Professional Documents
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DECLARATION
I RUSHIKESH SURESH JOSHI hereby declare that the project entitled A COMPREHENSIVE STUDY ON LOGISTIC MANAGEMENT AT DECCAN 360 being submitted herewith for the partial fulfillment of MASTERS IN BUSINESS ADMINISTRATION . This project is an original work completed by us under supervision and guidance of my project guide.
The subject matter contained in this project report is researched over the period of two months. To the best of my knowledge and belief, the work embodied in this project has not been submitted earlier for the any other course to any other Institution\University.
Place:
Nagpur
Date:
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THROUGH
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ACKNOWLEDGEMENT
Researcher is thankful to management of DECCAN 360 [Deccan Cargo & Express Logistics] for granting him permission for summer training program in the International Business Management department at Nagpur Office.
Researcher is glad to express his gratitude to his guide Prof. Mrs. Aparna Samudra for their guidance, suggestion, constructive criticism and persistence encouragement.
Researcher owes a lot to Mr. Shaibal Mazumdar Sir (Sr. Manager, Deccan 360 and Nagpur Hub) for Managerial assistance and encouragement throughout the project.
Words are in no measure to express his deep sense of gratitude to Mr. Shailesh Deshpande, Sumit Shende, Aniket Totwani, Aamir Khan who has been source of inspiration and backbone of this project.
Last but not the least, I would also like thank Senior Security Team members under the head of Mr. Suraj Mahajan and the members from the NSP (GHA for DECCAN 360, Nagpur Hub) and Mr. Abhishek Tiwari (Network Engineer, HCL Infosystem ltd) for their co-operation and showing interest in the project respectively.
INDEX
Sr. No. 1. 2. 3.
CONTENTS EXECUTIVE SUMMARY INTRODUCTION TO LOGISTICS MANAGEMENT COMPANY PROFILE RESEARCH METHODOLOGY A. OBJECTIVES OF THE STUDY
Pg. No.
4. 5. 6. 7. 8. 9.
B. SCOPE AND LIMITATIONS DATA ANALYSIS AND INTERPRETATION OBSERVATIONS AND FINDINGS CONCLUSION ANNEXURE BIBLIOGRAPHY
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
The DECCAN 360 [Deccan Cargo & Express Logistics] is providing the cargo air freight logistics services all over India , and is the first Indian Logistics Management company which has the Hub-andSpoke distribution model At Nagpur (Maharashtra).
The broad objective of the project is to study the Logistics Management at Deccan 360 Nagpur Hub.[Deccan Cargo & Express Logistics] Deccan 360 provides services to the customers which includes both the Industrial as well as the Personal level customers which are in need of the Urgent and Cost efficient transportation of their cargo within and/or outside India. DECCAN 360 also provides the various services listed and explained in the fallowing section.
Other than the services provided by Deccan 360 at Nagpur hub, the actual cargo loading and unloading at the ramp is quite interesting as well as Risky, as a single little mistake can be a big problem for both customer and also the company. Thus all the work at ramp is carried out with the Responsibility and with the pressure of efficiency.
Thus not only the Cargo handling at the ramp is essential but also the other related documentary works as well as the security check, Nagpur joining etc... also have to take in mind as these also plays an important role in the overall management activities. Thus Cargo Management strategy should be concerned with long term development. It is not only concerned with particular flight at particular airport but also with possibility of new market to be developed for futures. While implementing the efficient cargo
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management strategy organization should consider allocation of resources with proper control.
This training has given me enough opportunity to brush my various skills and it also help a lot to practically implement the theoretical knowledge. Each and every night of my training in DECCAN 360 was a learning experience for me.
Researcher had experienced both success and failure. Success acted as an encouragement to fight against all the odds, each mistakes and failure bought with itself the lesson to learn and never repeat the act.
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Logistics The term logistics comes from the Greek logos (), meaning "speech, reason, ratio, rationality, language, phrase", and more specifically from the Greek word logistiki (), meaning accounting and financial organization
DEFINITION Logistics is the management of the flow of the goods, information and other resources in a repair cycle between the point of origin and the point of consumption in order to meet the requirements of customers.
Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. -- (Logistix Partners Oy, Helsinki, FI, 1996)
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 customer and legal requirements. It includes 1. 2. 3. 4. 5. Integration of information Transportation Inventory Warehousing, Material handling,
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DECCAN 360
6. Packaging 7. Security
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COMPANY PROFILE
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Company profile
Deccan 360 (Deccan Cargo & Express Logistics) 148, Embassy Infantry Bangalore 560 001 Caption G. R. Gopinath Banglore Logistics aviation 2009, November Air deccan Mumbai, Nagpur 8 (+7) areas www.deccan360.in Domestic and international Square, Road,
Address
Owner Head Office Industry Founded Parent company Hubs Destinations Website Regions served
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About company
Founders Vision Captain Gopinath redefined air connectivity by launching Air Deccan - Indias first lowcost airline. Over the years, Air Deccan not only touched the lives of millions of people, but also exerted a huge influence on Indias trade network. With his new venture Deccan 360, Captain has set out to revolutionize logistics and distribution in India, envisaging a grand vision to build: To be the market leader in Express and Logistics solutions by exceeding the expectations of our customers through a team of dedicated people, smart technology and best in class servicethat enables global commerce
Shipments provided
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Shipment
Type
Mode Documents/noncommercial shipments excluding items involving sale of goods Limited to declared value up to Rs.5,000 per Air shipment Limited to 32 kg per piece, with unlimited pieces per shipment Standard IATA volumetric weight calculation as applicable Commercial shipment /non-commercial shipment, which may involve sale of goods Unlimited shipment pieces per express
Transit time
Priority
Commercial
Air express
Standard IATA volumetric weight calculation, as applicable Commercial/noncommercial, which may involve sale of goods Unlimited pieces shipment / Waybill per
Road Transportation
Economy
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Segments served
As a market leader in the express transportation and logistics arena, Deccan 360s transportation network supports an extensive service portfolio. We cater to different express transportation needs of industry verticals including:
Apart from the above segments served, the company also provides fallowing services to the customers Free pick-up and delivery at your door step. Online tracking and proof of delivery. Centralized customer service, we make shipping simple. Facilitate all regulatory clearances and taxes on customers behalf. Flexible payment methods shipper, consignee & third party. Single account number allows you access Deccans premier air and surface express services (single account number for different products). Flexible and customizable rates tailored to your particular requirements.
