outbound order. Exit orders are automatically shipped
to the outbound dock. No delivery or inspection takes place. There is no stock storage.
Receiving scheduling
Premediated cross-docking definitely requires an opportunity to schedule incoming
loads to meet regular or even weekly outgoing requirements. However, the
compromise of the use of receiving resources — doors, workers, storage facilities and
machinery for processing materials — requires the opportunity to schedule operations
and transfer time intensive receipts to off-peak hours. Organizations also increased
access to timetables for inbound and outbound charges via Web, EDI
and/or fax connections. This information should and should be used to schedule
receipts proactively and for the purpose of delivering forwarding notices (ASN).
Pre receiving
The explanation for the reception at the dock is mostly to carry materials for the
position assignment, product recognition, etc., for most time and place intensive tasks
in the reception role. These details can be collected far in advance, either by an e-
mail, an EDI connection or a fax notice from the seller at the time of shipping. The
information describing the inbound load can in some cases be collected on a smart
card, which enables the receiving dock to immediately enter the information. The RF-
readable tags on antennas on main roads, each receiving dock, lift vehicles, load
contents can also be transmitted.
Receipt preparation
At the moment it is obtained the most time we will plan a shipping package. When a
product is ordered, relatively little time for further processing of the product before
shipping is possible. Any processing of materials that can be carried out in advance
should therefore be carried out. The preparatory work includes:
Increments pre-packaging:
Distributor, quarter and semi-pallet loads for a large office supply are designed to
accept orders in advance of those numbers. This is allowed consumers to buy by
volume discounts in these amounts. An extensive analysis of likely order quantities
was carried out by a large distributor of aftermarket car parts. The business is now
prepacking the famous increases based on this study.Applying necessary labels and
tags
Cubing and weighing for storage and transport planning
A myriad of key warehouse designs and operating decisions are used to provide
product cube and weight information, yet few businesses have reliable cube
information about their products. When the manufacturers can not deliver cube and
weight, the details at the receiving dock will and should be stored. When a Cubiscan
unit is issued, the inbound board dimension and weights are always taken and
transmitted automatically.
Put away
Put away is reverse order selection. Many of the principles which make the picking
process more efficient work for put away. The ideals of put away are world class:
Direct put away
Fall to main or backup positions explicitly. One of our major medical customers will
not make space in their warehouse arrangements. In comparison to the waits and
multiple handling typical of traditional receiving and holding off operations, they
require warehouse operators to quickly dispose of goods upon receipt. When content
can not be cross-docked, sorting moves will be reduced either by transferring delivery
and placing material immediately away from the receiving dock at the main collecting
sites, effectively replenishing the principal sites. It could be possible provided there
are no significant limits on product rotation. Staging and testing processes are
removed in direct put away schemes. The time, space and work related to these
operations are thus removed. Clear put away is made possible by vehicles performing
the dual purpose of lorry discharge and put away. In order to automate unloading and
putting work, counterbalanced vehicles, for example, can be fitted with scales, cube
and RF on-line terminals.
Directed put away
Related to their own rooms, most cutaways automatically agree on put away
locations, which are easier to reach, nearest to the floor and nearer to their mate, next
to the break room — using parameters except where stock capacity and operating
efficiency can be maximized. The warehouse system (WMS) will direct the butterfly
operators to position each pallet or case at the location maximizing site and cube
utilization, ensuring effective inventory distribution and optimizing productivity
recovery.
Batched and sequenced put away
For a secure put away, sort incoming items. Much as the selection of areas and the
sequence of locations are successful techniques to increase the efficiency of the order
collection, the input materials are categorized according to storage area and position.
Interleaving and continuous moves
The put away and recovery method can be further enhanced by integrating put away
and retrieval transactions in two orders to minimize the sum of empty journeys by
means of elevators. This is specially built for pallet storage and recovery. Lifting
trucks that can unload, position, recover and load counterbalance are an efficient way
to perform dual orders. Interleaving may apply to constant movements within the
factory, where operators of warehouses are directed from most effective job to more
productive work through the WMS. (The interleaving process is similar to the
backhauling in transport).
 Storage operations
Since inventory is still well-founded, effective stock storage means are still
required. The four fundamental strategies for optimizing capacity by increasing data
density and recovery efficiency are:
 Storage mode optimization
 Storage space optimization
 Storage location optimization
 Storage layout optimization
 Storage mode optimization

Assign the lowest cost storage mode for each object. Each item should be stored in a
storage mode that minimizes storage and handling costs of the item, depending on the
particular specifications of each item and the dimensional features, the capacity and
expense of each storage mode and general planning criteria. The decision to transfer
pallet storage to floor storage, a single deep rack, double- deep, push-backs or a
mobile rack must be taken for each object. For this reason, the location must be
allocated to the floor storage. object will depend on the location of the bin cover,
storage cupboards, flow pad, horizontal carousels, vertical carrousels, automated
storage / restoration systems or automatic dispensing machines for small objects. For
this reason, an option must be made.
 Storage space optimization
Compare the space maximum to every object. One of the key decisions in the design
of storage systems is whether a selection area is to be established separately from a
select area. Since most pick requests are produced by a minority of products in a
warehouse, it is usually appropriate to create a concentrated picking area containing
some stocks of common goods. The less the inventory is assigned to the forward zone,
the lower the area for forward storage, the faster the transit times, and the higher the
efficiency for shipment. The lower the number, the more regular the internal refill
trips between reserve and forward zones.
 Storage location optimization
Assign the most common products to the warehouse locations which are easily
available. The bulk of the picking operations are carried out by a subset of the goods
(A's or fast movers) in the warehouse. We tend to take place most of the picking
operations in the picking areas where the highest productive output (gold zones) is
easier to select and yield. Therefore, A items will be allocated to positions in the
golden zone in order to reduce the picking productivity and the picking costs. The
choice of the golden region of a given warehouse depends on several factors such as
shipping dock position, shipping profile and choosing tours style. The golden zone
also consists of the 20% of the store areas below the floor and below the shipping
stations with a pallet’s storage / retrieval device. The Golden Zone is always
20percent of the collection sites nearest the waist level of the user for an object
selection device of long pick tours.
 Order picking operations
The most important priority activity for productivity improvements in warehouse was
identified as the most recent survey of warehouse professionals. There are several
reasons for their concern. Firstly, order collection in a typical warehouse is the most
expensive activity. A new research in the UK has found that a pick-up order can be
linked to 63% of all operating costs in a standard warehouse. Second, it is becoming
extremely difficult to control the order picking operation. New operating programs
like just-in-time (JIT), cycle time reduction, fast response, and new marketing policies
such as micromarketing and megabrand strategies are causing the problem. Both
systems allow (1) more consistently and reliably distributing small orders to
warehouse clients, and (2) more SKUs to be used in the order selection network. It
has greatly raised the pressures on both capacity, energy and accuracy. Second, a
renewed focus on enhancements to quality and customer care has prompted
warehouse managers, from a viewpoint of mitigating inventory disruption, reducing
delivery times, and increasing collection efficiency, to re-examine order selection.
Finally, conventional responses to the increased requirements of recruitment and/or
investment in more automated equipment, due to uncertain business conditions, have
been blocked by labor shortages and high hurdles. Luckily, there's a lot of ways of
improving order production without increased personnel or major investments in
highly automated equipment. In view of increasing demands for order collection
systems, a variety of ways to improve order collection productivity are outlined
hereby:
Issue pack optimization: Encourage and design for full-pallet as opposed to loosen
case picking and full-case as opposed to broken case picking. By allowing consumers
to buy in complete volume, or by making quarter and/or half-pallet sets, much
measuring and manual physical handling in the factory and warehouses can be
eliminated. In similar fashion, by encouraging customers to order in full-case
quantities, much of counting and extra packaging associated with loose case picking
can be avoided. A pick line profile illustrating the distribution of the portion of a full-
pallet or full-case requested by customers frequently reveals an opportunity to reduce
the amount of partial pallet and/or partial case picking in the warehouse.
Pick from storage: As much of the time of a traditional picker flies and/or looks for
pick locations, one of the easiest ways to improve flexibility and efficiency of picker
storage is to carry picker storage, preferably reserve storage locations. Recently
installed, a large cosmetic distributor that supplies storage facilities to stationary
ordering picking stations for batch selection of partial case quantities and direct
induction into a cross-belt assortment system.
Furthermore, the same system can transfer storage sites to and from receipt, pre-
packaging and inspection, virtually eliminating travel across the warehouse. While the
systems are costly, improved efficiency and accuracy can justify them.
Pick task simplication: A standard allocation of the recipient's time is given during
these operations. Means are illustrated to eliminate the operating components. When
job components can not be omitted, they should also be merged to increase the
efficiency of collecting orders. The following sections identify certain powerful
combinations of working elements.
Travelling and extracting items: Stock-to-picker (STP) systems like the carousels
and the automated mineworking / rescue system are designed to keep order pickers
extracted from and between storage places to pick the order picker while a mechanical
device is traveling to and from the picker. This poses a problem of man-machine
balance. If the initial STP system design is not accurate, a large part of the picker 's
time can be spent waiting for the picker to push the locations to a higher level.
Travelling and documenting: If an individual store is designed to carry the order
picker remotely to various picking locations, the picker may record the picking
purchases, arrange the inventory, or package inventory as the store / recuperator
drives.
Picking and sorting: If an order picker completes more than one order during a
picking tour, picking carts equipped with dividers or totes may be designed to allow
the picker to sort material into several orders at a time.
Picking, sorting and packing: Say smaller than a shoe box if the cube filled by a
completed order is small, the picker will sort directly in a packaging or shipping
container. Containers to be placed in picking carts equipped with splits and/or totes
must be set up in advance of time.
Order batching: Package orders for a complete travel time cut. The travel time per
pick can be reduced by increasing the number of commands (and consequently items)
picked by pickers during the picking tour. For examples, when an order picker picks
one command with two objects on a 100-meter path, the distance per pick is 50
meters. The distance traveling per pick is reduced to 25 feet when the picker selects
two orders for four products. Single-line orders are a natural collection of orders to
collect. In order to reduce further travel time, single- line orders may be loaded in
small areas in the warehouse. A profile of the number of lines requested per order
helps to detect the possibility to order single lines.
Single order picking: Each picker completes one order at a time when selecting a
single order. For picker-to-stock systems, you want to pick the items in the grocery
store and store them in your foods list. Each shopper has only his or her list to deal
with. The greatest advantage of the single order selection method is that the credibility
of the order is rarely compromised. The biggest disadvantage is that the picker will
probably have to pass through
a large part of the warehouse to select the order. The walking time per item chosen is
therefore high.
Batch picking: Batch picking is a second operating strategy. The orders are batched
together instead of an order picker working on one command at a time. Collectors are
in charge of collecting a batch of orders during a picking tour. In the example of the
grocery store, load picking can be considered as having your shopping list and that of
some of your neighbors. You have completed several orders on one side of the
grocery store. As such, the number of orders per lot decreases the travel time per item
picked. The key benefit of batch picking is that travel time per item is that. The
biggest drawback in batch processing is the time to sort products into customer orders
and the risk of picking errors. In one of two ways order can be sorted. The picker can
first use individual binding containers in order to sort lines in various orders while
crossing the warehouse. To facilitate this approach, special pick carts and containers
are available. Secondly, the line items and quantities of the various orders can later be
grouped. The cost of this sorting process, which is not strictly required to be collected,
determines whether batch picking is an economical strategy. In inventory-to-operator
schemes even batch selection can be used. In such cases, all the items in the order box
ordered are picked from a position as presented to the customer. Again, it is important
to weigh the benefits of the lower time of travel against the cost of sorting and
possibility of placing orders. For limited orders (one to five-line items) the batch
picking is especially successful.
Zone picking: In the area of selecting, a picker has the responsibility to select the
items on the lines in its assigned area, in order at times or in lots. In the background of
the grocery store, zone selection can be taken as one person on each aisle of the food
store. All line items demanded in that row, regardless of customers ' demand, will be
selected by the user. Travel time savings are the advantage of zone picking. Because
each picker 's coverage has reduced the time per line from a strict order picking from
the entire warehouse to a smaller area. Once again, the cost of sorting and potential
errors in order completion are balanced against such shortened travel time. Additional
benefits of area picking include the interaction of the picker with the commodity in
his area, decreased competition with other pickers and improved responsibility for
production and housekeeping within the area. Progressive assembly and wave picking
are two methods for determining order integrity in zone picking systems. Full
instructions are made in egalitarian assembly systems by moving their pieces on
conveyors or cartons from zone to zone in tote panels or cards. The pickers are truly
working in a picking mode in downstream sortation. An order picker applies a
barcode label to each unit selected for a typical downstream sorting system. Unit by
unit or in batch, numbered devices are loaded into a sorted / accumulated network on
a pick-up conveyor for induction. As before, productivity gains to pick the investment
in the accumulation method must be measured
Pick sequencing: Sequenced visits to the selected location can dramatically reduce
travel time and boost picking productivity in both operator-to-stock and stock-to-
operator systems. For starters, you can cut the travel time by 50 percent for an AS /
RS picking tour by splitting the tray into lower and top halves and visiting select
locations in the lower half, in the distance from the front of the rack on the outbound
leg, and in the lower half on the rack on the inbound leg In the upper half. In walk-
and-pick systems, visits to locations should also be sequenced. When picking
operations occur, the picking tour will be sequenced so that the pickers can set up a
stable load and minimize space. In the event that an order is put on one or more
pallets. To solve this complex problem, a leading provider of photographic supplies
employs an expert system.
Paperless picking: Paperwork is one of the major sources of inexactitudes and losses
of productivity to be collected. Pick-to-light, radio frequency data and voice input /
output technology have been successfully used to remove paperwork from the order-
collection function.
3.30 Shipping principles
Many receiving principles of world class are applicable in reverse shipping, including
direct loading (reverse direct unloading), advanced preparation and storage of
shipping notifications. To these we apply the following procedures to describe a
shipment of the world class:
 Container optimization
One of the toughest areas for enhancing logistical performance is the effect of
shipping container size and availability across the entire supply line. The building
blocks of the supply chain are containers with a variety of cartons, totes, pallets,
trailers, sea containers with 20-and 40-foot foot weight, rail cars and air containers.
Containers should safeguard, secure and identify the goods they contain. Containers
should easily stack and nest, fall when empty, handle comfortably, fit naturally to
other containers, and provide easy tracking and tracking. Containers should be
reusable and/or repatriated to reduce the environmental effects of logistics.
 Automated loading
As in receiving, the activity in the field of shipping is the most space- and work
intensive. Pallet jacks and counterbalance lift trucks can be used to load and pick-up
vehicles for automated loading of pallets onto outbound trailers so that the staging can
be bypassed. To continue one step further, automated pallet loading with pallet carrier
interfaces with specially designed trailer beds can be carried out so as to allow pallets
to be transferred automatically on outbound trailers with automated fork lorries and/or
automated guide vehicles. An extendable conveyor facilitates direct automatic loading
from loose cases.
 Dock management
The minimum time and paperwork are required to manage and optimize dock
assignments and route drivers onsite. There are currently numerous programs in place
to improve storage, receiving docks and truck drivers’ operations. Inbound trailers
would be designated on board to the dock nearest to the middle of the put away. Exit
trailers will be positioned at the dock door nearest to the loading contents.
 Materials handling
Often warehouse job moves goods from one location to another. All must be taken
from delivery vehicles, transported – often several times – around the warehouse and
eventually put onto departing vehicles. That involves the storage of materials. The
movement of material in general for short distances within or between warehouse and
transportation is concerned with materials handling. It costs money, takes time, and
allows for any damages or mistakes every time an item is moved. Efficient storage
facilities minimize the amount of movement and efficiency of the movement required.
Such material handling priorities include:moving materials around a warehouse as
requiredquick transportation of materials, reduction in movement number and
duration, increase storage density by reducing waste of space,cutting costs, making
few mistakes, using efficient material management systems.Such goals are primarily
focused on the option of managing machinery. This can influence the speed of
movement, materials, costs, layout, number of persons employed, etc. In some
warehouses the most part is handled, except maybe trolleys and baskets with little
equipment. Other storage facilities have heavy goods forklift trucks and cranes. These
indicate two automation levels – manual and mechanized. A third level provides
automated storage facilities, where a central computer handles all materials. These
three technological levels offer warehouses with entirely different features.
 Manual warehouses
This is perhaps the easiest way of imagining and one of the most common
arrangements. Articles are stored on racks or in tanks. People go and take things from
the regiments and put them in a sort of moving cart – a grocery trolley like that. Few
supports may be issued, such as hand trucks for carrying pallets or carousel pickers,
but people mostly regulate all modes of travel. By walking at a store, which is just
like a manual factory, you will get an understanding of these activities. Handheld
stores work only if the items are small and light enough to lift. Shelves should be
sufficiently small to touchthem and near to will the gap. Materials which are no
higher than two meters, are stored in shelves or in bins. The warehouse must be
heated, illuminated and comfortable for people.
 Mechanized warehouses
Mechanized storage facilities replace some manual storage muscle power with
machines. Mechanized equipment typical examples are:Get trucks that are normally
powered by electricity to carry pallets and the like up to the storage sites. A driver
controls the truck, which can increase the load to a significant height vertically. These
trucks are very thin, sluggish and have minimal equipment, but operate in narrow
areas well.
Order pickup machines represent a variation on the access trucks in which the
conductor is picked or delivered in high locations with the materials.The forklift
trucks come in a variety of versions and are the standard means for moving pallets for
short distances and for equivalent load. They are very mobile and maneuverable and
perfect for many jobs. They need space to work, on the other hand, and are rather
expensive to use.
The cranes, defining the lifting material family of cars.Towlines are continuous
cables, which like ski lifts can move trailers around a fixed path.Transporters used on
the fixed tracks to move vast volumes of goods. Many examples of conveyor belts
that move materials from iron or letters are visible. Roller conveyors are used as an
alternativeTractors or trains that are traction vehicles pulling loads carried on truck
vehicles. The tractor supplies trailers, as small articulated trucks or tugs and barges, to
the required location.
Carousels, essentially a series of bins running on a fixed track. Sometime the journey
items are placed in a bin, and when they go through another jogging place the
containers are drained.
These storage facilities can store heavier goods and are significantly larger. Some
equipment needs wide aisles but can be mounted up to 12 meters with a chassis and
up with cranes or high- speed equipment. Stuff would most likely not be brought
directly on shelves in these bigger warehouses but will instead be filled 'unitized.' The
packages or containers that are used for any movement are simply standard sizes. The
theory is that a range of various sizes and shapes will transfer regular products more
quickly. Mechanized systems are still under the control of an operator. The key issue
is in fact, someone drives a forklift or manages the movement on a towline. The
following alternative is to switch the movement power to a computer.
 Automated warehouses
High operating costs are often incurred by traditional, even mechanized warehouses.
These operating costs can be reduced and services can be improved through the use of
automation. Sadly, this requires very high equipment investment and is only really
valuable for very large businesses which move large quantities of materials.
Automatic storage facilities operate as usual but have the following components:
storage areas accessible through automatic devices which often use narrow aisles up
to, say, 40 m in height to achieve a high density of materials and minimize travel.
Stuff moving equipment around the warehouse; these are typically AGVs that use the
floor lead wires, which may include conveyors, transporters, tractors, or a variety of
additionally moving equipment.
CHAPTER 4
INTERNSHIP REPORT
What is internship?
An internship is a short-term work experience provided by corporations and other
organizations to persons, generally students, but not necessarily, in order to get entry-
level exposure to a certain sector or subject. It's as much effort as it is a learning
experience. Interns should spend their time working on relevant projects, learning
about the topic, building relationships in the business, and honing both hard and soft
skills. Internships can lead to full-time employment opportunities in some cases.
Why internship is necessary?

