Professional Documents
Culture Documents
Current status
SUMMER PROJECT
ON
Logistics & Supply chain industry in India:
Current status
SUBMITTED TO SUBMITTED BY
Director, Honorable SARANSH SINGH
Dr. Nitin Nayak KR. KUMUD RANJAN
IMED,BVU,PUNE
PREFACE
The success of any business entirely depends on the survey done about the
particular product. This survey should be effective and it is very important to do
INDUSTRY IN INDIA” I have tried to put my best efforts to complete this task
on the basis of skill that I have achieved during my studies in the institute.
CERTIFICATE
Addresses-
TVS
ACKNOWLEDGEMENT
I would also like to express my sincere thanks to prof. Kakde who professed me
to choose the right title for my project study and whose constant guidance and
support helped me to use my efforts & potential efficiently, enabled me to rectify
all possible errors to present this report impressively.His constant support has
been the key to my achievements on the projects.
I would also forward my gratitude to Mr.John Mathew who had arranged for my
summer training. My acknowledgement and gratitude to my Guide Mr.Alok
Tripathi whose timwly guidance made me complete this project and further
enhance my skills and knowledge to grow as an accomplished virtuoso from a
bumbling amateur in the management field.
I would also thanks to Mr. and all other staff in TVS logistics who were very amicable and co-
operative.
Lastly, I would also take a moment to express my heartfelt thanks to my parent
and professors who gave their constant assistance propelling me to prove my
best.
SARANSH SINGH
MUDGAL
Kr.KUMUD RAJAN
DECLERATION
Date: Signature
(Student Name)
EXECUTIVE SUMMARY
Definition
LOGISTICS IS THE ART AND SCIENCE OF MANAGEMENT, ENGINEERING AND
TECHNICAL ACTIVITIES CONCERNED WITH REQUIREMENTS, DESIGN AND
SUPPLYING, MAINTAINING RESOURCES TO SUPPORT OBJECTIVES, PLANS AND
OPERATION.
Fierce competition in today’s market has forced business enterprises to invest in
and focus on supply chains. The growth in telecommunication and transportation
technologies has led to further growth of the supply chain. The supply chain, also
known as the logistics network, consists of suppliers, manufacturing centers,
warehouses, distribution centers and retail outlets, as well as raw materials,
work-in-process inventory and finished products that flow between the facilities.
The logistics management takes into consideration every facility that has an
impact on cost. It plays an important role in making the product conform to
customer requirements. Also it involves efficient integration of suppliers,
manufacturers, warehouses and stores and encompasses the firms’ activities at
many levels, from the strategic level through the tactical to the operational level.
Logistics is a challenging and important activity because it serves as an
integrating or boundary spanning function. It links suppliers with customers and it
integrates functional entities across a company. With the ever-growing
competition in today’s market place it becomes necessary for a firm to use its
resources to focus on strategic opportunities. This includes several internal
factors like management style, culture, human resources, facilities and several
external factors like technology, globalization and competition. This is where the
concept of logistics plays a major role, i.e. it helps to leverage certain advantages
the firm has in the marketplace.
B. Role of Logistics
It is important to recognize the importance of a dynamic balance between the
minute details and the main elements involved in a product. The Role of Logistics
The customer is the most important asset for a company. He drives the entire
supply chain including manufacturing, marketing and logistics. Hence it is
important for a firm to have a clear understanding of what the customer
demands and to keep up to the customers expectations. Once a company has a
clear understanding of its customer’s requirements it must device a strategy on
how to use logistics to achieve it. This means that the company has to have a
clear understanding or assessment of company’s strategic direction.
Various steps involved in a logistics strategy development and planning process.
Visioning: this includes the systematic development of an organizational
consensus regarding the key inputs to the logistics planning process as well as
identification of the potential alternative logistics approaches. This is an
important step for the following reasons:
• Helps to define a strategic direction to the company and also to get a clear
understanding the role of logistics in it.
• Get a clear idea of the requirements of the various segments of customers.
• Have a look at the various factors that would affect the strategy of the
company.
• Define alternative strategies and also the scope of the planning effort.
Strategic analysis: this involves taking a look at the various components
involved in the process and selecting the best logistics process among the
alternatives. These components, which are to be reviewed, are revealed during
he first step. This may include revamping the entire process to assessing how a
single component can be used more effectively.
Planning: this involves the assembling of a plan that outlines the mission and
goals for the logistics function and the programs and activities to achieve these
goals. Logistics planning is an iterative process. The plans have to be redefined
every year to improve the quality of performance.
about the logistics scenario in India. It covers most of the service providers
associated with road, sea, air and railways along with inputs pertaining to the
infrastructure. This report is a must have for anybody trying to understand the
Indian logistics market. It will serve as an invaluable reference tool for the
industry, government and academe. The report explains industry structure for
different logistics - road, sea, air and rail. It also deals with intermediaries and
support service providers separately. The report covers the market dynamics,
cost structure, import duties and export-import processes, issues and challenges,
government policies/initiatives, regulatory environment and policy related
framework. Regulations include mainly guidelines for movement of hazardous
goods and safety issues in transportation in all the segments. The report provides
profiles of major players and information on key corporate data, business profile,
financial performance, recent developments and their respective strategies.
Lastly, the report gives outlook for Indian Railways; road transport providers;
aviation; shipping and ports.
TABLE OF CONTENTS
TITLE PAGE
CERTIFICATE
ACKNOWLEDGEMENT
DECRERATION
EXECUTIVE SUMMARY
CHAPTER – ONE
Company profile
CHAPTER – TWO
1. Sea Sky
2. GGL
3. All Cargo Global Logistics
CHAPTER – THREE
TRADE PROFILE
CHAPTER – FOUR
MARKETING STRATEGY OF THE COMPANY
1. Introduction
2. Key elements of successful market strategy
3. SWOT Analysis of the company
4. Developing market Strategy for the Company
5. Marketing Plan of the Company
a. Identifying Strength and Weakness
b. Work Plan to Implement
c. Clean up the Data Base
CHAPTER-FIVE
MANAGEMENT HIRERACHY
CHAPTER – SIX
GOVERNMENT POLICIES RELATED TO THE BUSINESS
Export Import (EXIM) Policies
CHAPTER – SEVEN
TAX ASPECTS
1. Sales Tax in relation to Export and Import
2. Foreign Exchange Management Bill
3. Avoidance of Double Taxation
4. Money Laundering Bill
CHAPTER – EIGHT
OBJECTIVE
CHAPTER- NINE
RESEARCH METHODOLOGY
CHAPTER-TEN
LITARATE REVIEW
CHAPTER-ELEVAN
SYNOPSIS
CHAPTER-TWELVE
DATA ANALYSIS
CHAPTER-THIRTEEN
GRAPHICAL REPRESENTATION
CHAPTER-FOURTEEN
SWOT ANALYSIS
CHAPTER-FIFTEEN
LIMITATION
CHAPTER-SIXTEEN
MAJOR PROBLEM
CHAPTER-SEVENTEEN
FUTURE ASPECTS
CHAPTER-EIGHTEEN
CONCLUSION
CHAPTER-NINETEEN
BIBILOGRAPHY
CHAPTER-TWENTY
WORDS OF THANKS
CHAPTER-TWENTY-ONE
ANNEXURE
CHAPTER-1
Chapter 1
Company profile
The role of a Neutral NVOCC/MTO is to facilitate international trade for the Exim
fraternity (through freight forwarders and CHAs) by playing a key role in the
supply chain and facilitate domestic and overseas logistics both by air and SEA
through services that are efficient, economical and easy to execute. In order to
achieve this, Global Logistics Solutions India (GLS) was established in October
2006, by four dynamic young professionals with a burning entrepreneurial desire.
With a cumulative experience of more than 50 years behind them, a team of four
professionals from a common background and a myriad of exposures, decided to
come together to fulfil their entrepreneurial desire and at the same time create a
company that values it’s people, who significantly contribute to the growth of a
company (something the management themselves have experienced). Having
travelled around the world and being exposed to businesses overseas makes it
that much easier for the management to understand the domestic and
international customer’s needs and provide just the perfect solutions that would
benefit their businesses.
Within the last six months GLS has become a name to reckon with in India and
overseas for consolidation and freight forwarding activities. In its first phase of
launch the company has set up four regional offices in Mumbai, Chennai, Kolkata
and Delhi. In the second phase spanning a period of 18 months, the company will
be opening 11 more offices in the secondary cargo centres, ports and ICDs taking
the cumulative number of owned operations within India to 15. In addition to this
GLS would be establishing its presence through a network of agents and
franchisees in the tertiary cargo centres and take it’s presence to every corner of
internally and along with GLS cross leverage the strengths to maximize synergies
that translates to higher efficiencies in executing business and achieve customer
satisfaction by providing cost effective world class services.
This advantage has seen GLS grow from an entry level player six months ago to a
major force in the consolidation and forwarding business. It offers Neutral
NVOCC/MTO services to the local and multinational freight forwarding companies
and Customs House Agents (CHA) across India and has been able to garner
support from some of the biggest names in the business. The market has
accepted GLS as a quality player and a company who can be trusted with their
valuable produce and ship it globally giving it the GLS advantage. This trust
helped GLS achieve it’s first milestone of 100 TEUS (twenty feet equivalent unit)
of LCL consolidation boxes in Mumbai within three months of it commencement
of operations. It has also establish 20 weekly direct services from Nhava Sheva
and simultaneously take a lead in markets like Kolkata within three months of
launch.. GLS has also established direct LCL import services from China,
Hongkong and Singapore to Chennai, Nhava Sheva, Kolkata and Delhi and is able
to carry LCL shipments to India from all the major sourcing points across Asia. It
is in the process of starting import services from Europe and USA shortly. GLS
has set very high standards to measure its performance and the management is
focused on making the company have a pan India presence within two years and
then expand overseas to create a global footprint. While the market watches this
newest player on the block grow from strength to strength, the management is
determined to make the company a leader in providing global logistics solutions.
Bridging latitudes... With growing need for international logistics services and a
constant evolution in the field of global transportation, GLS is committed to
THE 3E APPROACH
Ethical Relationship
GLS maintains absolute Neutrality and follows ethical business practices to
ensure that every intermediary's interest is protected and business is executed in
strict confidentiality. Quite naturally, most Customs Brokers (CHA's), MNC's and
freight
forwarders consider GLS as an ideal business partner while trusting it with their
valuable business, be it LCL or FCL.
GLS believes in Fair Business Practices to create a win-win situation with business
associates, global partners and internal customers as well. The Management is
focused on creating that conducive environment which promotes ethical business
practices across all its offices and in the process have an ideal environment for
sound and fair business practices.
• FCL
• LCL
• MULTIPLICITY CONSOLIDATION
• AIR FREIGHT
• PROJECT CARGO
MULTIPLICITY CONSOLIDATION
GLS's Multi-City Consolidation for export and import cargo is of great benefit to
small and medium trade centers. It facilitates transshipment of LCL cargo to and
from India for delivering and sourcing globally.
EXPORT
Accepting LCL cargoes from all major centers within India and Nepal, sending
them in dedicated containers/CBTs to the gateway for final consolidation and
distribution to ;worldwide destinations.
These services empower customers to execute shipments from literally wherever
they are thus empowering them with opportunities available from all the major
IMPORT
Offering LCL services for imports to all the major centers from the Gateway Ports
in India. Currently these services cover LCL consolidation to New Delhi and
Ahmedabad from Mumbai (Nhava Sheva), Bangalore and Hyderabad from
Chennai. New services will be launched to cater to other major centers like
Kanpur, Ludhiana, Jaipur and Moradabad in the North while the South would see
These services make it possible for importers across the length and breadth of
the country to customs clear their goods locally instead of the conventional
method of doing it all at the Gateway ports.
AIR FREIGHT
With its global network of partners who are seasoned players in the Air Freight
business and IATA affiliates.
GLS is capable of offering it’s customers a very comprehensive Air freight service
to and from India. In order to retain and do justice to it’s neutral image as an
NVOCC, GLS is offering services to the local freight forwarders who are either not
affiliated with IATA or lack a global presence through owned offices or network
partners.
The ultimate objective is to focus on imports and offer the advantages of our
network to the freight forwarding fraternity and provide a neutral service that
enhances their productivity and control on business from the end customer.
Exports are restricted to handling routed business that is not secured from sales
efforts locally or poaching of controlled traffic of our customers.
PROJECT CARGO
The core team of GLS is an experienced lot in handling projects, be it turnkey
logistics contract executions and management to offering logistics solutions for
bulk business, over dimensional cargoes and heavy lifts. Its subsidiaries and
associates from whom some of the functions are outsourced have the extensive
experience and
1.DEFINITIONS
(a) "Carrier" means the Company stated on the front of this Bill of Lading as
being the Carrier and on whose behalf this Bill of Lading has been signed.
(b) "Merchant" includes the shipper, the consignee, the receiver of the Goods,
the holder of this Bill of Lading, any person owning or entitled to the possession
of the Goods or this Bill of Lading, any person having a present or future interest
in the Goods or any person acting on behalf of any of the above mentioned
persons.
(c) "Goods" includes the cargo supplied by the Merchant and includes any
container not supplied by or on behalf of the carrier but excludes live animals &
goods carried on deck.
(d) "Container" includes any container, trailer, transportable tank, lift van, flat,
pallet or any similar article of transport used to consolidate goods.
(e) "Carriage" means the whole of the operations and services undertaken or
performed by or on behalf of the Carrier in respect of the Goods.
(f) "Combined Transport" arises where the Carriage called for by this Bill of
Lading is not a Port to Port Shipment.
(g) "Port to Port Shipment" arises where the Place of Receipt and the Place of
Delivery are not indicated on the front of this Bill of Lading or if both the Place of
Receipt and the Place of Delivery indicated are ports and the Bill of Lading does
not in the nomination of the Place of Receipt or the Place of Delivery on the front
hereof specify any place or spot within the area of the port so nominated.
