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” SUBMITTED FOR: Partial fulfillment of two years fulltime Masters in Business Administration
SUBMITTED BY: MITUL RABADIA.
Roll no. 33, Semester - II Shree Sunshine Institute of Management, Rajkot. SSSS GUIDANCE BY: Prof. MAULIK VASANI. SUPERVISED BY: Prof. Manish Bhaya. Shree Sunshine Institute of Management, Rajkot. (Affiliated with Gujarat Technological University, Ahmedabad)
I, the under signed Mr. MITUL RABADIA here by declare that the research work presented in this summer internship project is my own contribution and has been carried out under the supervision of Prof. Manish Bhaya, & guidance by Prof. Maulik vasani Faculty of Management, Shree Sunshine Institute of Management, Rajkot
This is an original contribution in every respect and has not been previously submitted to any university for any degree.
“Knowledge is the ocean that cannot be fathomed the deeper you go, the more you see its unbounded profundity”
Change in occurring at an accelerated rate. Today is not like yesterday and tomorrow will not like be today’s market is how to succeed in the dynamic environment that surrounds the corporate world. MBA one of those professional courses which help students to keep pace the changing trends in business and its surrounding environment.
The subject ‘Practical Studies’ particularly helps students to know the actual corporate world, the anxieties and stress associated with the job which cannot be understood sitting in a classroom.
As students of MBA we are required to do a survey in any unit of national or international repute, so as to gain practical knowledge about the prevailing market conditions, for this purpose, I have chosen “PAVAN MINERALS PVT.LTD..” in Ahmadabad. I was fortunate to get an opportunity to work with such a professional unit.
Especially. It gives me immense pleasure to present this project report. my mentor who guided me in my work Prof.4 Master of Business Administration course is designed with the objective of preparing the most competent person. I would like to thank. AKNOWLEDGEMENT To acknowledge is very great way to show your gratitude towards the Persons who have contributed in your success in one or other way. First of all we would like to thank Gujarat Technological University for introducing this subject in our course which gives us practical knowledge about specified Industry. And the director of our college Mr.Maulik Vasani. Mr. . I am thankful to owner of the company. Manish Bhaya for his guidance. it is of great opportunity for a management student to get broad exposure to the co operate would during training for 45 days. Rakesh Faldu to give us guidance for the summer training.
No. . Description CHAPTER 1 1 2 3 4 Introduction Industry Profile Company Profile SWOT Analysis Page No.5 Thanking you. CONTENTS Sr. CHAPTER 2 5 6 7 8 9 10 11 Research Methodology Introduction Managerial Usefulness of Study Objectives Research Process Sample Plan Limitation of Study CHAPTER 3 12 Analysis and Interpretation of Collected Data.
6 CHAPTER 4 13 14 15 16 17 Findings Hypothesis Suggestions Conclusion Lintas Freight Annexure & Logistics LLC Bibliography .
Introduction 1. INTRODUCTION
As part of curriculum of the Graduate Degree in Foreign Trade course at Sinhagad College of Science & Commerce, students are required to do a project in any reputed organization. For this reason, I did my project research in Lintas Freight & Logistics LLC, Mumbai. The project work was titled “Effectiveness of Logistics Management” in Mumbai and to suggest ways and means to improve the management strategic decisions.
1.1 OBJECTIVE OF THE STUDY
The objectives of the Project are: •
To know about Logistics Industries To compare the effectiveness of logistics management at Lintas Freight and Logistics and to benchmark the organization with respect to the industry. To have a thorough understanding of how logistics and freight industries work. To know whether the customers are satisfied with the existing range of service pattern.
1.2 METHODOLOGY OF THE STUDY
The data used for the study had primary and secondary character to it. The primary data was collected through questionnaire method. The secondary data were composed through the reference of books, websites, and interviews with various executives in different organizations of the sample. The procured data was analyzed by a simple percentage method and the results are supported with graphs and charts.
1.3 SCOPE OF THE STUDY: The scope of the study is confined to Dubai Ports (Al Hamriya Port) and nearby organizations of Lintas Freight & Logistics LLC, which are into the concerned industry. The study is done only on industries dealing with Freight and Logistics in Dubai area. a. Introduction to Logistics Management Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements. A professional working in the field of logistics management is called a logistician. Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
b. Origin and Definition of Logistics: The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word, calculation, reason, speech, oration"). Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and distribution of supplies. The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".... c. Prospects of Growth in the Industry In years gone by, the traditional warehousing and logistics facility was located by railroad tracks, a water port, and/or freeways, usually in the least desirable parts of cities or large towns. This stereotype then faded as gigantic, state-of-the-art facilities began to sprout in more rural areas on the outskirts of transportation and population hubs. The World started beginning to see such facilities showing up in even less "traditional" areas. Modern warehouses now are being located in carefully manicured industrial parks that are sprouting as fast as the corn and wheat once did in these open spaces-often in out-of-the-way places. Why the emphasis on such locations for logistics companies? Much of it is due to the great flux that the logistics industry has been undergoing in the first three years of the 21st century. Most of these changes are being driven by a growing trend in the manufacturing and retail sectors to form partnerships with companies to which they can outsource non-core logistics competencies-3PL providers.
that more prosperous times lie ahead. differentiating themselves from the competition. integrating services and technologies globally. Generally the study is being featured with all aspects of management in Logistics and Freight areas. instituting effective management processes. That isn't to say the need for easy access to transportation hubs and different modes of transportation won't continue to be important. (Logistics include Transportation.10 In turn. They focus on key objectives. morale and momentum? To be a logistics winner in the coming years organizations need to use the downturn to reshape for growth. and delivering comprehensive solutions that create value for 3PL users and their supply chains. propelled by an unshakeable conviction that the mission is still important. such as implementing information technologies. disposals. Crossdocking. reorganizations. and that in some way the company infrastructure is helping to build a better kind of world. Warehousing. Hopefully organization succeed in protecting the business. Network Design. These are exceptionally difficult times and it has never been more important to connect logistics and freight planning to executive board thinking than now. and Value Adding) . 3PL providers are continually looking to provide innovative supply chain solutions to customers by focusing on value-added capabilities. This need to partner with customers and become more integrated into their supply chain processes has created the ancillary need to locate close to these customers. along with the advances in technology and enhanced communication. But the above shift in business strategy. Logistics is inevitable in the future and essentially the management policy also has a significant role in the future of world. It’s easy to lose sight of the bigger picture in the rush to cut infrastructure cost and conserve cash. painful layoffs and great geopolitical uncertainties can sweep away even the most comprehensive logistics strategies – and that’s despite outstanding management over many years. satisfying shareholders and analysts. share price pressures. Profit warnings. but what about capacity and flexibility. mergers. relocations. has opened the door for logistics facilities to operate effortlessly in a myriad of locations.