As an intern, you will have the opportunity to work alongside established industry
experts and gain a clear understanding of what an entry-level position entails. You'll
not only get real-world experience, but you'll also get to meet and learn from
professionals. And you'll begin to form your own network, which will include
everyone from your fellow interns to seasoned leaders.
An internship also gives you the opportunity to figure out what you don't want to do,
which is a less visible but equally significant benefit. When it comes to job hunting, it
can be tough to know where to begin. Internships allow you to test out a few different
things without committing to anything. If you're lucky, you'll come upon something
you enjoy. If not, you'll at least have a better idea of what doesn't function for you.
The more information you have to work with when it comes to something as difficult
as choosing the proper career, the better.
Employers want to see internships on resumes as they have become increasingly
prevalent. Applicants with prior job experience have a significant advantage over
those with only relevant schooling. Internships allow you to not only develop
applicable skills and gain knowledge about a profession, but also to show those talents
and industry knowledge on the job. Nothing replaces real-world experience for most
companies, even those who are experts at recruiting young grads.
Internships are often used by companies as a talent pipeline to fill full-time
employment. Internships are a lot of things for employers: a long interview, a training
programme, and a clever approach to fill available positions. As a result, some college
seniors may be able to enter their senior year with employment offers in hand.
In other words, internships may help you find out what you want to accomplish with
your career and make it simpler to obtain your first full-time job in that field.
How to Find an Internship in Three Easy Steps

You may be wondering how to get an internship now that you understand what one is.
Here are three options for finding internships.
 Utilize the resources available on campus
If you're a student, visit the career centre on campus to learn how to attend job
fairs and participate in on-campus recruitment. Your university may also have
employment boards for students. These employers are searching for students from
your school especially! Use that academic link to your advantage, and take
advantage of how handy it is for companies to come to you.
 Go to the internet
As you might expect, there are several resources available online, including, of
course, The Muse, which offers job and internship ads as well as business
profiles to help you learn more about companies and their cultures. It's
important to begin into your search with a clear concept of what you're
searching for, such as "product management internship" or "editorial
internship." It may seem contradictory, but the more you restrict your search,
the easier it will be. You may always be open to new possibilities as the
process progresses, but start with a specific objective in mind.
 Examine the Websites of Your Favorite Organizations

Everyone has a few of fantasy businesses. If you're not sure what type of
internship you want to do, another option is to do some research about the firm
first. Go to the website of the firm you want to work for and check what type
of internship programmes and possibilities they have. Apply if you discover
one that seems like a good fit. After all, one of the primary advantages of an
internship is that it may assist you in determining what you want to do after
graduation.
Ways to Get an Internship

If all of this sounds appealing, the final step is to secure an internship. Here's how to
do it.
 Begin your search early.
Determine when your sector hires. In general, the larger the firm, the earlier
they begin the process for the next summer's intern class in the autumn. If your
school hosts a fall career fair, that's a good place to start. Smaller businesses
have a tougher difficulty forecasting headcount and, as a result, hire closer to
the start date. This might imply that applications for summer internships are
due anywhere between January and March, so double-check deadlines in the
autumn, especially if you're targeting smaller businesses. If you're searching
for an autumn or spring internship, start exploring at least a semester in
advance of your desired start date.
 Make sure your resume and cover letter are in good shape.
Follow these five steps to construct an internship resume, and learn how to
write an internship cover letter. Even if you don't think you have much
experience to write about, as long as you maintain an open mind about what
"experience" means to you, such as course assignments, hackathons, volunteer
projects, or other extracurricular activities, you'll be able to put together a
convincing application.
 Make Sure You're Ready for Those Interviews

It's easy to just go with the flow, especially because interview invitations often
make them sound like casual conversations. Don't get taken in by it. Review
and practice answering typical internship interview questions aloud. Your
replies do not need to be memorized, but they should be practiced. Make sure
you learn all you can about the firm, including what it does, what its working
on now, and what its environment is like. If you want to be extra prepared, go
a bit further to discover how they do interviews and the types of questions they
ask. Finally, if at all feasible, research your interviewers on the company
website, LinkedIn, or other professional sites. Make the most of your research
to come up with pertinent questions to ask at the conclusion of your interview.
 Make the Most of Your Connections

Contact instructors, alumni, and your career centre if you're a student. Make it
clear what type of internship you're searching for. They won't be able to assist
you until they know what you're looking for. I don't mean approaching an
alum you've never met and asking for an internship. Instead, tell them what
you're passionate about and seek their ideas on how to get there.
Create a list of firms you're interested in and start reaching out to people via
LinkedIn or your school's alumni database to be even more focused with your
networking. To ensure you don't miss any deadlines, apply online as well, but
maintain meeting with individuals and conducting informative interviews to
obtain advice on your hunt. You could even snag the internship of your
dreams after an impromptu interview. Networking is a more time-consuming
technique, but it usually results in a better match than applying randomly.
Even if it doesn't immediately help you get an internship, you'll be pleased you
started building your network early in your career.
Definition of internship
An internship is an organized experience that includes the following:
 Refers to a student's major and/or desired career path.
 Enhances a student's academic, professional, and personal growth.
 Is overseen by a specialist in the field
 It might last one academic term or several academic periods.
 Is it a part-time or full-time job, paid or unpaid?
 Is agreed upon by the student, supervisor, and/or faculty member in a mutually
beneficial manner.
 Meets the criteria for a 0 credit hour or academic internship course
registration.
 It's also known as a Practicum or a Co-Op. (02)
Types of internship
An internship might be compensated, uncompensated, or partially compensated.
Internships can be part-time or full-time, and they are generally flexible around the
schedules of students. An internship typically lasts one to four months, however it can
be shorter or longer depending on the business. Interning can also be defined as work
shadowing.
 Insights:
Many big businesses, notably investment banks, provide "insights" programmes that
last anywhere from a day to a week and may be completed in person or remotely.
 Internships that pay

Medicine, architecture, science, engineering, law, business technology, and
advertising are among professions that use it. Internships for work experience are
most common in the second or third year of study. This sort of internship is designed
to broaden an intern's expertise in both their academic courses and their work
environment. The intern is expected to offer school-related ideas and expertise to the
firm.
 Work-related research, virtual research (for graduation), or a

dissertation:
Students in their final year of school are the ones that do this the most. A student
performs research for a specific firm during this type of internship. The firm may
have an area where they believe they can improve, or the student may select a topic
inside the organization. The findings of the research investigation will be written up in
a report and often presented.
 Internships that are not compensated

Typically, this is done through non-profit organizations and think tanks, which
frequently have unpaid or volunteer jobs. Under the Minimum Wage Act, state law
and state enforcement authorities may impose requirements on unpaid internship
programmes. To be categorized as an unpaid internship, a programme must satisfy
certain conditions. Proving that the intern is the major benefit of the connection is a
part of this criteria. Unpaid interns conduct work that isn't routine and isn't critical to
the company's success.
 Internships that are partially compensated

When students are given a stipend. Stipends are usually a set sum of money that is
distributed on a monthly basis. Interns that are paid with stipends are usually paid
according to a fixed timetable specified by the organization.
 Internship on the Internet

Internships that are conducted by email, phone, and the internet. Because physical
presence isn't necessary, this allows for greater flexibility. It still allows you to get
work experience without having to be physically present in an office. Virtual interns
have the freedom to work at their own speed in most cases. (03)
The Aims of an Internship
For young employees who wish to increase their chances of getting a job and jump-
starting their careers, an internship offers a number of advantages. Internships offer
you a taste of what it's like to work in a certain field, help you develop your CV, and
allow you to meet individuals who can help you further your career. Don't let an
internship pass you by without taking advantage of possibilities to broaden your
business knowledge. Take advantage of the numerous advantages of an internship.
 A Test Drive
One of the primary goals of an internship is to introduce you to a certain
career, profession, or industry. While you may have an idea of what a job
entails, you won't know whether it's what you expected, if you have the
necessary training and abilities, and if. Interning at an advertising firm will
teach you that advertising entails consumer demographic research, focus
groups, understanding of a client's pricing and distribution strategy, as well as
media research and buying.
 Creating a Resume
The more experience and accomplishments you have while applying for
employment, the more appealing you will appear to a potential employer. Just
because you have an internship with a certain title or a well-known firm does
not guarantee that you will obtain a good job. Make an impression at work by
taking on more responsibilities and seeking for new approaches to accomplish
goals. Work more hours than needed and request to work in other areas to
broaden your skill set. Even if that's all it takes to accomplish your internship,
don't merely fetch coffee, make copies, and sit in on meetings.
 Contacts in the Network

Another advantage of an internship is the opportunity to make business
contacts. After you've been hired someplace else, these folks can help you get
a job, function as references, or assist you with tasks. Meet people who have
occupations you'd like to have someday and offer to take them to lunch.
Inquire about how they got started in their jobs, how they got to where they
are today, and if they have any tips for improving your abilities.
 Job Possibility
If you enjoy your internship, you may be able to succeed and eventually obtain
a position with the firm. Employers are more likely to hire someone they know
because they can assess the person's work ethic, talents, inventiveness,
capacity to collaborate with others, and general fit with the firm. To enhance
your chances of obtaining a job with the firm, go above and above what is
asked of you, study the office dynamics, and make friends with key
individuals.
Advantages of doing an internship

Consider whether an internship may assist you narrow your focus and prepare you for
future employment when you complete your undergraduate degree and begin your
chosen professional path. The following are some of the benefits of internships for
students:
 Experience in the workplace