(i) "Hague-Visby Rules" means the Hague Rules as amended by the Protocol
signed at Brussels on 23rd February 1968 and scheduled to the COGSA,
Singapore.
(k) “COGSA (USA)” means the Carriage of Goods by Sea Act of the United States
of
America.
(l) “COGWA” means the Carriage of Goods by Water Act 1936 of Canada.
(m) "Charges" includes freight and all expenses and money obligations incurred
and payable by the Merchant.
(n) "Shipping Unit" includes freight unit and the term "unit" as used in the Hague
Rules and Hague-Visby Rules.
(q) “Authority” means a duly constituted legal body or person acting within its
legal powers and exercising jurisdiction within any nation, state, municipality or
port.
2. CARRIER'S TARIFF
The provisions of the Carrier's applicable Tariff, if any, are incorporated herein.
Copies of such provisions are obtainable from the Carrier or his agents upon
request or where applicable from a government body with whom the Tariff has
been filed. In the case of inconsistency between the Bill of Lading and the Tariff,
this Bill of Lading shall prevail.
3. WARRANTY
a. The Merchant warrants that in agreeing to the terms hereof he is or is the
agent of and has the authority of the person owning or entitled to the possession
of the Goods or any person who has a present or future interest in the Goods and
is accepting these Terms & Conditions for and on behalf of all such persons.
Nothing in this Bill of Lading may be varied or cancelled except by a Director of
the carrier company endorsed on the Bill of Lading in writing and stamped by the
company official stamp.
b. The parties, in accepting this Bill of Lading, hereby unreservedly agree to the
sole jurisdiction of the Singapore Courts and the applicability of Singapore Law to
any dispute arising herefrom.
(ii) This Bill of Lading shall be prima facie evidence of the taking in charge by the
Carrier of the Goods as herein described. However proof to the contrary shall not
(iii) The Merchant accepts full liability for all Statements and particulars as to the
contents, quality, quantity, weight, numbers, marks and/or value of the packages
inserted herein and undertakes to indemnify and hold the carriers and all persons
interested in the ship or vessel harmless from all demands, claims, liabilities,
actions and expenses arising out of such Statements and to pay all costs,
expenses, losses and damages including costs of solicitors on an indemnity basis
for any breach of warranty/description or resulting therefrom.
(i) The Carrier shall be entitled to sub-contract on any terms the whole or any
part of the Carriage and the Merchant agrees to be bound thereby on those
terms.
(ii) The Merchant undertakes that no claim or allegation shall be made against
any person or vessel whatsoever, other than the Carrier, including, but not
limited to the Carrier's servants or agents, any independent contractor and his
servants or agents, and all others by whom the whole or any part of the Carriage,
whether directly or indirectly, is procured, performed or undertaken, which
imposes or attempts to impose upon any such person or vessel any liability
whatsoever in connection with the Goods of the Carriage; and if any claim or
allegation should nevertheless be made, to defend, indemnify and hold harmless
the Carrier against all consequences thereof. Without prejudice to the foregoing
every such person and vessel shall have the benefit of all provisions herein
benefiting the Carrier as if such provisions were entered into expressly for his
benefit and in entering into this contract the Carrier, to the extent of these
provisions, does so not only on his own behalf but also as agent or trustee for
such persons and vessels and such persons and vessels and such persons and
vessels shall to this extent be or be deemed to be parties to this contract.
(iii) The Merchant shall defend, indemnify and hold harmless the Carrier against
any claim or liability and any and all expenses, costs or disbursements arising
therefrom on a full indemnity basis arising from the Carriage of the Goods insofar
as such claim or liability exceeds the Carrier's liability under this Bill of Lading,
which shall apply irrespective of whether the claim lies in contract or in Tort. The
Merchant specifically agrees that any judgment or award made in any jurisdiction
whatsoever in so far as it exceeds the limits set out in this Bill or excluded by this
Bill of Lading shall not be registrable or enforceable against the carrier.
(iv) The Merchant undertakes, in addition and without prejudice to any of these
conditions, that he shall in any event indemnify the Carriers against all liabilities
(v) The Carrier reserves the right at its sole discretion at any time before
receiving or collecting or otherwise dealing with any goods or before transporting
by conveyance any goods to refuse to receive or collect or convey or deal with
the same or where received to return, offload, part-carry or transship the goods
without assigning any reason whatsoever and without any liability whatsoever,
notwithstanding whether the goods are booked or not or otherwise.
(vi) In all cases of losses, damages, delay, non-delivery from whatsoever cause
arising in a non-carriage by sea situation and which are not excluded by any
other provisions in this Bill of Lading the Carriers liability shall be limited to and in
no event whatsoever exceed S$1.00 per kilogram, unless otherwise provided by
statute.
6. CARRIER'S RESPONSIBILITY
(i) CLAUSE PARAMOUNT
(a) Subject to clause 13 below this Bill of Lading insofar as it relates to sea
carriage by any vessel whether named herein or not shall have effect subject to
the Hague Rules or any legislation making such Rules or the Hague-Visby Rules
compulsorily applicable (such as COGSA, COGSA(USA) or COGWA) to the Bill of
(b) The Carrier shall be entitled to (and nothing in this Bill of Lading shall operate
to deprive or limit such entitlement) the full benefit and rights to all limitations of
and exclusion from liability and all rights conferred or authorised by any
applicable law, statute or regulation of any country and without prejudice to the
generality of the foregoing also any law, statute or regulation available to the
Owner of the vessel(s) on which the Goods are carried.
(ii) PORT TO PORT SHIPMENT
The responsibility of the Carrier is limited to that part of the Carriage from and
during loading onto the vessel up to and during discharge from the vessel and
the Carrier shall not be liable for any loss or damage whatsoever in respect of the
Goods or for any other matter arising during any other part of the Carriage even
though Charges for the whole Carriage have been charged by the Carrier. The
Merchant constitutes the Carrier as agent to enter into contracts on behalf of the
Merchant with others for transport, storage, handling or any other services in
respect of the Goods prior to loading and subsequent to discharge of the Goods
from the vessel without responsibility for any act or omission whatsoever on the
(ii) Where under (i) above, the Carrier is not liable in respect of some of the
factors causing the loss or damage, he shall only be liable to the extent that
those factors for which he is liable have contributed to the loss or damage.
(iii) Subject to 6(C)(iii) below, where the Hague Rules or any legislation applying
such Rules or the Hague-Visby rules (such as COGSA or COGWA) is not
compulsorily applicable, the Carrier’s liability shall not exceed S$1.00 per kilo of
the gross weight of the Goods lost, damaged or in respect of which the claim
arises or the value of such Goods, whichever is the lesser.
(iv) The value of the Goods shall be determined according to the commodity
exchange price at the place and time of delivery to the Merchant or at the place
and time when they should have been so delivered or if there is no such price
according to the current market price by reference to the normal value of Goods
of the same kind and quality, at such place and time, always provided that the
onus of proving such current market price shall be on the claimant failing which
the carriers valuation shall be valid absolutely for all purposes.
(B) Where the stage of Carriage where the loss or damage occurred can be
proved:
(ii) Insofar as the duties under this Bill of Lading relates to situations other than
sea carriage, including but not limited to, pre-shipment or post-shipment,
trucking, warehousing, storage, packing, labeling, stuffing/unstuffing, domestic or
local trucking, clearance, customs, documentation, delivery, collection etc it is
mutually hereby agreed that in any event whatsoever and whether the action is
The words shipping unit shall mean each physical unit or piece of cargo not
shipped in a package, including articles or things of any description whatsoever,
except Goods shipped in bulk, and irrespective of the weight or measurement
unit employed in calculating freight charges. As to Goods shipped in bulk, the
limitation applicable thereto shall be the limitation provided in such convention
or law which may be applicable, and in no event shall anything herein be
construed to be a waiver of limitation as to Goods shipped in bulk.
(vi) Rust, etc.
It is agreed that superficial rust, oxidation or any like condition due to moisture,
is not a condition of damage but is inherent to the nature of the Goods and
acknowledgement of receipt of the Goods in apparent good order and condition is
not a representation that such conditions of rust, oxidation or the like did not
exist on receipt.
(vii) Notice of Loss or Damage
The Carrier shall be deemed prima facie to have delivered the Goods as
described in this Bill of Lading unless notice of loss of or damage to the Goods
indicating the general nature of such loss or damage, shall have been given in
writing to the Carrier or to his representative at the place of delivery before or at
the time of removal of the Goods into the custody of the person entitled to
delivery thereof under this Bill of Lading or, if the loss or damage is not apparent,
within three consecutive days thereafter and the parties hereby agree that failure
to give notice as aforesaid shall discharge the Carrier absolutely of all liability
whatsoever.
(viii) Time-bar
(a) The Carrier shall be discharged of all liability in so far as it relates to sea
carriage unless suit is brought in the proper forum and written notice thereof
received by the Carrier within twelve months after delivery of the Goods or the
(b) In all other situations not incurred or related to during sea carriage, the
Carrier shall in any event be discharged of all liability unless suit is brought within
9 months of the date of the event giving rise to the claim.
7. MERCHANT'S RESPONSIBILITY
(i) The description and particulars of the Goods set out on the face hereof are
furnished by the Merchant and the Merchant warrants to the Carrier that the
description and particulars including, but not limited to, of weight, content,
measure, quantity, quality, condition, marks, numbers and value are correct.
(ii) The Merchant shall comply with all applicable laws, regulations and
requirements of customs, port and other authorities and shall bear and pay all
duties, taxes, fines, imposts, expenses and losses incurred or suffered by reason
thereof or by reason of any illegal, incorrect or insufficient marking, numbering or
addressing of the Goods or any other shipper/Merchant related fault or cause.
(iii) The Merchant undertakes that the Goods are packed in a manner adequate
to withstand the ordinary risks of Carriage having regard to their nature and in
compliance with all laws, regulations and requirements which may be applicable.
damaging nature, the same may at any time be destroyed, disposed of,
abandoned, or rendered harmless without compensation to the Merchant and
without prejudice to the Carrier's right to Charges and to an indemnity for any
costs, losses, expenses or fines.
(v) The Merchant shall be liable for the loss, damage, contamination, soiling,
detention or demurrage before, during and after the Carriage of property
(including, but not limited to Containers) of the Carrier or any person or vessel
(other than the Merchant) referred to in 5(ii) above caused by the Merchant or
any person acting on his behalf or for which the Merchant is otherwise
responsible.
(vi) The Merchant shall defend, indemnify and hold harmless the Carrier against
any loss, damage, claim, liability or expense whatsoever arising from any breach
of the provisions of this clause 7 or from any cause in connection with the Goods
for which the Carrier is not responsible or the consequences of which the
Carriers’ responsibility is excluded by these conditions.
8. CONTAINERS
(i) Goods may be stuffed by the Carrier in or on Containers and Goods may be
stuffed with other Goods.
(ii) The terms of this Bill of Lading shall govern the responsibility of the Carrier in
connection with or arising out of the supply of a Container to the Merchant,
whether supplied before or after the Goods are received by the Carrier or
delivered to the Merchant.
at any place which the Carrier may deem safe and convenient, whereupon the
responsibility of the Carrier in respect of such Goods shall cease;
(b) without prejudice to the Carrier's right subsequently to abandon the Carriage
under (a) above continue the Carriage. In any event the Carrier shall be entitled
to full Charges on Goods received for Carriage and the Merchant shall pay any
additional costs resulting from the above-mentioned circumstances.
(ii) The liability of the Carrier in respect of the Goods shall cease on the delivery
or other disposition of the Goods in accordance with the orders or
recommendation given by any government or authority or any person acting or
purporting to act as or on behalf of such government or authority.
(iii) The Carrier does not undertake that the goods shall arrive at any place, at
any particular time or for any particular market or purpose.
(iv) In the event of force majeure, the contract shall remain in force, the carriers’
obligation shall however be suspended for so long as the force majeure situation
lasts. A force majeure is any and all circumstances which the carriers could not
reasonably prevent and the consequences of which he could not avoid.
having under the terms of the insurance on the conveyance employed by the
Carrier the right to give orders or directions, permit the vessel to proceed with or
without pilots, to tow or be towed or to be dry-docked; permit the vessel to carry
livestock, Goods of all kinds, dangerous or otherwise, contraband, explosives,
munitions or warlike stores and sail armed or unarmed and to do such acts as in
the sole opinion of the Carrier may be necessary, expedient or incidental to the
performance of the Carrier's obligations.
(ii) The liberties set out in (i) above may be invoked by the Carrier at its sole
discretion for any purposes whatsoever whether or not connected with the
Carriage of the Goods. Anything done in accordance with (i) above or any delay
arising therefrom shall be deemed to be within the contractual Carriage and shall
not be a deviation of whatsoever nature or degree.
(ii) Goods (not being Goods stuffed in or on Containers other than open flats or
pallets) which are stated on the front of this Bill of Lading to be carried on deck
and which are so carried (and livestock, whether or not carried on deck) are
carried without responsibility on the part of the Carrier for loss or damage of
whatsoever nature arising during carriage by sea or inland waterway whether
caused by
(ii) Notwithstanding (i) above, the Merchant shall defend, indemnify and hold
harmless the Carrier in respect of any claim (and any expense arising therefrom)
of General Average nature which may be made on the Carrier and shall provide
such security as may be required by the Carrier in this connection.
17. CHARGES
(i) Charges shall be deemed fully earned on receipt of the Goods by the Carrier
and shall be paid and non-returnable in any event.
(ii) The Charges have been calculated on the basis of particulars furnished by or
on behalf of the Merchant. The Carrier shall be entitled to production of the
commercial invoice for the Goods or true copy thereof and to inspect, reweigh,
re-measure and revalue the Goods and if the particulars are found by the Carrier
to be incorrect the Merchant shall pay the Carrier the correct Charges (credit
being given for the Charges charged) and the costs incurred by the Carrier in
establishing the correct particulars.