Batteries etc. and other states showed small decreases in export volume compared to Dubai. (Base metals used mainly for Automobiles. Most of this increase can be attributed to a large increase in sea freight imports from China. 2006/07 saw a mixed result for Chinese and other Asian sea freight exports. All states showed an increase in export value and many states having an increase in export volume.5%. Prepared Foodstuffs have shown a continual increase in import value over the last 6 years. Over the last 6 years. China remains largest import market. The 2006/07 increase in Mineral Products and Base Metal Products imports follows 3 years of import value decline in these products. while imports from Japan increased following three consecutive years of decline. India (22. Abudhabi. import volumes and value to China and India have consistently grown.2%). namely Africa (25.4%). India (28. UAE’s largest exporting state. Transport Equipment also saw a large drop in export value and volume. with an associated drop in export value. Increasing import value was led by Base Metals (principally Copper Cathodes and Lead). A decrease in export value continues 3 consecutive years of decreases in export value in these groups. The most constant export is for dates to neighboring nations. also backed by increasing commodity prices for these groups. . Dubai.4%).) Market Analysis UAE sea freight exports rose in volume and value during recent years.4%) and other Asian Markets (28.2%).0%) and USA (-25. Italy (14.11 d. Total freight import values increased 16. Rasalkhaimah. led these increases with substantial increases in volume and value of exports. Exports to other largest sea freight export markets showed substantial growth. Other substantial increases in import volume were seen from Taiwan (23. despite recording a small decrease in import volume in the group.629.3% in 2006/07.9%) and Mexico (70.8%). while noteworthy decreases in export volume were seen to Netherlands (-14. New Zealand (14. Dates are of very less demand in Western regions of the globe.230 tones or 218.) The most substantial decrease in export volume was seen in Vegetable Products (grains and other plant products).9%).7%). Mineral Products (mainly Liquid Gas and Iron products) and Prepared Foodstuffs (mainly packed FMCG products) were the other major commodity groups showing an increase in value. General Import / Export Market a. which rose 86.
Similar decreases were seen in both sea and airfreight imports. This is well below the 2002/03 peak of $201. Tuna is also imported by airfreight. Chicken and lamb meat imports are UAE’s largest sea freight imports in this category.998 and 5.6%) saw increases in sea freight import value during 2006/07. In addition to the sea freight imports.12 b. Cheese curd exports increased substantially during 2006/07. Actually had an increase in import volume for Rice and Wheat for the year 2006-07. Imports are mainly from Denmark. increased in volume and value (7.178 tonnes. Frozen Prawns.Animal Products: Meat. with decreases in export value seen during the previous years.0%) during 2006/07. Lamb imports by air also rose in 2006/07. Switzerland. seafood and dairy. Grain: Wheat.102. . but imports by air account for only 3. The dramatic growth in chicken imports during 2006/07 comes on top of steady growth since 2000/01. Over the last 5 years. Dairy & Seafood UAE import products in the Animal Products category include meat. sea freight lamb imports have been quite consistent and at a high level. Grated Cheese (including Cheddar) remains an important dairy import by sea with yearly exports fluctuating between $36 and $49 million over the last 6 years. with 2006/07 sea freight imports totaling $65.134.) Perishable Items. Import volume and value dropped across most major commodities in the grain category.066. The other single largest Animal product commodity is Tuna. reflecting the increased price for these commodities during the period. Rice is UAE’s single largest volume import commodity. with smaller increases in total volume. Both Chicken (110%) and Lamb (22.7% of the total chicken and lamb exports.
cited the Middle East as the next "hot" import market for Chinese-manufactured goods. equally massive investments have also been made in road networks. global logistics industry has been estimated to be more than USD 235 billion and make up significant part of the GDP with regard to India. Containers. Trade volumes both overseas and inland are growing very fast. UAE is now in a stage of transition from an import substitution closed economy model to an outward oriented trade regime.Middle East) Logistics is the management of the flow of goods. The Middle East is currently India's top export destination for a burgeoning consumer electronics sector. between the point of origin and the point of consumption in order to meet the requirements of consumers. Goods. Integrated logistics and multimode transportation are opening up new business for logistics/ shipping companies. Logistics involve the integration of information. The importance of logistics as an enabler of trade and economic growth is worth mentioning. While around Dh. new opportunities are opening up for the sector.13 [CHAPTER 2] Industry Profile 2. transportation. information and other resources. Middle East Export / Import Opportunities. The logistics/shipping/freight sector has received keen attention from both investors and government. including energy and people. billion of investments have been made during last 5 years to augment port facilities in the country (UAE). Massive improvement in infrastructure for transportation leads to present and future development in trade. . warehousing. resulting in the economic growth of the nation. Logistics Industry 2. material-handling and packaging. On the positive point of view. The growing trade reciprocity with China. Exports reached $175 million in 2005-06. an increase of 96 percent over the previous year. inventory. are comparatively much higher.1 LOGISTICS (UAE . Electronic Equipments etc. The pace of growth in the specialized sectors like Liquid Natural Gas (LNG). 63 percent of respondents to a recent China supplier survey.200. In terms of value. according to the Electronics and Computer Software Export Promotion Council (ESC).
The goal of logistics work is to manage the fruition of project life cycles. Software is used for automating logistics activities which helps the supply chain industry in automating the work flow as well as management of the system. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain. a. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and it is the science of process having its presence in all sectors of the industry. Most of the commercial companies do use one or the other custom solution.14 2.2 Logistics Management and Logistics Management Software Logistics management is that part of the supply chain which plans. calling for experts in the field who are called Supply Chain Logisticians. services and related information between the point of origin and the point of consumption in order to meet customers' requirements. effective forward and reverse flow and storage of goods. This is because there is no common rule to generalize the system as well as work flow even though the practice is more or less the same. logistics may have either internal focus (inbound logistics). implements and controls the efficient. The main functions of a qualified logistician include inventory management. transportation. or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption. Very few generalized software are only available in the new market in the said topology. There are various software that are being used within the departments of logistics mainly in Conventional Departments and for Container Trucking. supply chains and resultant efficiencies. A professional working in the field of logistics management is called a logistician. Logisticians combine the professional knowledge of each of these functions so that . warehousing. consultation and the organizing and planning of these activities. purchasing. Business Logistics Logistics as a business concept evolved only in the 1950s. In business.
Production Logistics The term is used for describing logistic processes within an industry. Production logistics is getting more and more important with the decreasing batch sizes. The issue is not the transportation itself. but to streamline and control the flow through the value adding processes and eliminate non-value adding ones. b. There are two fundamentally different forms of logistics. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. which is an essential part of production logistics . The other coordinates a sequence of resources to carry out some project.15 there is a coordination of resources in an organization. Track and tracing.is also gaining importance especially in the automotive and the medical industry. Manufacturing in an existing plant is a constantly changing process.due to product safety and product reliability issues . Production logistics provides the means to achieve customer response and capital efficiency. . Machines are exchanged and new ones added. Production logistics can be applied in existing as well as new plants. which gives the opportunity to improve the production logistics system accordingly. Even a single customer demand can be fulfilled in an efficient way. One optimizes a steady flow of material through a network of transport links and storage nodes.
16 [CHAPTER 3] Company Profile When it comes to supply chain management. Innovation and Quality Solutions” What Lintas Freight and Logistics does: • • • • • • Freight Movement Cargo/ Freight Management Solutions Full Truckload & Solution Providers Contract Packaging & Other Services Warehouse Operations (Outsourced) and Management Logistics 3PL . the answer is: “Leadership.
To perform continuous business improvement in order to meet and exceed customer expectation. Vision To become a leading freight. in an array of different market sectors. in the support and development of our People. by maintaining our uncompromising integrity.1 Vision and Mission Lintas Freight and Logistics: Best People. Lintas Freight and Logistics is a technology-based company providing customized solutions that transform distribution to a source of competitive advantage. Communications and Systems in sustained growth and profitability. a. Today. To create sustainable business growth in order to enhance the prosperity of employee and benefit shareholders. Main motive is to provide integrated solutions from managing transportation. Lintas Logistics serves more than 35 client companies. information management.17 3. globally. with superior financial results. To solve reliable transportation and logistics services to the needs of the business community. LLC was formed to build on the global distribution experience to help other companies lower distribution costs while improving customer service and brand loyalty. Mission To set the standard for excellence in global logistics through total commitment to quality in people and customer service. transportation. Best Value. In 2002. No matter what industry or region of the world other organization do business in. the supply chain is an integral part to the success as same as the products. Decisions can impact the success of the company as much as the performance of the supply chain. and distribution centers to sophisticated forecasting. and correct documentation in case of deviations. undamaged goods. and network consulting services. Lintas Freight & Logistics LLC Overall View: 3. Lintas Freight and Logistics Services. Best Processes. the services. b. and the people. inventory. Reliable services means on-time delivery. clearing and logistics company in the Middle East. . To be the recognized industry leader. through total commitment to customer service.