And also some of the value added services provided by the company includes
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Octroi & regulatory clearance: We handle all octroi and regulatory filing and payment on your behalf and bill you the requisite amount at a later date. Valuable cargo handling: Allows you to ship goods with a value density greater than INR 5000 / kg. Delivery Challan: We return a stamped and signed delivery receipt or similar invoice in physical form to the shipper to confirm actual delivery of a shipment. Hold at location (For a max of 48 hours, for shipments not > 100kg. Others by prior arrangement). Freight on delivery (FOD): Collection of the freight and other charges from your consignee. Extra delivery locations (EDL): Specific locations to which we offer only delivery services for your shipments. Freight on value Owners risk & Carrier risk: Flexibility allows you to choose what type of freight on value cover is required for a particular shipment. Value Collect: We collect payment for a commercial shipment on your behalf and remit the same immediately.
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The company serves 35 major cities all across India and includes NORTH 1. Chandigarh 2. Jaipur 3. Kanpur 4. Lucknow 5. Noida 6. Ghaziabad 7. Delhi 8. Gurgaon 9. Faridabad 10. Ludhiana WEST 1. Mumbai 2. Pune 3. Nagpur 4. Indore 5. Goa 6. Ahmedabad 7. Gandhinagar 8. Surat 9. Baroda 10. Rajkot 11. Ankleshwar 12. Vapi
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8. Coimbatore 9. Tirupur
The above is the list of all the main cities served by the company, apart from them, there are so many regions across India is joined by the road transport segment of the company. Thus we can say that the companys aim to provided cost efficient air freight Logistics Company seems to be fulfilling. Thus compared to others, the researcher can say that the Services provided by the company are of required standards and fulfils the required norms across India are cost efficient and of good nature.
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Valuable Cargo Utmost security and care for your valuable cargo at every step of the shipment process.
Heavy/Outsized Cargo Our wide-bodied fleet ensures that heavy/outsized cargo is easily accommodated. Size/shape or quantity of shipment will no longer be hurdles in getting your parcel to its destination.
Dangerous Goods Our team of highly trained specialists transport dangerous goods from origin to destination, with care and precise handling.
For this all crucial task completion, the DECCAN 360 has the fallowing advisory panel and core team
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Advisory Panel The advisory panel at Deccan 360 consists of individuals who provide, among other things, the vision and strategic direction that enable us to set industry benchmarks. Ram Charan
A highly acclaimed speaker and advisor with over 35 years of experience, Ram Charan has worked with global giants such as GE, KLM, Bank of America, DuPont, Novartis, EMC, Home Depot and Verizon. He has coached some of the worlds most successful CEOs, helping them develop, shape and implement strategic directions. He has also co-authored several books including Execution and What the CEO Wants You to Know. Capt. K. J. Samuel
Capt. K. J. Samuel has played a key role in setting up successful business ventures along with Capt. Gopinath. Commissioned into the Indian Army in 1971, and a veteran of the Indo-Pak War, he joined the Aviation Wing in 1976, retiring in 1992 after receiving the Sena Medal for gallantry. In his service, Capt. Samuel was a Flying Instructor and continues to be a Civil Aviation Examiner on helicopters. In 1995, he joined army friend Capt. Gopinath to start a private sector commercial helicopter service. He continues to be the Director of Deccan Aviation (now called Deccan Charters). In 2003, he co-founded Air Deccan - the first budget, no-frills Indian
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airline. As part of Deccan 360, his expertise goes a long way in setting us head and shoulders above the rest.
Core Team
The core team at Deccan 360 has over 100 years of collective experience in the international and domestic express transportation and logistics industry. Every employee is trained and motivated to go the distance and that little bit extra ensuring seamless service delivery. Thomas Mathew Chief Executive Officer, Express Having started his career with Air Express International in 1984, Thomas Mathew brings with him more than two decades of experience in the Express, Cargo and Logistics industry.
H L Rikhye Chief Executive Officer, Aviation H L Rikhye comes with over three decades of aviation experience ranging from Flight Test Engineer to Chief Executive Officer in large national and international carriers...
G.K. Anantha Raman Chief Finance Officer G.K. Anantha Raman has extremely strong credentials in finance and systems. In his last assignment for a leading player in the Indian oil and gas industry, he played a key role in taking the company
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Ravi Acharya Chief Human Resources Officer With an illustrious career spanning two decades, Ravi Acharya has vast experience in various industry verticals such as hospitality, service, retail and logistics.