(iii) All Charges shall be paid without any set-off, counter-claim, deduction or stay
of execution and the Merchant shall remain liable for payment on all unpaid
charges due to the carrier, irrespective of whether the charges be on "freight
prepaid" or "freight collect" basis and the shipper, consignee and all parties
claiming under the Bill of Lading shall be jointly and severally liable to reimburse
the Carrier for the same upon demand.
(iv) Where goods are accepted or dealt with upon instructions to collect freight,
duties, charges or other expenses from the Consignee or any other person the
Merchant shall remain responsible for the same if they are not paid by such
consignee or other person immediately when due.
(v) An interest charge of 2% per month shall be levied on all invoices/charges
remaining unpaid more than 30 days from due date.
(vi) In the event the Carrier has to commence legal proceedings for recovery of
their payment for invoices/charges, the Merchant or Customer shall be liable to
pay legal costs on a full indemnity/solicitor and own client basis.
18. LIEN
21. NON-SUBROGATION
22. DISPOSAL
The Carrier shall be entitled but under no obligation, at the expense of the
Merchant payable on demand and without any liability on the part of the Carrier
to the Merchant, to sell or dispose, upon giving 21 days notice in writing to the
Merchant at the last known address, of Goods which in the sole opinion of the
Carrier cannot be delivered as instructed or without notice to the Merchant of
goods which have perished, deteriorated or altered or which has caused or may
cause loss or damage to any person or property or to contravene any applicable
laws or regulations and such disposal shall be without prejudice to any claims the
Carrier may have against the Merchant.
23. NOTICE
Notice may be effected by service by post or telefax and shall be conclusively
deemed to have been received on the third day following the day on which it was
posted or faxed to the last known address or telefax of the recipient intended.
24. RATES
The Carrier shall have the option of charging by value, weight or measurement.
25. WAIVER
INSURANCE
• Loss for or damage to cargo occurring during the policy year as a result of
Breach of Contract or in common law where liability arises under MTO
documents.
• Liability to third parties by reason of liability imposed upon the insured by law
and/or assumed by the insured under the Insured's Contract. The loss of life or
bodily injury, 3rd party property damage including 3rd party cargo.
• Cost and expenses involved in re-routing of the cargo to the correct destination
including any professional negligence, error or omission on the part of the
insured and/or their agents.
• Liability to Authorities like Customs, Port Authorities for any breach of
regulations which can even lead to fine and penalties being imposed by the
authorities.
Claims arising under the Liability Insurance Policies particularly under B/L
contracts will have to be supported by evidence of negligence on the part of the
insured before a claim can be considered.
Further, under MTO documents sub-contracting is allowed and therefore even a
sub-contractors will be involved in the claims procedure particularly to establish
whether there is any negligence attributable to them which will enable the
Liability Underwriters to take recourse to recovery from such sub-contractors
under their own documents which may be a normal ship owners B/L, or a road
transport receipt or railway receipt.
The insured accordingly will have to protect the recovery rights of the liability
insurer in all cases where the negligence on the sub-contractor's part is
established by evidence.
The Liability Insurance Policy is a contract of pure indemnity and therefore it does
not guarantee all claims that arise unless such claims are established under the
contract. Under the MTO of Goods Act and under MTO documents the time limit
for taking legal action against the MTO is 9 months only.
CHAPTER-2
CHAPTER-2
COMPETITION WITH OTHER BUSINESS
SEASKY LOGISTIC
Services
SeaSky Worldwide provides a wide range of services in logistics for shipping all
types of products. We offer a dynamic array of services from exporting even
personal effects to providing the logistics for large industrial projects, we offer it
all...personally managed and professionally executed. Our export clientele range
from Bio-Parma to Large Industrial Manufacturers to Small Family owned
business. Our experienced staff provide our customers with the guidance and
coordination to get their shipments to its final destination...without any hassles.
Our operations in India cater to all modes of international and domestic
transportation. For both Import and Export with N.V.O.C.C operations and
customs clearance we provide in-house worldwide transportation of cargo by Sea
and Air Freight. We also specialize in value added logistics, door to door services
to ensure that we maintain control of our customers’ product at all times.
• Shipping
• Air Cargo
• Baggage
• Customs Clearance
• Packing
• Transportation
GGL
GGL (formerly Golden Gulf Line) is a leading global Neutral Non Vessel Operating
Common Carrier (NVOCC), and the global front -ranking consolidator. Built on a
strategic and strong global network of agents and partners, and with 30 offices
worldwide, we are committed to providing our clients with the most proficient,
cost effective, reliable and quality transportation of their freight all across the
globe. We operate our hubs at Singapore, Port Kelang, Colombo, Dubai in
addition to offering direct groupage services to and from strategic worldwide
points.
In course of our 18 years of operation, we at GGL have applied our expertise in
the service industry and knowledge of the NVOCC market and achieved a
reputation of delivering an unrivaled quality of standards, innovation and
customer service. GGL, known for its hallmark for being a quality conscious
organization, comprises of young and highly motivated professionals, dedicated
to exceeding customers’ expectations and providing the ideal global freight
transport solutions that international markets require from transportation
partners worldwide.
Our relentless pursuit of unending excellence through innovation has earned us
not only the trust of customers, but the admiration of our competitors as well.
With GGL Line’s extensive experience in the industry, you get a superior service
which is known for its reliability
GGL LINE has started direct sailings to Busan for less-than-container-load (LCL)
shipments.
The line said that it feels the trade between Singapore and Busan continues to
grow and it is the right time to enter the market. Machinery, garments, windmills,
exhibition cargo and metals are among the items exported from Singapore to
WSA
Introduction
WSA's position as a leading NVOCC / forwarder enables the choice of the
more frequent, reliable sailings to any worldwide destinations.
Our team of international transportation specialists ensures punctual
documentation and necessary procedures are followed-up, to achieve the
delivery time that we have made ourselves committed to our customers as we
named ourselves "Warranted Safe Arrival".
On top of our experience in operating our warehousing and long-term
relationships with Customs globally, WSA ensures smooth customs clearance,
cargo delivery, storage, and distribution.
Being the founder of WSA Lines back in 1983. I am delighted to take this
opportunity to thank all members of WSA Lines who devoted their tremendous
effort in making this 15th anniversary a glorious one. I would address this as our
2nd milestone because our 1st milestone was laid in 1994 after our Singapore
office was established. Why? Our overseas offices started multiplying since then.
There are 39 offices in 14 countries at this moment of my writing. 1997 has been
a historical year for Hong Kong. As a Hong Kong based company, we are proud of
the return of Hong Kong to China. On top of that, the enormous resource from
China benefited us. It was back in 1990 when the importance of cargo from China
was foreseen, our first office was established in Shanghai, China in 1991. Until
today we have 7 offices in China.
The combined cargo force formed a major foundation towards our success today
and the years to come. In this ever changing market it's so competitive that
envisioned our survival depends on having our own network. We are not
blindfolded in expanding. Detailed market research and thorough consideration
have always been behind our setups. Proven success of our Shanghai &
Singapore offices was the main driving force in our rapid expansion.
It has been my good luck to have all these energetic, knowledgeable &
aggressive young managers joining WSA Lines. With our experience and network,
great effort in studying the rapid developing technology world like computers,
communications etc. With the backup our network, such can be induced into our
system at an economy of scale. From then, it will be easier to link up with our
future expansion into related industries like warehouse, inland transportation etc.
We are not contented with our success at this moment. The precious experience,
cargo source, client base, worldwide network, knowledgeable staff members etc,
which we gained through the course of hard work in the past 15 years will form
as part of our key resource for our future development.
Whereby we are looking forward to provide a point to point, multimodal, total
logistics service to our valuable customers, as a token of appreciation for their
valuable patronage. Most of all, we are looking forward to creating more job
opportunity by our doing so, linking up the different cultures of mankind and
making the world better place to live in. While in the meantime, our staff
members may enjoy a better career achievement in the rapid expanding world of
WSA. Yes, we work harder everyday.
Vision
To WSA, no business is too small, and yet no business is too big. The unity of
WSA network forms a powerful partnership unmatched by our competitors. WSA
prides itself on its focus on the customers - our partners. We believe in long-term,
mutually beneficial relationships with our customers and create value through
collaboration to enhance customer competitiveness.
WSA understands that information technology plays a vital part in the container
transportation industry and has been a pioneer in developing IT solutions for
many years. Technology stands at the edge of this competition world. The more
advanced it is, the more competitive one becomes in the market. That in turn will
benefit our customers in long run in enjoying our economy of scale. We
bank accounts, what houses we lived in, or what cars we drove. But it makes a
world of difference because we make our customers smile.
Opportunity
think positive. Optimist sees opportunity in difficulty.
Success
doesn't come to us. We go to it. The moment we wonder win or lose, we'll
probably lose. "Wai Shing" Originates from "Great Success" in Chinese
characters.
Teamwork
allows common people obtain uncommon results. It collects individual
accomplishment towards organizational objectives. We never doubt a small
group of thoughtful, committed people can change the world. This is what made
WSA today.
Venture
unless we have the courage to lose sight of the shore, we can never discover new
continents.
Service
sales generates customers. Quality service keeps satisfied customers coming
back to us
Insurance Coverage
Lading No., Master B/L details, ETA/ETD of vessel, destination of cargo and nature
of loss/damage (e.g. location short landed)
2. Commercial Invoice
3. Packing/Weight List
4. Bill of Lading (Legible copies showing front and reduce of Original, will all
endorsements thereon
5. Copies of any other B/L is issued/MBL
6. Insurance Certificate/policy covering the goods
7. Delivery Receipt for the cargo
8. Customs/Trade-Net declarations for the cargo/Import/Export Permits
9. Complete survey Reports with all attachments/photographs (clear originals)
10. Notice to carriers of loss / damage
11. All correspondence with parties on the claim, including carriers, freight
forwarders, port authorities, insurers and hauliers
12. Port authority short landing/damage certificate if applicable
COMPANY PROFILE
Established in 1993, Allcargo has emerged as a leading Logistics service provider
today. In just 13 years of its existence the Company has entrenched itself well,
not only on the Indian logistics scene, but also at a global level achieving a global
footprint through the acquisition of the Belgium based ECU Hold NV. Allcargo has
always been the leading LCL (Less than a Container Load) consolidator in India
offering direct outbound and inbound LCL groupage services to and from major
cargo destinations worldwide.
Allcargo’s success stems from its commitment towards providing world class
logistic services to international business. At Allcargo, the customer remains the
focal point in the formulation of services that can be provided. This emphasis has
led to a constant innovation in the services that we provide which in turn have
enhanced our performance standards. We have added a host of services to our
existing portfolio and are emerging as an integrated logistics player in the
country.
Allcargo’s present operations are in five key areas of the logistics business:
• Multi-modal Transport Operations
• Container Freight Stations
• Project Cargo Handling
• Airfreight
• Transport Logistics
Large as well as small exporters and importers often have cargo that is not
enough to fill an entire container. To meet the requirement of shipping such LCL
cargo, Allcargo offers Less than Container Load Consolidation services. Allcargo
pioneered this service in India and maintains it’s leadership position in this
business. With an extensive branch and franchisee network in India as well as a
strong agent network internationally through ECU HOLD NV, Allcargo is able to
deliver and receive cargo to and from over 4000 locations across the world. Our
Allcargo has also pioneered Multi City Consolidation in India. Multi city
consolidation involves movement of cargo under a bond from inland locations
particularly (ICD’s) to gateway ports for export cargo and vice-versa for import
cargo. Allcargo with its expertise in the business is capable of handling the entire
chain in the process right from collecting the cargo from the shipper’s doorstep,
aggregating LCL cargo, transportation under bond, re-working at cargo hubs and
arranging carriage to final destinations. As for importers, the Company caters to
the delivery needs of its clients at various ICD locations through Multi-City
Consolidation.
FCL Forwarding
In addition to LCL consolidation, Allcargo also offers FCL (Full Container Load)
forwarding services to it’s customers. With our leadership position in LCL
consolidation and the large volumes of containerized cargo handled, we are also
able to offer cost effective FCL forwarding solutions to our customers. Value
added services such as ex-works pick-up and door delivery at desitnation, duty
paid deliveries in various countries and a strong IT systems based information
tracking has led to Allcargo’s growing presence in this segment of the logistics
business.
Ever since its inception, Allcargo has been a committed player providing services
to facilitate international and domestic trade. In a bid to further consolidate its
position as an integrated service provider, the Company has also diversified into
the dynamic world of air freight business. With air freight being an important
element of supply chain management, Allcargo has not been too far behind in
entering this fast growth sub-segment of the logistics industry. With an
experience of nearly two decades in the freight market the company has
developed capabilities of delivering sound services while simultaneously keeping
Allcargo has made rapid inroads graduating from the operation of just one CFS
which commenced in 2003 to implementing two more Container Freight Stations
at the ports of Chennai and Mundra. Its first CFS, the Transindia Logistic Park
Container Freight Station located 18 KM from the Jawaharlal Nehru Port Trust is a
state-of-the-art, ISO certified CFS. Spread over almost 23 acres of land it is fully
equipped with a paved yard, warehouse area, reefer plugging point and a parking
area for trucks. Having commenced with just 10 acres of land the Transindia
Logistic Park has grown to 23 acres in just three years of its operations handling
a storage capacity of 4000 TEUs. It can handle more than 10,000 TEUs per month
on a continuous basis.
The two new projects under implementation will add another 104,000 TEU’s per
annum capacity in the first phase of development. The Chennai CFS is one of the
closest to the Chennai Container Terminal and is spread over a 16 acre area and
the first phase is planned to be commissioned by February 2007. The Mundra CFS
spread over a 16 acre area will also be commissioned by January 2007. Land for
the third project for an Inland Container Depot is under acquisition and when
commissioned by end 2007 will add another 52,000 TEU capacity in its first
phase of development.
CHAPTER-3
CHAPTER-3
TRADE PROFILE
A New Era
Though agriculture has been the main preoccupation of the bulk of the Indian
population, the founding fathers saw India becoming a prosperous and modern
State with a good industrial base. Programmes were formulated to build an
adequate infrastructure for rapid industrialisation.