Education and experience qualifications are frequently listed in job postings. You
most certainly lack the necessary experience if you are joining the job for the first
time following college or a vocational training programme. Internships are a great
method to bridge that gap. You may receive important insight into how a company in
your industry operates, participate in meetings, and complete given work in a real-
world situation.
 Expertise in research
An internship in the scientific area, for example, may entail aiding with research in a
lab. You may put your research abilities to the test in a real-world environment while
also contributing significantly to the lab's essential research. This type of post-
education training is required for some permanent research employment. Internships
might assist you in deciding what type of lab work you want to pursue.
 Various jobs and departments are available to you.
While certain internships, such as lab research, may assign you to a specific duty each
day, others may allow you to interact with individuals from diverse departments and
occupations. You may assist senior management, attend meetings, do small project
work, or observe how the office operates on a regular basis. If you have a general
field of study, such as a B.A. in English, an internship in a publishing house where
you can observe how each department operates might help you decide what type of
publishing profession you want to pursue.
 Mentorship
The most beneficial mentor relationships frequently begin with a personal connection
that benefits both the mentor and the mentee. Working as an intern may provide you
with the opportunity to meet a prospective mentor in a natural setting and build a
relationship that will assist you in determining your future path. In person, you have
the opportunity to display your personality while asking direction and feedback, as
well as to demonstrate reverence and respect. Even if you end up working elsewhere
full-time, an internship might create a setting where your connection grows
organically.
 Assist in the development of career objectives
You may study a number of courses during your schooling to identify your interests.
A college diploma may assist you in determining what type of profession you wish to
pursue. Others find that education provides a varied range of experiences that lead to
a variety of employment choices. An internship can provide job experience by
exposing you to everyday challenges and responsibilities without requiring you to
commit to a certain career path. It may help you figure out if particular professions are
a good fit for your personality and skills, as well as introduce you to individuals who
can provide you career advice and assistance.
 Make a professional connection.
Meeting individuals in your profession who may suggest you for available
opportunities is typically the most effective way to find a job. Internships are a great
way to broaden your professional network. Professional connections you will
encounter may be the most important link to your future employment opportunities,
thus demonstrating interest, passion, and willingness can assist professional contacts
realize your potential.
 Create a good resume.
This essential work experience allows you to be honest and detailed when filling out
your resume. Not only will you be able to include your internship's responsibilities
and projects to your resume's experience section, but you'll also be able to more
clearly express your goal for a permanent employment.
 Obtain positive testimonials and referrals.
Supervisors and advisors you meet during your internship might serve as important
references while you look for a full-time position. Managers are more likely to
recommend you for available positions if you are optimistic and diligent. Because
those supervisors would have known you personally and witnessed how you
contributed to the firm, internship references might be useful in job searches. They
can talk about specifics, such as how your talents are growing and how your
schooling is preparing you for work.
 Make the transition to a permanent position.
If you and the individuals you work with have a good time during your internship,
you may be hired for a permanent position at the firm. Internships are frequently used
by hiring managers as a means of determining which interns might be a good match
for vacant positions. Internships may serve as pre-employment training, and human
resources workers and managers can see you in a variety of scenarios to see if you'd
be a good team member. It alleviates some of the stress that comes with seeking for a
job without making internship connections. Even if the firm does not have an open
permanent position, you may keep your relationships and go on.
 Boost your self-assurance
The move from college to full-time job may be exciting, stressful, hopeful, and
ambitious all at the same time. An internship is a great way to occupy some downtime
with the work you want to accomplish in the long run. It can relieve some of the strain
of finding a permanent job fast and assist you in putting the skills and information
you've been learning into practice. Instead of studying about it in the abstract,
internships may teach you how a firm produces leaders. You can see those who have
outstanding time management abilities and make a mental note of who you want to be
like. You could pick up some useful teamwork and cooperation skills. If you consider
an internship to be an extension of your schooling, you'll likely gain a variety of
confidence-boosting skills that you may use to your future job.
Overview of Internship
My internship has been with the AAI Cargo logistics and Allied service company ltd.
(AAICLAS), which is one of the sub-organizations of Airport authority of India
(AAI). This is mostly related with cargo and logistic industry as well as providing
good customer service. In order for the AAICLAS to attract new branches, I was
appointed to the administration department as a trainee of system administrator, which
is responsible for verification of delivery, data handling, and advertising and
marketing, inbound and outbound.
In general, I've been given the opportunity to participate in marketing and advertising
activities at the organisation. I've also assisted in the verification department and
handling warehouse activities.
I completed approximately four-month internship, that duration I learned how to
operate as part of a team and the importance of esprit-de-corps in order to be a
responsible team member. I've also learnt how to connect customer service
department regarding resolve any complaints or issues may have.
I was participated many online training programs in the organization. The pre-
internship training proved to be really beneficial. It was held through the zoom meet.
This was a fascinating topic that allowed students to grasp the significance of
workplace manners. This also assisted me in preparing myself and understanding
what I should and should not do as an employee. It was a wonderful opportunity to
conduct those trainings and classes from company officials, which helped me gain a
deeper understanding and prepare for my first day on the job.
I started working for the AAICLAS on March 15, 2021, and have been there ever
since. I take the opportunity to gain complete information and experience from this
position. I was working in the department's marketing, warehouse team and
administration department, which is one of the department's domains. I was working
as system administration trainee and checking mail of the customers and forward to
the service department. That’s why I didn’t do any operational activity in the
organization.
Roles in Organisation
Mr K A Srinivasan, a senior manager (cargo/MM), is my on-site supervisor. My

working hours begin at 10 a.m. and end at 6 p.m. My first week at the company were
difficult because there was no job for me to do and the instruction was for me to
observe the office working environment. I was given a desktop computer on the first
day of my employment, as well as a separate desk with full internet access. Since my
first day on the job, I've discovered that every operation is computer-generated, and
there are only a few paperwork tasks to complete. However, I had nothing better to do
than use the internet to travel the world. Some of my hours were spent daydreaming
about how I would spend the remainder of the weeks if I had no tasks. For one week, I
was miserable since I sat in a chair for roughly 8 hours in a day with no job.
On my next week, I was finally assigned a task. It was a little task of entering data
into the system for delivered stock. I was also told that I would have to produce an
online report on what I had gathered. In addition, I was given two days to finish the
work. Meanwhile, I was preparing the summary report and taking notes from my
senior manager. Days shifted as I began to understand the workings of the company.
Thanks to Srinivasan sir, I was able to complete my assignment on time.
My supervisor already gave me two weeks of basic training on the activities that the
marketing department performs, the methods for completing different tasks, and the
criteria that must be followed while performing a certain job. I had to learn how to
work with a variety of tools and software that were required to complete the job.
Following that, he assigned me some homework projects based on what I had learned.
Throughout the week supervisor gave me marketing tips and advertising techniques.
After the completion of two weeks, I aided my supervisors with their tasks as needed.
As time went on, I grew increasingly connected to the company and, in particular, to
my supervisor. My supervisor gave me several appraisals, which made me feel proud
that my job was providing substantial value to the firm. It gives me great joy to be a
part of such an institution. I have thoroughly liked every bit of my time with the
company and have gained different experiences that will definitely aid me in
determining the best career route for me.
I worked in the inbound department, which was primarily responsible for sourcing
raw materials, shipping out finished goods, product picking and packing, and order
processing. Furthermore, once the goods arrive at a warehouse, the receiving team
accepts, logs and stows the inventory in the appropriate inventory storage location.
One head of the department and six members make up the administration department.
Each member is in charge of a specific task or project. The marketing department is a
sub-department of the administration department. The marketing department is
primarily responsible for providing visual ideas, advertising, and digital marketing,
along with various social media platforms.
There will always be one person in responsibility, a senior system administrator in
charge, and a member of the design team. Other members will assist in brainstorming
ideas and providing feedback. One senior executive who have worked for the
company for more than 5 years are among the six members of the administration
department. However, they are all between the ages of 25 and 35, which I believe the
administration team requires for their innovative ideas. Ms Srinivasan, a skilled
employee, is the person in charge. He is a warm and capable young man with many
years of knowledge in inbound, outbound, and cargo management, as well as
excellent leadership skills in managing a team. One of the most essential benefits of
internships is the hands-on work experience that interns gain, which cannot be
achieved in a classroom setting. Interns have the opportunity to apply what they've
learned in class to real-world situations, getting a first-hand look at the kinds of tasks
they'll be doing in their chosen area. An internship not only teaches specialised skills
in a sector, but it also teaches transferrable abilities like communication, teamwork,
and computer competence, completely equipping interns to enter the workforce after
graduation.
Research is a crucial part of the college experience, and internships are a terrific way
for students to get a taste of the subject they want to pursue. Some students enter
college with a specific degree or career route in mind, only to subsequently change
their minds. Taking up an internship while in college allows students to get
experience in their chosen industry while also allowing them to determine if it is the
appropriate fit for them. Interning students are more likely to feel confident in their
degree choice by graduation. An internship isn't about organising a file cabinet or
delivering file for your supervisor, contrary to popular assumption. An intern's
responsibilities have changed over time. Many internship programmes require you to
work on a project, manage a small staff, and even collaborate with executives.
It's critical that you approach your internship with the proper mind-set. You'll be
better prepared and know what you need to do to succeed if you don't know what to
expect from your internship role. Additionally, successfully completing your intern
tasks will assist you in developing a powerful skill set that will shine in your next
career. Expect to be tasked with leading a major project as an intern. , at least not
immediately away. You may spend the first several weeks of your internship simply
learning how the organisation operates. To gain a better knowledge of an employee's
job, you can shadow them. After understanding the ins and outs of the company for a
day or a few days. You'll begin to help out more and contribute more to the group.
Verifying documents, drafting reports, designing creative, coordinating inbound and
outbound activities, and other routine work.
Managing website and emails, also managed the company's online profiles, send
customer emails, talk to customers over the phone, and other similar tasks. Designing
social media posts, scheduling them, and developing a general plan for your postings
could be part of your day.
Interns are frequently required to supervise the scheduling of key events. I got the
work to assist in getting everything ready for an important event. From getting the
venue to assisting with the formulation of a theme to locating your key speakers.
Interns who have recently completed a university education have a wealth of current
knowledge. The company might be able to put this information to good use by
assigning you to a research position. I also got the work to investigate a new project
and make advice on how to best carry it out.
Job shadowing has suddenly become the standard. The method requires “shadowing”
someone while they go about their everyday tasks, monitoring their actions, and
learning what the role entails through indirect experience, as the term implies. This is
particularly common in hands-on fields such as engineering and healthcare. It has
been completed, you may be allocated a mentor when you first join the organisation.
You may be assigned to follow them about for the first few weeks. While they're
working, they'll show you the ropes. You could be requested to help with minor jobs
now and again. You will be encouraged to inquire. Job shadowing is a great approach
to obtain a better grasp of what it's like to work in your field on a daily basis.
After a while of shadowing, you may be invited to assist your mentor on projects or
finally take over some of their responsibilities. Expect to take on more and more
responsibilities as time goes on. My current skill level and dependability with my
starting workload were initially the most important factors. I've been given with
extremely significant jobs as you prove yourself to your co-workers and supervisors.
You will be offered more responsibility as your performance improves.
One of the most important aspects of the work was managing several clients' Email
addresses. It was a job that was both boring and exciting at the same time. I, along
with the other intern, was mostly responsible for the Symphony, It was tedious job
because we had a deadline to meet and had to work one person at a time to fulfil a
certain amount of inquiries per day. Working together to solve problems faced by
readers of the pages contributes to a positive work atmosphere and enjoyment.
The following are the responsibilities in the organization:

 Plan shipments based on product availability and customer requests
 Track orders to ensure timely deliveries
 Prepare shipping documents (like invoices, purchase orders and bills of
lading)
 Schedule shifts for our drivers and warehouse staff
 Maintain updated records of orders, suppliers and customers
 Oversee the levels of our warehouse stock and place orders as needed
 Administer internal systems and interpret issues in them.
 Troubleshoot the issues that arise in the internal systems.
 Oversee the daily operations and the operation team.
Another regular job was following up with the developers in the creative department
on a regular basis. Follow-up was done to ensure that the experts delivered their work
on time and that they stayed on track throughout the development process so that the
work was completed according to the brief. It was once again extremely difficult to do
follow-ups. As a result, having a good contact with them helped me create a
wonderful relationship with them and deliver the tasks on time. Follow-ups were
really beneficial in improving my leadership and public speaking abilities.
Another notable aspect of my employment was content management for several client
sites. I had to work directly with the copywriters and strategic planners on the
material in this position. It was the best platform to practise those that I had studied
during my university life, and it was the best challenge to amuse people with varied
ways. To make the best use of my brand knowledge, it was the best platform to
practise those that I had studied during my university life. We had to conduct
extensive study into the customer's requirements. I had created a slew of captions for
the client's various postings.
In numerous ways, establishing a procedure that actively involves employees in doing
safety observations aids in ensuring that employees operate safely. For starters,
observations are beneficial to both the observer and the employee who is being
observed. Obviously, the input benefits the employee who is being observed. The
feedback raises the employee's awareness of the danger of damage that comes with a
certain approach to the activity, and perhaps inspires them to use a new technique that
lowers the risk. Perhaps less clear, the observer gains from the observation.
Conducting an observation makes the observer more aware of such dangers the next
time he has to perform the task.
.Furthermore, both new and seasoned personnel benefit from a behavioural
observation approach. It guarantees that (1) experienced employees are aware of the
dangers of cutting corners on safety practises, and (2) new employees have a greater
grasp of the risks they face at work. Designing a high level of employee ownership is
the key to an effective behavioural observation method. Employee participation in the
creation of the behavioural safety procedure helps to assure ownership. Employee
participation in the creation of the behavioural safety procedure helps to assure
ownership. A behavioural safety design team is made up of volunteers from different
departments. Employees on the design team should normally have a strong personal
commitment to safety and serve as informal leaders among their co-workers.
Key Learning from Organisation
During my four-month internship in AAICLAS, I discovered that the workplace

culture has had a good impact on my impression of a worldwide corporation. In the
marketing department, where we have many brainstorming sessions for upcoming
events and promotion activities. The ability of the organization has inspired my desire
to excel in my role by putting up greater effort to learn new things and to complete
tasks and assignments. I've also learnt about time management because I've been
assigned chores and given a set amount of time to finish them. I need to be able to
effectively manage my time and select the most critical and urgent things.
Because I work in the administration department, I have the opportunity to participate

in a variety of computer-related duties, including checking emails and details orders,
communication, track orders, creative design, maintain update records, and so on. I've
also allocated some easy tasks, such as document compilation and data entry, to
maintain the client information up to date. I also assist in reviewing goods for rejects
and returning defective products to the suppliers throughout the busy season in the
company.
I also have the opportunity to take part in the marketing team's weekly meeting. My
job is to take marketing ideas at the meeting by taking down all of the relevant points
and keeping everyone up to date on the upcoming events.
I had the opportunity to work in the warehouse department on one of my internship

days. There were a number of other co-worker who were quite helpful. One of the
responsibilities of the warehouse department was to cross-check shipping details with
computerised delivery data. If there are any errors in the shipping details, I should
find out about them as well correct them before processing. Due to changes in product
information and stock ordered details, certain products may be returned.
I also have a duty at the company counter, which I initially assumed would be a
straightforward job. However, since starting duty, I've learnt a lot of things that I
never studied in university. To provide appropriate information to the provider, we
must first learn all of the locations of the company's outlets and the services they
provide at the counter. I'm also responsible for resolving consumer issues.
Working in a logistic company can also teach you how to communicate with clients
and solve their concerns. I worked at the company's concierge counter and was
educated to be a professional concierge or receptionist, which included welcoming
guests, providing adequate information, and providing proper instructions. When
dealing with consumer concerns, I've also been taught a few steps. When a customer
demands a complaint form, for example, the receptionist will first enquire about the
problem and attempt to resolve it on the spot. If the issue cannot be resolved, the
concierge will provide consumers with a complaint form, which will be discussed
with the technical manager and other relevant departments. In most cases, we will call
the customer who filed the complaint to better understand the situation and discuss a
solution. If the problem is with one of our tenants, we will inform the outlet manager
and set up a meeting between the client and the company.
During my internship, I noticed that, although the company's hierarchical structure,
personnel in AAICLAS are allowed ownership in handling their particular tasks. They
will also be given authority to make decisions and carry out responsibilities. They are
free to express their thoughts, opinions, and grievances, and the manager will
carefully evaluate them. As a result, employees are always motivated to complete
their tasks.
People tend to work in a team to complete a task or project at the organisation, which
is collective in nature. The team members form positive relationships with one
another, assisting one another in producing high-quality work by focusing on the
organization's goals rather than self-achievement.
Transportation consumes financial resources because private fleets demand internal
expenditures, while commercial or public transportation requires external
expenditures. The main goal is to move product from a starting point to a specified
destination while minimising time, money, and environmental resources. Loss and
damage costs must also be kept to a minimum. At the same time, the movement must
be carried out in a way that satisfies customer criteria for delivery performance and
shipment information accessibility.
In addition, I conducted my own research by visiting the company's website to get a