Ajay Bhatkal Chief Information Officer Ajay brings with him over 3 decades of rich experience in IT across industries such as Chemicals, FMCG, MNC, IT, Telecom, Airline, MRO and BPO/Call centre. He started his career as a Chemical Analyst, and has been the CIO for Deccan Cargo since its inception.
Vikram Mansukhani Chief Operating Officer Vikram started his career with Air France and after spending 7 years there, he joined the Logistics industry. He comes with a decade-long experience at UPS and ...
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S. Krishnan Head of Operations Krishnan, an industry veteran, brings with him over 3 decades of rich experience across industries including Automobile, Transportation and Express Cargo. A graduate from Hindu College, Delhi University, his interests include music, travelling, reading and cooking. E S Sudharsan Head of Sales Sudharsan brings with him 25 years of experience in the Logistics and Telecom industry. In one of his earlier assignments with Telemobil in Romania, he was instrumental in the successful launch ...
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RESEARCH METHEDOLOGY
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RESEARCH METHEDOLOGY
Research is common phase which refers the search for knowledge. One can also define if as a scientific and systematic search for pertinent information on specific topic. In fact, search is an act of scientific investigation. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation or enquiry especially through search for new facts in any branch of knowledge.
RESEARCH DESIGN Research design is the important part of the research study. It is the logical and systematic planning and directing of piece of research. The design also account of availability if the time energy and other resources at disposal. It is the master plan and the blue print of the entire study. In this study DESCRIPTIVE research design has been used.
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METHODS OF DATA COLLECTION Primary data Primary data was collected to arrive at objectives through observation method by personal observation. The primary data was collected by well-designed pre-planned requirements.
Secondary Data The secondary data was collected to support the observations through primary data, and includes followings. 1. 2. 3. 4. The Indian aviation industry and the company reports. Research papers by scholars. Statistics of Indian government. And other sources
OBJECTIVES OF STUDY
To observe & study the Logistic Management activities at Deccan 360. To make the in-depth study of the Services provided by Deccan 360.
procedure
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HYPOTHESIS
The Hypothesis for the study are mentioned below. The proper logistic management leads to the saving of cost. The Services provided by Deccan 360 are Good and Cost Efficient.
Due to Privacy/Security reasons, the companies are not willing to provide the Fair data to the Researcher. The project Logistic Management was undertaken at Deccan 360, Nagpur office, thus cannot be generalized for all the Logistic Companies. The Primary Data thus Collected by Observation Method may have some Errors, thus has to be verified by means of secondary data.
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DATA INTERPRETATION AND ANALYSIS The Nagpur hub is the centre of the all operations of company.
The company has NSPs (National Service Providers) who are there to help the company to accomplish his goals and does the fallowing work
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The Nagpur hub is at the centre of the HUB AND SPOKE model of DECCAN as shown below.
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As shown in the above figure, the Nagpur is at the centre of the distribution channel, thus the distribution from the Nagpur hub is less costly as compared to distribution from one city to another across country. The above concept is described in fallowing figure.
HUB 2
HUB 3
HUB 1
HUB 4
NAGPUR
Similarly the cargo from HUB 2, HUB 3 & HUB 4 comes to Nagpur first.
Along with this cargo, some of the other documents are sent to Nagpur hub, those documents comes under the head of Inbound Folder and it includes Inbound folder a) Load and Trim sheet b) Load Dispatch Massage c) Container pallet Massage d) Cargo Manifest e) Movement Massage The above documents are shown in annexure section; hear we will discuss them in brief.
are satisfactory, the commander formally accepts the load and trim sheet by means of a signature on at least two copies, one being retained by the departure agent and the other by the flight crew.
Electronic Flight Bag generation of Load and Trim data For some flights, especially but not only cargo flights, the flight crew have an EFB which they use to calculate aircraft performance data which takes account of the completed load and trim sheet. They also use the EFB to make the load and trim calculations themselves, so that once it has been checked, all that is required is that a copy be left with the agent at the point of departure. Clearly, it is vital that a rigorous process of cross checking is included in the preparation of such documentation.
Risks arising from aircraft loading The primary risks arise from the aircraft being set up for takeoff with pitch, trim and/or take off reference speeds which are not correct. This can arise in one of three ways: The aircraft is not loaded in the way stated on the accepted load and trim sheet (any load sheet type).The aircraft load and trim sheet uses correct input data but the output data is wrong (manual load sheets). The flight crew applies the (correct) load and trim data incorrectly when using it to calculate pitch trim, or reference speed data. The hold load is not properly secured or contains prohibited or incorrectly packed items. Consequences of actual misloading or incorrect input of load-related data Either actual misloading of an aircraft or incorrect use of correct load related data for aircraft systems set up can severely affect aircraft control. Loss of Control may occur during an attempted take off or during subsequent flight because either:
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An attempt (usually inadvertent) is being made to operate the aircraft outside of the AFM limits. The actions of the flight crew to control the aircraft are ineffective because the aircraft is not in the condition of load and or trim which is believed to prevail and/or has been used to set up key aircraft control parameters, whether manually interpreted or automatically taken from erroneous FMS inputs.
Runway Excursion has been a regular result of errors of both these types in the past, whether or not an RTO has been attempted.