Since independence, India has achieved a good measure of self-sufficiency in
manufacturing a variety of basic and capital goods. The output of the major
industries includes aircraft, ships, cars, locomotives, heavy electrical machinery,
construction equipment, power generation and transmission equipment,
chemicals, precision instruments, communication equipment and computers.
Early planners in free India had to keep in mind two aims: all-round development
and generation of large- scale job opportunities. Economic development
strategies were evolved with an eye on these twin objectives.
NRIs
Infrastructure
In view of their crucial importance, power, transport and other infrastructure
industries are owned by the State. As a result of special attention given to the
area in recent years, the infrastructure industries have been growing at the rate
of nine to ten per cent annually.
Traditional Industry
Indian handicrafts have withstood competition from machines over the years. The
skills are passed on from one generation to the next. The handicraft and
handloom sector is a major source of rural employment and earns substantial
foreign exchange. Traditional textiles are as popular abroad as they are within
the country.
The major export items include hand-knotted carpets, art metalware, hand-
printed textiles and leather, wood and cane wares.
Logistics
Logistics is the art and science of managing and controlling the flow of goods,
energy, information and other resources like products, services, and people, from
the source of production to the marketplace. It is difficult to accomplish any
marketing or manufacturing without logistical support. It involves the integration
of information, transportation, inventory, warehousing, material handling, and
packaging. The operating responsibility of logistics is the geographical
repositioning of raw materials, work in process, and finished inventories where
required at the lowest cost possible.
•
Origins and definition
The word of logistics originates from the ancient Greek logos (λόγος), which
means “ratio, word, calculation, reason, speech, oration”. Logistics is a concept
considered to have evolved from the military's need to supply themselves 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 supply distribution matters.
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".
Military logistics
In military logistics, experts manage how and when to move resources to the
places they are needed. In military science, maintaining one's supply lines while
disrupting those of the enemy is a crucial—some would say the most crucial—
element of military strategy, since an armed force without food, fuel and
ammunition is defenseless.
Logistics was successfully used for this movement. The defeat of the British in
the American War of Independence, and the defeat of Rommel in World War II,
have been largely attributed to logistical failure. The historical leaders Hannibal
Barca, Alexander the Great and the Duke of Wellington are considered to have
been logistical geniuses.
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 related information between the point of origin and the point
of consumption in order to meet customers' requirements.
Business logistics
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 is the science of process and incorporates all industry
sectors. The goal of logistic work is to manage the fruition of project life cycles,
supply chains and resultant efficiencies.
In business, logistics may have either internal focus(inbound logistics), or
external focus (outbound logistics) covering the flow and storage of materials
from point of origin to point of consumption (see nsupply chai management). The
main functions of a logistics manager include Inventory Management,
purchasing, transport, warehousing, and the organizing and planning of thes
Production logistics
The term is used for describing logistic processes within an industry. The purpose
of production logistics is to ensure that each machine and workstation is being
fed with the right product in the right quantity and quality at the right point in
time.
The issue is not the transportation itself, but to streamline and control the flow
through the value adding processes and eliminate non-value adding ones.
Production logistics can be applied in existing as well as new plants.
Manufacturing in an existing plant is a constantly changing process. Machines are
exchanged and new ones added, which gives the opportunity to improve the
production logistics system accordingly. Production logistics provides the means
to achieve customer response and capital efficiency.
• Globalization
With the advent of globalization, firms began to seek ways of cutting their
production costs. Thus, multi-national corporations re-located their factors of
production to low-wage countries to gain a competitive advantage. Increasingly,
more and more countries are joining the World Trade Organization (WTO) and
opening their country to foreign capital investment (most recently in China).
Retail giants like Wal*Mart exploit these new efficiencies and increase their
imports from new emerging economies to reduce product prices in their stores.
Thus, the new challenge is how to manage the product and information flows
around the world. The increased pressure on managing these operations further
underscored the importance of logistics as an area for optimization.
• Information Technology
Another contributor that led to an increased presence for logistics was the
explosion in information technology and use of computers throughout the 1980’s
and onwards. The cost of computing has decreased year after year since then
and computing power rose exponentially. The use of the Internet and increased
bandwidth capacity further enhanced and enabled quick connectivity and
collaborative relationships that reduced inventories and created a Just-In-Time
operating opportunity for organizations. These efficiencies reduced errors,
increased fill-rates and cut overall operating costs for organizations.
products into the warehouse and conversely, outbound to its market distribution
area. The addition of a second warehouse in the network would reduce
transportation costs more than the marginal cost of operating the second
warehouse, which would reduce total supply chain costs.
• Future Challenges
As the business landscape constantly changes with mergers & acquisitions and
as globalization grows, there are corresponding changes in the supply chain that
need to continuously be optimized to ensure least total supply chain costs. Radio
Frequency Identification (RFID) and other technologies will continue to drive
down inventories as better information is made available in a timely manner.
Since supply chain activities cross over all functional areas in an organization
(such as Marketing, Finance and Human Resources), new metrics must be
developed to track true supply chain costs and identify the impact on new costs
as corporate strategies change. Organizations that measure and benchmark
these costs will have a sustainable competitive advantage going forward.
mission.
be dated to second world war, and in business logistics, to 1950’s. During the
Second World War, also the computer age was started, which enabled analysis
with the evolving operations research models. The main application areas of
operations research in the beginning involved logistics problems such as
transportation routes, inventory models.
Logistics management as an independent discipline started to evolve under
management science. Models geared to minimization of costs were developed.
Both modelling and OR methods developed. Since these models often were
simplifications, the solutions lacked true applicability.
In business world, external situations such as oil crisis, growing competition,
and increasing customer demands made logistics a management issue, and in
gaining more importance, logistics became eventually the top level issue in
management. Integration of production scheduling and materials management
was needed, and on the other hand, transports were analysed taking inventories
into consideration at the same time.
Network models for restructuring the distribution networks were taken into
use. Several rounds of streamlining the number of warehouses in distribution
networks have been seen. The models initially were facilities location problems,
now the analysis is based on costs, availability, and delivery service levels in an
environment of many factories, markets, products, and time periods.
chain, they have great importance. Visibility will be the main strategic
competitive issue in logistics management across company borders.
Early references to logistics be located in business literature. Prior to the 1950’s,
the typical enterprise performed the work of logistics purely on functional basis..
Logistics management, as a discipline in management science and practice,
was defined in US in 1950-60’s when the potential of efficient material
distribution to decrease companies’ direct product costs was realized. The
physical distribution models were developed because of the following four
factors: 1) shifts in consumer demand patterns and attitudes toward more
demanding needs for high availability and variety of products, 2) cost pressures
on industry, 3) progress in computer technology, and 4) the influences of military
experience.
The change in logistics practices faced significant opposition. Managers,
responsible for specific functions, were not happy with organizational changes
that were considered necessary for implementing logistics in broader meaning..
creates products and services that are transferred from suppliers to end
customers. This interpretation has been complemented with the term demand
chain, defined to transfer demand information from end customer markets to
suppliers. Combined, demand and supply chain create demand-supply chain, an
end-to-end network. It can be noted, that the traditional term logistics chain has
also been defined to cover the material flow from raw material end to final
customer end, the demand information flow to the opposite direction, and
transfer of payments as well; the modern view is that in the supply chain,
sproduct range was narrow, and demand patterns in the market are regular. JIT
prevailed in the 1980’s and in the beginning of 1990’s.
importance in the business. The change into process model is also a time
consuming process itself. The SCOR-model as well as ERP-systems are also
standardizing the processes. Harrison and van Hoek consider that improvement
of logistical performance means that the processes have to be improved, and one
of the key issues is to regard the management of timeliness in the logistics
pipeline. Alignment of processes within the pipeline makes it possible to ensure
also JIT and lean thinking, vendor managed inventories, and quick response.
This also can be considered as leading to the next supply chain platform: the
agile, responsive supply chain.
6. Trends
Logistics today is more challenging than ever. Logistics is one of the crucial
areas, which make the distinction of business success. Time factor has become
more and more important in competition. Product life cycles are becoming
shorter. Time to market for new products and versions is a crucial competitive
factor. Product Life Cycle Management has become a new issue to make short
life cycles longer, more profitable, and better to control. Time is also of essence
in making on-time deliveries, and competition is seen also in the delivery times;
this is a phenomena reappearing because of global sourcing. Shorter delivery
times force the industry to be situated closer to the customers, or to have
distribution centres close to customers, or to choose suitable partners and make
suitable business acquisitions in order to reach the markets.
One of the factors adding to complexity is the change of measures within the
manufacturing process. Especially in process manufacturing, the measures
concerning the materials change while the materials are transformed in the
production process into the final sales products. Raw wood is considered as bulk,
cellulose and paper are again bulk, but each measured differently. Paper is then
cut into rolls and sheets, so the measures become discrete, and the number of
paper qualities with customized measures increases the final product variety
many times. At each stage, the material is in a different form or constitution, and
thus requires different control and quality parameters as well. Glass and textiles
are analogous, as well as mining into finished metals.
In assembly manufacturing, modularity is a way to decrease the variety of the
subparts, as well as to push backwards the point of finalizing (postpone) the
product. This is a way to shorten the total production time when an order is
made. Another strong brand trend is that big marketing chains are selling
products under the market chain brand, and again, the actual producer and
product may change unexpectedly, since the producers are chosen periodically
by bidding processes.
Mobility of production and subcontracting depending on finding cheaper
production opportunities has especially been applied in textile industry and in
electronics. Market areas also have an affect on the site selection for new
Still, the local SME companies face the competition of national and international
companies.
specialized software is still not integrated, and they still analyse constrained
problem areas. Traditional methods of operations research do not produce
satisfactory results in the more complex and dynamic environment. New
modelling techniques and solution methods have to be developed.
Some of the theory is developed on an idealistic view, such examples are for
instance the economic order quantity, value chain, and logistical visibility. These
theoretical ideals have been visionary, and they have become drivers of
development in logistics. Both value chain approach and logistical visibility are
clearly also trendsetters leading to excellence. Thus logistical theory evolves also
on the setting of goals.
The third way of development of logistics is the analysis methodology, and
the theory involved in the theoretical basis of the methods. There is clearly a
need for new methods, with wider range of information access, with ability to
work with relationship issues, and ability to be applied in dynamic situations. The
methods also need to be able to handle large amount of data and increasing
complexity.
Assessing the future is also increasingly important. It is seen in the need of
better forecasting methods, which are able to handle more data and complexity,
so that they simulate expert systems. It is also seen in the increasing popularity
of scenario working and technology roadmap-applications, which are used both in
company environment and in national level. Identification of weak signals, which
may become trend setters, is considered to be extremely important.
material supply logistics starts from the base level of “generation of the
demand”, through the “process of purchase” and “supply of material from the
vendor” right through to “final acceptance” and “payments to the supplier” and
“issue to the indenter” and has to be considered as a “one whole activity” with
each stage having an impact on price/cost of material supply.
Logistics is, in itself, a system; it is a network of related activities with the
purpose of managing the orderly flow of material and personnel within the
logistics channel.
DEFINITION :
The simplest way to.describe logistics is to say that it is all about ways and
means of meeting the demand for materials i.e. satisfying the customer with
what he wants, when he wants, where he wants etc.
Definition includes outbound, inbound, internal and external movements and
returns of material for environmental purposes. The logistics concentrate on
dynamic processes, related to the flow of materials and the relationship between
the materials and their use at different facilities.
The most wide spread definition from council of Logistics Management says that
“Logistics is the part of the supply chain process and plans, implements and
controls the efficient, effective flow and storage of goods, services and related
information from the point of origin to the point of consumption in order to meet
customers requirements.”
SCOPE:
Logistics is not confined to manufacturing operation alone. It is relevant to all
enterprises, including Govt. institutions such as Hospitals and schools and service
organization such as retailers, banks and financial service organizations. The
study of logistics is especially important for bulk raw materials, where substantial
outflow of freight is involved. Management of Logistics is an art which is
extremely difficult to perfect in India, JIT ends up being SHIT - some how in time.
The study of logistics is important to establish a lean supply chain which would
give an advantage of quick product change over, capability, excellent short and
long term forecast visibility and JIT capability.
Road : Used by suppliers to deliver goods in a cost effective manner and best
suited for short distances. Many transport companies have expertise for fast
delivery, packaging etc. for making scheduled delivery.
Air: Used mostly for delivery of high value and tow volume goods from distant
suppliers, usually not connected by any other mode of Transportation. It is also
suitable for emergent item to be imported for some specific requirement.
Water : Used by firms for delivery of goods from distant suppliers, mostly
conducted in containers of varied size. This mode is ideal for transportation of
heavy and bulky goods and suitable for products with long lead times.
Pipe Line : Used by oil sector companies for mass movement of Petroleum
products including gases. Due to quite low operating cost it is one of the
preferred mode of transportation.
Third Party Logistics (3PL) provider handles all or most of freight of the
organizations including the management of information by the third party,
freeing the company from day to day interaction with carriers, and having to
oversee hundreds or thousands of shipment. New and cheaper information flow
resulting from internet enabled solutions, will lead not only achieving immediate
cost reductions in operations but also to enormous productivity gains over the
next few
years.
The tracking and control of movement of goods drive freight optimization and
asset utilization. The options are : increased trailer utilisation, combining full
truckload shipments, consolidation, aggregation of smaller buyers. Purchase
asset based transportation is becoming increasingly a commodity.
To put simply, 3PL refers to the outsourcing of a logistics function. It could be the
use of a transportation carrier, a warehouse, or a third party freight manager to
perform all or part of a company’s production distribution functions.
4PL organizations can create unique and comprehensive supply chain solutions
that cannot be achieved by any single provider. According to John Gaftorna,
“White oufsourcing third party logistics is now a accepted business practice,
Fourth Party Logistics is emerging as a breakthrough solution to modern supply
chain challenges... to provide maximum overall benefits.”
RESERVE LOGISTICS:
Increasingly, as a strategy, to compete on services, companies offer repair and
replacement services for their products under the warranty periods. The
defective products are often shipped across international borders to common
repair centers to be refurbished and returned to the originating station. Logistics
service providers who offer these services have to tackle issues pertaining to
duty payment on refurbished products, customs documentation and the
establishment of collection points for repair for the customers.
CONCLUSION:
Logistics is one of the area of the supply chain i.e. growing at a tremendous case
as the Internet and E-Commerce is drastically changing the range, delivery time
and the speed of information as well as ordering and payment process. Due to
the big boon of information technology, greatly influencing and enhancing the
effectiveness of logistics, the time is not far when 5 PLs and 6 PLs may emerge
which will probably we doing part of the manufacturing and marketing for the
organizations.
Logistics in India
India spends about 13.0 percent of its total Gross Domestic Product (GDP) on
logistics, as per 2005 estimates. The major logistics functions for the Indian
industries include Transportation, Warehousing, Freight Forwarding, and other
Value Added Operations including Management of Information Systems (MIS). Of
these functions, transportation and freight forwarding have been traditionally
outsourced to external service providers with relevant expertise and
infrastructure. The warehousing and MIS functions have been mostly managed
in-house by industries.
But the huge diversity in geographic conditions, consumer habits, and
infrastructure conditions across the country make it a major challenge for Indian
industries to efficiently manage their supply chain to reach all parts of the
country. Additionally, India’s retail network is very vast, estimated at about 3.3
million outlets in 2005. The highest priority of all industries in India is to achieve
a consistent presence of their products across maximum possible section of this
vast retail network. This could be achieved through a well knit end-to-end
logistics process managed efficiently by a professional logistics service provider.
Nevertheless, the logistics industry, providing services to fulfill these major
logistics needs of the Indian industries is highly fragmented. The transportation
service provider segment is completely dominated by small trucking companies
and individual truckers. The freight forwarding service provider segment is also
represented by thousands of small customs brokers and clearing & forwarding
agents. Similarly, there are a huge number of participants in the warehousing
service segment and MIS service segment also. Few service providers have the
capability to provide more than one service and it is very rare that a single
service provider has the capability to provide all the logistics services. Such
fragmentation had lead Indian industries to outsource packets of individual
logistics functions to different service providers while retaining the overall control
of logistics in-house, despite incurring heavy administrative and infrastructural
costs.
companies in all the industries are gearing up to use 3PL services in their logistic
functions, resulting in a tremendous potential market for the 3PL market in India.
The opportunities for growth of 3PL usage could be varied among different types
of companies. The multinational companies that are already using 3PL in basic
logistic functions might graduate to outsourcing value-added advanced services
such as customer support, inbound logistics, and reverse logistics. Whereas, the
domestic major companies might increase their 3PL usage in the basic logistic
functions and occasionally experiment with the value-added advanced services.
On the contrary, the small and medium companies could just begin to use 3PL
services for their basic logistic functions.
Nevertheless, considering that the most important logistics functions for Indian
industries still are transportation and warehousing, which are likely to be
outsourced to 3PL in increasing share, a high level of growth is estimated for the
Indian 3PL market in the next 5-7 years. The Indian 3PL market, estimated at
about US$890.3 billion in 2005, is expected to grow at a compound annual
growth rate of 21.9 percent to reach US$3,556.7 million in 2012.
Frost & Sullivan’s research identified that the largest end-user industry for 3PL
services as of 2005, is the auto industry. A lot of multinational automobile
makers, like Suzuki, Honda, and Ford, have set up manufacturing bases in India,
and have been major users of 3PL services. Expansion of manufacturing facilities
Because needs are constantly changing and because there is probably an equal
number of solutions occurring, it becomes exceedingly more difficult to efficiently
and effectively match a need or needs with the appropriate solution or solutions.
The “chain” limits our abilities and capabilities because it is serial and of singular
dimension. Further, Navi Radjou, of Forrester Research, in his article (Supply
Chain e-Business, July/August 2002), “Exit supply chains; enter adaptive supply
networks”, states, “Existing supply-chain apps don’t help manufacturers sense or
respond to changes in their operations network because they insulate static plans
from dynamic execution reality.” By virtue of these restrictions, our thoughts
have been channeled into believing that our only tool is one that is
“comprehensive”. If we only have a limited number of needs or just a few needs
that must be satisfied today, acquisition of this comprehensive tool is likened to,
“squeezing an orange grove for a glass of juice”.
Since logistics is responsible for managing, integrating and controlling the flow of
information, material and money, it must have the capability of targeting a
specific issue and establishing the best method of approach. In order to plan and
control these flows, the current view of logistics as a chain has been unable to
keep up with the needs analysis and the selection of effective solutions.
chain continually forces the belief that identifying issues and solving problems
must be performed in linear or serial, flat, static and unfluent environment.
Most companies throughout the world have embraced logistics and its
importance in achieving superior customer service, operations and profit
improvement. There has been a proliferation of logistics software systems,
products, tools and services over the last several years. They are offered by
general developers, 3PL’s and by other companies whose initial development
purpose was for internal use. Further,
there has been a great deal of dialog within and between companies, addressing
the subject specifically for the benefit of those business partners. Additionally,
the dialog is occurring in many forms such as, seminars, case studies, white
papers, webinars, on-line communities, management presentations, lectures at
educational institutions and advertisements. Through this labyrinth, little
consensus has been achieved, therefore diminishing the ability to achieve a
higher level of logistics success as well as limiting effective collaboration. It is
clear that the logistics discipline and practice needs to evolve.
An Awakening
At least, one company recognized that there is a logistics dichotomy and has
developed its products, tools, services and systems from a “new” perspective,
“simpler is better”. As a Transportation Management Services Provider it focuses
on incremental and connectible discrete vertical products and service offerings
within the Transportation Management Spectrum. Consistent with this
perspective, this approach recognizes and appreciates the importance of getting
its glass of juice from one orange. Through this understanding, logistics can
continue to evolve, reaching higher levels of benefit, understanding and
acceptance.
stagnant. This distinction recognizes the fact that there is a moving force or
engine that drives logistics and reinforces the fact that logistics is dynamic. In
the operating logistics process, one change causes another change. The
application of dynamics enables logistics and transportation professionals to
intelligently identify and forecast their needs and assign achievable goals. An
inherent advantage is planned response with predicable results.
• Custom commissionerate
• Post trust
• Banks
• Consular office
• Health department
• Carrier
• Chamber of commerce
5. FORWADER AS PRINCIPAL
• Containerization / multimodal transport service.
• Independent contractor with all responsibilities and liabilities.
vehicles in the shipment shed, the shipper submits the vehicle ticket duly
endorsed by the gate inspector, export application/ dock challan / port trust copy
of shipping bill (duly passed by the customs) and a receipt in lieu of payment of
port charges, where necessary to the shed superintendent. As cargo is unloaded
in the shipment shed, details of the cargo received are entered in the ‘Shed Export
Cargo Register’, which is maintained shipper-wise and ship-wise.
The shipper then approaches the custom appraiser and customs preventive
officer for physical examination of goods and obtains ‘Let export / Let Ship’
endorsement on the shipping bill. The shed superintendent maintains a record of
these endorsements in the port trust’s documents also. The cargo is then allowed
to shipped. On completion of shipment details of cargo actually shipped are
recorded in the ‘ Shed Export Cargo Register’ from the shipping tally sheets’,
which are maintained by the port trust, and also the shipping lines. On receipt of
cargo onboard, the master of the vessel issues a document called the Mate’s
Receipt in respect of every shipment taken on board. At some ports, the issuance
of Mate’s Receipt is preceded by another document, which has to be exchanged
for the Male’s Receipt. Port authorities collect the Mate’s Receipt from the master
or the Chief Officer of the vessel and pass them on to the respective shippers
only after ensuring receipt of all port dues. No Claused Mate’s Receipt are
accepted by the port authorities, unless authorized by the shipper(s).
After collecting the Mate’s Receipt, the shipper(exporter or his agent) prepare the
bill of lading on blank forms supplied to him by the shipping company and
present 2-3 originals and some non negotiable copies of the document at the
shipping company’s office for the signature of the authorized officer along with
the Mate’s Receipt. The Mates Receipt is the important document because it is
required to be exchanged for Bill of Lading. The shipper must, therefore collect
this document because from the Shed Superintended immediately after it has
been received by the latter to avoid delays and problems, which might follows if
it is not collected in time.Bill of Lading may be marked ‘Freight Paid’ or ‘Freight to
IMPORTANT STAGES
1. Goods brought to port after vessel declared for loading, shipping Bills (SB)
passed by customs, ‘Carting Permission’ obtained from port shed superintended /
shipping line’s agent and port charges paid.
2. Payment of port charges document, port trust document (PTD) plus shipping
Bill duly passed by customs.
10. Issuance of Mate’s Receipt by Master of vessel to Exporter through port trust
11. Exchange of Mate’s Receipt for Bill of lading at shipping line’s office.
• Invoice
• Packing list
• Contract / letter of credit
• Guaranteed remittance forms
• AR 4 (0) + (D), AR form for central excise
• Quality control / post inspection certificate
• Any other like ceiling price certificate, floor price certificate etc.
1. Exporter or his agent drops inside the box kept outside the export
department the shipping bill and other related documents.
5. Action by GR clerk
• Checking GR from number given in the shipping bill
• Putting shipping bill number on the GR form
• Comparing value given in GR from with the value in the shipping bill
• Detaching GR from original from the shipping bills for being sent to the
Reserve Bank of India
• The original copy of the shipping bill is detached at this stage for being sent
to the statistical department
• The dutiable shipping bills are given to the party for payment of export duty
in the cash and account department
• After the ‘Let export’ order is given on the shipping bill by the shed
appraiser, shipping bill along with all other documents mentioned earlier is
presented to the preventive officer in charge of the vessel in which export cargo is
to be loaded.
• P.O. verifies that AR-4 forms, export permit, inspection certificate etc. is
duly presented and that the ‘Let Export’ order is specified on the shipping bill. He
compares the particulars of AR-4 form with those of shipping bills.
• If everything is in order he endorses on the duplicate copy of the shipping
bill with ‘passed for shipment’ seal and initials.
• After the ‘Let ship’ order the duplicate copy of the shipping bill is given to
the shipper or his agent to be handed over to the shipping company. The in charge
of the carrier allows loading on the basis of this proof.
11. Endorsement on Export promotion copy of shipping bill / AR-4 form etc
By the P.O.
• Signature of the master of vessel is obtained the duplicate copy of shipping
bill to indicate receipt of the content.
• The full or part shipment stamp the case may be is put by the P.O. with his
signature on the duplicate copy of the shipping bill.
• After loading is over P.O. verifies shipment with refrence to Mate’s Receipt
given by the steamer agent presented by the shipper’s agent.
• The shipper or his agent presents the Mate Repptto the agent of the carrier
and obtains bill of lading.
DOCUMENTARY CREDITS
ADVANTAGES OF DOCUMENT
From the buyer viewpoint the difference between an irrevocable and a confirmed
irrevocable credit is that if he is bearing the charges he will have to pay 2 bank
charges.
There are 2 ways in which settlement takes place under documentary credit
• By payment
• By acceptance
• By negotiation
1.By payment
2. Settlement by acceptance
• The seller transmits to the advising or the confirming bank the documents
accompanied by a draft drawn on that bank at the specified tenor.
• After examining the documents the advising /conforming bank on which
draft is drawn accepts the draft.
3. Settlement by negotiation
• The seller tranmit to the advising bank the documents accompanied by a
draft at the sight or at tenor depending on the condition of credit drawn on the
issuing bank on the buyer.
• The negotiating bank may negotiate the draft subject to deduction of
discount of discount or interest or commission. The credit may also provide for
these changes to be born by the applicant (buyer)
• The negotiating bank send the documents and draft to the issuing ban for
payment at sight or at maturity by means of which the negotiating bank is
reimbursed.
• A documentary credit, which is available by negotiation, must clearly state
so. The negotiation is carried “with recourse” against the drawer unless the credit
has been previously conformed by the negotiating bank.
DOCUMENTARY CREDIT
The beneficiary on receipt of the credit should check that:
• The type of credit and the terms and condition with the sales
• There are no unacceptable conditions
• The documents cannot be obtained in the form required
• The description of the merchandise of commodity, and any unit price,
conforms to the sales contract
• The amount of the credit is sufficient to cover all costs permitted by the
terms of the contract
is the essence of a consolidator / NVOCC business practice and how well they
can double up their resources in providing a comprehensive logistic solution.
The role of a NVOCC/Consolidator in international business is important due to
the Concept of consolidation, NVOCC operation and freight forwarding and the
extensive use the consolidators make of it. The process of consolidation or
Freight Forwarding which an NVOCC does results in the shipper becoming a
customer for the NVOCC while the choice of carrier remains with the NVOCC
depending on terms and conditions of the sale/contract.
The question is why shipper negotiate Freight with a consolidator and not the
carrier directly. There are a few reasons that govern this and some being as
follows:
• Offer Single window service option for all activities.
• Due to having a large network the volumes controlled by a
NVOCC/Consolidator is substantial and that gives them better bargaining powers.
• Volume contracts with carriers also play an important role in achieving
better freight rates.
FREIGHT PAYMENT
Freight Prepaid The shipper pays the freight at the port of loading.
Freight Collect The consignee pays the freight at the port of destination.
AT ORIGIN
Through Bank
Shipper (B/L) Bank (shipper’s) Bank ( consignee’s ) Consignee
The consignee has to pay to the bank and then the bank will release the B/L to
the consignee. After that the consignee with the B/L contacts the agent at
destination for Delivery Order.
Advance Payment
Shipper Consignee ( To Order Of Bank in the B/L )
This means that there is some advance payment. In this case the original B/L is
endorsed by the shipper (on the back of the B/L).
AT DESTINATION
Through Bank
Bank (B/L) Consignee C & F Agent Consolidator Delivery Order
THE PRODUCT
Product is anything that can be offered to market for attention, acquisition, use
or consumption which include physical objects, services, personalities, places,
organization and ideas or anything else that has the capacity to provide the
satisfaction, use or perhaps the profit desired by the customers.