sense of who they were and what they performed. I knew I could learn a lot and reach
my learning goals because of the knowledge I gained during my education. I wanted
to learn and specialise in logistic activities, customer service, data management, and
marketing services.
In addition, I want to grow and improve in the areas where I see room for
improvement. For example, I'd like to learn how to work more efficiently by
completing tasks in less time and with higher quality results. I want to strengthen my
communication abilities so that I can confidently communicate with individuals and
co-workers.
The four-month internship is insufficient for us to learn everything, especially when
as interns, we do not have many opportunities to participate in and manage larger
projects or tasks. I feel that a leader must possess a wide range of abilities in order to
effectively lead a group and himself. I believe that resolving team issues is an
essential skill. When there are multiple ideas and working styles in a group, conflict is
inevitable. A leader must be able to resolve internal problems while also attempting to
avoid them.
In my experience, I've tried not to analyse each and every interesting event, but rather
to look for trends. It's OK if not everything makes sense at first. There may not be a
single or a collection of tangible explanations that explain why the organisation is the
way it is. Many people have helped to shape it into what it is now, so looking for a
single fundamental cause may be futile. Observing how different areas of the
organisation interact can help you choose when and where to bring new ideas.
In addition, I'd want to strengthen my ability to think critically. As technology and

industry trends develop, critical thinking should be utilised to adapt to changes such
as changing strategy, changing target, and providing consumers with delight service,
among other things..The department heads report to the company's general manager,
and they hold a weekly general meeting. Every week, each department holds its own
meeting, with senior executives and executive level staff reporting to their respective
department manager.
It's a chance to learn about its dynamics and evolution, which can be an interesting set
of lessons. Since becoming Head of Testing (in other words, competency head
responsible for development and training activities related to testing abilities), I've
learnt a few things about the firm, its problems, and how to foster change. I've
discovered that focusing on the process of learning about what's needed and
presenting new ideas rather than the end result is beneficial. When a company,
circumstance, or function is new, there is likely more information accessible than you
can digest, more nuances you will miss than straight facts you will get right, so
concentrating on one step at a time may help you get farther. In this essay, I provide
my insights towards getting to know an organisation and analysing its change
potential, which you could find valuable when considering how to foster change at
your company.
It can be tempting to "create your impact" right away when starting a new job by
modifying procedures and processes. It's possible that some folks are expecting
something to happen right away. Even if potential ideas have been discussed and
some analysis of the situation has been provided, you should still consider a time of
observation before implementing any adjustments. If there are any immediate
concerns that you can assist with, you should definitely do so.
It was not the invention of solutions, in my opinion, that is the issue. Usually,
brainstorming solutions based on existing experience or after brief consultation with a
few people is pretty simple. Understanding the "what and why" of a situation is
significantly more challenging. Typically, it's not just a single problem, but a jumble –
a collection of issues with a fascinating relationship between them. As a result,
coming up with answers is difficult. I'm afraid I can't provide you a set time frame for
how long you should observe rather than reform. It can take a few weeks or even
months. However, I advocate speaking with a variety of people from various
departments within the company.
Take notes and analyze in between conversations to see how your image of the
organisation changes and what kinds of cues you encounter. In retrospect, you may
recognise that you noticed some really important behaviours within the first few
weeks. However, developing insights for hindsight takes time in the first
place.Identifying tangible things that make up a corporation is a reasonably simple
endeavour, even if you are new to the organisation. There are specialists, managers,
and various types of employees; offices, documents, rooms, and teams are all there.
Identifying how the pieces are connected, on the other hand, is a more difficult task.
As a result, I've found it beneficial to follow norms and general unwritten guidelines
of "how things are done." Tracing the decisions that lead to decisions might reveal
what kind of calculations are used in decision-making at the company. Understanding
where and how money travels, as well as who makes decisions about it, can help
show differences between what is declared to be important and what is truly important
(those things typically get funded). Examining the flow of information, where it flows
readily from and to, and where it becomes muddled or shut off, reveals barriers you
may not have observed before.
People are story-telling beings. Every day, we tell ourselves a tale about who we are,
where we came from, and where we are going. Every day, many stories concerning
various occurrences are told within an organisation. We make sense of the world by
telling tales, connecting occurrences to discover coherence, and tying everything
together with cause and effect. Listening to the tales spoken in an organisation is a
gateway to understanding it since stories are so powerful in helping people make
sense of the world. I don't mean gossip or agenda-driven conversation, however the
presence of gossip may be an intriguing quality, and I’m referring to stories regarding
people's relationships with their co-workers and the corporation as a whole. You may
come across both defeat and victory stories. It is impossible to overestimate the value
of an internship experience. Employers nowadays prefer candidates who have
completed many internships rather than just one. By giving a degree, a college
education will catapult a graduate into a profession by demonstrating academic
proficiency in numerous theoretical and practical examples of how a job might be
accomplished. An internship puts the student in a real-life work scenario with real-life
co-workers performing real-life professional activities that the job entails, making the
classroom's abstract ideas and taught instances realistic.
You might come across tales of trial and error. Common patterns (reasons why some
projects failed or succeeded) may emerge from all of these experiences, telling you
about how change initiatives have failed or succeeded in the past. What factors are
linked to success, and how is it defined? What factors are identified as reasons for
failure, and how is failure viewed? How well have new efforts taken root, and why
have some succeeded while others have failed? Being an appreciative and empathic
listener who can ask a few smart questions can also assist you in forming productive
relationships within the organisation. But, once again, listening to stories gives you an
insight into the kind of change patterns that can be effective to apply.
Answering the question "why" is a difficult task, but it will help you gain perspective.
Setting and expressing a mission for your function in the company also serves as a
check on your integrity. You need to be able to check in with your true north when
things become chaotic. Is your never-ending meeting schedule in line with the
mission? Is your overflowing to-do list geared toward completing the mission? You
can delude yourself into believing that participating in every activity that comes your
way is important to your career and your existence at the organization. If that's the
case, you might want to consider how you know this is true in the first place. Setting
one's mission also aids in time and energy management. If there's one thing I've
learned from my time as a manager, it's that the demand on your time increases as you
progress up the corporate ladder. You may find yourself spread too thin, rendering
you ineffectual unless you find a way to focus. Your mission then becomes a mental
health check.
You may also require a sponsor among other managers (or in upper management),
which is why you should devote some effort to identifying persons who can assist you
by advocating for you or mentoring you. Other such change patterns are identified and
addressed in Linda Rising and Mary Lynn Manns' book "Fearless Change," which I
highly recommend to anyone interested in learning how to introduce new ideas into
organizations.
We learn the most from our coworkers, therefore if you're trying to hire new workers,
have them spend the day shadowing different personnel. New applicants may not
understand what the job entails until after they've been employed, so immersing them
in the office setting will assist them comprehend what's expected. Allow them to
immerse themselves in the business before they ever started, rather than hiring
someone on blindly and losing money due to lost productivity, recruiting charges, and
lengthy training expenditures. Nothing beats on-the-job training. We've all had that
one job where we had to sit at a computer and learn about the things that are expected
of us at work, but nothing beats on-the-job training. When a new employee joins the
company, pair them with a seasoned expert who is familiar with their responsibilities.
This way, they'll get a combination of hands-on learning and observational learning
(by watching their mentor), which is quite effective for remembering information.
Establishing a quest, on the other hand, does not bound you to it indefinitely. You
may learn that the objective needs to be changed or fully overhauled while talking to
individuals, listening, and observing. Perhaps the manner you believed you could
bring value isn't generally recognised, or you discover entirely new ways to do so. As
a result, you can adapt and adjust your mission as needed in light of new observations.
Share, spread, and talk about your mission, rather than keeping it to yourself.
When you can clearly express why you are a part of the organisation and how you
(want to) offer value, I feel it sends a strong message. This allows you to meet others
who share your interests or engage in productive debates from which you might learn.
Also, let people know if your mission changes, as this will impact your emphasis and
project prioritisation. It's easy to forget or find time for tiny updates, but I've found
that keeping people informed can help you achieve your longer-term objectives. It
allows for greater feedback on your new initiatives as well as participation from
others. You want to attract folks who are likely to be early adopters and prospective
converts who like to tap into new ideas and spread them around by openly discussing
your mission.
Railroads have carried the biggest number of ton-miles from the beginning of time.
Railways dominated intercity freight tonnage until World War II, and in some cases
of Europe, Asia, and Africa, they even united countries, thanks to the early creation of
a complete train network connecting practically all cities and villages. Because of this
early advantage, railways can transport massive shipments at a low cost.
Your high-level personnel will become an important component of your organisation

as time goes on as a result of promotions. Instead of advancing them without knowing
what is expected of them, assign them to a mentor who can show them the ropes when
they are near a higher position in the office. Bring them to board meetings,
stockholder meetings, and even executive meetings so they can better understand how
the company's strategic decisions are made. This is especially crucial for new
employees, as knowing why decisions are made will assist them push their team to
make the best and most informed judgments possible.
Learning process is one of the most effective ways for many people to learn, and
when combined with hands-on training, it may assist turn new employees into
professionals who can help enhance workplace efficiency. You'll be able to take
advantage of everything observational learning has to offer if you prove that you're a
strong leader and provide your staff plenty of opportunities to develop and learn new
abilities through watching.
Observational learning can take many forms in the workplace, from bringing lower-
level employees to leadership meetings so they can learn about the inner workings of
the company to having a failing sales professional attend a sales conference so they
can learn from their colleagues.
Every procedure has its own set of restrictions. This research is no exception. The
following are the restrictions that I encountered while writing this internship report.
 Due to time constraints, the research had to be limited to a few regions.

I just had two weeks as an online, which was insufficient.
 As a logistic company, AAICLAS does not encapsulate all of their
data. As a result, the study relied heavily on official documents and
interviews with various staff.
 The employees in the training and development department are unable
to devote much time to discussing various topics.
 I am unable to collect statistics on employees since they are really
invested in their work.
Without these limitations, I did my best to collect sufficient data and information to
make the report meaningful.
During my internship, I observed that the regulatory structure is ineffective in
maintaining the company's quality and five-star rating. Although the institution must
adhere to both internal and exterior regulations. The internal regulatory mechanism
has been covered under the governance section, to some extent. The corporate office,
as well as the owner herself, make quarterly visits to assess the quality of service. The
corporate office monitors budget reports and coordinates internal audits.
Ignoring the fact that many analyst internship programmes are centred on the
individual, I found my experience at Management to be more team-oriented. As a
result, I learned a lot about teamwork and communication.
 Speaking Quickly: In the early Saturday group meetings, I noticed that I
never gave the other analysts enough time to digest the information I was
giving them. Somewhere through the internship, it advised me to slow down
and ask questions to ensure that my listeners understood what I was saying.
When I started mentoring new interns, I realised how crucial it was for them to
retain the material I was teaching them throughout our time together.
 Listening: I thought I was a good listener, but I knew I could improve. When
you say, "Always listen to react," you mean that you digest what the speaker is
saying before responding.
It's no overkill to suggest that internships have become essential. The job market has
never been more competitive. Employers have shown in recent research that those
with relevant experience prior to graduation have an advantage over those who do not.
So, what's the best way to obtain relevant experience? Internships.
Internships allow you to gain experience in your desired field, network, expand your
practical knowledge, and gain a competitive advantage over your peers. It all sounds
great, but there's one crucial detail that we're missing. If you can intern just about any
place you want, Internship in logistic company. In today's job environment, an
overseas internship can help you get a competitive edge. Even better, an international
internship can help you establish a global network and build a global career.
You can always pursue a remote internship if going any company or moving across
the nation isn't quite what you're looking for. Remote internships allow you to intern
with a worldwide firm from the comfort of your own home because everything is
done online. Furthermore, the number of accessible remote internships has constantly
expanded. You can now intern on your own schedule as a result of this.
The storage of the logistic company is fully integrated into the wider supply chain and
meets demand. This encompasses both single-user and multi-user sites, as well as
their design and functionality.
At least in the beginning, an intern is essentially a support job. When you join, your
primary responsibility will be to help, learn, and grow. You'll be expected to pull your
own idea once you've settled in. Depending on the type of internship I signed up for, I
expected to learn as much as possible while working.
 Developing hard skills: Hard skills are the technical talents if I need to
properly complete your internship tasks and, eventually, your employment
duties. Learning technical skills, management skills, and data analytics are just
a few examples.
 Soft skills training: Soft skills are just as vital as hard skills. Soft talents refer
to your capacity to connect with others and form mutually beneficial
relationships. Emotional intelligence, motivation, interpersonal skills,
listening, and outstanding communication are just a few examples. To manage
clients, let alone get along with your supervisors and co-workers, you'll
require soft skills. Soft skills are important for navigating your work
environment and can even help you advance in your career. A word of advice:
don't dismiss them.
While networking isn't a necessary in and of itself, it's more or less. Building
relationships with your managers, colleagues, customers, and clients is what
networking entails. To establish a successful career, you'll need the backing and
support of people in positions of power. Building positive client relationships is also
beneficial to the company.
Mentors provide as an anchor for interns. If you find a good one, you can follow in
their footsteps and have a successful career as well.
Interning is a difficult task. It will be lot more pleasurable for everyone involved if
you can find a peer support group that is going through the same ups and downs as
you.
Gaining access to manager and co-workers Interns who are able to form strong
personal relationships with their co-workers and supervisors become members of the
"family." You'll have a much better chance of being offered a full-time position at the
company in the future.
Internships are usually only a few weeks. They need less time and effort than full-
time employment. However, they are definitely a valuable investment of your time.
As a result, they're ideal opportunities to learn more about your options. You are
deserving of meaningful work. You can sign up for a different but related internship
role elsewhere if necessary to determine if you are happier there.
Your internship will have a significant impact on the direction of your career. It will
help you develop the abilities you'll need to perform well once you're hired full-time.
It's critical that you take use of your internship as a learning experience. If you work
hard, form excellent relationships, and put your internship skills to good use, you'll
have a bright career ahead of you.
Employees at the logistics company work in groups. As a result, teamwork is
extremely important and necessitates solid working relationships. Intra- and inter-
relationships are extremely crucial in any organisation, as I learned while working
here.
Another challenge for me was forming positive relationships with other teams. I was
not introduced to any of the organization's personnel, but interns from other
departments were given an orientation. But, in a short period of time, I was able to
form positive relationships with people in my department and other departments,
which I believe is due to my communication skills, for which I am grateful.
I saw a few critical issues that the company should investigate. Some of my
recommendations to the organisation, based on my observations, are as follows:
 There was no good introductory session when I first arrived at the company.
After three working days, I even met my department's head for the first time.
A newcomer, such as an intern, who will be staying for a short length of time,
should have a suitable induction or introductory session, which will assist
them accomplish day-to-day tasks efficiently and quickly learn about the
environment.
 Interns are paid less, despite the fact that their workload is excessive. Official
working hours are from 10 a.m. to 6.00 p.m., but as I indicated in the ‘The job
at a glance' section, I and the other intern in my department had to work
extract time, on occasion. As a result, work hours, particularly for interns,
should be closely regulated and maintained.
 Another issue I've observed among the staff is the practise of working late at
night. Actually, some employees leave out of the office soon due to personal
concerns, and client end pressure at late hours is the main reason for some
people's late night work practises and coming late to the office. This does not
boost productivity; rather, it has a negative impact on their health. As a result,
the company should take steps to limit this practise by implementing specific
operational structure changes.
 To meet the growing demands of clients, the company need extra employees,
particularly in the distribution Management and Creative & administration
departments, where the present staff is finding it increasingly difficult to
provide effective and high-quality service.
 More training facilities can be supplied through the AAI worldwide network,
motivating staff with global expertise and thereby increasing productivity
through zoom meet.
The art and science of managing and controlling the flow of goods, energy,
information, and other resources such as products, services, and people from the point
of production to the point of sale is known as logistics.It is critical to have expert
logistical assistance.
The geographic repositioning of raw materials, work in progress, and finished
inventories when necessary at the lowest cost possible is the operating duty of
transportation.
In this process, changing government laws on taxes and regulation of service