The Load Dispatch Message shall be transmitted For all multi sector flights to the next station except the last station of the multi sector flight. To the alternate station, if the landing at the next scheduled destination seems doubtful. From the scheduled destination station to the alternate station if the aircraft is diverted during flight.
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The load message will be completed by transferring all load details into the shaded boxes of the Load sheet for every destination of the flight in the sequence of routing. Last minute changes must be considered in the load message. The station dispatching the load message is responsible for the correct transmission of the message. A cross-check therefore shall be made between the Load sheet and the copy of the Teletype Load Dispatch Message (LDM). In case of discrepancies, a second message shall be sent giving the appropriate correction. In this case the indication COR corrected version- shall be stated in the message.
Load category codes: 1. Mass of ULD and load category code or group of load category codes must be separated by an oblique. 2. The codes listed below are to be used for the identification of the different load categories:
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Code Description
B BF BC BY BT C D E
Local baggage First class baggage (red priority baggage) Business class baggage (blue priority baggage) Economy class baggage Transfer baggage Cargo Crew baggage Extra equipment (e.g. additional catering, unmanifested flight spares, etc.) ULD and/or its load to be transhipped to a connecting flight (onward destination and/or flight to be shown in SI element). Mail No container or pallet at position (empty position/no-fit) Transfer load (the letter T must be added to the appropriate load category code, e.g. BT for transfer baggage) Unserviceable container/pallet Empty container or pallet
M N T
U X
d) Cargo Manifest
Cargo Manifest is the document, signed by the company that contains a full list of the packages, of any kind, carried in a means of transport, excluding postage stamps and crews and passengers personal effects.
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Or we can say that cargo manifest is the document which lists all bills of lading particulars of the goods loaded on an aircraft, for official and administrative purposes. Cargo manifest lists all the loads on an aircraft and mainly includes fallowing main columns
Weight
Nature of goods
Origin
Destination
Along with this, the document contains I. Aircraft Registration No. II. Type of Shipment (Priority, Premium or Economy) III. Operator company IV. Date of manifest and V. The authority signature
e) Movement Message
Eg. MVT 3C-402/23.EC-IYH.HYD AD 0215/0233 EA 0353 NAG SI EET 0120Hrs
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Movement message is the message used for the proper interpretation of the data between two stations. And this includes (a) Aircraft registration No. (3c-402) (b) AA/AD -- Actual time of Arrival/ Departure (c) EA/ED -- Estimated time of Arrival/Departure
As discussed above, the documents are used in air freight logistics; this can vary according country-to-country and company to company. But the main idea behind the management would be same as discussed above. This is all about the arrival of cargo aircraft along with its documents to Nagpur hub from all across the country. The documents and cargo comes to Nagpur hub AT NAGPUR HUB
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The cargo from all stations are collected and routed to the respective destinations from hear.
The cargo unloading (the cargo for Nagpur and other destinations) and loading (to its destinations) takes place at Nagpur hub.
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ARRIVAL
Aircraft arrives at nagpur hub with cargo of all destinations according to LDM & cargo Manifest the cargo is unloaded(other destination's) Cargo of the destination place is loaded and aircraft takes off for its destination
AT HUB
DEPARTURE
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Similarly when the aircraft takes off from Nagpur hub to the destination side, some of the documents are needed to be fulfilled. Those are classified under the head of Outbound folder and includes, Outbound Folder a) Load and Trim sheet b) Daily scal inspection form c) ULD movement sheet d) Loading instrument report e) Load dispatch massage f) Container pallet massage g) Fuel docket h) Cargo manifest i) NOTOC j) Movement message k) Expected load sheet The above mentioned documents are shown in the annexure section, hear we will discuss some of them.
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Type Container LD2 Container LD8 Container LD9 Container LD11/21 Container AQ6
Max.W 1.225Kg
TotalArea(m) 3,91 x 5,03 x 5,33 2,00 x 1,53 x 1,62 3,17 x 2,23 x 1,62
Useful area(m) 3,65 x 4,77 x 5,13 1,88 x 1,39 x 1,37 7,73 x 4,77 x 5,13 3,03 x 2,10 x 1,45 10,19 x 4,83 x 5,13 10,13 x 7,69 x 8,02
Aircraft B767, DC10, Pax/Cgo, B747, MD11 B767, B727F, DC10F e MD-11 B 767 B767, DC10F e MD11 DC10 Pax/ Cgo, MD11 e B747 B747 Combi
2.450 Kg 7,99 x 5,03 x 5,33 3.175 Kg 10,45 x 5,03 x 5,33 6.804 Kg 10,45 x 8,02 x 8,02
The ULD message is used when the cargo is sent by different aircrafts at the same destinations, thus it helps avoiding the miss-placing of the cargo.
2) Fuel docket
The fuel docket is the document used for the companys private use. That contains the information regarding Fuel remaining Fuel refilled Bill of fuel refilling and Total weight of the aircraft (fuel + cargo weight)
This is also important document because Total weight (Cargo + Fuel) should not exceed the permitted weight. Contributes to the cost of company (It is always beneficial for the company to refill as extra fuel as possible from the airports where the fuel surcharge is lower as compared to others). And thus may affect the total weighing capacity of the aircraft.
Similarly the other documents also plays crucial role in the air freight cargo management.