Lintas employ many professionals in their branch offices and in fields (Ports). clearing. energetic. Customer service to a higher level. b. transportation. satisfying customer needs has been the driving force behind every Lintas Freight & Logistics employee.2 Lintas Freight and Logistics Service Today. how can we serve you better? e. Lintas provide these services around globally and main focus to UAE and Indian markets Lintas Freight and Logistics. c.18 The organization mission is to provide best value. integrated freight and logistics solutions to clients in time-sensitive. Analyzing every opportunity. d. 3. focus on main areas they are: a. Organization tries to leverage and continuously improve the capabilities. service-critical businesses. professional. every challenge to provide a custom solution that works best for customer. . forwarding and logistics needs. dedicated to helping freight. Our clients trust us and depend on our Best People and Best Processes to help them succeed. Finding solutions that optimize cost and service. Partnering to seeking the right answers. and passionate: their humble beginnings. And always asking. Young.
19 3. flexibility and innovation. it also serves as the cornerstone of the Lintas Freight and Logistics. . With world-class technology as the backbone of the solutions and service. the Quality Management System not only serves as the foundation of the on-going Continuous Improvement in day-to-day procedures. organization has hired only the best and brightest. Initially from the beginning. they are experts in their fields. always looking for ways to drive cost out of the supply chain and all the while working to improve the service. Organizations “Can Do” culture is rooted in customer service. as the organization helps tackle service and cost issues within their supply chains. This commitment to quality customer service led Lintas Freight and Logistics to become the third-party logistics provider to be certified by UAE as best system standards. The process driven approach to problem-solving helps the organization exceed customers' expectations. Integrating systems and providing real-time information to help reduce cost by moving the products of customers to market as efficiently as possible. Energetic.3 Continuous Improvement in the Organization Lintas Logistics employees and other contracting people and other exceptional people are the cornerstone of organizations service. Lintas Freight and Logistics get them on that moment. Today. Organization has got a rich tradition of redefining service for the supply chain management. Customers need solutions now. on-the-scene. a. Deploying the management team regionally means decision-making and is kept local. The team structure means good ideas can come from anywhere within the company. freight management and logistics industry. It’s been that way since the Lintas Freight and Logistics organization was launched over 5 years ago. Every member of the team is empowered to create and implement client-centered solutions. The most committed.
air or sea in accordance with customer requirements. using the services of shipping lines. iv. cost transit time and security. nature of goods and cost. Arranging charters for large volumes out of gauge or project movements by air and sea. sea. packing specifications and compliance with overseas countries regulations and fiscal regimes. terrain. Arranging payment of freight and other charges or collection of payment on behalf of the client. Researching and planning the most appropriate route for a shipment. o o Arranging insurance and assisting the client in the event of a claim. Obtaining. Offering consolidation services by air.20 3. Taking account of the perishable or hazardous nature of the goods. weight. This department has the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. freight forwarder array. climate. and road. importer or another company or person. Arranging appropriate packing. enabling real time tracking and tracing of goods. sometimes including dealing with packing and storage. excise and insurance requirements. delivery or warehousing of goods at their final destination. o Liaising with third parties to move goods by road. Freight Forwarding Departments typically arrange cargo movements to an international destination. checking and preparing documentation to meet customs. Functions: i. o o .4 Organization Functions: a. Taking into account the type of goods and the customer’s delivery requirements. airlines or road and rail freight (Indian Markets) operators. o Ensuring cost effective and secure solutions to small shippers with sufficient cargo to utilize their own dedicated units. iii. the best means of transport. Taking account of climate. Transmitting data by internet and satellite systems. A freight forwarder organizes the safe efficient movement of goods on behalf of an exporter. ii.
vi. The department also undertakes cargo booking. such as sea freight or air freight. the product. b. provides information on the rates. Logistics Field: Bulk Operations The main function in this department includes identifying the customers and collecting information about the amount of material to be exported. Informing the shipper the rate and negotiating with him. The type of container and the number of containers that the shipper would like to take. ii. the role may also involve managing staff and overseeing activities within a department or specializing in a particular area. vii. shipping service providers. transshipment details and does the follow up. place of exports. political situations and other factors that could affect the movement of freight o At more senior level. name of the ship. . departure time. Identifying the customers by the marketing person of this department. Enquire about the type and quantity of the cargo. Analyzing the rate the shipper expects from his cargo movement . the arrival.Scheduling the arrival and department time of the vessel ix. iv. including the production of management reports and statistical and unit cost analysis o Acting as consultant in customs o Maintaining current knowledge of relevant legislation. v. Listing out the transshipment details and do the follow up. viii. Convincing the shipper of the services that company provides to be better than the other iii.21 o Acting as broker in customs negotiations worldwide to guide the freight efficiently through complex procedures o Arranging courier and specialist hand carry services o Maintaining visibility and control through all phases of the journey. the schedules. Functions i. Enquire about the place or commonly referred to as the destination port to which the shipper would like to export the cargo. that he would like to export.
vi. Functions i. d. Check offences under the act xi. Arrival and clearance of vessels. Preparation of various kinds of bill of entry and shipping bill. ii. Determination of value for assessment. Procedures for assessment and payment of duties. x. v. Prohibitions on imports and exports items. iii. appeals and revision petitions. iv.22 c. Examination of merchandize at the customs stations. ix. The documentation process and clearing activities are done by this department. vii. viii. Network Design A Logistics Network Design initiative is a strategic analysis of entire supply chain. Nature and description of documents to be filed with kinds of bills of entry & shipping bill. Conversion of currency. Some of the strategic questions are: • • • To ensure enough facilities to meet future capacity requirements? Which facilities should be closed and/or consolidated? Is there an opportunity to make changes to the network to reduce logistics costs? Develop the Current Financial Model: . Re-importation and conditions for free re-entry. Refund procedures. Clearing and Forwarding (C & F) The main function of C&F department is to undertake the customs formalities on behalf of the exporters or importers.
This will help determine if there is additional capacity in the existing facilities or if there is excess capacity available. Software Selection: Due to the complexity of this analysis. e. weight. exporters. This will help develop the ‘scenarios’ later on. The impact to the other logistical operations may then be identified. hazardous materials. It should include the costs of all logistical activities such as Warehouse costs. etc. Transportation costs. They come equipped with loading docks to load and unload trucks. Warehousing A warehouse is a commercial building for storage of goods. This is accomplished by creating family groupings of products. Inventory costs and Order Processing costs.23 Before making sensible decisions on what changes to make the network. etc. are the correct product characteristics captured accurately? Some characteristics of interest would be cube. carton dimension. wholesalers. transport businesses. importers. when an item is received into the warehouse. For example. a network optimization software package is in order. It is imperative that the data from your current data warehouse (transactional data) be accurate. One person on the project team should be responsible for sourcing the right software to meet the projects modeling needs. a ‘base case’ financial model needs to be developed. If the data is not ‘clean’ the flows will be misrepresented and this will affect the accuracy of the model. Analyze Current State of Operations: A throughput and capacity analysis should be completed for the existing operations. Data Gathering & Validation: This is one of the key drivers to a successful project. or sometimes are loaded directly from railways. customs. . Warehouses are commonly used by manufacturers. One of the activities further into the project will be to create a summary of the product flows. They are usually large plain buildings in industrial areas of cities and towns. The software selection phase may be completed concurrently with the financial model-building phase above.