providers will be critical. Coordination between numerous government agencies
necessitates permission from multiple ministries and is a major impediment to
multimodal transportation in India. The distribution focus is shifting at the business
level to reduce cycle times in order to bring value to their clients.
As a result, businesses are looking for improved tools and techniques to help them
make better decisions. We present a viewpoint on these concerns in this paper, define
some of the significant challenges using secondary data, and describe some
fascinating initiatives that some organisations and industries are pursuing to compete
through excellence in warehouse operations.
Due to regional concentration of manufacturing and geographically diversified

distribution activities, as well as inefficiencies in infrastructure and accompanying
technology, the Indian construction sector has traditionally been driven by the goal of
lowering transportation costs, which were (and often continue to be) excessively high.
Except for commodities, which largely move over long distances via the extensive rail
network, freight transportation has been progressively migrating from rail to road,
with repercussions on quality of transfer, timeliness of delivery, and, as a result, costs
The transportation business is fragmented and often unorganised, with a significant

number of unaffiliated players carrying freight under regional or national permits,
often with small fleets. One or two single-axle trucks in size This segment transports a
significant portion of the national load and nearly the entire regional load Owners and
employees make up this disjointed group unable to organise or manage their activities
due to a lack of skills, viewpoints, or talents effectively. Low costs have generally
been achieved by the use of low-tech equipment, low wages (due to lower education
levels), poor equipment maintenance, truck overloading beyond capacity, and price
rivalry among a vast number of service providers in the business. Transportation
cartels, which control truck supply and transportation prices, are common. The long-
term average cost of transportation operations across the full supply chain, on the
other hand, may not be low.
During an internship, you can learn a lot about your skills and limitations. Internships
offer valuable input from managers and others in the area, as well as a once-in-a-
lifetime educational experience that you may not have as a working adult. Accept the
mistakes you will make as an intern, as well as the many things you will not know. To
get the most out of your internship training experience, ask questions, observe, and
take risks.
It's mostly about who you know in the office. As an intern, you will be surrounded by
industry specialists. Internships are about more than gaining credit, receiving a grade,
or generating money; they're also about learning from the people around you, asking
questions, and impressing them. During an internship, you may meet specialists who
may become your future colleagues or who will introduce you to your first
employment.
Internships definitely bring certain instructional techniques to the test before entering
the workforce. It's a chance to put what you've learned into practise in a safe setting
where mistakes are expected, rather than learning the hard way on your first job.
Warehousing has traditionally been a customer service role anywhere on the planet.
Customers have historically kept supplies and other basics in their houses to prevent
shortages during inclement weather. The customer keeps supplies and other
necessities at his home. Consumers used underground basements and a web app to
store a variety of things. The lack of communication infrastructure was the primary
cause of customer storage. Producers and craftsmen shrugged off their storage
obligations, passing them on to the client, who had no choice but to accept them. In
recent years, the classic concept of a warehouse as a store or godown has shifted
drastically.
Because the product is inaccessible during the transit process, it necessitates the usage
of temporal resources. As a variety of supply chain methods such as just-in-time and
quick response procedures minimise manufacturing and distribution centre stocks,
such product, also known as in-transit inventory, is becoming a critical consideration.
Material holding in road transportation is costly, whether in data is carried or trucks
that must be kept moving along a winding route. This is infrequently done, though,
with the total cost in mind. When the cost of unloading and loading is higher than the
cost of storage when you don't have a lot of room to store things. (In a case when
inventory levels are exceptionally high)
Two basic themes guide national agency and operations. They are the scale economy
and the distance economy, respectively. Economy of scale refers to the notion that the
transportation cost per unit of weight decreases as the size of the shipment increases.
For example, a truckload shipment coats less per kilogramme than a truckload
shipment
Smaller capacity public transports, such as rail or water, are frequently less expansive
per short ton than smaller capacity vehicles, such as automobiles or aeroplanes.
Because fixed expenses connected with transferring a load can be dispersed across the
load's weight, transportation economics of scale emerge. Administrative costs of
taking the order, time to position the vehicle for loading or unloading, invoicing, and
equipment costs are all fixed charges. These costs are set because they are not
affected by the volume of shipments.
Longer lengths allow fixed expenses to be spread out across a greater number of
kilometres, resulting in a reduced overall per-kilometre fee. When examining alternate
transportation plans or operational procedures, these principles should be taken into
account. The goal is to maximise the size of the cargo and the distance it travels while
still providing excellent customer service.
In a warehouse, the warehouse management system (WMS) keeps track of all events
and actions that occur throughout the receipt, handling, and storage of products and
orders. The WMS also keeps track of inventory's location when it's being stored in the
warehouse.
Increased costs in the supply chain can be eliminated, overall costs can be lowered,
and high service levels can be reached through proper inventory management. At
every stage of the supply chain, they optimise inventories at the line-item level.
Internships are a fantastic method for college students, recent graduates, and anybody
thinking about changing careers to gain vital job experience. Continue reading to
discover about the eight positives of internships and how they can help you prepare
for the demands of today's job.
After you've identified your unique learning objectives, you'll need to figure out how
you'll achieve or advance toward them. Consider the following questions: What tasks,
projects, or assignments will I undertake? Who will I consult, and what resources
(written, conversational, and so on) will I use?
Many of your learning tactics will be derived from your job tasks, but they will go
beyond what is required of you.
College graduates with prior work experience, such as an internship, stand out to
potential employers, which is one of the most significant internship benefits. A
university student who has had an internship is more marketable since they often
require less training and can handle more responsibilities. You may also be able to
negotiate a higher beginning wage than others who have not completed an internship
and are just starting out in the workforce.
What will you do on your own to improve your comprehension and learning: Have
you read any relevant journals, books, or articles? Do you want to interview experts in
the field? Attend a community or board meeting, or a business/staff meeting? Assign
3-4 learning activities to each of your learning objectives that are closely related to
accomplishing that learning target. Students that are creative, challenge themselves,
and go above and beyond the bare minimum get the most out of their internship.
After you've decided on your learning objectives and tactics, you'll need to figure out
how you'll document, assess, and evaluate your progress. The methods you use to
illustrate what you learned will provide evidence to your faculty supervisor that you
have achieved or progressed toward the goals you established for yourself, as well as
a basis for evaluating your internship. You and your faculty supervisor are free to
discuss how you will demonstrate your accomplishments during your internship. To
properly convey what you've learned, you'll want to employ more than one evaluation
method.
Your research outcomes are your learning goals for the internship, or everything you
want to learn or be able to do by the conclusion. Write your specific learning
objectives as simply and succinctly as you can after deciding on the basic themes you
want to focus on. To develop your goals, use action verbs. Apply, handle, design,
grow, exhibit, describe, gather, identify, discover, become acquainted with, assess,
understand, know, produce, implement, explain, analyse, critique, compare are some
action verbs.
Your learning goals form has two parts: a job component and an academic
component.
Your on-the-job tasks, responsibilities, and projects are described in the Work
Component. A detailed job description from your on-site work supervisor should be
included in the work component. This is necessary for the work supervisor's
expectations to be clarified, as well as to ensure that your on-the-job activities are
hard and relevant. This also provides a summary of the learning opportunities to your
faculty supervisor.
The Academic Component explains in detail how you will apply your job experience
to your major's concepts, theories, and practises, as well as to your liberal arts general
education. The academic component should comprise a mix of the previously
mentioned cognitive development, general skill development, and personal and
professional development. The overall plan is produced at the start of the internship
and serves to guide you through the process of determining what you will know, be
able to accomplish, and how you will demonstrate what you have learned by the end
of the internship.
It was enlightening to reflect on what I'd done and how I'd grown as an exercise
trainer over the previous four months. I know I have a lot more to learn, and I believe
that keeping a log of my events will help me preserve best practises that I will want to
reuse in the future.
My eagerness to assist in any department at any time was observed by others. I was
unpaid and just expected to work 15 hours each week. I was working 48 hours a week
at the time. I didn't earn any additional credit hours or overtime money, but that was
fine with me. I was accumulating experience, which is far more significant than any
amount of money or credit hours in terms of my future work success. Because of the
necessity to complete a semester internship, I was only able to get this experience. It
was an invaluable tool in assisting me in determining what I wanted to accomplish.
One of the most important and visible skills I learnt during my internship was open
communication. I was embarrassed and afraid to ask too many questions when I first
started interning because I didn't want to confess that I didn't understand or that I
needed extra help with things. Fortunately, I rapidly overcame my trepidation because
asking questions is the only way to figure out what you're supposed to be doing.
My supervisor and co-worker’s seemed to enjoy it more if I asked a lot of questions to
make sure I really understood what was going on and that I was doing it right. I would
have been too afraid to ask questions in my next job if I hadn't worked with such
cooperative and helpful colleagues. I won't have to battle with it in my future career
now that I know it is okay to ask inquiries. I don't understand how any work can be
done in an office without open communication amongst everyone.
I was offered three jobs after interviewing for 6 over the course of a few weeks. This,
I feel, was totally due to my internship-related background experience. The internship
taught me all I needed to know about my area, including all of the necessary skills and
tasks. With all of my expertise and skills as a recent college graduate, the man who
hired me claimed that I blew him away. He also mentioned that everything I learned
during my internship was exactly what he was searching for in a candidate. To put it
bluntly, I believe the internship totally fulfilled my career objectives and much
beyond my expectations for the value it provided.
However, many internships have the potential to lead to full-time work. The closer
you are to completing your school and graduating, the more likely an internship will
turn into a full-time career. Let's say you want to pursue a vocation that necessitates
obtaining a doctorate degree. When you're earning your Associate Degree, doing an
internship in a field connected to your studies is a great way to gain experience. You
can earn credit toward your Associate Degree, and the experience counts as
professional experience on your résumé.
A student, on the other hand, is unlikely to be offered the same position as someone
who has achieved a Bachelor's or a Doctoral Degree. While you may be offered a job
that you would like to take while continuing your education for additional degrees,
advanced degrees will be required to reach your ultimate ambitions. You can conduct
extra internships for credit while pursuing your Advanced Degrees (following the
outline and standards of the degree conferring institution), which may lead to new
employment chances. Having the opportunity to gain real-world experience and credit
toward your degree is an intriguing possibility that adds a virtual layer to the
educational process. A 4.0 GPA is no longer sufficient for a classroom education.
Employers are looking for candidates who can demonstrate the multi-dimensional
thinking skills required to succeed in today's fast-paced, ever-changing workplace.
The ability to grasp and carry out a sophisticated plan is demonstrated by effectively
applying, interviewing, getting, and performing the responsibilities of an internship.
I had a great time during my internship this summer and gained a lot of valuable
experience." I'm sure this will come in handy when I'm seeking for work and need
references. I was initially dreading it, but now I'm glad it was necessary. I hope that
class remains consistent, regardless of how much the material changes."
We all know that hands-on experience is the best, and internships provide students
with just that." Quality internships, in my opinion, are vital for developing key
abilities that cannot be learned in a classroom .When you work for someone else
rather than yourself, skills like multitasking, communicating, learning to live with
diversity, and dealing with deadlines are different. Internships are also an excellent
opportunity to meet individuals in your field. My supervisor and co-workers were
fantastic in connecting me with people in the field and referring me to new positions."
Customer service is difficult, as I discovered. It is impossible to please everyone.

There are some people in the world that are simply tough to deal with. I've learnt that
worrying about minor details will not get me anywhere. I've learnt to work well with
others and that the work would not be done without them. Another thing I learned
throughout my internship is that you should never be scared to ask a lot of questions. I
received answers through asking questions.
I learned a lot more than I had anticipated. I thought I would have a leg up because I
am a senior and have completed all of my classes, but I soon discovered that no
amount of classes could possibly prepare you for everything the world has to offer.
Don't get me wrong, I think Auburn did an excellent job of teaching me, but I believe
it is much more beneficial when supplemented with hands-on experience. The most
difficult aspect of my internship, in my opinion, was having to share my assignments
and coordinate my work with others.
Working with people and sharing responsibilities was a slight change for me because
I've always been a perfectionist who likes things done my way. It took me a few
weeks to feel comfortable sharing my work with someone else, but I eventually
realised it was fine and that two heads were better than one.
It would be advantageous to encourage students to select internships that are aligned

with their long-term professional ambitions. To locate the ideal internship, we don't
always have to conform to what's listed or given to us. I went out and looked for an
internship on my own. OPR rarely hires interns and does not publicise job openings
on its website. I was looking for an internship that would help me prepare for my
chosen professional path, but nothing on the website or in the e-mails that were sent
out piqued my attention. OPR was recommended to me by a professional colleague,
and after hearing about the types of programmes and activities they host, I knew it
would be ideal for me.
I contacted them to see if they needed a summer intern, and after meeting with
manager and discussing my resume and internship goals, I was ready to go. As my
internship comes to a conclusion and I reflect on everything I've learned, I realise
what a fantastic opportunity I've had. I learned a lot in the lectures, but having hands-
on experience has been quite beneficial. It was a great way to round off my official
schooling. The best way to learn, in my opinion, is to do. This is an once-in-a-lifetime
chance for me, and I am grateful for it. Auburn University has done an excellent job
integrating the internship experience into the communication curriculum, in my
opinion. The Communication Department approaches this aspect of the major with a
relaxed attitude. When I first started looking for an internship, I wasn't sure if I
enjoyed having so much flexibility in my choices, but looking back, I'm grateful for
the way the department uses the system since it inspired me to find my own internship
and arrange all of the specifics. When I had questions, the department was helpful, but
it was better for me to manage every aspect of my internship myself, which proved to
be useful in the end. This technique, I believe, matched the experience to that of a real
job hunt.
An internship, in my opinion, is hugely helpful to a student. It's just a smidgeon of the

real world. It reinforced my understanding of accountability, focus, desire, and
ambition. I had to be accountable for other people's money, credit card authorization
papers, arriving on time, keeping my word, and performing all of the tasks that were
allocated to me. I learnt how to concentrate. During really long days of events, I learnt
to drive. I was exhausted, but I didn't give up. The only way to get experience and
advance in the workplace is to be dedicated, focused, and have a never-say-die
attitude.
To put it another way, I believe the internship totally fulfilled my career goals and
much beyond my expectations for how valuable it would be to me.
The most common proposal I've heard for the Auburn Internship Program is for
greater guidance in finding an internship. What I believe students really want is a list
of internships from which to choose. This does not sit well with me. Getting an
internship was similar to finding a full-time employment. You are not given a list of
places to search. You must make the list on your own. So, if I had to recommend one
thing NOT to do, it would be to make it more difficult for students to find internships.
This activity entails systematically seeking out and testing new information. The
scientific process is crucial, and systematic problem solving has apparent analogies.
Experimentation, unlike problem solving, is frequently driven by possibility and
increasing horizons rather than existing difficulties. There are two types of
demonstration projects: continuous programmes and one-of a kind demonstration
initiatives.
Ongoing projects usually consist of a succession of modest experiments that are
repeated over time to create incremental knowledge advances. Most continuous
improvement projects rely on them, and they're especially frequent on the work floor.
I believe I would have had a rude awakening if I had gone into the workforce without
this experience, and the news would have been bad. Working practise cannot be
taught in a textbook. I would not have known a lot of simple things if it hadn't been
for this internship, such as how people notice whether you arrive a few minutes early
or late at work. If you are dressed in a way that gives a favourable impression of the
organisation, your employers will take notice. Another thing I learned from this
fantastic experience was to stay away from office politics.
During this event, I acquired a number of critical lessons. Even when you are certain
that you are correct, you must occasionally keep your lips shut. Some people have
been unpleasant and unhelpful in my experience (no matter how nice you are to
them). In today's corporate culture, web design is also a valuable skill to possess. And
I've found that knowing how different companies make decisions before working
there is quite valuable. My supervisor once gave me some excellent advice: because
management structures vary so widely among firms, you should always inquire about
how they are structured.
While I believe the internship requirement in the Department of Communication is an
excellent tool for preparing college students for life after graduation, I must admit that
I feel I have not fully utilised the opportunity. I enabled myself to stay in my own
particular bubble. Looking back, as valuable as this experience has been, I can't say
there is anything I would alter. I've learned a lot about life's responsibilities outside of
the classroom, but I believe I could have learned a lot more if I had forced myself to
look for the "ideal" internship for my specific professional objectives.
As I prepare to enter the "real world," having this internship experience will help me
establish myself as a professional. Working duties were taught to me: being on time,
dressing professionally, working hard, and having supervisors, among other things. I
am well aware that any organisation for which I work will require me to start at the
bottom and work my way up. I'm aware that I'll have to start anew, and I'm looking
forward to it. Having an internship provides me a competitive advantage because I
gained experience.
This encounter opened my eyes to the actual world for the first time. I'll be the first to
confess that I'm not the most responsible person in the world, but I've learned that
responsibility is what distinguishes a decent employee from an exceptional one.
Because of my unwillingness to get up and acquire an internship earlier in the school
year, I am in this internship, but everything happens for a purpose.
Overall, I believe that this internship was effective in broadening my understanding of