(3) Another important strategy is being neutral service provider where you do
not trample on your customer base in the process of targeting business. This is
explained if you take an example like Domestic and International Freight
Forwarders who happen to be the biggest customer base for Consolidators and
NVOCC operators. Their clients are direct shippers and consignee and they rely
on Carrier, NVOCC or Consolidators for a part of the logistic they need to provide.
If a carrier starts marketing to a the shipper directly eliminating the scope of an
NVOCC or Consolidator to participate it will jeopardize the support and effect the
business on the whole. So being neutral and targeting a set customer base and
mover over to another without harming the interest of the existing customer
base is important in strategic sales planning.
(4) Competitive rates are offered after negotiation with the clients though the
focus is always on the service provided.
SELLING IN THE FREIGHT MARKET
Consolidators selling into freight market can be divided into 2 segments:-
(1) Client Retention and Existing Traffic Management.
(2) Generating new traffic.
added services. Therefore it is clear that selling in the freight market involves
targeting the potential freight customers and identifying the profitable sectors.
CONCLUSION
Over the last few decades there has been a great technological revolution in
business environment due to liberalization in the open market scenario.
Therefore in order to ensure firm footing in the competitive market, traders are
very serious to fulfill the customer’s need and satisfaction.
Traders are very much interested to send the desired commodities to the desired
destination safely at least possible time at while remaining cost effective in order
to survive in today’s competitive environment.
The most sensitive part of any organization today is its effective and aggressive
marketing. Getting volume business is the order of the day. This can be possible
only through adapting very aggressive and intense marketing policies
emphasizing the advantages of consolidation business along with focussing on
the sectors providing higher volume of trade and margins.
Tactical
• Sourcing contracts and other purchasing decisions.
• Production decisions, including contracting, locations, scheduling, and
planning process definition.
• Inventory decisions, including quantity, location, and quality of inventory.
• Transportation strategy, including frequency, routes, and contracting.
• Benchmarking of all operations against competitors and implementation of
best practices throughout the enterprise.
• Milestone payments
Operational
• Daily production and distribution planning, including all nodes in the supply
chain.
• Production scheduling for each manufacturing facility in the supply chain
(minute by minute).
• Demand planning and forecasting, coordinating the demand forecast of all
customers and sharing the forecast with all suppliers.
• Sourcing planning, including current inventory and forecast demand, in
collaboration with all suppliers.
• Inbound operations, including transportation from suppliers and receiving
inventory.
f) Outsourcing/partnerships
This is not just outsourcing the procurement of materials and components, but
also outsourcing of services that traditionally have been provided in-house. The
logic of this trend is that the company will increasingly focus on those activities in
the value chain where it has a distinctive advantage and everything else it will
outsource. This movement has been particularly evident in logistics where the
provision of transport, warehousing and inventory control is increasingly
subcontracted to specialists or logistics partners. Also, to manage and control
this network of partners and suppliers requires a blend of both central and local
involvement. Hence, strategic decisions need to be taken centrally with the
monitoring and
offer you space within a container that is shared with other customers’ goods to
deliver economical usage-based costing, while providing Full-Container-Load
(FCL) frequency, routing and visibility.
As one of the world's leading Non-Vessel Operating Common Carriers (NVOCC),
we can provide LCL service that features:
• Global network coverage - over 1,000 facilities in over 180 countries
• Frequent sailings with fast transit times
• Reliability and adherence to scheduled sailings
• Competitive pricing
• Shipment visibility for multiple freight modes
• Capability of providing end-to-end solutions
LCL keeps goods moving in your supply chain because you can send them as
soon as they are ready rather than waiting until you have a full container. The
following services are included:
• Receipt of customer’s cargo at the origin Container Freight Station (CFS)
• Consolidation of customer’s cargo with cargo from similarly situated
merchants
• Issuance of house bill of lading
EXPORT
History
.The theory of international trade and commercial policy is one of the oldest
branches of economic thought starting with the ancient Greeks up to the present
era. Exporting is a major component of international trade, and thus is argued
constantly and consistently throughout the ages. Two dual views concerning
trade present themselves. The first, recognizes the benefits of international
exchange. The other concerns itself with the possibly that certain domestic
industries (or laborers, or culture) could be harmed by foreign competition.
Process
Methods of transfer include a product or good or information being mailed, hand-
delivered, up-loaded to an internet site, or downloaded from an internet site. It
can be sent in the form of a facsimile, email or during a telephone conversation.
United States
The Bureau of Industry and Security (BIS) is responsible for implementing and
enforcing the Export Administration Regulations (EAR), which regulate the export
and reexport of most commercial items. Some commodities require certification
in order to export. There are different qualifications for what need to be done in
order to export a good.
Dependent on the category,the 'item' falls under, the company may need to
attain a license as a requisite to exportation. Some restrictions vary from country
to country. The most restricted destinations are the embargoed countries and
those countries designated as supporting terrorist activities, including Cuba,
Libya, North Korea, Sudan, Syria and Iran. Some products obtained worldwide
restrictions.
An item is considered an export whether or not it is leaving the United States
temporarily, if it is leaving the United State but is not for sale (a gift), or if it is
going to a wholly owned U.S. subsidiary in a foreign country. A foreign-origin item
exported from the United States, transmitted or transhipped through the United
Tariffs
A tariff is a tax placed on a specific good or set of goods exported from or
imported to a country, creating an economic barrier to trade.
Usually the tactic is used when a country's domestic output of the good is falling
and imports from foreign competitors are rising, particularly if there exist
strategic reasons for retaining a domestic production capability.
Some failing industries receive a protection with an effect similar to a subsidies in
that by placing the tariff on the industry, the industry is less enticed to produce
The effect of subsidies deters other countries that are able to produce a specific
product or service at a faster, cheaper, and more productive rate. With the
lowered price, these efficient producers cannot compete. The life of a subsidy is
Print Media (Export Directories, Journals, Magazines etc.) Electronic Media (TV.
Radio, etc.) Internet (Search Engines, Business Directories) Other Media (Trade
Fairs) In the above media Internet is cheapest and most reachable media for
Export Promotion. For internet promotion Exporters should be Visible on Different
Business Directories, B2B Directories, and also on Search Engines.
In the U.S., the U.S. Department of Commerce provides U.S. companies the
opportunity to promote their products and services for free.The Export Yellow
Pages The Export Yellow Pages is published online and in print and is delivered to
embassies, trade centers, consulates, and associations worldwide.
There are Few Global B2B directories and also Country specific Directories. U.S.A-
Kelly Search India- Tradeget China- Alibaba
Mercantilists advocated that government policy directly arrange the flow of
commerce to conform to their beliefs. They sought a highly interventionist
agenda, using taxes on trade to manipulate the balance of trade or commodity
composition of trade in favor of the home country.
Mercantilism, the first systematic body of thought devoted to international trade,
emerged during the 17th and 18th centuries in Europe. While most views
surfacing from this school of thought differed, a commonly argued key objective
of trade was to promote a "favorable" balance of trade, referring to a time when
the value of domestic goods exported exceeds the value of foreign goods
imported. The "favorable" balance in turn created a balance of trade surplus.
Mercantilists advocated that government policy directly arrange the flow of
commerce to conform to their beliefs. They sought a highly interventionist
agenda, using taxes on trade to manipulate the balance of trade or commodity
composition of trade in favor of the home country
Processing Of An Export Order Preshipment
INTRODUCTION
Remedies
Arbitration it will not be out of place to mention here the importance of
arbitration clause in an export contract
Court proceedings do not offer a satisfactory method for settlement of
commercial disputes, as they involve inevitable delays, costs and technicalities.
On the other hand, arbitration provides an economic, expeditious and informal
remedy for settlement of commercial disputes. Arbitration proceedings are
conducted in privacy and the awards are kept confidential. The Arbitrator is
usually an expert in the subject matter of the dispute. The dates for arbitration
meetings are fixed with the convenience of all concerned. Thus, arbitration is the
most suitable way for settlements of commercial disputes and it may invariably
be used by businessmen in their commercial dealings.
Timely and adequate credit facilities, at the pre-shipment as well as post-
shipment stage, are essential for exporters to realize their full export potential.
Exporters may not, however, be able to obtain such facilities from their bankers
for several reasons, e.g., the exporter may be relatively new to export business,
the extent of facilities needed by him may be out of proportion to the equity of
the firms or the value of collateral's offered by the exporter may be inadequate.
The exporter should scrutinize the export order with reference to the terms and
conditions of the contract. This is the most crucial stage. Therefore, it is
necessary for carrying on business transactions smoothly and profitably that the
area of disputes during performance of contracts is narrowed down and provision
is made for amicable and quick settlement of disputes that may still arise. Such
details of transaction along with agreed terms and condition are recorded and
signed by both exporter and importer, to form a contract.
The most important documents that are usally demanded by the importer bank
are
• Bill of Exchange
• Commercial Invoice
• On-board Clean Bill Of Lading
• The exporter should confirm the Export Order only the terms and conditions
of the L/C have been found to be in order.
The export purchase order should be examines carefully and its contents
scrutinized in terms of the Proforma Invoice/ contract sent to the foreign buyer,
on the following aspects.
1. Items (Product)
2. Size and Specifications should be same as per offer/ quotation
3. Preshipment Inspection should be either by exporter himself or an agency
easily available.
4. Payment conditions are same as stipulated.
5. Special packaging, labeling and marketing requirements, if any, should be
noted for compliance
6. Shipment and delivery date is in conformity with the exporters production
plans whether:
• Part shipment is allowed.
• Trans-shipment is permissible or not.
• Port of shipment/ destination is same or changed.
7. Documents particularly those, which are required with the bill of exchange.
8. Guarantee /warrantee clause should be same as per quotation/offer.
9. Force Majeure
10. Arbitration as per Indian arbitration clause for international contracts or
other acceptable international clauses as agreed between the parties.
Second Stage
As soon as the export order has been confirmed, preparations for the dispatch of
goods are stated. A ‘delivery note’ (in duplicate) is sent to the work manager or
the Factory Manager. This note should contain the description of the goods as
Third Stage
As soon as the export order has been confirmed or finalized, preparations are
made for the production or procurement of the goods to be exported. The
manufacture-exporter has to raise an internal indent on the production
department/division, which may also be sent either to the works manager or the
factory manager. The indent should contain the description of the goods given in
the export order, together with a copy of the instructions given by the importer.
The order details, such as the date by which the goods must be manufactured,
the date by which necessary formalities must be completed the date of shipment,
etc. are also mentioned. A merchant-exporter has either to obtain the required
goods from the market or to get them manufactured from other domestic
manufactures.
As soon as the goods have been manufactured or procured, the following
procedures are to be followed.
1. The clearance of the Excise Authorities has to be obtained. This can be
done in two ways.
• The first way is to make payment of the excise duty at the time of
removing the export consignment from the factory and file a claim for rebate of
duty after exportation of goods.
• The second’s way is to secure clearance under bond. This involves
entering into a bond under such terms and conditions as the collector of customs
may decide. When the export goods are removed from the factory, a debit entry
for excise duty is made in the Bond account of the exporter. This obligation is
Fifth Stage
If the item being exported requires an export license the same s the export
purchase order should be examines carefully and its contents scrutinized in
terms of the Proforma Invoice/ contract sent to the foreign buyer, on the
following aspects.
11. Items (Product)
12. Size and Specifications should be same as per offer/ quotation
13. Preshipment Inspection should be either by exporter himself or an agency
easily available.
14. Payment conditions are same as stipulated.
15. Special packaging, labeling and marketing requirements, if any, should be
noted for compliance
16. Shipment and delivery date is in conformity with the exporters production
plans whether:
• Part shipment is allowed.
• Trans-shipment is permissible or not.
• Port of shipment/ destination is same or changed.
17. Documents particularly those, which are required with the bill of exchange.
18. Guarantee /warrantee clause should be same as per quotation/offer.
19. Force Majeure
An undertaking that the advance will be utilized for the specific purpose of
procuring/manufacturing/shipping etc., of the goods meant for export only, as
stated in the relative confirmed export order or the L/C.
Eighteenth Stage
Advance License /special license
The exporter should file an application to the licensing authority for an advance
license/special license in accordance with the export-import policy of the country
at that point of time.
Cargo ship
Container ship
A cargo ship or freighter is any sort of ship or vessel that carries cargo, goods,
and materials from one port to another. Thousands of cargo carriers ply the
world's seas and oceans each year; they handle the bulk of international trade.
Cargo ships are usually specially designed for the task, often being equipped with
cranes and other mechanisms to load and unload, and come in all sizes. Today,
they are almost always built of welded steel, and with some exceptions generally
have a life expectancy of 25 to 30 years before being scrapped.
Types
Specialized types of cargo vessels include container ships and bulk carriers
(technically tankers of all sizes are cargo ships, although they are routinely
thought of as a separate category).
History
The earliest records of waterborne activity mention the carriage of items for
trade; the evidence of history and archaeology shows the practice to be
widespread by the beginning of the 1st millennium BC. The desire to operate
trade routes over longer distances and at more seasons of the year motivated
improvements in ship design during the Middle Ages.
Definitions
While the definitions have become "cross-pollinated" over the years, "cargo"
technically refers to the goods carried aboard the ship for hire, while "freight"
refers to the compensation the ship or charterer receives for carrying the cargo.
Generally, the modern ocean shipping business is divided into two classes:
1. Liner business: typically (but not exclusively) container vessels (wherein
"general cargo" is carried in 20 or 40-foot "boxes"), operating as "common
carriers", calling a regularly-published schedule of ports. A common carrier refers
to a regulated service where any member of the public may book cargo for
shipment, according to long-established and internationally agreed rules.
2. Tramp-tanker business: generally this is private business arranged between
the shipper and receiver and facilitated by the vessel owners or operators, who
offer their vessels for hire to carry bulk (dry or liquid) or break bulk (cargoes with
individually handled pieces) to any suitable port(s) in the world, according to a
specifically drawn contract, called a charter party.
Larger cargo ships are generally operated by shipping lines: companies that
specialize in the handling of cargo in general. Smaller vessels, such as coasters,
are often owned by their operators.
Vessel prefixes: Before the vessel's name will be found a category designation.
Naval ships, for example, will have "USS" (United States Ship), "HMS" (Her/His
of these boats are so large that they cannot leave the lakes because they do not
fit into the locks on the Saint Lawrence Seaway.
Sizes of cargo ships
Cargo ships are categorized partly by their capacity, partly by their weight, and
partly by their dimensions (often with reference to the various canals and canal
locks through which they can travel). Some common categories include:
Small Handy size, carriers of 20,000-28,000 deadweight tonnage
Handy size, carriers of 28,000-40,000 deadweight tonnage
Handymax, carriers of 40,000-50,000 dwt
Seawaymax, the largest size which can traverse the St Lawrence Seaway
Aframax, oil tankers between 75,000 and 115,000 dwt. This is the largest
size defined by the average freight rate assessment (AFRA) scheme.
Suezmax, the largest size which can traverse the Suez Canal
Panamax, the largest size which can traverse the Panama Canal
(generally: vessels with a width smaller than 32.2 meter)
Containerization
Containerization
Containerization is a system of intermodal freight transport cargo transport
using standard ISO containers (known as Shipping Containers or Isotainers)
that can be loaded and sealed intact onto container ships, railroad cars, planes,
and trucks.
Containerization is also the term given to the process of determining the best
carton, box or pallet to be used to ship a single item or number of items.
ISO container dimensions and payloads
There are five common standard lengths, 20-ft (6.1 m), 40-ft (12.2 m), 45-ft (13.7
m), 48-ft (14.6 m), and 53-ft (16.2 m). United States domestic standard
containers are generally 48-ft and 53-ft (rail and truck). Container capacity is
measured in
45′ high-cube
20′ container 40′ container
container
imperi metri imperi metri imperi metri
al c al c al c
external lengt 20′ 4″ 6.058 40′ 0″ 12.19 45′ 0″ 13.71
regulatory oversight was cut back (and later abolished in 1995), trucking and rail
were deregulated in the 1970s and maritime rates were deregulated in 1984.
Containerization has revolutionized cargo shipping. Today, approximately 90% of
non-bulk cargo worldwide moves by containers stacked on transport ships; 26%
of all containers originate from China. As of 2005, some 18 million total
containers make over 200 million trips per year. There are ships that can carry
over 14,500 TEU ("Emma Mærsk", 396 m long, launched August 2006). It has
even been predicted that, at some point, container ships will be constrained in
size only by the Straits of Malacca—one of the world's busiest shipping lanes—
linking the Indian Ocean to the Pacific Ocean. This so-called Malaccamax size
constrains a ship to dimensions of 470 m in length and 60 m wide (1542 feet *
197 feet).
However, few initially foresaw the extent of the influence containerization would
bring to the shipping industry. In the 1950s, Harvard University economist
Benjamin Chinitz predicted that containerization would benefit New York by
allowing it to ship industrial goods produced there more cheaply to the Southern
United States than other areas, but did not anticipate that containerization might
make it cheaper to import such goods from abroad. Most economic studies of
containerization merely assumed that shipping companies would begin to replace
older forms of transportation with containerization, but did not predict that the
process of containerization itself would have some influence on producers and
the extent of trading.
A converted container used as an office at a building site.
The widespread use of ISO standard containers has driven modifications in other
freight-moving standards, gradually forcing removable truck bodies or swap
bodies into the standard sizes and shapes (though without the strength needed
to be stacked), and changing completely the worldwide use of freight pallets that
fit into ISO containers or into commercial vehicles.
track known as standard gauge but many countries like Russia, Finland and Spain
use broader gauges while other many countries in Africa and South America use
narrower gauges on their networks. The use of container trains in all these
countries makes trans-shipment between different gauge trains easier, with
automatic or semi-automatic equipment.
Some of the largest global companies containerizing containers today are Patrick
Global Shipping, Bowen Exports and Theiler & Sons Goods, LLC.
Loss at sea
Containers occasionally fall from the ships that carry them, something that
occurs an estimated 2,000 to 10,000 times each year. For instance, on November
30, 2006, a container washed ashore on the Outer Banks of North Carolina, along
with thousands of bags of its cargo of tortilla chips. Containers lost at sea do not
necessarily sink, but seldom float very high out of the water, making them a
shipping hazard that is difficult to detect. Freight from lost containers has
provided oceanographers with unexpected opportunities to track global ocean
currents, notably a cargo of Friendly Floatees.
Double-stack containerization
A railroad car with a 20' tank container and a conventional 20' container.
Most flatcars cannot carry more than one standard 40 foot container, but if the
rail line has been built with sufficient vertical clearance, a well car can accept a
World container growth appears to have been even more impressive than in
North America alone. One major independent shipping consultancy estimates
that growth in container volumes has exceeded 10% annually over the last 15
years. It predicts that container demand worldwide will nearly double by 2015,
as shown in Table 1.
As can be seen in Table 1, Asia is by far the largest market for containers in the
world and is expected to continue to grow rapidly. Through 2015, exceptional
growth in container demand is expected in the sub-regions of Southeast Asia,
Central and South America, South Europe and the Mediterranean as well as the
Middle East and the Indian subcontinent. The source of the figures in Table 1 is
less bullish about the North American market than the forecast in Figure 1,
predicting approximately 75% growth in container demand through 2015.
As container demand has grown, the size of container vessels has also increased
impressively. The world’s largest container ship in the early 1980scarried some
3,400 TEUs, compared to the largest container ships in recent years which can
carry about 9,200. The rapid evolution of container ships is due to the significant
efficiency gains and cost savings associated with operating larger ships. Today,
the vessels calling at ports commonly carry between 6,000 and 8,000 TEUs, but
the evolution continues as 9,600-TEU vessels are currently under construction.
Some predict that the next jump in ship size will be to 12,000 TEUs but that it will
require advances in propulsion technology to be economically viable. Ultimately,
the depth of the Malacca Strait between Indonesia and Malaysia is expected to
be the constraint on future ship capacity, limiting it to around 18,000 TEUs.
(D) SHIPMENT
* (i) Basis of Shipment
EXW : FOB : CFR : DES : DEQ
Any other (specify)
(ii) Period of shipment
Not earlier than …………..
Not later than …………….
The risk shall finally pass from the severs Buyers when the good are delivered
at the Seller’s place of work OR when the goods pass the ship’s rail
and are covered by insurance as per the terms. But, the property in the
goods shall finally pass to the Buyers only after payment has been made.
(I) FORCE MAJEURE
Sellers shall not be responsible for any delay in the performance of this
contract due to any of the causes or circumstances beyond their control such
as Act of God, War, Riots, Strikes, Civil Commotion, Lockouts, Act of State,
(J) ARBITRATION
All disputes arising under, out of or in connection with this contrct shall be
finally settled by ARBITRATION by …………………… (name of
Arbitration(s) / Arbitral institution).
2. Any other special conditions, prevalent in or relevant to the
particular line of trade or trade transaction may be specified.
CHAPTER-4
CHAPTER-4
MARKETING STRATEGY
SWOT Analysis
Our strategy must take account of how our business' strengths and weaknesses
will affect your marketing.
Begin our marketing strategy document with an honest and rigorous SWOT
analysis, looking at your strengths, weaknesses, opportunities and threats.
Strengths could include:
personal and flexible customer service
special features or benefits that our product offers
specialist skills
Weaknesses could include:
lack of an established reputation
newly formed company.
Opportunities could include:
increased demand from a particular market sector
Having done our analysis, we can then measure the potential effects each
element may have on our marketing strategy.
For example, if new regulations will increase the cost of competing in a market
where we are already weak, we might want to look for other opportunities. On
the other hand, if we have a good reputation and our key competitor is
struggling, the regulations might present the opportunity to push aggressively for
new customers.
research to find out more about our target customers' mindset and what they
want. We used all the information to create a marketing strategy with clear
objectives. These included developing our network of partnerships, raising brand
awareness, positioning ourselves as strategic thinkers in our market, and getting
more business through referrals."
Work to a plan
"With clear objectives in mind, writing and implementing a marketing plan was
easier. We changed our marketing mix and our approach:
Our printed newsletter, our main direct marketing method, our advertising and
customer research was made more customer-focused by including market
briefings. Feedback has improved and we've had several approaches from new
clients who've received it.
Beside cold calling, we stepped up marketing via our network of partners. We
provided them with clear information so that they could promote all our services
CHAPTER-5
Board
Regional
Director Regional Regional
Director Director
(NI and (SI) (WI)
EI)
Service
Docs Docs Svc
Finance,
Admin &
HR
Domescti Internatio
c A/c nal A/c
CHAPTER - 6
CHAPTER-6
GOVERNMENT POLICIES
(f) to the power refineries not covered above and coal, hydrocarbon, rail, road,
port, civil aviation, bridges and other infrastructure projects provided minimum
specific investment is Rs 1000 million or more
(g) marine freight containers supplied by 100% EOU (Domestic freight
containers-manufacturers) provided the said containers are exported out of India
within 6 months or such further period as permitted by the Customs
(h) to projects funded by UN agencies
CHAPTER-7
CHAPTER-7
TAX ASPECTS
the Central Sales Tax law and Sec 5 of CST defines “in course of Export” and “in
course of Import”.
Section 5 of CST:
When a sale or purchase of goods said to take place “in course of Import or
Export”.
Clause 1: A sale or purchase of goods shall be deemed to take place “in course
of Export” of the goods out of the territory of India only if the sale / purchase
either occasions such export or is affected by a transfer of documents of title to
the goods after the goods have crossed the customs frontier of India.
The two conditions are:
When sales / purchase occasions the export i.e. a contract is signed
between Indian exporter and Foreign importer.
When goods have been loaded and crossed the customs frontier of India
and document of title (B/L) is endorsed in favour of buyer.
Clause 2: A sale / purchase of goods shall be deemed to take place “in the
course of Import” of the goods into the territory of India only if a sale /
purchase either occasions such import is affected by the transfer of documents of
title to the goods before the goods have crossed the customs frontiers of India
i.e. 12 nautical miles.
Sales Tax Authority thought that they were not able to collect adequate tax so
case came to Supreme Court “Sirajuddin case”. He was an iron ore mine
owner and exporting goods not directly but there a PSU i.e. STC, STC purchased it
from him and then exported. This local purchase and export were exempted from
this problem so representatives made and GOI found that state showed decline in
exports. Relief given was in way of amendment of the CST Act 1976. A plea was
taken before Supreme Court that a term “in course of export / import” has been
used on constitution i.e. the intention of Parliament is to involve many
transactions (local, export/import) but Supreme Court did not accept it and said
that intention of Parliament was frustrated.
purchases can be done from the local suppliers and all such purchases will be
exempted from Sales Tax.
3. A provision should be made for escalation of the price of the goods under
certain circumstances. Such contingencies should be specifically provided in the
contract.
4. In order to protect himself from the delay or non-supply of the material due
to causes beyond his control, there should be a Force Majeure Clause.
5. In order to resolve any dispute or difference that may arise under the
contract, that matter should be referred to arbitration in the exporting country.
AUTHORISED PERSON
RBI may on an application authorize any person to be known as authorized
person to deal in forex or in foreign securities. The authority given to an
authorized person may be revoked by RBI at any time if it is in public interest to
do so or if the authorized person failed to comply with the conditions prescribed
for the authorized person or if he contravenes any of the provisions of the Act, or
any rule, regulation, notifications, directions or orders. RBI may at any time order
for an inspection to be made by any officer of the RBI.
Penalties
with the country providing the capital revenue with the country providing the
capital. It also embodies the idea that the resident country may extent a measure
of relief from double taxation through either the foreign tax credit or exemption
method. The Sub-section 1 of Section 90 of the Income Tax Act enables the
Central Government to enter into an agreement with the government of the other
country not merely for avoidance of double taxation of income but also on the
ground of relief in respect of income on which income tax has been paid in both
countries. It also helps in exchange of information for counter acting tax
avoidance and evasion. A person is resident in India if he spends 182 days in
India and in the year previous to any assessment year i.e. the year income of
which is the subject matter of assessment. Anyone whether or not he is Indian
citizen who has been found resident on this basis during nine out of ten years
with the commitment made by India at the UN Convention against the illicit
traffic in Narcotics and Drugs. The Basely Statement to which India is a party
seeks to prevent laundering of money.
CHAPTER-8
CHAPTER-8
OBJECTIVES
To study the reasons causing mushrooming of logistics in India.
To study the contribution of exporter and importer in the growth of logistics
in India.
To study the factor which affect the growth of NVOCC and freight
forwarder.
To find the strength and weaknesses of NVOCC in India.
To study the marketing strategy followed by NVOCC and freight forwarders.
To know the factor which affect freight forwarder and MNCs to choose their
service provider.
CHAPTER-9
Chapter-9
RESEARCH METHODOLOGY
Methodology is the key to any kind research. It helps to maintain a track of what
to do and not to do. It has various approaches to it. A good methodology works
as a strong plan for collecting both primary and secondary data. There are
different ways of adopting good methodology. There are two main ways to collect
data, which is, primary and secondary. In fact, both are necessary to provide a
balanced study on any kind of research.
STATEMENT OF OBJECTIVES
To find the possibility growth of logistics in India.
To find the strength and weaknesses of NVOCC in India.
To study the marketing strategy followed by NVOCC and freight forwarders.
To know the factor which affect freight forwarder and MNCs to choose their
Service provider.
Secondary Research
The data collected through this research is that data, which has already been
collected by someone for a different purpose. In other words, the secondary data
is someone else's work, which is shared by other people as a view to their
perceptions and research work. Most research requires the collection of primary
data to be supported with the secondary data. In other words, it is always a good
idea to use other people's point of view as it can contribute to support the
findings considerably.
Initially, the author undertook the secondary research in order to cover literature
review for his dissertation. Through secondary research author was also able to
Primary Research
This research follows the procedure of collecting the data through interviews,
questionnaires, observation, Case studies, diaries, portfolios, etc. In fact this
research is called primary because it is the initial step which the author has to
take in order to begin the research. Two techniques has been used by the author
for this research namely questionnaires and interviews. This technique help in
generating qualitative data. The reason why author has chosen questionnaire as
one of the method of collecting primary data is that it is relatively cheap and can
be accessible through post e-mail, fax, etc. Also it is an effective means through
which one can explore the others mind. (Module Study Guide]. The author took
interviews with employees of the four hotels and the managers in order to give
the qualitative feedback. This method of qualitative data is most useful as it
gives insight into how individuals or groups think about their surroundings. It
helps in identifying and assessing emotions, values and attitude of interviewer.
This also helps to get the accurate information from the primary research.
Special efforts were made to seek out different areas to gain a better perspective
of the distributors.
RESEARCH DESIGN
There exist two types of research. These types can broadly be classified as
follows:
1. Exploratory, and
2. Conclusive
Exploratory research seeks to discover new relationship and establish
hypothesis. While conclusive research is designed to help choose among various
possible courses of action that is to make decisions.
CHAPTER-10
MARKETING STRATEGY
Marketing strategy is a set of objective polices and rules that leas the company's
marketing efforts. It is the marketing approach to accomplish the bread objective
of the marketing plan. The various of marketing strategy are given below.
1. Selecting largest markets segmentation.
2. Positioning
3. Product
4. Price
5. Place
6. Promotion
7. Research and Development
8. Marketing research
3. Product: - A product is any offering that can satisfy a need or want. The
major types of basic offering are goods services, experiences, events, places,
properties, organization, information and ideas. The company gives more
importance in- quality, packaging, services etc to satisfy the customers. The
product has its life cycle. The product strategic is modified in different stages of
product life cycle.
CHAPTER-11
CHAPTER-11
SYNOPSIS
Designation : Manager
Sample size : 65
CHAPTER-12
This part of the chapter consists of research work which work which has been
undertaken by the researcher before discussing in detail let us have the clear
view of some basic concept, Marketing, Marketing Research, Questionnaire,
Meaning of Survey & its Methods, Meaning of Feedback how it is important.
Marketing
Marketing is getting right goods and services to the right people and to the right
place at the right time at the right price using the right promotional technique.
According to famous marketing guru ‘Philip Kotler’ “Marketing is a human activity
directed at satisfying needs and wants through exchange process”
Marketing Research
The American Marketing Association has defined Marketing Research as “The
Systematic gathering, Recording, and Analyzing of the data about problems
relating to the marketing of goods and services”
Market Research is only a part of the marketing research and covers only a few
aspects of marketing; it is only a sub-function of marketing research. Marketing
Research is only research in to market. It cover the aspects regarding size and
nature of the market including export market, dividing the customer in term of
age, sex, income (Market Segmentation) economic aspect of marketing etc.
Therefore Marketing Research may be defined as the systematic investigation of
the facts relevant to various aspect in marketing. The basic purpose of decision
making process.
CHAPTER-13
Type
As per the graph about 66% of the respondent provide both Export & Import
logistics solution to the customer.
As per the graph is concern it shows that 74% of the customer use both Air
& Sea as the mode of freight solution.
20% of the customer use Sea as the mode of freight solution.
And very less % use Air as mode of freight solution.
So from the above point it is being concluded that maximum of customer use
both mode of the freight solution.
70
ANALYSIS: -
ANALYSIS: -
CHAPTER-14
CHAPTER-15
LIMITATIONS
Throughout the study utmost care has been taken to avoid biases, errors so as
to ensure authenticity and accuracy. But there is possibility for some
discrepancies to come in between due to following limitations:
Respondents may give their biased opinion, as they know the identity of
interviewer.
Assumption is made that views and suggestion given by the respondent are
his own perception and idea.
The study is not free from sampling error
Seasonal changes in sales figures may affect the quantitative data. ,
A person tends to lie if he is being noticed and since the questionnaire was
targeted on mature persons the veracity of the answer cannot be granted.
Last but not the least and the most deciding factor paucity of time.
CHAPTER-16
MAJOR PROBLEM
Over the past decade, India has been one of the fastest-growing economies in
the world – only second after China. India has witnessed tremendous growth not
only in the domestic front but also on the export front. For Indian industry, the
future is expected to be even better than the recent past and as per most
projections. India will be the fastest growing of the world's major economies.
Unfortunately, this growth has not been facilitated by the Logistics industry, but
has happened largely despite it. This impressive growth story would not be
sustainable if the Logistics industry does not improve its performance and
provide credible support to the Indian industry. Beyond all this hype and euphoria
about the India growth story, given the realities of the Indian Logistics industry,
we need to critically examine the capability of Indian Logistics industry to support
demand placed on it in the future. Though direct logistics cost in India is not very
high but if one includes indirect, hidden and opportunity costs paid by the
industry because of poor service, logistics is likely to become the biggest
bottleneck for India’s growth.
The major hurdles faced by India’s Logistics industry are:
�lack of standards and processes within the industry,
� inadequate infrastructure,
� ineffective usage of information technology, and
� lack of skilled manpower.
Improving efficiency and effectiveness of Indian logistics is going to be a
Herculean task and would require concerted efforts on the part of all the
stakeholders including government and industry bodies. Though on the whole,
the Logistics industry suffers from poor image, there have been several success
stories where it has performed well by adopting good practices and industries.
CHAPTER-17
FUTURE ASPECTS
India is already a heavyweight globally in the services sector. Manufacturing still
makes up only a relatively small proportion of GDP—about 20 per cent compared
to China’s 45 per cent—but it is growing, both in terms of domestic focus and
exports. India’s container trade has been growing at around 15 per cent over the
past five years. That means the logistics services business will be growing at a
multiple of the box trade, probably around 20 per cent and more per year. The
growth in demand presents significant opportunities for the logistics industry, as
also challenges.
India’s current trade profile provides important clues about the development of
logistics industry.The US is the biggest origin and destination market for both
import and export and China is rapidly rising on both fronts. But the key fact is
that a big chunk of India’s trade remains confined to textile products and apparel,
low-end manufacturing, with imports naturally dominated by raw materials. A big
part of the manufacturing sector has been focused on the domestic market.
In some areas, notably, apparel exports, there is vital emphasis on logistics and
speed to market for the delivery of time-dependent ‘perishable’ goods. For the
bulk of trade into and out of India, it is not the case; relatively inefficient,
individual transport services can be cobbled together to get goods to the market.
This will change. As the trade profile changes, so will the need for more reliable,
seamless supply chain solutions that offer real-time visibility along the pipeline.
We have seen in other locations globally that the key driver of demand for world-
class logistics services is a critical mass of MNCs whose bottomline success
requires low-cost manufacturing locations, connected to highly efficient supply
lines. Secondly, some pieces of hardware are either missing or not up to the
global standards. Ports, for example, are for the most part choked up or not set
up for increased container transportation. Road and rail connectivity is patchy
CHAPTER-18
CHAPTER-19
CHAPTER-19
BIBLIOGRAPHY
CHAPTER-20
CHAPTER-20
WORD OF THANKS
I pay my heartly regards to the regards to the chairman Dr. D.K.Garg ,
IIMT,Greater Noida , our Dean Mr. M.K.Verma and the Placement co-
ordinator Mr.Gyanesh Sinha for lending me their kind support for completion
of my Project. I would like to give thanks to all those who financially , morally
support me during the project work.
I am very much thankful to the Management of “GLOBAL
LOGISTICS SOLUTION”. Especially to Mr. AJIT BISWAS & Ms. SONA HANDA
whose cooperation and guidance was a milestone in completion of the project
work. I am also thankful to all the staff of GLOBAL LOGISTICS SOLUTION
who helped me lot in preparing the summer project.
Though I have tried my level best in doing such kind of project even then I can
not done any mistake that would have occurred during any project work.
I would like to welcome any type of suggestion from the side of readers , so that
I may correct anomalies , if any.
NISHA
SINGH
CHAPTER-21
CHAPTER-21
ANNEXURE
CHAPTER IV
RESPONSIBILITIES AND LIABILITIES OF THE MULTIMODAL TRANSPORT OPERATOR
13. (1)The multimodal transport operator shall be liable for loss resulting
from––
(a) any loss, of, or damage to, the consignment;
(b) delay in delivery of the consignment and any consequential loss or damage
arising from such delay, where such loss, damage or delay in delivery took
place while the consignment was in his charge;
Provided that the multimodal transport operator shall not be liable if he proves
that no fault or neglect on his part or that of his servants or agents had caused
or contributed to such loss, damage or delay in delivery;
Provided further that the multimodal transport operator shall not be liable for
loss or damage arising out of delay in delivery unless the consignor had made a
declaration of interest in timely delivery which has been accepted by the
multimodal transport operator.
Explanation –– for the purposes of this sub-section, “delay in delivery” shall be
deemed to occur when the consignment has not been delivered within the time
expressly agreed upon or, in the absence of such agreement, within a
reasonable time required by a diligent multimodel transport operator, having
regard to the circumstances of the case to effect the delivery of the
consignment.
(2) If the consignment has not bee delivered within ninety consecutive days
following the date of delivery expressly agreed upon or their reasonable time
referred to in the Explanation to sub-section (1) the claimant may treat the
consignment as lost.
14. (1) Where a multimodal transport operator becomes liable for any loss
of, or damage to, any consignment, the nature and value whereof have not been
declared by the consigner before such consignment has been taken in charge
SCHEDULE
RULES RELATING TO BILLS OF LADING
ARTICLE - 1- DEFINITIONS
In these Rules the following expressions have the meaning hereby
assigned to them respectively, that is to say:
a) “Carrier” includes the owner or the character who enters into a contract of
carriage with a shipper.
b) “Contract of Carriage” applies only to contract carriage covered by a bill of
lading or any similar document of title, in so far as such document relates to the
carriage of goods by sea including any aforesaid issued under or pursuant to a
charter party from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of the
same.
c) “Goods” includes goods, wares, merchandises and articles of every kind
whatsoever, except live animals and cargo which by the contract of carriage is
stated as being on dock and is so carried.
d) “Ship” means any vessel used for the carriage of goods by sea;
e) “Carriage of goods” covers the period from the time when the goods are
loaded on to the time when they are discharged from the ship.
The Notice in writing need not be given if the state of the goods has not
the time of their receipt been the subject of joint survey or finspection.
In any event the carrier and the ship shall be discharged from all liability in
respect of loss or damage unless suit is brought within one year after delivery of
goods or the date when the goods should have been delivered.
In the case of any actual or apprehended loss damage, the carrier and the
receiver shall give all reasonable facilities to each other for inspecting and
tallying the goods.
3. The shipper shall not be responsible for loss or damage sustained by the
carrier or the ship arising or resulting from any cause without the act, fault or
neglect of the shipper, his agents or his servants.
ARTICLE – IX
The monetaryfd units mentioned in these Rules are to be taken to be gold
value.
Agent
In countries where we do not have a service centre, we may require assistance
from one of our trusted partner agents for the purpose of performing origin,
freight/transport, or destination services on our behalf.
Bill of lading
Document giving proof of particular goods having been loaded on a ship. The bill
of lading is normally required in order to obtain the release of the goods at
arrival. For air freight, there is an airway bill.
Carrier
The company providing the freight and transport for your household goods.
Crew foreman
One person in each team will have overall responsibility for managing the crew
during the packing/loading, or unloading/unpacking of the customer’s belongings.
Customs clearance
Customs formalities to be completed at origin, in transit and at destination.
Demurrage
Cost imposed at port for storage.
Estimate
One of the main purposes of the pre-move survey is to estimate the shipment
volume/weight, this will then provide the basis for our quotation/proposal.
FIDI
The moving industry association of international moving companies, responsible
for providing a forum for the advancement of integrity, quality and mutual co-
operation for those companies focused on the intercontinental movement of
household effects.
FAIM
FAIM is an independent quality assurance standard dedicated to international
moving. The standard has been developed under the title of FIDI-FAIM (FIDI
Accredited International Mover) and covers two levels: FIDI-FAIM (the standard
level of certification) and FIDIFAIMISO (which requires a higher pass mark).
Inventory
If your household goods and personal effects are insured through your mover,
you should receive documentation including the insurance terms and conditions.
These will detail exactly what is covered by the insurance policy. You will also be
required to provide a list of the items to be insured
Insurance
If your household goods and personal effects are insured through your mover,
you should receive documentation including the insurance terms and conditions.
These will detail exactly what is covered by the insurance policy. You will also be
required to provide a list of the items to be insured(see Valuation).
Ladder lift
A ladder lift is a piece of specialist machinery sometimes required to load heavy
goods from high places such as a high window.
Long carry
This is an additional charge payable for carrying articles longer distances
between the mover’s vehicle and your residence.
Measurement
The industry standard uses: Cft – cubic feet, Cbm – cubic metres, Lbs – pounds
and Kgs – kilograms.
Order/tracking number
The number used to identify and track your shipment.
Origin agent
In countries where we do not have a service centre, we may require assistance
from one of our trusted partner agents for the purpose of performing origin and
freight/transport services on our behalf.
Packing inventory
A detailed list of your household goods that will be compiled by the packing crew
prior to loading your shipment and which shows the condition of each item.
Pre-move survey
The visit to your home, which enables us to discuss and assess your
requirements and to estimate the volume/weight of goods to be shipped.
Quotation/proposal
The document in which we outline our services and charges to move your
household goods.
Quotation/proposal acceptance
Your written agreement accepting our quotation/proposal.
Stair carry
An extra charge for carrying items up or down more than one flight of stairs.
Transit time
The estimated time that your move will take from door to door, in working days
(eg Monday to Friday).
Valuation
Generally provided for insurance, this would be your estimated value of
household goods and personal effects to be transported and/or stored.
Warehouse handling
An additional charge applicable when goods are received into storage. This
charge compensates the mover for the additional handling and physical
placement of items within the warehouse.