The Warehouse are to be well guarded with safety provisions to counter pilferage. floods & other calamities. The WMS is used by logistics personnel to improve the efficiency of the warehouse by directing putaways and to maintain accurate inventory by recording warehouse transactions. The Warehouses are in convenient locations & well connected by roads to facilitate on time delivery to customers. which are usually placed on ISO standard pallets loaded into pallet racks. Most warehouses are completely automated. Modern warehouses are also used at large by exporters/manufacturers as a point of developing retail outlets in a particular region or country. and also where land is expensive. The direction and tracking of materials in the warehouse is coordinated by the WMS. fire. These high-bay storage areas are often more than 10 meters high. The pallets and product are moved with a system of automated conveyors and automated storage and retrieval machines coordinated by programmable logic controllers and computers running logistics automation software. with no workers working inside. . Warehousing is an age old concept which can be used as sharp tool by original manufacturers to reach out directly to consumers leaving aside or bypassing importers or any other middle agencies or person. They also often have cranes and forklifts for moving goods. as automated storage systems can use vertical space efficiently. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep the product from spoiling. This concept reduces the end cost of the product to the consumer and thus enhance the production sale ratio. a database driven computer program. or Warehouse Management System. or seaports.24 airports. with some over 20 meters high.
Containers can take case of most of 4 main packing problems. a product does not have to have heavy packaging. or to sort materials intended for different destinations or to combine material from different origin. Its dimension is typically 8 foot high and 8 foot wide lengths usually varying.25 f. with little or no storage in between. A container varies in size material and construction. Crossdocking – Containerization Crossdocking is a practice of logistics of unloading materials from an incoming semi trailer truck and loading these materials to outbound trailers or rail cars. A container is a large box made of durable material such as steel. An increasing popular method of shipment is containerization. plywood and reinforced plastics. Temperature controlled iv. This may be done to change type of conveyance. Moisture iii. Breakage ii. Pilferage and Theft There are mainly 2 types of containers v. A container can accommodate most cargo but is most suitable to packages of standard size and shape. aluminum. Because of container construction. Dry Containers vi. it gives protection against: i. Special Purpose Containers Types / Size 20 Foot Dry .
5 Organization Structure Organization is headed by Organization Head. clearing and forwarding. and is based on the customer requirements. . Open top containers viii. and all other employees report to him. 45 foot & Reefers) 3. Organization acts as a 3PL for other firms on behalf of carry/ forward. logistics. High cube containers (40 foot. as goods are being stocked in different warehouses.26 40 Foot Dry 45 Foot Dry vii. Flat rack for over sized cargo ix. Warehouse activities are being outsourced based on the demand situations. Firm comprises of 12 employees for internal works and other team for activities including freight forwarding. logistics. 40 foot refrigerated containers/ reefers x.
other cost measures in logistics. employees were not happy with their present situations in office and in the working hours. tonnage of imports. To any organization cost reduction is the ultimate method to get a much wider profit. as from the basic get-together of employees during the off peak hours in work. As with . the firm can improve and eliminate unprofitable situations. As to manager’s words.6 Business Drivers The following are the business drivers in logistical operation: a) Cost Drivers: The average materials moved by manufacturers to export market is low.27 3. The high technology portion reaches to 60% to 72% of imports. The situation leads to lengthening/of delivery bills and other major invoice forms. number of employees etc. By using Activity Based Costing (ABC) method of costing the organization can identify unprofitable warehouse practices. number of batches. are all major concern in cost. If Lintas Freight and Logistics implement cost based on ABC. The situation has a major impact in operational stability. Number of labour hours is a factor. but where as to import market is high in figure. Lintas Freight and Logistics keep a major favourable concern on the above. I was able to figure out. size of inventory. number of suppliers. it is deciphered that situations are improving day by day. improve and implement new facilities with much broader focus on future.
Freight. Very few companies have mastered this concept. All organizations will be implementing the cost method within the near future. Review of Literature a. You should know what products / services are demanded by your customers. 4.28 [CHAPTER 4] Review of Literature the help of questionnaires and through formal interviews with officials not many organizations have this generally. b. how do they make their purchases. how often they order and what constraints they face on the purchasing process. Demand Chain Management Understanding demand requires a comprehensive knowledge of your customers. Supply Chain . Achieving Competitiveness in Logistics. Lintas Freight and Logistics was able to know all the above concepts through considerable focus into customer needs and grievances.
market demands. freight. climatic problems etc. customer needs. c. lower operating costs. inventories. Furthermore. For short haul deliveries. cover both the long term and short term. Operational decisions are those dealing with everyday activities and problems of the organization. Lintas Freight and Logistics realized the fact and are prepared to face any unexpected situations like inflation/ deflation in the economy. as will constraints such as delivery within specified period . Change is the inevitable factor for each and every day situation within and outside the organization. to efficiently route fleets of vehicles and vessels and plan picking and loading. product availability and customer satisfaction are the benefits which grow out of effective logistics and supply chain management.29 Reduced lead time. and look at overall design and logistic chain structure. Tactical. Strategic decisions deal with the corporate policies. Therefore organization must structure the logistics ideas through long term analysis and at the same time focus on every time situations. The decisions usually carried on by Lintas Freight and Logistics (3PL). Operational Fleet Routing & Loading The organization derives routes in transportation are mainly long-haul (Optimization). price factors. transport considerations and pricing constraints are the factors in order to structure the logistics. Stipulated time windows for pick-ups and deliveries and vehicular weight and spatial capacities would be used. there are ready solutions that are tightly integrated to warehouse management systems (outsourced facility). The decisions must take into account the strategic decisions already in place.
e. initially inbound logistics. movement.30 minutes upon pickup (useful for perishable goods).in terms of fixed time to park and variable time dependent on amount to be loaded or off-loaded . through road transport and storing and making them available. Routes can be generated dynamically and ad hoc backhaul or other opportunities can also be assigned to the most suitable vehicle. Lintas Freight and Logistics strategically manage the procurement. parts and finished inventory through the organization and its marketing channels. Travel speeds along various types/zones of roads can be stipulated by traffic information services. Mode of Transportation Transportation generally is movement of product. i. as company has to stick on road for short routes and even routes between states of UAE and which is very much expensive and increases the operational cost. air. or cold enclosures like frozen storage. there are two categories. goods. so it has got a relevant drawback for the company. current inventory levels.can be specified.. raw materials to different stages in supply chain. Time required at various stops . Essentially from companies’ angle. Lintas Freight and Logistics essentially uses only 2 modes for their operation they are air and sea. The goods being delivered to end customer is brought to port or to the place through containers or other methods like wagons. As in UAE rail transport does not exist. coordinated by an integrated logistics system. forecasted demand and status of shipments. handling goods that are brought into the company. The benefits of operational fleet routing include considerable reduction in fleet operating cost and improved customer service with better estimated arrival time. rail. d. and storage of materials. Lintas Freight and Logistics try to know the product value as well as storage capacity (mainly warehouse – how much to outsource).e. The organization schedules arrival and departure times for each stop can thus be worked out quite accurately. Thus the system can optimize the right quantities of replenishments to be sent at the right time to ensure that service levels are maintained while minimizing cost of inventory and transportation. Vendor Managed Inventory Vendor managed inventory. truck. the manner in which product is moved from one location to another is through road. allows inventory to be optimized together with transportation. Essentially in supply chain logistics plays a major role. sea. Another main phase is the . As a routine job the company collects information on consumption rate.
Lintas Freight and Logistics faces lot of ups and downs in each operation and improves operation on each situation while dealing with each customer. Variety used is road and sea in the case of organization. Service is another aspect which focuses the advanced need of the customer. Attributes: The price charged is reasonable with regard to the consignee. and ease of doing business is attained by logistics organization like Lintas Freight and Logistics. It helps reduce cost in operation. this is the only option as factories and markets may not be next to ports. Referring to Global trade. transportations services offered. as organization has got a long term relation with all the customers. Intermodal Transportation System Used This is the use of one or more than one mode of transport to move a shipment to its destination. The Challenge Faced by Organizations In today’s world. . taking the cargo or the goods through channels. Essentially it is very convenient for shippers as well as consignee. Lintas F&L use this in an efficient way. competence is taking on new dimensions. As the consignee is offered service by 3PL like Lintas F&L with favorable order management. How fast you deliver the goods/ products. i. Lintas freight and Logistics dominant improvement methods used are: i. order management. How are your competitors performing in each aspect of operations? iii. The relevant focus is on warehouse. The ability to compete is being determined by the degree of responsiveness to customers and key issues handling. Determining the gaps in each phase and try to fill it. and has become the essential factor in logistics management.31 outbound logistics. f. Helps reduce cost that cannot be matched by single mode. initially with proper timing maintenance. ii. What are the customer expectations? ii. Markets are quick demanding and customization of each logistics activities is essential for each customer. and is being done with considerable effort to various parts of the world as per the customer requirements. what the price paid by customers and what value customer is getting throughout the service is considered in a schematic and ordered way. Usually goods being transported are electronics and frozen stocks from warehouse.
Economic Ordering Quantity (EOQ) Efficient order quantities consider the Purchase Order Cost (POC). The lower the purchase order cost. and Unit Inventory Volume (UIV). online catalogs. and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. is the extent to which inventory levels and lost sales costs may be reduced in the supply chain and there to the efficiency of logistic operations. the more economical it becomes to order in small increments and the less inventory will be there in the system. There is relevant need for EOQ in this era. Back Order. Competitors focus on reducing the costs of placing purchase orders. Packaging and Packaging Materials. Documentation from Lintas Freight & Logistics a. held available in stock by a business. few organizations believe EOQ analysis is outdated and quite few with enhanced focus on it. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay. Inventory Inventory is a list for goods and materials. High ICRs and high unit inventory values suggest small order quantities. executing and tracking purchase orders. the Inventory Carrying Rate (ICR). online bidding and online exchanges. EOQ analysis should be completed as a part of any inventory strategy.32 g. The analysis suggests appropriate reordering intervals for all items each organization is handling. the Annual Demand rate (AD). Lost Sales.2 Studies on Inventory. Cost is high in this situation for ordering costs to the firm. Large Order Quantities yield high inventory levels and high inventory carrying costs but fewer orders and lower ordering costs. Generally during research the analysis shows. The purchase order costs is typically dominated by the labour and paperwork costs of planning. Large number of organization extent to which these functions can be automated via automated purchase order planning. Stock Outs. 4. Lintas Freight and Logistics has a considerable drawback in this scenario comparing to the other firms. There are three basic reasons for keeping an inventory: . negotiating. High ordering costs and demand rates suggest large order quantities. eprocurement. or those goods and materials themselves.
iii. Back Order A company having to back order an item that is out of stock will incur expenses for special order processing and transportation. Langley] ii. and when one source does not have an item available. The extra order processing traces the back orders movement. from supplier to user at every stage. [The Management of Business Logistics. Time . Bardi.g. the seller could use this analysis to estimate the cost of stockouts. thus inventory. Bardi. a seller can determine the direct loss by calculating profit on one item and multiplying it by the number the customer ordered. In such cases the stock out has caused a lost sale. The seller may need to ship the back order by a faster and more expensive means of transportation. the customer will order from another source. [The Management of Business Logistics. the loss is 1000$. supply and movements of goods. Thus.: If the order was 100 units and the profit is 10$. The seller’s direct loss is the loss of profit on the item that was unavailable when the customer wanted it. We could estimate the back order cost by analyzing the additional order processing and additional transportation expense. So Bulk buying. requires that you maintain certain amount of inventory to use in this "lead time" Uncertainty .The time lags present in the supply chain. in addition to the normal processing for regular replenishments.Inventories are maintained as buffers to meet uncertainties in demand. Langley] c. Coyle.33 i. Lost Sales Most companies have competitors who produce substitute products. E. Economies of scale . If customers always back ordered out of stock items. b.Ideal condition of "one unit at a time at a place where user needs it. Coyle. The seller could then compare this cost with the cost of carrying excess inventory. . when he needs it" principle tends to incur lots of costs in terms of logistics. movement and storing brings in economies of scale. The customer usually incurs extra transportation charges because a back order is typically a smaller shipment and often incurs higher rates. The seller may need to ship the back ordered item a longer distance.
So. not only in the warehouse but also during transportation. Packaging interacts with the logistics system in number of different and important ways. Packaging and Packaging Materials Mainly this is a main division in warehouses. d. The size of and protection afforded by the package affect the type of materials handling equipment used and the level of product damage incurred. Packaging is quite important for effective damage protection. Whether including such a cost is valid would depend upon whether the company uses sales people in its marketing effort. If an item is out of stock. Packaging size may affect a company’s ability to use pallets or shelving or different types of materials handling equipment. A customer may initially just enquire about items availability without specifying how much is desired. coordinating packaging with warehousing and with transportation is quite important. e.34 If the effort is made by a sales man and if the effort is wasted and in that sense it is an opportunity loss. Another aspect is determining the amount of a lost sale may be different and difficult in certain circumstances. the customer may never indicate a quantity and the seller will not know the amount of the loss. We need to note. Numerous companies customarily take orders by telephone. Stockout Cost incurred to a firm when current inventory is exhausted for one or more items. Many companies design packages that are too wide or too high for efficient use of either a warehouse or transportation carrier. Packaging may contribute nothing to a products value but its influence on logistics costs is considerable. The package has an impact on the stacking height of the product in the warehouse and thereby on the utilization and cost of the warehouse. . poor packaging can contribute to higher handling charges and result in lower future sales if the goods arrived damaged. Lost sales revenue costs are incurred when the firm is unable to meet current orders because of a stockout condition.
Materials generally used in previous years was wood and other harder materials for no breakage. There are other factors while considering packaging they are environmental protection. Air bubble cushioning is made of plastic sheets that contain air pockets. 5. but it added considerable shipping weight to the transport and it further increased transportation cost. Companies often use shrink wrap for consumer packaged goods. They are considered in situations of perishable items like food and drugs. Packaging also helped reduce pilferage and product tampering in warehouse and during transport. The packaging protects goods that a company will move to store in the warehouse and also permits the company the effective use of transportation vehicle space. cellulose wadding. To have a thorough understanding of how logistics and freight industries work.e. 5. To identify the drivers behind Logistics and Freight. and surface damage during handling. compared with other organization in the same industry. vibration. i. Cushioning materials include shrink wrap.2 Research Problem: The need for the study was to assess the effectiveness of Logistics Management in the Lintas Freight & Logistics LLC. air bubble cushioning. Cushioning materials protect the product from shock. Consumer packaging provides information important in selling the product. The . giving the product most visibility when it comes with others on the retail shelf. Generally new era has come up with efficient packaging materials. organization nowadays use most cost effective packaging with focus on security and minimizing cost.35 [CHAPTER 5] Research Methodology Two types of packing exist: consumer packaging and industrial packaging. and plastics. On the other hand industrial packaging is of primary concern to the logistics.1 Objective of the Study: • • • To compare the effectiveness of logistics management at Lintas Freight and Logistics and to bench mark the organization with respect to the industry.
The collected data was analyzed and performance of Lintas Freight & Logistics LLC was evaluated. as I’ am interested here in getting an inexpensive approximation of the truth. The indicators selected are ease of service. which constitutes the population. 5. inventory management. The selection was based on the sampling said above. in which Lintas Freight and Logistics are at present in business were collected from other similar firms in the industry. Operations of Lintas Freight & Logistics LLC are mainly concentrated at large scale AL-Hamriya Port. employee efficiency in general. . Similar. Data regarding the division of logistics management such as Freight. website information. Crossdocking. 5. Network Design etc. Dubai and having its branch office in Mumbai. which can be suited well for the organization. 5.36 organization also needs relevant data as to how it can improve its management policies in order to gain future market share. Other indicators for the freight and warehouse divisions are lead-time. operating cost and customer satisfaction. The total numbers of logistics organizations in and around this port are 6000 in number. 100 organizations having major operations in the Freight and Logistics have been selected as sample for the survey. time elapsed in transit.3 Research Methodology: The type of research is analytical.5 Method of Data Collection: Primary Data: The major tool used was interview with managers and staff of the branch office. questionnaire was developed focusing various aspect.4 Sample Selection: Convenience sampling is used for study. customer service. product availability. As to my study I believe I have selected the right mix of techniques for the comprehensive approach. client handling. Warehousing.
The data collected from the .6 Statistical Tools: Percentage Analysis Bar Diagrams Pie Charts 5. Due to organizations security reasons documents like Bills.7 Limitations of Study: • • A few organizations did not publish the exact values for each question especially in sales turnover and other similar figures. Websites of each firm. Most of the questionnaire answers were filled over internet email facility. 5. The study was conducted in the Mumbai area only aiming at the main Dubai Centre and confined to the freight division of the logistics management.37 [CHAPTER 6] Data Analysis and Interpretation Secondary Data: Books of Logistics Management for literature reference. Data Analysis and Interpretation The data collected through the questionnaire are analyzed to know about the respondents opinions about various particulars asked in the questionnaire. Company Brochures. therefore contact was through phone and emails. etc could not be gained. Internet Web Portals. Certain monetary values were not being filled by organizations. • • • 6. Warehouse Bills.
inventory. The topics covered are with decisions of each operational area. product availability and customer satisfaction. No. 1 2 3 4 5 Service Freight Warehousing Crossdocking Network Design Value Adding Percentage 100 89 88 66 98 Chart-1 Service Offer . catering location.38 questionnaire was entered into spread sheet and the data has been interpreted. location. a) Which are the logistics services organizations offers? Table -1 Service Offer Sl. organizational effectiveness. profitable area in operation. employee numbers of each firm. The questionnaire comprises of fourteen questions with subparts for each. service offering.
labeling etc. which represents 98% of the sample. 1 2 3 4 Decisions Operational Stability Cost Effectiveness Customer Needs Other Percentage 11 10 36 96 Chart-2 Operate With Logistical Providers . No. b) Operating with other logistical providers and reasons for decisions. The chart shows that 100% of the respondents provide freight service and almost 90% provide Warehousing and Crossdocking. It includes packaging. Other service includes value adding. Table -2 Operate With Logistical Providers Sr.39 The pie chart above shows the service offer of each organization. Only 66% were providing service of Network Design.
clearance. The chart shows that 96% of the respondents operate with other service providers for different reasons like coordination. Only 11% and 10 % were providing service along with other providers for the purpose of operational stability and cost effectiveness respectively. c) What is the mode of decisions regarding the operations? Table-3 Mode of Decision Sl. bulk operations etc. Operational Decision Percentage 37 88 63 No.40 The pie chart above shows the operational decisions and reasons for operations with other logistical providers. It is stated that 96% of organizations operate with other logistical providers and remaining 4% as standalone. 1 Strategic 2 Tactical 3 Operational Chart-3 Mode of Decision . Almost 36% have operations with other providers as per customer needs.
d) Which is the area of the activity. The pie chart shows 88% of organizations take tactical decisions followed by 63% with operational decisions and 37% strategic decisions. No. 1 2 3 4 5 Service Freight Warehousing Crossdocking Network Design Value Adding Percentage 98 86 87 4 97 Chart -4 Best Activity . that organizations feel best in their service? Table-4 Best Activity Sl. Most of the organizations have a mixture of all the decisions in their day to day as well as in long and short term plans.41 The pie chart above shows the mode of decisions regarding the operations.
No.42 The pie chart above shows the best activity which organization feels in their operations.5ii Employees in Lintas F&L Sl. 1 2 3 4 5 6 Departments In Organizations Top Management Operations Accounts / Finance Marketing Human Resource Documentation /Others Number of People in Each 452 468 451 517 371 1847 Table. which includes packaging. Most of the organizations have a mixture of all the activities in their day to day and 97% of organization says other activities bring in more revenue and the best of their activities. e) Number of employees in each type of the service rendered of the organizations Table-5i Employees Sl. labeling etc. Lintas F&L : Departments Number of Percentage Percentage 11 11 11 13 09 45 . followed by 86% of warehousing. The pie chart shows 98% of organizations have freight in the predominant area. There is only a minor activity based on network design with 4% in pie graph. Another significant area is Crossdocking with 87% as best activity.
43 No. Top Manage ment Lintas F&L Employees Percentage Other Organization Employees % Operatio ns Acc. followed by 18% for . 1 2 3 4 5 6 Top Management Operations Accounts / Finance Marketing Human Resource Documentation /Others People 3 4 4 3 0 8 14 18 18 14 0 36 Table-5iii Employees % of both. The line chart shows around 14 percentages of people belong to top management and industry standards has 11 percent./Finan Marketin ce g Docu ment ation/ Other s 36 45 HR 14 11 18 11 18 11 14 13 0 9 Chart-5i Employees The line charts above shows the comparison of employees in each functional division of organization with Lintas Freight and Logistics.
This comprises of only 36% and industry standards are of 45%. Most of the organizations have a mixture of top management with marketing in their activities and functional area. No. Documentation also needs to be further strengthened. Human Resource comprises of 371 people and other main area is documentation and workers in the areas of loading. 1 2 3 4 5 6 7 8 Catering Locations Asia Europe USA Australia Africa Russia Middle East Other Percentage 100 6 89 86 71 98 98 90 Table – 6ii Catering Locations Asia Lintas Freight Other Organizati ons 100 100 Europ e 0 6 USA 100 89 Austra lia 100 86 Africa 0 71 Russi a 100 98 ME 100 98 Othe r 100 90 . Marketing comprises of 14% working in the said area.6i Catering Locations Sl. Human Resource has to be enhanced and need to be further improved or need to start in the organization.44 operations and industry standards has 11%. f) What are the locations to which the company caters to? Table. operational area.
6 0. and 90 % to other locations. 98% to Russia. Chart 6ii shows Lintas Freight and Logistics can enter European markets and other favourable market is Africa. . Locations mentioned as other is company catering frequently with repeat orders of customers. 71% to Africa.6i Catering Locations Chart – 6ii Catering Locations 1 0. Each organization has tremendous catering locations with 86% to Australia. The chart shows 100% of organizations cater to Asian region followed by 6% to Europe and 89 % to USA. 98% to Middle East. This can be looked into very seriously in future business.4 0.2 0 Asia Europe USA Autralia Africa Russia ME Lintas Freight Other Lintas Freight Other Organizations The pie chart above shows each organizations catering location in the world.8 0.45 Chart.
10) Lintas F&L Profit Scale Industrial Profit Average Freight 9 7 Wareho using 4 6.41 Crossdocki ng 5 5 Network Design 0 5 Othe r 6 6 Chart-7i .Maximum Rate of Profit .46 g) Which division of logistical activity earns the maximum rate of profit for each organization on a scale of 1-10 and overall profit of each organization? Table-7i -Maximum Rate of Profit (Lintas F&L Compared with Industry Average) Profit Scale (1 .
39 Chart . The chart 7i shows industry average value is 7 .47 Table-7ii –Profit of Organization (All Services Combined) Lintas F&L Profit Level in Percentage 13 Industry Standards 15. The chart shows Lintas F&L has ample amount of profit in Freight area followed by Crossdocking and other value adding activities with 9 and 6 in scale.7ii –Profit of Organization (All Services Combined) The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10. where 1 denotes least profit and 10 denotes the service that fetches excellent profit.
We can infer that overall profit percentage for Lintas F&L has 2. h) Comparison of service offered by Lintas F& L and rating of other organization in the industry on a scale of 0. Table-8 Service Comparison (Scale 0-4) Ease of Service 3 3.84 Client Handling 4 3.39 percentages lesser compared to industry average.29 Employee Efficiency 3 3. Other including labeling and packaging has industry standards. The chart 7ii shows profit percentages said by each organization.41 for warehousing.82 Website 2 3.48 for freight followed by 6. The organization should implement more strategies to reach industry mark. It is inferred that freight is giving ample amount of profit and Cross-Docking.83 Lintas F&L Industry Average Chart-8 Service Comparison .4.76 Customer Service 4 3.
Employee Efficiency. So organization can increase their Ease of Service. Customer service also has remarkable value compared with industry. i) What is the significant lead-time for each service rendered with previous years data of each organization? Table – 9ii Lead Time in Days LEAD TIME IN DAYS(LT) Freight LT 21 23 Warehou sing LT 20 22 Crossdoc king LT 30 24 Network Design LT 0 10 Other LT 21 24 Lintas F&L Industry Average Chart – 9ii Lead Time in Days . Client handling is satisfactory compared with industry standards. It can be brought up with a considerable effort by proper handling of human activities by Human Resource Department.84.49 The chart shows Ease of Service is not up to the mark. Major area to look into is Website easiness. it shows only 3 for Lintas F&L and the industry standards is 3.
While comparing with industry standards Freight is dominating and similarly the main lucrative area is other (Packaging.11 Elapsed Time Industry Standards 6.50 The above chart shows the service executed last year in logistics area and the significant leadtime of each area. Similarly warehousing jobs with 224 and lead-time of 22 days. Organizations lead-time is excellent except for Crossdocking. Labeling etc.9 . which has 833 in number and 21 days lead-time.). The chart shows 4122 numbers of freight service jobs has been executed with average lead-time of 21 days. Focus should be to reduce leadtime and increase more service. j) Average elapsed time between order receiving and delivery of the service (Inventory). Table-11 Elapsed Time Elapsed Time Lintas F&L 3 Chart.
in the last verification done? Table -12i Inventory Shortage Inventory Short Lintas F&L 12 Industry 19.51 The above chart shows the physical verification check and average elapsed time between order receiving and delivery of the service.9 as explained in the figure for Industry average.9 days. k) Were there any shortage/ excess of stocks noted. hence the average days are 6. Lintas elapsed time is remarkable compared to industry standards. The chart shows 89% of organizations have physical verification.8 . Average elapsed time between order receiving and delivery of service has an average of 6. The total value of elapsed time is 613 days for 89 organizations.
in this scenario. It is evident that shortage faced by Lintas F&L is less compared to industry standards. Table.14 Complaints (Lintas with Industry Average) . there is a difference of 8.12ii Inventory Excess Inventory Excess Lintas F&L 0 Industry 4. Lintas F&L has a remarkable lead with comparison to industry. Another aspect is regarding the excess of inventory. l) Average number of customer complaints generated and industry average.8 Chart-12i Inventory Excess The above charts show the Inventory Excess and Shortage faced by organization during verification.52 Chart-12i Inventory Shortage Table.
This can be achieved by increasing new modern methods and facilities to customers. m) How does the organization follow up to retain customers.53 Complaints Generated Last Year Lintas F&L 290 Industry Average 179. Organization need to heavily focus onto the issue to reduce number of complaints arising in operations. The complaints for Lintas F&L is 290 and whereas to industry average is around 180 in number. Table-15 Customer Retention Sl.71 Chart – 14 Complaints (Lintas with Industry Average) The above chart shows average number of complaints. 1 2 3 4 5 Service Customer Complaints given preference Phone Service Intimation Gifts Email Rating 100 100 100 3 100 . Hence organization should try to reduce the complaints arising. No. customer satisfaction and other similar areas.
1 Proper System Service Rating 100 . customer office visit with 100 rating. Most of the preferable methods for contacting customers for new service intimation and customer realtionship are telephone. feedback by customer and is customer suggestion given preference in the organization? Table.54 6 7 Fax Other Chart-15 Customer Retention 11 100 The above chart shows preference of complaints and how organization follow up to retain customers. email and other methods like marketing / sales. n) Does the organization has proper system for handling customer handling. The least preferred are gifts and fax with 3 and 11 in rating. ascertain the level of satisfaction. Its been noted that cent percent of organization follow up with customers for customer complaints. and does customer know whom to contact when a problem arises.16 Proper System Sl No.
Findings i) The quality of service as rated is above average in the case of Lintas compared to industry. Whom to contact in case of complaints is having rating of 94. Its been revealed that 100% from sample. customers know the sytem of handling customer complaints in the firm. Customer feedback and customer suggestion is having rating of 88 and 83 respectively. Continuous improvement is a must so that the customers will prefer Lintas Freight & Logistics LLC as their first choice in Logistics and Freight .55 [CHAPTER 7] 2 Customer Know 3 Contact Whom Findings and Suggestions 4 Customer Feedback 5 Customer Suggestion Chart-16 Proper System 100 94 88 83 The above chart shows all organization in sample has propers system for handling customer complaints. But the organization should continuously try to improve the quality aspect as is being done by other players in the field. This is quite a necessity as otherwise the figures may fall down.
56 industry category. v) Operation with other logistical providers should be given more preference to achieve cost effectiveness. From the data we can infer that areas which need to be improved are Website and employee efficiency. Present employee strength is satisfactory compared to other organization but more focus should be made to documentation areas where the firm has lesser employees compared to other organizations. iv) Decision making is excellent for organization with respect to other organization in the industry. Down sizing of personnel in the Finance and Accounts section and deploying them for the HR function separately is recommended. vii) The organization client handling. iii) Network Design is an area that the organization should not start immediately due to low rate of returns is recorded as the industrial average. Employee efficiency can be improved with a proper Human Resource department. Design of new warehouse areas and proper allocation of work with more sophisticated software facility can be done through outsourced way during implementation. vi) Rearrangement of employees may be a better solution. which organization can further enhance with proper management. This can be achieved with more modern equipments and proper guidance to employees and the rating can go high to excellent service. The main focus need to be on the ease of website and employee efficiency. ii) Pricing of service is satisfactory. ease of service and customer service is having remarkable difference from the industry standards. .
xiv) Organization profit is good compared to industry standards for freight and can further work on warehousing.57 viii) Service offer presently has good impact with other organizations service offers. The remarkable areas are Freight. Another important area where organizations feels very lucrative is Value Adding . . Another major observation is about Network Design. From data Lintas can get good market share if they cater to African regions. support from other organizations is essential. x) It is observed that most of the organizations operate with other logistical providers. xii) Freight and Value Adding is considered to be the best service which organizations offer in industry. This shows a difference of 2 points from industry standards. it has low value and no organization feels it to be lucrative area in industry. Crossdocking. and Value Adding. xiii) Organization can enhance operations to European areas and another major favourable area is Africa. It is inferred that for efficient logistical activity. xi) Tactical decisions are mostly followed by organizations followed by operational and a few strategical. Whereas for Cross Docking it shows same as to industry standards. Company can further enhance operations of Value Adding through proper methods. 96% of organizations are doing it and remaining 4% organizations stays independent. ix) As logistics industry is concerned Freight is the dominant service followed by Warehousing and Cross-Docking.
xvii) From the observation 89 organizations have inventory verification. Another favourable area as mentioned earlier is Value Adding and it shows a difference of 447 works done compared to industry standards. Warehousing has a difference of 30 and is negligible but Cross-Docking need to be reviewed. xvi) Freight Service when compared with other industry freight service has got more value. xix) The efficient methods for retaining customers are Phone. website and employee efficiency. This can lead to further rapidity for operations. Lintas F&L had shortage. Hence it is a remarkable value for Lintas F&L. Email. The lowest observed days for elapsed time for Lintas F&L are 3 days and industry standards with 6. Suggestions i) Organization can further strenghten the employee strength in the documentation department.9 days. xviii) In the sample taken only a few organizations has inventory short and excess. Values are 119 and 29 for shortage and excess.58 xv) Commenting on ease of service. Sales Agents and least preferred methods are Fax and Gifts. . but no excess in inventory and while comparing with industry Lintas F&L have remarkable value. the organization needs to further improve.
viii) Lintas can focus to African regions for freight handling. The logistics and freight industry is one such industry that is rapidly growing. Conclusion The universe everyday is witnessing unimaginable growth in majority of the industries. This can be achieved by proper guiding of employees and other workers in the logistical area vii) Lintas can enter other markets in the Middle East especially to Saudi Arabia where the potential of market is very high for Logistics industries and can even diversify to other areas in logistics. as from the data the potential market is high for those regions. v) Quality of service can be further enhanced to increase customer delight. more focus should be given to customer delight and cost effectiveness. This will have favourable impact for the operational as well as total strenghtening of organization iii) Decision making is quite effective and can be followed for future operations iv) Operations with other logistical providers need to be enhanced further for operational effectiveness. Worldwide logistics . vi) Client handling and service need to be followed in the same way and can be further enhanced with more support.59 [CHAPTER 8] Conclusion ii) Organization can initiate Human Resource Department to further enhance employee motivation.
As far as Lintas Freight & Logistics LLC is concerned it can be stated that through its excellent service and aggressive logistics service. However. there are some areas where the company is not at the top-most position but it can certainly gear up in the near future and is committed to acquire that spot. Lintas Freight& Logistics LLC has come a long way from being just a service provider. . The organization now has the value of being an ultimate service provider for Freight. The present scenario and the future of the organization with regard to the management are satisfactory. Transportation.60 [CHAPTER 9] Bibliography industry is distinguished by fast technological advances and is growing rapidly than most other industries over the past years. Cross-docking and Value Adding as per customer needs. the management can lead Lintas to the top most position when bench marked in the coming years. state of art technology providers for other organizations. team spirit etc can be generated. increased loyalty. On implementation of the above recommendations. Bibliography Reference: a) Logistical Management – Tata McGraw 2000 Edition. organization has shown a noticeable increase in the market share. the company is likely to reduce the profitability But with proper management of operations and by proper customer desired services. The organization has enormous opportunities to grow beyond the expectations. and also effectively utilizing its alliances it can maintain and improve the performance. More importance is to be given for HR development by having a separate department for it. With stiff competition around. Joint operational ventures for developing the customized services for its steady growth. The organization can diversify into related other business areas like Warehouses for lease to other organizations. The organization can increase the market share by improving with more state of art technology. several favourable impacts such as increase in out put per employee. With the development of such a department.
and John Joseph Coyle c) Logistics and Supply Chain Management: Creating Value .indexuae. Bardi.html .net/Lintas-Freight-Logistics-L.com/Top/Business_and_Economy/Services/Logistics iii) http://www.uae-shipping. and David.L.sg/images/service_logistics_img1. C. b) The Management of Business Logistics – 7th Edition: Written by Edward J.61 Written by Donald.Adding Networks Written by Martin Christopher..idsc. Websites: i) Source: http://www.lintasfreight.com/ iv) http://www.C.jpg ii) http://www.com.John Langley. Closs. Bowersox.
62 Annexure Logistics Survey ------------------------------------------------------------------------------------------------------------Details of the Organization Name: ___________________________________________________ Location:_________________________________________________ How long are you there in Business? _____________________Years _______________ --------------------------------------------------------------------------------------------------------------------- .
Number of employees in each type of the service rendered S Divisions / l.63 1. 1 Top Management 2 Operations 3 Accounts/Finance 4 Marketing/Sales 5 Human Resources 6 Others if any Number of Employees in your various logistics division Freight Warehousi Network ng Design Crossdocki Other ng Total 3. you feel you are the best? Freight Network Design Warehousing Crossdocking Other Value Adding Services if any . Which is the area of activity. a) Which are the various Logistics Services you offer? Freight Network Design Warehousing Crossdocking Other Value Adding Services if any 2. N Functional area o.
a) What are the locations to which your company caters to? i) Asia ii) Europe iii) USA iv) Australia v) Africa vii) Within Middle East only viii) State if any other locational specialization ___________________________________ ___________________________________ vi)Russia b) Please rate the service offered by your organization Excellent Good Fair Poor Very Poor Ease of Service Client handling Customer Service .64 4. Which division of logistical activity earns the maximum rate of profit? Rate them on Scale of 10 (Best 10 Average 5 Worst 0) Freight Warehousing Crossdocking Network Design Any Other (specify)___________ 5.
10. ________________________ Days ii) Were there any shortage / excess of stocks noted. in the last verification done? No shortage / excess of stocks noted . such that the delivery is on time as per the agreed lead time? Note: Kindly mention the answers with last year’s data (2007) from questions 10 to 12. Inventory a) What is the average elapsed time between the time of receiving order from the customer to your firm to release the item from the ware house and the time the item is ready for moving from the ware house with proper documentation.) Number of transport orders that have been executed.65 Website Information Employee Efficiency d) What is significant lead time in days for each consignment and Number of service executed last year. (Kindly mention with previous year’s data) i)Number of Service Executed in last year (2007) Service Freight Warehousing Crossdocking Network Design Value Adding ii.
to enquire whether they have any complaint and to ascertain the level of satisfaction the customer enjoyed? Yes / No . 1 2 3 4 5 6 Method Phone Call New Service Intimation to Customers Gifts Email Fax Other methods if any ________________ Number c) What is the total number of customer complaints received in each division last year? ______________Number d) Do you have a proper system of handling customer complaints? Yes / No e) Do you have a system of contacting customers after completing all the formalities of an order. Customer Satisfaction a) Is customer complaints given preference in organization: Yes / No b) How your organization follow up to retain the customers (Put Number 1 on desired coloumn) No.66 Shortage of stocks noted Excess of stocks noted 11.
67 f) What is the number of customers you had business last year? _________________ Numbers g) Out of the above how many are there who availed your services repeatedly? _________________ Numbers h) How many of them avail same services from others (your competitors) as well _________________ Numbers .
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