a administration job. I observed the strain of deadlines, the importance of appearance,
the benefit of being a self-motivator, and the delight of liking your profession when
immersed in a company for 48 hours a week for four months.
To begin, I'd want to say that my internship experience could not have been better.
This was a demanding, stressful job that took up all of my time and energy this
summer. But the burden was well worth the enjoyment I gained from this position.
In my perspective, the internship is quite valuable. If I could go back in time and

change one thing about my college experience, it would be that I did more than one
internship. Now that my internship is ended, I wish I could try out different
employment. Interning is the most effective technique to determine whether or not
you are a good fit for a given profession. It also allows you to study and get
experience that you would not have had if you had stayed in school instead of
working. I feel like I've gained a lot of real-world experience and insight in the last
few months. I believe I now have a decent understanding of what it's like to run your
own business and interact with the public on a daily basis. I'm happy for this
opportunity to learn in a more controlled setting. Well I'm ready to take on the world.
Above all, my internship taught me the value of hard work and how to collaborate
with others. To reach monthly and yearly goals, everyone must do their share and
work together as a team. Being able to witness how a business operates and what goes
on behind the scenes beyond what you see on the surface has been a valuable
experience for me. This internship has taught me a lot about how to deal with real-life
challenges and circumstances. I now feel more equipped to achieve my objectives and
pursue the career I've always desired.
I knew I had a strong understanding of what a public relations practitioner should

know and do before I started my internship, but I wasn't sure if I could put that
knowledge to use. I now believe that not only do I have a fantastic education, but I
also have the necessary experience. My portfolio grew from a few instances of made-
up press releases to a collection of work that has been used to promote companies.
I've seen first-hand how crucial effective communication skills are and how they
affect your professional relationships. It makes little difference how much you know
about a subject if you can't explain it to others. I also understood how critical it is to
get a job in an area or involving an issue that you are passionate about, and how
picking the correct profession is one of the most critical decisions you can make.
Having this type of internship also gave me a good idea of what it's like to live in the
"real world."
I'm used to ten o'clock classes and late evenings as a student, but this summer my
hours had me up at 6:30 a.m. practically every day and in bed by 11:30 p.m. almost
every night. It's been a wonderful dose of realism and a glimpse into what life would
be like after graduation."
"This experience has further fuelled my desire to pursue a career in this sector. Often,
an internship serves as a wake-up call for students who are in the wrong major, but it
had the opposite purpose for me. It confirmed my passion for television news and my
desire to stay in the industry for a long time. Although not everyone will have a
positive experience, working as an intern has been one of the most rewarding
experiences I've ever had.
I wasn't overly enthusiastic at first. Finding an internship that I was interested in
proved to be more difficult than I had imagined. I was frequently frustrated at the start
of the internship. It was difficult to learn so much new material and company
procedures while still attempting to be competent and impress those around you.
I had no idea how crucial experience is in the workplace. Obviously, we are warned
of many things in the college bubble, but until we encounter them, they are just that:
warnings. The working world is demanding, and it is clear why it is critical to do what
you enjoy. Because even if you enjoy your career, you will have days when you want
to quit. Being the "new kid" in the workplace, having to do all the work that no one
else wants to do, and having bad scheduling is also humbling. Although I will miss
college, I am eager to be self-sufficient and no longer rely on my parents for financial
support.
First and foremost, it is basic sense to arrive on time for work; I have always been
instructed to do so. However, saying it and having to execute it are two completely
different things.
Despite the desire to sleep in, I rose early every day and arrived on schedule. Second,
despite the fact that there was time to chat around lunch and other times of the day, I
understood that a job does not always have a social atmosphere (very different from
campus life).Even if I'm surrounded by people with whom I spend the majority of my
time, the workplace isn't always the location where I can vent about a problem or
rejoice over something fantastic. It's easy to be told things like that, but it's far better
to see it for yourself.
Observational learning can be thought of in two ways by educators: learning and
performance. Learning relates to a person's ability to develop a cognitive model,
whereas performance refers to the ability to repeat the task. When instructors want to
see if modelling is working with their students, they should ask them to describe the
task verbally first. The stronger a student's capacity to define the stages, the more
learning that has taken place. Following that, pupils should be invited to redo the
assignment on their own, which will reflect their degree of performance.
Returning to the topic of the worth of incentives versus punishments, researchers

discovered a difference in how effectively individuals could repeat a task based on
rewards versus penalties. Researchers observed children and discovered that those
who were awarded and those who were punished for learning a task could both
describe how to accomplish the activity at roughly the same level. In other words,
both those who were rewarded and those who were punished learned at the same rate.
The reward group, on the other hand, outperformed the control group in practise.
These findings suggested that paying students was a superior method of training
pupils, but this time specifically when it comes to task performance. Observational
learning, according to the researchers, has four stages. Albert Bandura created these
stages early in the development of this learning paradigm to construct a theoretical
method by which students proceeded from first observation to practical practise.
Students required to pay attention at the beginning of their education. Teachers should
stress the significance of paying attention when teaching.
This should come as a shock, but how much a learner pays attention to an instructor
has an impact on how much they learn. This is true for observational learners as well.
The learner must pay attention to the steps in a task and observe what is going on.
However, a variety of circumstances can influence how much attention the student
pays. The degree to which an observer identified with the model influenced the
amount of learning that happened, according to the researchers. This suggests that
teachers should work to develop positive relationships with their students in order to
encourage more observations during the learning process.
Retention was the second stage in the observational learning model. This stage should
be easy for children to comprehend. What is taught must be remembered, and viewers
must commit what they have seen to memory. How much an observer remembers is
determined by how much they paid attention, which was determined by how much
they identified with the model. Other elements, however, have an impact on retention.
There are times when a person's innate characteristics have an impact on how much
they remember. At other occasions, different learners used different retention tactics
to help them remember what they had learned more effectively. Given the diversity of
the population, retention would rarely be equal among learners, necessitating models
to model a behaviour multiple times for some learners. Keeping in mind the
distinction between learning and performance, the degree of learning might be
assessed at this point by asking students to repeat the steps of the activity.
The initiation stage was the third stage of the observational learning process. Learners
must now demonstrate their ability to complete the challenge by repeating it. The
observer must be able to demonstrate that they can repeat what they've been taught.
An observer should have all of the essential skills to repeat the activity at this point,
although this isn't always the case. Some tasks may be difficult to replicate due of
their complexity. This is especially true when it comes to physical abilities.
Learners may see a model, but they may need experience to physically reproduce the
job, even if they can verbally describe what is happening properly. Complex physical
demands, such as those found in sports or music, make physical repetition extremely
tough. For many teachers, this may not be a problem that they have to deal with.
However, there may be nuances to some jobs, such as handling equipment in a lab
experiment, that affect a student's ability to reproduce what they've seen. This is when
repetition and practise come into play to help the student enhance his or her
performance. The final level of direct instruction is more of a description of one
attribute that is required for learning to take place. Youngsters, in particular, must be
driven to learn. High-motivated students are more likely to wish to replicate a
behaviour they see. This has an effect on how much attention they pay, how long they
remember it, and how motivated they are to physically repeat the behaviour. As a
result, teachers cannot overlook the significance of this characteristic among students.
To the extent that they are able, teachers should do everything they can to increase
their students' motivation in order to improve both learning and task performance.
When considering that the degree to which a learner observes and retains material is
directly proportional to the degree to which they identify with the instructor, the
concept of peer learning takes on further significance. It may be difficult for students
to identify with their teacher, but it may be much easier for them to identify with their
peers. Pairing pupils with other students may be advantageous for tasks that can be
witnessed and modelled. Teachers can improve the likelihood that students will pay
attention and remember information by doing so. When students observe their peers,
they may become more motivated. Students' desire to perform well on a task may be
influenced by their social peers, pushing them to pay more attention when the
behaviour is being imitated. This would lead to more careful observation, memory,
and a stronger desire to repeat the exercise for oneself.
The key point here is that learning happens all the time, even when no one is trying to
teach them something. Skill can be indirectly encouraged by modelling behaviour for
children. Parents who read aloud at home will be noticed by their children, who will
be inspired to read for themselves. This is a result of observational learning, which
instils the habit of reading in children. Children, on the other hand, will read about
many educational concepts and skills if educational resources are available in their
environment. For meaningful learning to occur, there are four stages of observational
learning that must occur. Keep in mind that this is not the same as just mimicking
someone else's actions. Rather, observational learning may have a social and/or
motivational component that influences the observer's decision to partake in or avoid
a certain activity.
The next step in observational learning is to try to recreate the information if the
observer is able to focus and keep it. It's crucial to remember that everyone's aptitude
for replicating specific actions is different, which means that even with perfect focus
and recall, some acts may be difficult to duplicate.
The observer will require some form of motivation in order to engage in this new
behaviour. Even though the observer is capable of imitating the model, if they lack the
motivation to do so, they are unlikely to carry out this newly acquired behaviour.
If the observer sees the model earn a reward for engaging in a given activity and
believes they will receive a reward if they copy that conduct, motivation may
increase. If the observer is aware of or witnesses the model being punished for a
certain conduct, motivation may be reduced. Based on a variety of conditions,
observational learning has the capacity to teach, reward, or reduce particular
behaviours. Observational learning, which is especially common in childhood, is an
important element of how we learn new skills and avoid negative outcomes. However,
there has been some concern about the potential for this form of learning to result in
harmful outcomes and behaviours. The effects of observational learning on children
and teenagers were the topic of certain studies inspired by Bandura's study. Previous
studies, for example, found a direct link between playing some violent video games
and an increase in short-term hostility. Later study on the short- and long-term effects
of video games on players, however, found no direct links between video game
playing and aggressive behaviour.
In a study of sexual media exposure and adolescent sexual activity, researchers

discovered that there was no link between watching explicit content and having sex
within a year.
For our purposes, learning can be described as a reasonably permanent change in
behaviour as a result of experience. That example, when a person consistently
demonstrates a new behaviour over time, she is considered to have learned something.
There are a few characteristics of this definition that are worth mentioning.
To begin, learning necessitates a shift in mind set or behaviour. However, this change
does not have to be for the better, as it might involve things like developing harmful
habits or prejudices. Learning can only take place if the change is long-lasting.
Changes in behaviour caused by exhaustion or a transient adaptation to a new setting,
for example, would not be considered learning. Following that, most learning entails
some type of practise or experience. Physical growth, such as when a baby learns to
walk, is not considered learning in and of itself. Learning is described as a long-term
change in behaviour as a result of both direct and indirect experience. It entails a shift
in behaviour and attitude as a result of education, training, practise, and experience. It
is completed by the development of relatively permanent information and abilities.
The characteristics of learning are referred to as the nature of learning. Learning

necessitates change, which may or may not result in improvement. It should be
permanent in nature, i.e., learning should be done for the rest of one's life. Experience,
practise, and training all contribute to a change in behaviour. Learning is mirrored in
one's actions. Learning is dependent on a few fundamental aspects that determine
what changes this experience will bring about. Motivation, practise, environment, and
mental group are the key variables or major factors that influence learning. Learning
is dependent on a few fundamental aspects that determine what changes this
experience will bring about.
Trainers of Organisation
Mr Srinivasan, who is senior manager cargo and material management, is my boss.
He will be the one to assess my performance and provide me with feedback or
remarks. My departmental colleagues, on the other hand, are the ones who assigned
and organised duties for me. As a result, I usually report to them depending on who
assigned me the job.
They also sought permission from the boss before entrusting me with tasks and
decision-making. He also give me accommodation facility in their facility.
Mr Srinivasan requested for my feedback after I completed the jobs, and he will
provide me with some remarks so that I can understand and improve for the future.
And there are two trainers named Jacob Mathew (Marketing manage) and Anila P
(System administrator) they were helped me to grow with company strategies.
Achievements from Organisation
My four-month internship at the AAICLAS benefited me in a variety of ways. I

always wanted to work in an environment where I could learn new things, confront
new challenges, and improve and acquire new sets of abilities before I started my
internship. In addition, I wanted to actively contribute to the company's aims by
utilising the skills I gained during my study, such as communication, marketing
tactics, advertising, data handling, and so on, to the company's objectives.
Throughout the internship:
 I learnt how to collaborate with a new team, discussing new ideas and tactics
for dealing with supplier orders and spending in the organisation. We came up
with ideas after examining the information gathered from the suppliers'
recommendations form and a survey about their retail experiences. I believe I
can now speak effectively and find the ideal technique to communicate with
different types of individuals. My supervisor has also given me the task of
creating a comparison and study between our company and its competitors.
This exercise enabled me to give more detailed observations and facts during
the meeting.
 I also conducted a SWOT analysis of our company and other significant

competitors in the other region, which aided in the development of my
observation, research, and analysis skills. When dealing with customer and
supplier issues.
 I learnt to calmly listen to them and develop problem-solving abilities, which

entails a step-by-step process involving a few individuals to resolve the issue.
 I have improved my English writing skills throughout the internship because

I was required to produce communication through social media, email, and
newspaper manuscripts for the reporter to post our news. I owe a debt of
gratitude to my boss, who has been correcting my English writing and forcing
me to learn from my errors.
 I have some thoughts about my future profession after completing a four-
month internship at logistic company. I'll go for a job that focuses on practical
structure, such as event planning and organisation, or duties that entail
communicating with and negotiating with clients. I enjoyed working in the
retail or service industries and would prefer to pursue a career in this field in
the future... It is because it is my preferred professional path and it allows me
to express my tremendous passion for working in this atmosphere. I'll also
like to work in the marketing department because marketing is my major, and
I'd like to obtain more knowledge and experience in the real world by
implementing what I've learned in school.
 I was given several jobs and activities to complete. And by doing so, I
received positive feedback from my boss as well as from all of the officers
that worked there. My plan is to work even harder and hunt for a position in
the logistics industry. I want to achieve my goals and become the best version
of myself. My goal is to complete my education, strike out on my own, and
create opportunities for myself.
 Learning from my mistakes and working as part of a team have been the most
enjoyable aspects of this experience for me. The support I received from both
teams astounded me. Words fail to express how I feel after achieving so much
in such a little time. One thing is certain: when I took that risk, I followed my
heart.
 My curiosity got the best of me, and I was fortunate enough to be able to go
on this journey of understanding myself and my place in the world; now I can
concentrate on the future and maximise my prospects.
 New knowledge is one of the most valuable things you can learn during an
internship. This can entail learning how to complete tasks that are related to
your planned career path and honing existing skills.
Many students believe that an internship consists solely of preparing coffee and
running errands for superiors throughout the day, but this is not the case. And it really
shouldn't be that way. An internship is a chance to put all of your varsity/college
talents to the test and see how they work in the real world. An internship allows you
to try out a career without making any long-term commitments. It gives you the
experiences, lessons, and tools you'll need to earn a full-time job later on. It is
frequently an excellent idea because it allows you to get a feel for job without getting
knocked in headfirst. This gives you the opportunity to develop and learn before
entering the workforce.
Development and Growth from Organisation