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In this fashion, the cargo management is done at Nagpur hub. Also some of the important rules and regulations has to be kept in mind while dealing in the air freight cargo services. That includes, Delay codes These are the standardized codes accepted all over the industry throughout the globe. Some of them are described below,
Delay Codes Others 3 5 A Delay upto 30 mts Flight Departure within 3 mts of STD A Stand by delay code Stand by delay code To be allocated within one while the delay is hour of departure investigated A Insufficient scheduled Built into base schedule ground time
Cargo and Mail 2 1 2 2 2 3 2 4 A Cargo and documentation Mail Late or incorrect documentation of booked cargo A Cargo and Mail late Late delivery of positioning cargo/mail to airport/aircraft A Cargo and Mail late Acceptance of acceptance Cargo/mail after the deadline A Cargo and Mail Re-packaging or inadequate packing relabelling of cargo/mail Late incorrect mail/figures/comails/NOT OC Reloading aircraft due to missing cargo/lack of staff/equipment. Cargo not delivered on time by shipper Load shifting while moving,incorrect contour
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ramp
3 8 3 9
A Late/inaccurate aircraft Late/in accurate load Late/incorrect load documentation and trim information sheet,loading instructions,Gendec, A Loading/unloading Special /bulky load Non standard cargo handling handling B Late/lack/error from Late loaders,lack of loading loading staff staff,incorrect loading A Loading equipment Late/lack/breakdown Late/breakdown of of loading equipment equipment like MDL,LDL,crew stairs etc. A Servicing Equipment Late/lack/breakdown Late/breakdown of of loading equipment equipment like toilet cart,water cart,coaches etc. A Aircraft Cleaning Late or inadequate Late completion/insufficient cleaning staff B Special cleaning Special cleaning requested requirement by crew A Fuelling/Defuelling Late or incorrect Late fuel truck/break down fuelling of fuel truck,fuelling error/spill A Catering Lack of or break down Insufficient staff/improper of catering equipment order/late loading B Special Catering Late cateering due to rquirement mandatory security checks,late catering due to aircraft change A ULD Lack of and /or Unserviceable ULD unserviceable ULD/Pallets A Technical Ramp Late/lack/breakdown Late/incorrect /breakdown Equipment of technical equipment of equipment like GPU,ACU,Push back,towbar etc.Lack of technical staff/Error from staff
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Technical and aircraft equipment 4 1 4 1 4 1 A Technical Defects Defects identified during transit,incl MEL items(other than cabin) Defects identified during transit,incl MEL items (cabin items) Technical documentation associated with the defects identified during transit Defects identified during transit;application of MEL;Lack of manpower Cabin outfit malfunction( crew seat etc)
4 2
A Scheduled Maintenance
4 2
4 2
4 3
4 4 4 4
A Spares Maintenance B
and
Awaiting flight ops/Technical despensation/concession,mi ssing technical documentation,MEL clarification Late release from Work overrun,late scheduled maintenance availability or lack of manpower,awaiting staff/equipment for towing operations Technical Late/incorrect completion of documentation/person documentation, awaiting nel issues during engineer sign off scheduled maintenance Delay during towing ATC holds,taxiway operation from congestion,special checks (eg scheduled mintenance AD's);delay time on taxi out checks and /or additional works beyond normal mintenance Delay during towing ATC holds,taxiway operation from congestion,special checks (eg scheduled maintenance AD's);delay time on taxi out checks and /or additional works beyond normal mintenance Late,Lack of spares Late,Lack of spares Late,lack or breakdown Late/incorrect specialist of specialist equipment equipment required for defect rectification,not
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available 4 5 A AOG spares Awaiting AOG spares Awaiting AOG spares to be to be carried to another carried to another station station/awaiting documentation R Aircraft Change Aircraft change for Aircraft change for technical Technical reasons reasons(eg:prolonged or rolling technical delays) A APU APU APU inoperative/engine inoperative(notified in inoperative/engine start delay advance) start delay
4 6 4 9
Damage to Aircraft 5 1 5 1 A Damage during flight Damage during operations unforseen flight operations events B Damage due to incorrect application of Flight operations SOP Bird strike,lightning strike,severe weather condition Overweght/heavy landing;collision during taxiing;tailscrapes;runwayov ershooting A Damage during ground Damage during ramp Loading/offloading;GSE operations operations interface;FOD
5 2
Flight Operations and Crewing 6 1 A Flight Plan Late completion,error Late/incorrect flight on flight plans plans;change/amend flight plan;late/incorrect filing of ATC flight plan;flight planning system failure;communication failure with ATC
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6 2
A Operational Requirement
6 2 6 2
6 3
6 5
6 7 6 8 6 9
A A
fuel Late/incorrect advice of fuel figures from operations and /or flight deck;revised fuel uplift due to ops requirements (eg;reclearance top ups) Late alteration of fuel Extra fuel required due to due to operational weather change/return to requirement stand Late alteration of load Load alteration due to due to operational payload,technical,operationa requirement l or any other restrictions;late passing of final zero fuel from load control Late crew Delayed flight deck due Late/slow airside borading/departure to ground transportation;congested procedures transport/airport security process congestion Awaiting extra Late/slow airside crew;late completion of transportation;congested flight deck checks security process Flight deck crew Flight deck request for Request for special request tech maintenance;request for assessment/document clarification of flight deck clarification beyond documentation operational requirement Cabin Crew Limitation Awaiting standby,extra Due to crew sickness,invalid cabin crew visa etc DG inspection Delay Additional time above 5 Additional time above 5 mts mts to accomplish DG to accomplish DG inspection inspection Captain Request for Extraordinary requests Extraordinary requests security check outside mandatory outside mandatory requirement requirement Weather
Late/change notification
7 1 7 2
Outside aircraft limits;below operating limits Outside aircraft limits;below operating limits
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7 3
7 5 7 6 7 7
A De-Icing of aircraft A Removal or snow,sand,ice from the airport A Ground handling impaired by adverse weather
Below operating limits;ETOPS alternates closed due to weather;alternates below operating limits Removal of snow and De-icing on stands;lack of ice fluid Clearing of runways Clearing of runways and and taxiways taxiways;airport closure due to weather conditions High winds,heavy Interruption of rains,blizzards,typhoon fuelling;loading;offloading;a s,monsoons etc pron condition;door opeation limit
flow
ATC due to
and
8 6
A Customs,Immigration, Health(CIH)
Extraordinary checks required by airport/government authority checks;Late Custom checks;Late arrival of staff of staff doctor;no doctor doctor available
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8 7
8 8
8 9
Landside Insufficient gates for parking infrastructure/congesti Airport on limitations B Facilities Landside system cargo system down,lighting malfunction failure,push back clearence delay due to taxi/runway work C Airside cargo system down,lighting infrastructure/congesti failure,push back clearence on limitations delay due to taxi/runway work A Restriction at airport of Destination Restriction due to destination airport/runway curfew,political closed/restricted unrest,construction/mainten ance,millitary activity,VIP activity B Restriction at airport of Departure Ramp congestion , ATC departure airport/runway movement,simultaneous closed/restricted pushback conflict Reactionary
9 1 9 3
R Load connection
G Aircraft Rotation
Awaiting Cargo from Cargo awaited from another another late inbound late inbound flight flight Late arrival of aircraft from previous sector due to ground operations Late arrival of aircraft from previous sector due to other reasons Late arrival of aircraft from previous sector due to schedule Late arrival of aircraft from previous sector due to technical reasons Awaiting Crew from Awaiting Crew from another late inbound another late inbound flight flight
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9 5
R Crew Rotation
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9 6
O Operations Control A
Abnormal operations
Re-routing,diversions, flight consolidations Aircarft changes for Aircraft change for non reasons other than technical reasons technical reasons
Miscellaneous 9 9 A No suitable code The code will be used only when it is clear that a reason cannot be matched to a code above.(explain in SI section)
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STRENGTHS
1. Deccan 360 is not only the youngest player in this market, but also first domestic
airfreight logistic company having Hub and Spoke distribution model at Nagpur.
2. Deccan 360 provides wide range of services as compared to others, some of the
main services are as follows: o 24*7 online shipment tracking. o Transportation. o Packaging. o Documentation and Custom Clearance. o Security administration for surface in connection with aviation. o Aviation security.
3. Deccan 360 provides low fare airfreight logistic services in and outside India.
5. Similarly the petrol price at Nagpur hub is low as compared to other airports; the
company is interested towards the more aircraft petrol from Nagpur hub.
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WEAKNESS 1) The time allotted for loading and unloading is quite insufficient for the all loading and unloading activities here.
2) The other factors such as the bad light, weather change and other unavoidable problems are causing problems in between the work.
4) Sometimes due to network connectivity problems, the working is affected to certain extend.
5) The work at Nagpur Hub is affected by the delay from the incoming station, thus the time management becomes difficult.
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OPPORTUNITY
1) With the experience of domestic flying the company can perform better at international level.
2) Company could convert its weakness to opportunity by decreasing the avoidable cost to the company.
3) There is no competitor in Domestic Airfreight Logistics to DECCAN 360 in India so Company can use their experience to enjoy market leader position.
4) If the management of the Limited time period available for loading and unloading is done carefully, then that can reduce the pressure due to lesser time causing misroutes and other problems. Thus improving the Efficiency of the employees hence increased profit margin.
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THREATS
1) Due to daily premium and priority loads, if any flaw occurs in flight then it may disturb the image of the company.
2) The next company who will launch under the segment of Domestic air flight logistics may have the base of the DECCANs experience thus it can handle the situations very well as compared to the DECCAN who was the initiative in its segment.
3) The government rules and regulations against the industry can cause harm to the industry and hence company.
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Efficient Cargo handling is very essential both for the Damage of the goods.
More emphasis should be given on the time management of the flights as late arrival minimizes the stay-on-time in Nagpur that affects the cargo loading and unloading time span hence ultimately the performance.
Also the late departure than the STA(Standard Time of Departure) levies the extra charge which can be considered as the extra cost to the company that can be avoided. Thus Company should improve in this field by providing prompt timely service.
The various misroutes of the premium and priority shipments imposes extra pressure on the company and thus company have to send them by means of Commercial Passenger Flights where the charges is paid by the Deccan 360, thus more cost to the company.
Also some times the connectivity problem in the Network does contribute to the above said problems.
There should be the strict rules and regulations regarding the Pre-Arrival Notice regarding the Heavy shipments, Volumentory loadsetc. as this pre-alert load consumes the time, which takes the extra time than the STD
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CONCLUSION
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CONCLUSION
This research period was a very good learning phase of my life as I had a practical experience of field work.
1) In this fast moving world and changing environment, efficient cargo management activities are very essential for the betterment of the company. Good cargo management activities can provide profitability to the company. Efficient management of cargo can help the company to boost up its image in the eyes of customer.
2) The services provided by Deccan 360 are efficient & satisfactory as well as they are cost efficient as compared to other companies providing airfreight logistic service (like Kingfisher, Indigo, Indian Airlines, Jet Airways) in India.
3) The Documentation and Custom Clearance procedure are according to the international standard.
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ANNEXURE
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Incoterms
Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are at the heart of world trade.
Among the best known Incoterms are EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To).
ICC introduced the first version of Incoterms - short for "International Commercial Terms" - in 1936. Since then, ICC expert lawyers and trade practitioners have updated those six times to keep pace with the development of international trade.
Most contracts made after 1 January 2000 will refer to the latest edition of Incoterms, which came into force on that date. The correct reference is to "Incoterms 2000". Unless the parties decide otherwise, earlier versions of Incoterms - like Incoterms 1990 - are still binding if incorporated in contracts that are unfulfilled and date from before 1 January 2000.
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Type
Description Cost & Freight Cost, Insurance & freight Carriage Paid To (named place)
Type C
CPT
CIP
Paid
DAF
Frontier
(named Land
Type D
DDU
Delivered Duty Unpaid (named All place) Modes Ex-Works All Modes All Modes Sea Sea
Type E
EXW
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Incoterms explained
Type E
Ex-Works
Ex-Works means sellers' only responsibility is to make the goods available at their premises. They are not responsible for loading them on vehicles provided by buyers or clearing them for export. Buyers bear the full costs and risks of taking goods from sellers' works to their destination. This is the minimum obligation of sellers.
Type F
This can be used with any form of transport (air, sea, rail, truck or multimodal). The "carriers" are the transporters, including any freight forwarders that buyers have designated to receive the goods. Sellers must hand the goods, cleared for export, over to the carriers at the place indicated in the shipping terms. This can involve sellers paying for some transport from the factory to the carrier. Where delivery takes place at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is no longer responsible for loading. Sellers may, and commonly do, act as buyers' agents in arranging transport, which buyers pay for.
Type F
This term is properly used only for ocean or inland water transport. Sellers are responsible for placing the goods alongside the ship on the quay or in lighters, at the place named in the quotation. "Alongside" means within reach of the carrying ship's tackle. From that moment, buyers bear all costs and risks of loss or damage to the goods. Sellers are responsible for clearing the goods for export.
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Again, this is properly used only for ocean or inland water transport. Once sellers place the goods, cleared for export, on board a ship at the port named in the sales contract, their obligations end. Buyers assume the risk of loss or damage to the goods once they pass the ships rail. In other modes of transport, or if the ships rails are not the point at which the seller transfers ownership to the buyer such as with container, roll-on/rolloff cargo FCA is the closest equivalent term.
Type C
Sellers must clear the goods for export and pay the costs and freight necessary to bring them to the named destination. However, buyers assume the risk of loss or damage to the goods, and any cost increases, once the goods pass the ship's rail in the port of shipment. This is another term properly used only for transport by water (sea or inland). In other modes of transport, or if the ship's rails are not the point at which the seller transfers ownership to the buyer such as with container, roll-on/roll-off cargo CPT (Carriage Paid To) is the closest equivalent term.
Type C
This term is similar to CFR, but sellers must also buy marine insurance for the buyers. Sellers contract with the insurers and pay the premiums, but buyers assume the risk of loss from the time the goods pass the ship's rail in the port of shipment. This term also applies only to transport by water (sea or inland). CIP (Carriage, Insurance Paid To) is the closest equivalent term for other transport modes.
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Type C
This can be used with any form of transport (air, sea, rail, truck or multimodal). Sellers must clear the goods for export and pay the costs and freight necessary to bring them to the named destination. However buyers assume the risk of loss or danage to the goods and any cost increases, once the goods have been received by the first carrier.
Type C
As for CPT, but the seller must also contract with the insurers and pay the premiums.
Type D
Sellers fulfill their obligations once the goods, cleared for export, are made available at the named point, which will be before the destination Customs border. Buyers must clear the goods through Customs. The frontier can be the export country's frontier, so it is very important to specify exactly where the delivery point is, as seller bears all costs and risks to that point. This term is designed for rail or road transport, but can be used when goods are shipped by any method. It is useful when shipping to a bonded customs warehouse or a free trade zone.
Type D
This term is normally used for commodity shipments by sea. Buyers assume risks and costs once the ship reaches the named destination, but before the goods are cleared for import.
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Type D
This is also normally used for commodity shipments by sea. Buyers assume risks and costs on the quay at the named destination. Sellers are responsible for discharge costs and buyers for import clearance.
Type D
Under this term sellers handle everything necessary to deliver the goods to the stipulated place - usually the buyer's own place - except Customs clearance at the country of destination. Buyers pay duties and taxes.
Type D
This means sellers handle everything, including Customs clearance, to deliver the goods to the stipulated place. Since the stipulated place is usually the buyer's own place, sellers arrange and pay for every step in the process. A common alternative is "DDP exclusive of duty and taxes". This oxymoron is not the same as DDU, because sellers are responsible for clearance, but not for paying duty and taxes.
Fallowing figure explains the role of the terms explained above in the form of the INCOTERMS and the obligation of Buyer and Seller. For E.g. EXW (Ex Works) is limited till it dispatches from the sellers hand. Only that much duty is paid by the Seller and the remaining remains with the Buyer (From Carrier to the last destination of the goods)
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The company uses many of the instruments and documents for the accomplishment of the smooth working of the cargo handling. Following is the list of the documents used for the cargo management activities at the hub.
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DOCUMENTS USED A. Inbound folder f) Load and Trim sheet g) Load Dispatch Massage h) Container pallet Massage i) Cargo Manifest j) Movement Massage B. Outbound folder l) Load and Trim sheet m) ULD Movement slip n) Daily scal inspection form o) ULD movement sheet p) Loading instrument report q) Load dispatch massage r) Container pallet massage s) Fuel docket t) Cargo manifest u) NOTOC v) Movement message w) Expected load sheet
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2) CARGO MANIFEST
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LDM 3C 501/24.ECIYH.DEL/NAG VER/06CPT 02/00 NAG.T-6702. CPT-1/790. CPT-2/1548. CPT-3/1329. CPT-4/1517. CPT-5/1518. CPT-6/0. .PAX/0/0/0.PAD/0/0/0 CPT-1/ 05PCS/CGO/19/AMD 01PCS/CGO/01/BHI 04PCS/CGO/09/CCU 01PCS/CGO/01/GAU 01PCS/CGO/02/NAG 02PCS/CGO/03/STV 01PCS/CGO/01/BBI 30PCS/CGO/240/BLR 02PCS/CGO/10/CJB 05PCS/CGO/06/HYD 01PCS/CGO/10/PAN 02PCS/CGO/03/TIR 02PCS/CGO/06/BDQ 46PCS/CGO/326/BOM 04PCS/CGO/04/COK 21PCS/CGO/147/MAA 02PCS/CGO/02/PNQ
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4) RAMP EQUIPEMENT CHECK LIST Date : 26/09/10 Sr. no PRE FLIGHT CONDITION CHECK RAMP VEHICLE WORKING FUEL TANK REMARK
TRACTOR 1/2 A>MH-40-A6391 ALL WORKING 2 B>MH-02-9686 C>MH-32-A6599 D>MH-02-9679 E>MH-02-9677 1/2 1/2 1/2 1/2
MH-40-6391 WORKING
IS
NOT
ARE
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YOGESH 5
DECCAN
AAMIR
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6) Schedule DA TE FL T N O A/ C RE G FRO M TO LT DE P UTC AR DE R P AR R BLO CK CREW INFO UTC OFFSET DEP ARR AIRPO AIRPO RT RT
243C EC Sep- 50 KJ 10 1 A
DEL
NA G
0:0 5
2:4 5
18: 35
21: 15
2:40
5:30
243C EC Sep- 50 IY 10 2 H
NA G
DE L
4:1 5
6:4 5
22: 45
1:1 5
2:30
5:30
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Flight report 3C-401/24SEP 2010/ORG HYD/DEST NAG 1 2 3 4 5 STA ATA STD ATD Crew Reported at Airport 0050 0140 0130 0215 NA
6 7
Crew Arrival at Aircraft after N/A pre medical checkup Payload (excluding Ballast) Ballast / BAR,STAIRS EIC/TOW 7259KGS
Main Deck Cargo Loading Commenced & Completed FWD Lower Deck Cargo Loading Commenced & Completed AFT Lower Deck Cargo Loading Commenced & Completed
N/A
N/A
10
N/A
11
12
Cargo Hold Loading 0142/0210 Commenced & Completed Fueling Commenced Completed Load Sheet Captain Presented & 0142/0200
13
to
14
N/A
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15 16 17 18 19
Load Sheet Signed by Captain Crew Door Closed Aircraft Chocks Off Name of GHA Aircraft Pushback Any Extra / Equipment Used Ad-Hoc
0212 0214 0215 MENZIES BOBBA AVIATION PVT LTD 0215 NIL GPU/MENZIES BOBBA AVIATION PVT LTD MENZIES BOBBA AVIATION PVT LTD 35 MINS 45 Mins : 45 Mins delay due to late arrival
20 21 22 23 24 25
Details of Equipment Used Equipment hired from Duration of Useage (GPU) Delay Delay Break-Up
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NAGPUR
JOINING
CARGO
MANIFE
ATA CARGO MANIFEST Operator : Deccan Express Cargo DATE 24/9/2010 FLT NO 3C501 Prepared By : Vidit Nagar ORIGIN DEL Air Way Bill Pieces Weight Nature of Goods DESTINATIONS REMARKS
36060175426 36060175415 36060175393 36060175430 36060175382 36060175441 36060175452 36060175463 36060175474 36060175404 36060156806 1 1 36 10 7 4 5 1 7 26 1 3 10 523 126 109 50 119 21 100 372 17 CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL CONSOL NAG GAU BOM CJB BLR HYD BLR BOM MAA MAA BLR FEDEX FEDEX FEDEX FEDEX FEDEX FEDEX PAFEX PAFEX PAFEX FEDEX ATA
TOTAL
99
1450
NAME: RAVI
COMPLITION OF ACCEPTANCE TIME : 2320
SIGNATURE
THE ABOVE MENTIONED SHIPMENTS HAVE BEEN ACCEPTED FROM GROUND OPS ALONG WITH COMPLETE PAPER WORK AND TALIED WITH THE MANIFEST
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BIBLIOGRAPHY
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BIBLIOGRAPHY Books
Research Methodology by C.R. KOTHARI, 2nd edition. Air cargo Asia pacific News Magazines Logistics Management by G Raghuram, & Ailawadi Satish C, Singh Rakesh
Websites
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