On a professional level, the internship has improved my life by allowing me to learn
new skills and improve my personal abilities. These accomplishments are the direct
result of the time and effort put into me so that I can have a positive impact on other
communities in need of leadership as well as society as a whole. My capacity to lead
has greatly improved, and this must be due to the possibilities provided by the
organisation to strengthen my talents. Because I am eager to learn from my mistakes
and ask questions, I now have more bravery to undertake challenges and
responsibilities that I am unfamiliar with. I'm also open to receiving feedback and
attempting to improve my performance in the future.
Furthermore, I am aware that a strong interpersonal competence is required of a

competent leader. It's all about two-way communication with the rest of the team as a
leader. We must learn to pay attention. Pay attention to what people are saying, both
verbally and nonverbally, such as through their body language. My boss, who is a
very patient leader who always listens to her people before making any remarks or
decisions, taught me this. I also learned from each event's coordinator that solid
leadership skills are required in guiding a team of people through ideation, planning,
implementation, and monitoring of performance.
Challenges Faced in Organisation

During my internship, I had a few difficulties.
 First and obviously, this is my first job, and I have no prior work experience or
even a part-time employment. As a result, this is my first time entering the
workforce. One of the challenges I've had is a dearth of colleagues willing to
share their knowledge and mentor me as a rookie. My manager was leave on
the first day I started at the company, and there was no one in my department
to explain my work responsibilities or give me a corporate and department
briefing. They just assigned another intern, who was about to finish her
internship in a few days, to help and briefly explain her jobs to me. I have to
pick up everything quickly and figure things out on my own because staff
people are rarely around, preventing interns from approaching them for
clarification. It differs from university, where teachers provide instructions so
that you understand what you must do and how you should do it.
 I had during my internship was being assigned an assignment that required me

to conduct research on the company, including a SWOT analysis, a company
survey, and a comparison of our firm to its competitors.
 I was given only two weeks to complete all of the assignments and present at
our department meeting. It was difficult for me to get started because I had no
past expertise in the industry or in research. It was tough to get the information
in such a short amount of time since I didn't know where to look or which
facts were most crucial.
 I was also terrified of making a mistake and receiving negative feedback. I

was able to learn the finest and most effective technique to finish the
assignment after asking some aid from my colleagues about their prior survey
and study as a reference.
 Systematic problem solving, experimentation with new approaches, learning

from their own experience and past history, learning from the experiences and
best practises of others, and transferring knowledge quickly and efficiently
throughout the organisation are all skills that learning organisations excel at.
Each has its own mind set, toolkit, and pattern of conduct. Many businesses
engage in these activities to some extent. However, because they rely heavily
on chance and isolated cases, few are consistently successful.
 I was confused about Prepare shipping documents (like invoices, purchase

orders and bills of lading). There is a trainer, he is always rude behaviour. It is
also affect the Oversee the levels of our warehouse stock and place orders as
needed
 I don’t know how to Plan shipments based on product availability and
customer requests and Track orders to ensure timely deliveries.
 Coordinate our supply chain procedures to maximize quality of delivery,
Schedule shifts for our drivers and warehouse staff and maintain updated
records of orders, suppliers and customers these activities sometimes difficult
to handle because of the lack of knowledge.
Companies are more competitive when they devote time and resources to building a
learning culture and implementing organisational learning. One of the reasons why
organisational learning is crucial is that it improves the ability to react fast to rapidly
changing market conditions. A company that accepts the lessons that may be learnt
from failure and investigates its own processes will have a greater understanding of
best practises and will be more flexible. The majority of problem-solving training
programmes use exercises and real-life examples to teach problem-solving strategies.
These techniques are simple and easy to teach; the required mind set, on the other
hand, is more difficult to achieve. Learning demands accuracy and precision. As a
result, employees must become more disciplined in their thinking and more detail-
oriented. They must ask themselves, "How do we know that's true?" on a regular
basis, understanding that "good enough" isn't good enough if actual learning is to
occur. They must look beyond the visible symptoms to determine the root reasons,
which often means obtaining proof when common wisdom indicates it isn't essential.
DATA ANALYSIS & INTERPRETATION
Table No: 4.1 Age of the respondents
Age No. of respondents Percentage
Below 1 2
18
years
18-20 5 10
years
20- 18 36
25years
Above 26 52
25
years
Chart No: 4.1 Age of the respondent
Age of respondent
60 above 25 years; 52
50
20-25 years; 36
40
30
18-20 years; 10
20
10Below 18 years; 2
0
Below 18 18-20 20-25 above 25
years years years years
Age of respondent
Interpretation
The above data and table reveal that majority of respondents belong to age group
above 25. This shows that majority of respondents aged above 25 knows about
the logistics system in AAI.
Table No: 4.2 Gender of the respondents
Gender amount Percentage
Male 37 74
Female 13 26
Total 50 100
Chart No: 4.2 Gender of the respondent
Gender
26%
Male
Female
74%
Interpretation
The above table and chart show that majority of the respondents are male
and remaining respondents are female.
Table no: 4.3 Income of the respondent
income frequency Percentage

Nil 21 42
Below 5 10
Rs20,000
Rs 20,000-Rs 3 6
30,000
Rs 30,000-Rs 7 14
40,000
Rs 40,000 & 14 28
above
Chart No: 4.4 Income of the respondent
Frequency
Above 40000 28
20000-30000 6
Below 20000 10
Nil 42
Frequency
Interpretation
Data indicates that majority of respondents are of no income because most of
the respondents are students. 10% of respondents earn below Rs 20,000, 6%
of respondents earn Rs 20,000- Rs 30,000. 14% of respondents earn between
Rs 30,000- Rs 40,000 and the remaining 28% of respondents earn Rs 40,000
& above
Table No: 4.5 Education of the respondent
Education Frequency Percentage

Under 18 36
graduate
Post 16 32
graduate
Graduate 12 24
Other 4 8
Chart No: 4.5 Education of the respondent
Educati on
4.5
18
12
16
UG PG Graduate Other
Interpretation
From the above chart, we can understand that the education qualification of
every respondents is about 36% of undergraduate, 32% of postgraduate, 24%
of graduate and 8% of others. So, the majority respondents are undergraduate.
Table No: 4.6 Awareness of logistics
Answer Frequency Percentage

Yes 31 62
No 19 38
Total 50 100
Chart No: 4.6 Awareness of logistics
Awarness of logistics
38%
Yes
No
62%
Interpretation
From the above chart and table, we can understand that 62% of respondents
are aware of logistics and 38% of respondents are not aware of logistics. The
majority of respondents are aware of logistics system in AAI.
Table No: 4.7 Competitors for AAICLAS

Yes 40 80
No 10 20
Total 50 100
Chart No: 4.7 Competitors for AAICLAS
Competi tors
No
20%
Yes
80%
Interpretation
From the above table and chart, it is inferred that 80% of respondents says yes
and the remaining 20% says no. So, the majority respondents say there is
competitors for AAICLAS and the remaining says there is no competitors for
AAICLAS.
Table No: 4.8 Importance of job among respondents
Least important 2 4
Less important 4 8
Important 10 20
Most important 34 68
total 50 100
Chart No: 4.8 Importance of job among respondents
Frequency
80
70 68
60
50
40
30
20 20
10 8
4
0
least important less important important most important
Frequency
Interpretation
From the above chart and table shows that majority respondents says
important their job and only 8% employees says less important, 4% says least
and 20% says it is important.
Table No: 4.9 Logistics be part of the company’s strategy
Yes 35 70
No 5 10
Can’t 10 20
say
Total 50 100
Chart No: 4.9 Logistics be part of the company’s strategy
Frequency
80
70
60
50
40
30
20
10
0
Yes No cant say
Frequency
Interpretation
From the above chart and table shows, we can identify that the majority of
respondents says that the logistics part of company strategies. Here 70% says
yes, 10% says No and the remaining 20% says can’t say
Table no: 4.10 Opinion about working condition before pandemic
Opinion Frequency Percentage

Below average 11 22
Average 25 50
Satisfactory 11 22
Excellent 3 6
Total 5 100
Chart no: 4.10 Opinion about working condition before pandemic
Frequency
60
50
50
40
30
22 22
20
10 6
0
Below average Average Satisfactory Excellent
Frequency
Interpretation
From the above chart and table, it is clear that 50% of the respondents says
average and 22% says satisfactory and below average and the remaining 6%
says excellent.
Table no: 4.11 Job preference during lockdown
Options Frequency Percentage
Work 42 84
at
home
Work at office 8 16
Total 50 100
Chart no: 4.11 Job preference during lockdown
Frequency
16; 16%
84; 84%
work at home work at office
Interpretation
From the above table and chart, we can identify that most of the respondents
says prefer to do work at home and only 16% choose that work at office.
Table no: 4.12 Air-freight traffic during pandemic
Commodities Frequency Percentage
Yes 39 78
No 11 22
Total 50 100
Chart no: 4.12 Air-freight traffic during pandemic

Frequency
yes no
Interpretation
From the above table and chart shows that most of the respondents says that
during pandemic there happened some air freight traffic and 22% says not
happened.
Table no: 4.13 Impact of covid-19 in cargo delivery system
Slightly 2 4
affected
Mostly affected 38 76
Medium level affected 7 14
Not affected 3 6
Total 50 100
Chart no: 4.13 Impact of covid-19 in cargo delivery system
Frequency
Not affected 6
Medium 14
Mostly
76
Slightly 4
0
10
20
30
40
50
60
70
80
Frequency
Interpretation
From the above chart and table, we can identify that most of the respondents
says that mostly affected and only 4% says that not affected.
Table no: 4.14 Rank the influence of the problem in logistics
Lead time 20 40
tracking 17 34
cost 13 26
Total 50 100
Chart no: 4.14 Rank the influence of the problem in logistics

Frequency
35
30
25
20 34
30
26
15
10
0
lead time tracking cost
Frequency
Interpretation
From the above chart and table shows that most of the respondents says that
influence of the problem in logistics due to tracking and least one is cost.
Table no: 4.15 Challenges faced by air transport system
Competitiveness 12 24
Fuel factor 22 44
Over capacity 11 22
Other 5 10
factor
Total 50 100
Chart no: 4.15 Challenges faced by air transport system
Frequency
other factor 10
over capacity 22
fuel factor 44
competitivness 24
0 5 10 15 20 25 30 35 40 45 50
Frequency
Interpretation
From the above table and chart shows that majority of respondents says that
fuel factor, 12% of respondents says due to competitiveness and the remaining
11% of respondents says over capacity.
Table no: 4.16 Technology help to cargo system
Digital transformation of cargo 24 48

operation
Expand relational database 12 24

management system
Support strategic operational 11 22

decision
Strengthening knowledge in project 3 6

management
Total 50 100
Chart no: 4.16 Technology help to cargo system
Frequency
digital transformation
project management
operational decision
database system
0 5 10 15 20 25 30 35 40 45 50
Frequency
Interpretation
From the above chart and table shows that the most of the respondents says that
digital transformation of cargo operation will help to cargo system and 6% says
strengthening knowledge in project management and 24% expand relational
database system and remaining support strategic operational decision.
Table no: 4.17 Delay in transportation of cargo during pandemic
Below 2 days 15 30
One week 21 42
2 to 3 weeks 6 12
More than 1 months 8 16
Total 50 100
Chart no: 4.17 Delay in transportation of cargo during pandemic
Frequency
Frequency
below 2 days
50
more than one month 0 one week
2 to 3 weeks
Interpretation
From the above chart and table, we can identify that majority of respondents says
that delay in transportation of cargo during pandemic in one week and least delay
in more than one month.
Table no: 4.18 Delay in paper documents clearance during covid-19
Yes 42 84
No 8 16
Total 50 100
Chart no: 4.18 Delay in paper documents clearance during covid-19
Frequency
No
16%
Yes
84%
Yes No
Interpretation
From the above chart and table, it shows that the most of the respondents says
that delay in paper documents clearance during covid-19. 16% of the
respondents says no.
Table no: 4.19 Respondents valuation about maintenance of storage
facilities
Yes 39 78
No 5 10
Maybe 6 12
Total 50 100
Chart no: 4.19 Respondents valuation about maintenance of storage

facilities
Frequency
90
80
70
60
50
40
30
20
10
0
Yes No May be
Frequency
Interpretation
From the above table and chart shows that the majority of respondents say that
maintenance of storage facilities. 10% of the respondents say don’t have any
maintenance facilities and the remaining 12% of the respondents say maybe.
Table no: 4.20 Growth rate of organization
Boom 6 12
Declain 35 70
No change 9 18
Total 50 100
Chart no: 4.20 Growth rate of organization
Frequency
12%
18%
Boom
Declain
No change
70%
Interpretation
From the above table and chart, we can interpret that 70% of respondents say
that growth rate of organization is declined and 12% says boom and
remaining no change.
Table no: 4.21 Satisfaction regarding customs clearance and
freight forwarding services
Clearance of goods 31 62
Fast documents 8 16
Competitive rate 11 22
Total 50 100
Chart no: 4.21 Satisfaction regarding customs clearance and

freight forwarding services
Frequency
competitive rate
22
fast documents
16
clearance of goods
62
Frequency
Interpretation
From the above chart and table, we can identify that the majority respondents
says that satisfaction regarding customs clearance and freight forwarding
services is based clearance of goods. 16% of respondents say fast documents
and the remaining 22% of the respondents say because of competitive rate.
Table no: 4.22 Method of payment done during lockdown
Online 28 56
Credit based 9 18
Offline 5 10
Payment 8 16
pending
Total 50 100
Chart no: 4.22 Method of payment done during lockdown
Frequency
60
50
40
30
20
10
0
online credit based offline payment pending
Frequency
Interpretation
From the above table and chart shows that the majority of respondent says that
method of payment done during lockdown on the base of online payment and
18% done in credit also 16% payment pending.
Table no: 4.23 Growth rate in air cargo price
Yes 43 86
No 7 14
Total 50 100
Chart no: 4.23 Growth rate in air cargo price
Frequency
7; 14%
43; 86%
yes no
Interpretation
From the above chart and table shows that 86% of respondents say yes which
means there is growth rate in air cargo and 14% says no growth rate.
Table no: 4.24 Payment issues in salary
Yes 45 90
No 5 10
Total 50 100
Chart no: 4.24 Payment issues in salary
Frequency
Yes No
Interpretation
From the above table and chart represents that majority of respondents says
that payment issues in salary and only few approximately 14% says nothing
issues in case of salary.
Table no: 4.25 Shortage of storage facilities
Documents Frequency Percentage
Yes 31 62
No 19 38
Total 50 100
Chart no: 4.25 Shortage of storage facilities
Frequency
38%
62%
yes no
Interpretation
From the above table and chart, we can understand that majority of
respondents says that shortage of storage facility and 38% there is no shortage
of storage facility.
Table no: 4.26 Responsible for loss of the organization
Government 36 72
Senior 6 12
management
Employees 8 16
Total 50 100
Chart no: 4.26 Responsible for loss of the organization
Frequency
80
70
60
50
40
30
20
10
0
government senior management employees
Frequency
Interpretation
From the above chart and table, we can understand that majority of
respondents says government is responsible for loss of the organization during
lockdown and 16% says because of employees.
Table no: 4.27 Information verified through the computer
system
Weight 18 36
Nature of goods 7 14
Location 18 36
Status 7 14
Total 50 100
Chart no: 4.27 Information verified through the computer

system
Frequency
status
location
nature of goods
weight
0 5 10 15 20 25 30 35 40
Frequency
Interpretation
From the above table and chart, it shows that 36% of respondents says that
information verified through the computer system related location and weight
related data’s and 14% says nature of goods and status.
CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSION
Findings
 Majority of respondents aged above 25 knows about the logistics system in

AAI.
 Roughly three quarter of the respondents are male.
 Almost a half of respondents are no income persons because most of the
respondents are students.
 Education qualification of every respondents is about 36% of undergraduate,
32% of respondents are post graduated workers.
 More than half of respondents are aware of logistics systems in the
organization.
 Well over three quarter of respondents says that there is a competitors for
AAICLAS.
 Slightly less than three quarter of respondents says they are needed that job
and important for their life.
 Slightly less than three quarter of respondents says that the logistics part of
company strategies.
 Half of the respondents says average working condition before pandemic.
 Well over three quarter of respondents says prefer to do work at home during
pandemic period and lockdown.
 78% the respondents says that during pandemic period the organization faced
air freight traffic.
 Roughly three quarter of respondents says that covid-19 mostly affected cargo
delivery system.
 Majority of respondents says that influence of the problem in logistics due to
tracking and cost.
 Nearly half of the respondents says that fuel factor is the one of the challenges
faced by air transport system.
 Almost a half the respondents says that digital transformation of cargo
operation will help to cargo system.
 42% of respondents says that delay in transportation of cargo during pandemic
period exactly one week.
 Well over three quarter of respondents says that during covid-19 pandemic
paper documents clearance was delayed.
 Roughly three quarter of respondents says that in AAICLAS needed
maintenance of storage facilities.
 Average number of respondents says that growth rate of organization is
declined.
 62 percentage of respondents says that satisfaction regarding customs
clearance and freight forwarding services is based clearance of goods.
 More than half of the respondent says that method of payment done during
lockdown on the base of online payment.
 Well over three quarter of respondent’s opinion is that significant growth rate
in air cargo.
 A significant majority of respondents says that payment issues in salary during
covid-19 pandemic period.
 62 percentage of respondents says that shortage of storage facility during the
pandemic.
 Slightly less than three quarter of respondents says government is responsible
for loss of the organization during lockdown.
 More than a quarter of respondents says that information verified through the
computer system related location and weight related data’s.
 Most of the employee suffering difficulties during pandemic.
 Transportation and service sections are still pending due to pandemic.
 Work at office workers were keeping social distances and wearing masks in
the organization.
 Pending bills and other documents are not verified during the pandemic.
 Overall covid-19 pandemic significantly affected the function of the
organization.
Suggestion
 The AAICLAS will use information technologies in order to work effectively

in a holistic way and incorporate any advanced device in its port. For e.g.,
GIS, VTMS, AIS, RFID, CCTV, Surveillance and other safety systems.
During the pre-liberalization and post-liberalization phase, wise AAICLAS
product traffic was compared, showing four more times its overall
performance. However, improvement has not been achieved in the new age of
rivalry. The AAICLAS will therefore be based on replacing the existing,
outdated, low-capacity freight and ultra-modern handling facilities. To modern
gate entry logistic systems, the building of multi land concrete roads and high
axle tracks are important.
 The use of human resources as it is today will fully be focused on the fact of
need. The mental reserve of workers must be stopped. The established
standards of shipboard day output and gang output for different goods and new
specifications consistent with current handling facilities will be updated.
 Centralized data sharing, uniform electronic data-exchange formats, especially
for invoicing, reliable correspondence networks, and simple and open-end user
interfaces, are proposed as key implementation steps for secure and productive
handling of the peak and slack market..
 AAICLAS will concentrate on establishing storage areas for warehouse use in
the airport and make further efforts.
 Utilization by adding automated recognition device, biometric access control
and boom barriers, tower-style portal devices, scanners and RFID technologies
should be allowed maximum use of scientific and technical developments.
 Better publicity should be advised to encourage consumers to take advantage
of the terminal, stressing such selling points as small charges or freight costs,
quick processing in the terminal, and sufficient transportation facilities and the
use of the warehouse.
 The accountable agency will take appropriate measures to remove discarded
products in order to generate more space from the port area
 The government should take measures required to minimize Indian business'
international Airport and thereby increase the domestic airport use for business
operations.
 During unloading bulk cargo, cranes should directly position the cargo in
trucks instead of unloading it into lofting areas that support the harbor retain,
the sleeping area and reducing, operating and time-consuming costs of Gantry
cranes..
 Logistics construction and the implementation of new handling strategies
include the establishment of dedicated berths and jetties alongside traditional
customer base to handle all forms of freight traffic.
 Airlines and the airport need to consider all the probable factors which affect
the quality of the airlines. The factors are reliability, assurance, tangibility,
empathy, and responsiveness. All these factors play an important role in
providing the quality service to the passengers.
 Airport can offer extra services such as massage booths, salons, and recliner
lounges and Airports should consider itself as converting to educational
museums for passengers to enjoy during layovers.
 Apart from the global brands, nationally-known retail outlets and national
chain restaurants should be available, there should be opportunities to enjoy
the local cuisine at reasonable rate.
 Assess customer expectations about and perceptions of airport service quality
at individual airports as well as at those of its competitors; Identify and
prioritize service areas requiring managerial attention and action to ensure and
improve service quality and customer satisfaction; and provide the airport’s
managers with indications of how to establish and sustain competitive
advantage based on a service quality strategy
 Instead of attributing more importance (or sole importance) to managers’
beliefs about what passengers expect from service quality at airports, it is
recommended studying service quality perceptions in a customer-focused
manner in order to best determine where and how airport service quality
initiatives can make a significant difference to the customers.
Conclusion
Logistics systems and transportation consist of interdependent relationships that

logistics management requires transportation to perform its day to day activities and
meanwhile, a good logistics system can efficiently improve transportation
development and traffic environment. Since transportation contribute the highest cost
among the related elements in logistics systems, the improvement of transport
efficiency can change the overall performance of a logistics system. Transportation
plays an important role in logistics system and its activities appear in various sections
of logistics processes. Without the linking of transportation, a powerful logistics
strategy cannot bring its capacity into full play.
The review of logistics system in a broad sense might help to integrate the advantages
from different application cases to overcome their current demerits. Review of
transport systems provides a clear notion on transport applications in logistics
activities. Development of logistics will be still vigorous in the following decades
and the logistics concepts might be applied in more fields.
AAI manages a total of 137 airports which include 24 International airports (3 Civil
Enclaves), 10 Custom Airports (4 Civil Enclaves) and 103 Domestic airports (23 Civil
Enclaves). AAI provides air navigation services over 2.8 million square nautical miles
of air space. During the year 2019-20, AAI handled aircraft movement of 1314.23
Thousand [International 156.0 & Domestic 1158.23], Passengers handled 159.59
Million [International 22.26 & Domestic 137.33] and the cargo handled 909.32
thousand MT [International 452.46 & Domestic 456.85]. Further, all Indian airports
taken together have handled aircraft movement of 2587.05 Thousand [International
431.85 & Domestic 2155.20], Passengers handled 341.05 Million [International
66.54& Domestic 274.51] and the cargo handled 3328.63 thousand MT [International
2003.12 & Domestic 1325.51].
The government is pursuing more port growth by introducing future construction

schemes, which will incorporate more Gantry cranes for faster service, concentrating
on ensuring cleanliness and cleanliness at every berth, thus making port the
benchmark worldwide. This analysis allowed us to receive a full summary of
AAICLAS which we see as the greatest accomplishment because it has greatly
improved our skills, experience and subject matter.
BIBLIOGRAPHY
Books, magazines and journals
 Logistics and supply chain management 4th edition, Martin
Christopher, Financial Times Prentice Hall, Harlow (2011)
 Aviation logistics: the dynamic partnership air freight and supply
chain by Michael sales
 Logistics and supply chain management, Andrzej Szymonik, Lodz
University of Technology
 International logistics
 Global logistics and supply chain management, John Mangan,
Chandra Lalwani, Tim Butcher, Roya Javadpour
 Supply chain and logistics management, Paul A Myerson
 The geography of transport systems
 Customs manual
 Logistics, an introduction to supply chain management, Donald Waters
 Supply chain strategy, Edward H Frazelle Ph.D.
Internet websites
 https://en.wikipedia.org/wiki/AAI
 http://aaiclas-ecom.org
 https://www.aai.aero
 https://en.wikipedia.org/wiki/Logistics
 https://www.easylogistics.site/history-evolution-logistics/
 https://economictimes.indiatime.com
 http://www.aera.gov
APPENDIX
QUESTIONNAIRE
Respected sir/madam,
I Mohammed Moinuddin, 3rd year BBA logistics student of Srinivas University,
Department of Management and Commerce, Mangalore, as a part of my Project in
partial fulfillment of the UG would like to collect few data related to my topic titled
“impact of covid-19 on logistics system with special reference to AAI cargo
logistics”. I kindly request you to fill this questionnaire which would be helpful for
me in completing my project.
1. Name:
2. Age:
a) Below 18 years
b) 18 – 20 years
c) 20-25 years
d) 25 & above
3. Gender:
a) Male
b) Female
4. Monthly income:
a) Nil
b) Below Rs 20,000
c) Rs 20,000 – Rs 30,000
d) Rs 30,000 – Rs 40,000
e) Rs 40,000 above
5. Education:
a) Undergraduate
b) Graduate
c) Post graduate
d) Other
6. Are you aware of logistics system in AAICLAS?

a) Yes
b) No
7. Are there any competitors for AAICLAS?
a) Yes
b) No
8. On scale of 1-5 how important for this job to you:

a) Least important
b) Less important
c) Important
d) Most important
9. Should logistics be part of the company’s strategy:
a) Yes
b) No
c) Can’t say
10. What is your opinion about working condition before pandemic?
a) Below average
b) Average
c) Satisfactory
d) Excellent
11. What type of job you prefer during lockdown?
a) Work at home
b) Work at office
12. Is industry facing any air-freight traffic during pandemic?
a) Yes
b) No
13. How impact covid-19 in cargo delivery system?
a) Slightly affected
b) Mostly affected
c) Medium level affected
d) Not affected
14. How will you rank the influence of the

following problem in logistics? (1 most critical
to 3 least critical)
a) Lead time
b) Tracking
c) Cost
15. What are the challenges faced by air transport system?
a) Competitiveness
b) Fuel factor
c) Over capacity
d) Other factor
16. How will technology help to cargo system?
a) Digital information of cargo operation
b) Expand relational database management system
c) Support strategic operational decision
d) Strengthening knowledge in project management
17. Is there shortage of maintenance facilities during pandemic?
a) Yes
b) No
c) May be
18. How often days delay in transportation of cargo during pandemic?
a) Below 2 days
b) One week
c) Two to three weeks
d) More than one month
19. Is there delay in paper documents clearance during covid-19?
a) Yes
b) No
20. How would you evaluate the growth rate of organization?
a) Boom
b) Declain
c) No changes
21. What is the important factor for satisfaction regarding customs clearance
and freight forwarding services?
a) Clearance of goods
b) Fast documentation
c) Competitive rate
22. Which method of payment done during lockdown?
a) Online payment
b) Credit
c) Offline payment
d) Payment pending
23. Do you find any growth rate in air cargo price?
a) Yes
b) No
24. Do you think AAICLAS have shortage of storage facilities:
a) Yes
b) No
25. Did you feel any payment issues in salary?
a) Yes
b) No
26. Who is responsible for loss of the organization?
a) Government
b) Senior management
c) Employees
27. Which information mostly verified through the computer system?
a) Weight
b) Nature of goods
c) location
d) status
28.Any,omments
……………………………………………………………………………………………………………………………………
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……………..

Mohammed Moinuddin (Project) Aaiclas TRV

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“IMPACT OF COVID-19 ON LOGISTICS SYSTEM WITH SPECIAL

REFERENCE TO AAI CARGO LOGISTICS”

In partial fulfilment of the requirements

For the award of

BACHELOR DEGREE IN BUSINESS ADMINISTRATION

Under the guidance of

PROF. C RANJITH BHAT

I, MOHAMMED MOINUDDIN hereby declare that this internship study and

I have undergone an internship for a period of 4 months, I hereby also declare

DATE: MOHAMMED MOINUDDIN

DATE: Prof. C RANJITH BHAT

This is to certify that Mr. MOHAMMED MOINUDDIN is a bonafide student

gratitude to all those who have directly or indirectly helped me to

complete my Internship Report successfully.

This project work is completed with immense amount of commitment,

I would like to express my sincere gratitude to Dr. P.S Aithal, Vice

I am greatly indebted to Prof. Keerthana Raj, Dean, Srinivas University for

I am also grateful to NELSON PEREIRA, Course Coordinator, Srinivas University

I am also thankful to Prof. . C RANJITH BHAT , Guide, Srinivas

Then, I specially want to acknowledge Shri. K.A. SREENIVASAN, Sr.

1. Chapter 1- Introduction to Internship Study 1-3

 Industry & Company Analysis

3. Chapter 3- Theoretical Framework and practices 35-100

4. Chapter 4- Internship report 101-160

Table No Titles Page number

4.1 Table showing age of the respondents 135

4.2 Table showing gender of the respondents 136

4.3 Table showing income of the respondent 137

4.4 Table showing education of the respondent 138

4.5 Table showing awareness of logistics 139

4.6 Table showing competitors for AAICLAS 140

4.7 Table showing importance of job among 141

4.11 Table showing air-freight traffic during pandemic 145

4.12 Table showing impact of covid-19 in cargo 146

4.16 Table showing delay in transportation of cargo 150

4.20 Table showing satisfaction regarding customs 154

4.23 Table showing payment issues in salary 157

4.24 Table showing shortage of storage facilities 158

4.25 Table showing responsible for loss of the 159

Figure No Titles Page number

4.2 Chart showing gender of the respondents 136

4.3 Chart showing income of the respondent 137

4.4 Chart showing education of the respondent 138

4.5 Chart showing awareness of logistics 139

4.6 Chart showing competitors for AAICLAS 140

4.7 Chart showing importance of job among 141

4.10 Chart showing job preference during 144

4.11 Chart showing air-freight traffic during 145

4.20 Chart showing satisfaction regarding customs 154

4.23 Chart showing payment issues in salary 157

4.24 Chart showing shortage of storage facilities 158

4.25 Chart showing responsible for loss of the 159

1.2 RESEARCH DESIGN

A detailed explanation of how a study should be performed. A research design typically

1.3 Objective of the study

1.4 Research Methodology

1.4.1 Primary data

1.4.2 Secondary data

1.5 Scope of the study

In tune with global approach to modernization of Air Navigation infrastructure for

Induction of latest state-of-the-art equipment, both as replacement and old equipment’s

In Airports Authority of India, the basic approach to planning of airport facilities

The functions of AAI are as follows: