“ STUDY ON LOGISTICS AND SUPPLY CHAIN BUSINESS

MANAGEMAUT , OM LOGISTICS ALUVA ”

In partial fulfilment of the requirement for the award of

ADVANCE DIPLOMA IN LOGISTICS AND SUPPLY CHAIN

MANAGEMENT

SUBMITTED BY

AKHIL KRISHN.AM

REG. NO:

Under the guidance of

Ms. LAKSHMI MENON

SENIOR FACUITY GIIMS

GLOBEL INSTITUE OF INTEGRAL MANAGEMENT STIDIES

MARCH 19-2020

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 DECLARATION

I hereby declare that the project entitled “A STUDY ON THE PROCEDURE AND
DOCUMENTATION FOR IMPORT & EXPORT WITH REFERENCE TO ACT
INFRAPORT LTD., COCHIN” Submitted in partial fulfilment of the requirements of the
award of the Advance Diploma in Logistics and Supply Chain Management is a record of
original research work done by me under the supervision and guidance of Ms. Lakshmi Menon
and the dissertation has not formed the basis for the award of any Degree/ Diploma /Associate
ship/Fellow ship or other title to any candidate of any university.

PLACE: KOCHI AKHIL KRISHNA AM

DATE:

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 ACKOWLEDGEMENT

A summer project is a golden opportunity for self-development and learning. I feed myself very
lucky and honored to have so many wonderful people who have always given their valuable
advice. I would like to extend my sincere thanks to all of them. I am sincerely grateful to
everyone for sharing their truthful views on the number of issues related to the project.

I am extremely grateful to Mr. GYANENDRA KUMAR (Stock Manager OM Logistics

Aluva ) for the confidence bestowed in me and entrusting my project entitled “A STUDY ON
THE PROCEDURE AND DOCUMENTATION FOR IMPORT&EXPORT WITH
REFERENCE TO ACT INFRAPORT LTD., COCHIN”.

I express my deepest thanks to Company guide Mr. SIBIN for making the resources available at
the right time and providing valuable insights leading to the successful completion of my project.

I express my gratitude to MUHAMMED SHAHEEN RASHEED , ASSISTANT DIRECTOR

GIIMS KOCHI, for arranging the summer internship training in good schedule. I also extend my
gratitude to my project guide Ms. LAKSHMI MENON ,who assisted me in compiling the
project.

I would also like to thank all the faculty members of Global Institute of Integral Management
Studies, Kochi for their critical advice and guidance.

Last but not the least I would like to extend my sincere thanks to all my friends who have been
constant source of inspiration during the preparation of the project.

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 CHAPTER 1
INTRODUCTION

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INTRODUCTION OF STUDY
Logistics: Logistics is used more broadly to refer to the process of coordinating and moving
resources – people, materials, inventory, and equipment – from one location to storage at the
desired destination. The term logistics originated in the military, referring to the movement of
equipment and supplies to troops in the field.
Logistics and supply chain management: Logistics and supply chain management are terms that
are often used interchangeably, but they actually refer to two aspects of the process.
Logistics refers to what happens within one company, including the purchase and delivery of raw
materials, packaging, shipment, and transportation of goods to distributors, for example. While
supply chain management refers to a larger network of outside organizations that work together
to deliver products to customers, including vendors, transportation providers, call centers,
warehouse providers and others.
Importance of Logistics: Although many small businesses focus on the design and production
of their products and services to best meet customer needs, if those products cannot reach
customers, the business will fail. That’s the major role that logistics plays.But logistics also
impacts other aspects of the business, too.
The more efficiently raw materials can be purchased, transported, and stored until used, the more
profitable the business can be. Coordinating resources to allow for timely delivery and use of
materials can make or break a company.
And on the customer side, if products cannot be produced and shipped in a timely manner,
customer satisfaction can decline, also negatively impacting a company’s profitability and long-
term viabilibility
Customer service: customer service in logistics is the activities, service actions are

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provided, acting as added value. The aim is to bring more value than the core service that
customers need and bring the most satisfaction to customers. For businesses or business
organizations today offer more services to customers besides their main products.
Customer service is a process for providing significant value added benefit to the supply chain in
a cost-effective way.
1. Pre-transaction elements: customer service factors that arise prior to the actual transaction
taking place. Transaction elements: the elements directly related to the physical transaction and
are those that are most commonly concerned with logistics. Post-transaction elements: these
involve those elements that occur after the delivery has taken place .. written customer service
policy; organizational structure; method of ordering ;single order contact point; accessibility of
order personnel; order size constraints; system flexibility . condition of goods; inventory
availability; order preparation; service/order cycle time; delivery alternatives; delivery time;
delivery reliability; delivery of complete order; order status information .Invoicing procedures;
invoicing accuracy; product tracing/warranty; returns policy; availability of spares; call-out time;
customer complaints and procedures .1. Time – usually order fulfillment cycle time; 2.
Dependability – guaranteed fixed delivery times of accurate, undamaged orders; 3.
Communications – ease of order taking, and queries response . Flexibility – the ability to
recognize and respond to a customer’s changing needs... Service quality is a measure of the
extent to which the customer is experiencing the level of service that he or she is expecting.
Service quality is the match between what the customer expects and what the customer
experiences. Service quality = Perceived Performance x 100 Desired Expectations .. Douglas M.
Lambert, James R. Stock, REFERENCE S & Siagian, Yolanda M. 2005. Aplikasi Supply
Chain Management Dalam Dunia Bisnis. Jakarta: Grasindo. Lisa M. Ellram. Fundamentals of
Logistics Management. Irwin McGraw-Hill, Inc.

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Most important customer service elements
On time delivery

Order fill rate

Product consolidation

Accurate documentation

History of Logistics
In ancient history the combination of local supply for food and forage and self-containment in
hardware and services appears often as the logistic basis for operations by forces of moderate
size. Some of these operations are familiar to many a schoolchild—the long campaign of
Alexander the Great from Macedonia to the Indus, the saga of Xenophon’s Ten Thousand,
Hannibal’s campaigns in Italy. The larger armies of ancient times—like the Persian invaders of
Greece in 480 BCE—seem to have been supplied by depots and magazines along the route of
March. The Roman legion combined all three methods of supply in a marvelously flexible
system. The legion’s ability to march fast and far owed much to superb roads and an efficiently
organized supply train, which included mobile repair shops and a service corps of engineers,
artificers, armoires, and fortified depots; labor and animals were drafted as required. When
necessary other technicians. Supplies were requisitioned from local authorities and stored in; the
legion could carry in its train and on the backs of its soldiers up to 30 days’ supply of provisions.
In the First Punic War against Carthage (264–241 BCE), a Roman army marched an average of
16 miles (26 kilometers) a day for four weeks.6dfds.
One of the most efficient logistic systems ever known was that of the Mongol cavalry armies of
the 13th century. Its basis was austerity, discipline, careful planning, and organization. In normal
movements the Mongol armies divided into several corps and spread widely over the country,
accompanied by trains of baggage carts, pack animals, and herds of cattle. Routes and campsites
were selected for accessibility to good grazing and food crops; food

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and forage were stored in advance along the routes of March. On entering enemy country,
the army abandoned its baggage and herds, divided into widely separated columns, and
converged upon the unprepared foe at great speed from several directions.
In one such approach March a Mongol army covered 180 miles (290 kilometers) in three days.
Commissariat, remount, and transport services were carefully organized. The tough and seasoned
Mongol warrior could subsist almost indefinitely on dried meat and curds, supplemented by
occasional game; when in straits, he might drain a little blood from a vein in his mount’s neck.
Every man had a string of ponies; baggage was held to a minimum, and equipment was
standardized and light.
In the early 17th century, King Gustav II Adolf of Sweden and Prince Maurice of Nassau, the
military hero of the Netherlands, briefly restored to European warfare a measure of mobility not
seen since the days of the Roman legion. This period saw a marked increase in the size of
armies; Gustav and his adversaries mustered forces as large as 100,000, Louis XIV of France late
in the century even more. Armies of this size had to keep on the move to avoid starving; as long
as they did so, in fertile country they could usually support themselves without bases, even with
their customary huge noncombatant “tail.” Logistic organization improved, and Gustav also
reduced his artillery train and the size of guns. In the Thirty Years’ War (1618–48) strategy
tended to become an appendage of logistics as armies, wherever possible, moved and supplied
themselves along rivers exploiting the economies of water transportation, and operated in rich
food-producing regions.
After the Thirty Years’ War, European warfare became more sluggish and formalized, with
limited objectives and an elaborate logistics that sacrificed both range and mobility. The new
science of fortification made towns almost impregnable while enhancing their strategic value,
making 18th-century warfare more an affair of sieges than of battles. Two logistic innovations
were notable: the magazine, a strategically located restocked depot, usually established to
support an army conducting a siege; and its smaller, mobile version,

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the rolling magazine, which carried a few days’ supply for an army on the march. Secure lines of
communication became vital, and whole armies were deployed to protect them. The
increasing size of armies and of artillery and baggage trains placed heavier burdens on transport.
Also, a revulsion against the depredations and inhumanity of the 17th-century religious wars
resulted in curbs on looting and burning and in regulated requisitioning or purchase of provisions
from local authorities. Because of the high cost of mercenary soldiery, commanders tended to
avoid battles, and campaigns tended to become sluggish maneuvers aimed at threatening or
defending bases and lines of communication. “The masterpiece of a successful general,”
Frederick the Great remarked, “is to starve his enemy.”
The era of the French Revolution and the Napoleonic domination of Europe (1789–1815)
brought back both mobility and range of movement to European warfare, along with an immense
further increase in the size of armies. Abandoning the siege warfare of the 18th century,
Napoleonic strategy stressed swift offensives aimed at smashing the enemy’s main force in a few
decisive battles. The logistic system inherited from the Old Regime proved surprisingly
adaptable to the new scale and pace of operations. Organization was made more efficient,
baggage trains were pared down and some of their load shifted to the soldier’s back, and much of
the noncombatant tail was eliminated. The artillery train was increased, and the rolling magazine
was used as the occasion demanded. The heavily burdened citizen-soldier marched faster and
farther than his mercenary predecessor. In densely populated and fertile regions, moving armies
continued to subsist, by purchase and requisition, on the countryside through which they
marched, spreading out over parallel roads, each corps foraging to one side only. Even so, the
numbers involved dictated greater dependence on magazines.
Napoleon made relatively few logistic innovations. He militarized some services formerly
performed by contractors and civilian personnel, but the supply service (intendance) remained
civilian though under military control. A significant change was the establishment

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in 1807 of a fully militarized train service to operate over part of the line of communication; this
was divided into sections that were each serviced by a complement of shuttling wagons—
foreshadowing the staged resupply system of the 20th century. The 600-mile advance of
Napoleon’s Grande Armoire’s of 600,000 men into Russia in 1812 involved
logistic preparations on an unprecedented scale. Despite extensive sabotage by the Russian
peasantry, the system brought the army victorious to Moscow.

1.1 OBJECTIVES OF THE STUDY

Primary objective
To study the process followed by the customer service department in the shipment of products
with respect to OM LOGISTICS

Secondary objectives
To understand the customer service activities applied in the company.

To know the operations followed for shipment activities.

To understand the cargo handling process.

To analyze the planning process of inbound and out bound cargos.

1.2 SCOPE OF THE STUDY

From this study, the performance and the role of customer departments can be analyzed. The
study helps to know the required steps to be taken for shipment of cargos from different shippers
and delivering it to the same destination to the same customer. The study helps to know how the
department co-ordinates between the various shippers and carrier to implement the shipment
successfully. This study also helps to know the necessary changes which have to be done to
improve the process.

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1.3 RESEARCH METHODOLOGY
Research methodology is the process which is used to collect information and data for the
purpose of making business decisions. Research in simple terms refers to search for knowledge.
It is a scientific and systematic search for information on a particular topic or
issue. The methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.
Thus, research is an addition to the available knowledge, which contributes to its further
advancement. It is an attempt to pursue truth through the methods of study, observation,
comparison and experiment.

1.4 LIMITATIONS OF THE STUDY

This study is limited to the activities followed in Ryblue Logistics, Bangalore.

This study is limited to a period of 2 months.

This study is limited to customer department only.

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 CHAPTER 2
INDUSTRIAL PROFILE

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INDUSTRY PROFILE

Logistics: The logistics industry is engaged in transporting and warehousing. Logistics means
planning, organizing and arranging for the transportation of particular goods from the place of
origin to the destination. The modes of transportation include:
Rail transportation
Road transportation
Air transportation
Marine transportation

It also includes postal services, couriers and messengers, and warehousing & storage. The
resources managed in logistics include tangible goods such as materials, equipment, as well as
food and other consumable items. Logistics is known as the backbone of the supply chain.
The logistics industry can be defined as the science of obtaining, producing and distributing
material and products to the correct place and in the correct quantities. In a military sense, where
it has a greater use, its meaning also includes the movement of personnel. Logistics includes the
process of planning, implementing and controlling procedures for the efficient and effective
transportation and storage of goods. This includes services and related information from the
point of source to the point of consumption for the purpose of fulfilling and conforming to
customer requirements.

Logistics: Global Scenario

Logistics is one of the most important basic industries for any economic growth as it is the
management of the flow of products from the place of their origin to the place of their
consumption, thus the industry also involves the integration of material handling, warehousing,
packaging, transportation, shipping security, inventory management, supply chain management,
procurement, and customs service. The global logistics industry mainly comprises a complex
range of freight and cargo related transportation sectors, such as shipping, warehousing, courier,
and road/rail/air freight. According the report from C and M Research, the total global logistics
market reached a

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value of about $4 trillion in 2013, representing an almost 10% of global GDP. The global
transportation services market is fastest growing sector with more 7% year on year growth since
2011, now it is expected to generate revenue of 3.8% trillion in 2016. The US currently accounts
for more than a 42% of global transportation services sector.
Some Major Market Segments of Global Logistics Industry
The global air transportation services industry has been experiencing a decline in growth rate
since 2012, while the airline market is expected to reach £137 billion by 2017. After generated
around $194 billion in 2011, the global rail freight industry had an annually growth rate of more
than 6% until 2015, and the industry growth will increase to a yearly rate of 8%, reaching $286
billion by 2016, predicted by Market Line. The industry consumption volumes have remained
the growth of 4% year on year.
Road freight industry is so far the leading segment in the global logistics industry representing
over 74% of the overall industry in terms of value. The global road freight market is expected to
top £2.2 trillion in 2015, which is a 28% increase over 5 years period since 2010. The US
represents for 56% of the world road freight sector in terms of value.
The global shipping industry is expected to surpass 730 million TEUs by 2017, according to
Global Industry Analysts. Shipping containers is currently the major way of global trading, the
market performance is boosted by the increasing demand of trade, investments in port terminal
facilities, and the rising of global maritime transport networks. Over the next few years, the
global shipping sector is expected to grow mainly due to the rising demand for oil and liquefied
gas in Asian countries.

Indian Scenario
The Logistics sector in INDIA has today become an area of priority. One prime reason for the
same stems from the reason that years of high growth in the Indian economy have resulted in a
significant rise in the volume of freight traffic moved. The large volume of traffic has

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provided for growth opportunities in all facets of logistics including transportation, warehousing,
freight forwarding, express cargo delivery, container services, shipping services etc. The growth
path also suggests that increase demand is being placed on the sector to provide the solutions
required for supporting future growth. Strength of the logistic sector is likely to be one of the key
determinants of the pace of the future growth of the economy.
The market size of the logistics sector in INDIA is estimated to be between USD 90-125 billion.
Given that the Indian economy has grown to over USD 1.73 trillion, these estimates may already
be well below the actual size of the industry. Sources estimates that the industry employs over 45
million people and is going at the rate of 15% with sub-sector growing at even 30-40% per
annum.
Due to these reasons the Indian logistics sector is viewed as one of the most attractive in the
world. Recent policies by the government attract a strong growth area for logistics in the future.
Despite holding promise the logistics sector in India remains mired in several complexities
which have the potential of holding it back. These includes significant inefficiencies in
transportation, poor condition of storage infrastructure, complex tax structure, low rate of
technology adoption, and poor skills of logistics professionals.

India-Emergence of Global Manufacturing Hub

The demand for FMCG and electronic products in India has been growing at the very fast pace.
Several MNCs from diverse industries have shown growing interest in setting up world class
manufacturing facilities in India to cater to the domestic market as well as for the export market.
Establishing manufacturing facilities in India has been a strategic move to reduce their
manufacturing costs and cater to the expanding Indian market. The Indian automotive industry is
well on its way to become one of the world's major automobile manufacturing hubs. Since the
deregulation and opening up of the automotive industry, the industry has witnessed tremendous
changes and experienced a great boom.

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Indian Logistics Industry: Current Scenario and Future Outlook
Logistic is the backbone of the economy, providing the efficient, cost effective flow of goods on
which other commercial sectors depends. The logistics industry in India is evolving rapidly and
it is the interplay of infrastructure, technology, and new types of service providers that will
define whether the industry is able to help its customers reduce their logistics costs and provide
efficient services.
Despite weak economic sentiments, the logistics and warehousing industry continued to witness
growth largely due to growth in detail, E-commerce and manufacturing sectors. The logistics
sector is expected to grow at around 10-15% in the period 2014-2015. With this forward looking
attitude and promise of growth and improvements, the service oriented logistics is all set to
expand beyond the horizons in the latter half of this decade, utilizing this fiscal year as its launch
pad.

Challenges Faced by Logistics Industry in India

1. Transport Related Challenges
In India road has become predominant mode of transportation of freight cargo. Estimate of the
modal movement of cargo highlights that in India nearly 60.2% of the cargo is moved by road,
32.1% by rail, and rest by the coastal shipping, airways and inland waterways. Pipelines
constitute a very minor proportion.
It is recognized that movement of long haul bulk traffic by road is less efficient than by rail.
But road is still preferred over rail because of the various reasons as discussed under:
Important rail networks are over saturated- There has been little improvement in the track
infrastructure since independence. While route kilometer has grown only at a CAGR of 3%,
incorporating additional lines on existing routes has not fared much better growing at a low
CAGR of 6.6%. During the same period freight and passenger

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traffic has grown at a CAGR of nearly 55%. This had led to most high density corridors
becoming oversaturated.
Rail freight tariffs are high- Indian railways follows a policy of subsidizing passenger tariff by
freight tariff. This has resulted in sharply rising trend in railway freight rate over the years
compare to little increase in passenger tariff rate. The result of this has been that Indian rail
freight rates have already become one of the highest in the world.

Transit times are long and uncertain- Freight traffic is frequently subordinated to passenger
traffic on the railway network. This results in a freight train taking as much as 6-8 days for a
journey of 2000kms. Also there is no guarantee on the transit time for freight trains.

Rail terminal quality is poor- Most rail terminals (goods shed) used for loading/unloading of
freight are antiquated. They also suffer from issues of access and evacuation of traffic.

Less flexibility in carrying different types of products- Special wagons are not easily available
for carrying specialized products. For eg- Special types of steel required for automobile
production have to be carried by trucks as the existing wagons do not offer the kind of protection
that these high value products require.

Railway carriage not easy for industry which cannot provide full train loads- Railways have a
preference for customers who can provide full train load as unlike in some other countries,
railways in India no longer run mixed trains which can carry different types of cargo due to
operational inefficiencies.

While Road movement is preferred to rail, road movement has its own set of challenges.

2. Issues of Port Sector

High turnaround times- Data from Indian ports association shows that ports in India suffer from
high turnaround times for ships. JNPT, the premiere port in India, has more than two times the
turnaround time of Colombo and Singapore ports because of congestion on berths and slow
evacuation of cargos unloaded at berths.

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Inadequate depth at ports- The depth at many ports in India is not enough and dredging tenders
take a long time in getting awarded. As a result with the existing dates many ports are unable to
attract very large vessels.
Coastal shipping has not taken off- Coastal shipping in India is hampered by inadequate port and
land side infrastructure which hampers large scale use of it for freight movements.

3. Storage Infrastructures Related Challenges

ndition to the poor transportation infrastructure the storage infrastructure in India also needs
significant improvement. Main reasons for this are:
(i) State of ICD/CFS is poor- The ICD/CFS infrastructure available for EXIM trade is
inadequate.
The land requirement for setting up ICD/CFS at an appropriate place is difficult to come by as
several hurdles have to be cleared in the consolidation of land. As a result many logistics
companies with an interest in setting up ICD/CFS eventually fail to do so. While it is difficult to
set up a facility, at the same time the existing facilities are plagued with several issues.

4. Tax Structure Related Challenges

A complicated tax regime places several challenges on the logistics industry. Payment of
multiple state and Centre taxes results in:
1. Considerable loss of time in transit for road freight in order to pay such taxes.
2. Fragmentation of warehousing space especially for low margin products thereby providing a
disincentive to create a large integrated warehousing space. A uniform tax structure to be
introduced through the GST is being highlighted as the panacea for the existing situation. If
implemented in spirit GST will enable logistics services to be provided without consideration for
ex boundaries.

5. Technology and Skills Related Challenges

The logistics industry is also hampered by low rates of technology adoption and poor skill levels.

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On the technology front the industry now seems to be paying serious attention with use of RFID,
vehicle tracking technologies, warehouse management system etc. While acceptance is perhaps
is not an issue anymore, the marriage between IT and domain requirement needs to be resolved.
Automation in processes is still only in its infancy. Further progress is dependent on a certain
level of standardization which is made more difficult by the fragmentation in the industry. This
drawback needs to be tackled at the earliest. In addition to the technology related issues the skill
levels of in the logistic industry also require to be upgraded urgently. As now courses focusing
on logistic industry remain few and far between. Also logistic industry is still not looked at as the
industry of choice for young graduates thereby making hiring of quality professional manpower
challenging. Some of the skills required in this sector are technology skills, driving skills
including safety procedures, industry understanding and multi operator's skills.

Impacts of Challenges Faced

The various challenges faced by the logistic industry lead to high logistics costs incurred by the
Indian economy. This is despite the fact that cost of labor, one of the most significant
contributors to logistics costs in developed countries, is significantly cheaper in India.
With regards to costs of spends on logistics, India's logistics sector accounts for 13% of the GDP
of India. Major elements of logistics costs typically include transportation, warehousing,
inventory management and other value added services such as packaging. What is worrying
about the logistics costs in India is the distribution of costs across various heads. In India, as
much as 31% of the logistics costs is attributable to the 'others' category, which primarily
includes various types of process. The logistic costs as a percentage of total product cost in India
is in the range of 4-5 times that in developed countries. This is at a time when the quality of
logistic services provided is not of the highest standards. Also, worryingly, these costs have been
showing a rising trend. Ever increasing congestions at ports are resulting in high levels of ground
rents required to be paid at CFS's near the port. High levels of inventories are being required to
be maintained to guard against sudden

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disruptions in supply chain, all of which adds to the cost.

State scenario
Logistics sector has a lot of growth potential in Kerala. However, due to various reasons, no
serious efforts are being made to tap this potential. Now, the government and the private sector
are coming together to identify the problems that are hindering the logistic sector growth. As a
part of this initiative, a two-day international conference on ‘New trends in Logistics’ is being
organised jointly by the State government, Kerala State Productivity Council and private sector
players.
Falcon Infrastructures Ltd, operators of the first private sector container freight station in Kerala,
is one of the parties associated with the new initiative. Mr N.A. Mohammed Kutty, Managing
Director, Falcon Infrastructure, spoke to Business Line on the potential of the sector in the State
and its problems.

Emerging opportunities in logistics sector in Kerala

With the commissioning of Vallarpadam Terminal, Kerala has tremendous opportunities in
logistics industry especially by establishing free trade warehousing zones (FTWZs).
FTWZs enable the importers to store stocks for a longer period of up to two years without paying
any duty and can re-export after some value addition.
Considering the geographical advantage and the proximity to international maritime routes,
Kerala can certainly emerge as the right logistics hub of the southern states.
The ICD's of Hyderabad, Bangalore and Coimbatore can have a better connectivity and become
more economical, when Vallarpadam Terminal becomes fully operational.
The distance from Chennai to Bangalore and Hyderabad is almost the same and additional
expenditure on transhipment through Colombo can be saved, if transhipment takes place from
Vallarpadam.

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Logistics in the industrial era

The revolution in warfare

Between the mid-19th and the mid-20th centuries the conditions and methods of logistics were
transformed by a fundamental change in the tools and modes of making war—perhaps the most
fundamental change since the beginning of organized warfare. The
revolution had four facets: (1) the mobilization of mass armies; (2) a revolution in weapons
technology involving a phenomenal increase in firepower; (3) an economic revolution that
provided the means to feed, arm, and transport mass armies; and (4) a revolution in the
techniques of management and organization, which enabled nations to operate their military
establishments more effectively than ever before.
These interrelated developments did not occur all at once. Armies of unprecedented size had
appeared in the later years of the Napoleonic Wars. But for almost a century after 1815, the
world saw no comparable mobilization of manpower except in the American Civil War.
Meanwhile, the growth of population (in Europe, from 180 million in 1800 to 490 million in
1914) was creating a huge reservoir of manpower. By the end of the 19th century most nations
were building large standing armies backed by even larger partially trained reserves. In the world
wars of the 20th century the major powers mobilized armed forces numbering millions.
The revolution in weapons had started earlier but accelerated after about 1830. By the 1850s and
’60s the rifled percussion musket, rifled and breech-loading artillery, large-caliber ordnance, and
steam-propelled armored warships were all coming into general use. The revolution proceeded
with gathering momentum thereafter, but it remained for mass armies in the 20th century to
realize its full potential for destruction.

Evolution of Logistics Industry in India- Role of Technology

Logistics is one of the major pillars of the Indian economy and accounts for a sizable 14% of the
total GDP. Road transport forms a dominant 60% of the logistics industry. Market size

22
estimation for the road transport industry in 2015 was of USD 55-75 billion, which is expected to
grow at CAGR of 15% over the next few years. This makes this sector to be one of the most
attractive in India, and hence globally too.
Strong growth in the quantity and quality of domestic consumption has led to rapid growth in
sectors like FMCG, pharmaceuticals, e-commerce and automobile. All these industries rely
heavily on the logistics industry and so are their growth trajectories. One can even say that the
future of the logistics industry will determine the future of the Indian economy.

Current nature of the Industry

Indian logistics sector comprises of inbound and outbound segments of the manufacturing and
service supply chains. The prime drivers of the logistics industry are the boom in the e-
commerce sector and the expansion of the FMCG sector in the new found markets of tier 2 and 3
cities.
The industry has matured from being just a ‘transport service’ provider consisting of 1PL and
2PL players (i.e. haulers and forwarders respectively) to ‘on-contract logistics service’ provider
consisting of 3PL players. This is evident from the fact that companies in India currently
outsource an estimated 52% of their logistics requirements.

Challenges, reforms and opportunities

The logistics sector of India faces immense challenges. It is mired with several bottlenecks.
Highly unorganized, it has suffered heavily from under-developed infrastructure and persistent
policy-logjam at the central decision making bodies. However, recent developments of increased
investment on road infrastructure and huge policy boost in the form of GST tax-regime have
opened up new avenues of growth in the industry. Logistics industry is considered to be one of
the biggest beneficiaries of the GST tax reforms.
One of the biggest challenges faced by the logistics industry is the high operations cost due to
inefficiencies such as underutilized assets, operational wastage and sub-optimal route

23
planning. These very challenges present the biggest opportunity for value creation for companies
that are ready to adopt technology. Implementation of Information Technology, which has been
largely neglected by the logistics community, has the potential to revolutionize the way cargo
transportation operates in the country.

Technology
Technologies like cloud services and data analytics are being leveraged to provide logistics
management solution, which have emerged as the disruptive technologies in this domain
and will be the focus of all companies in the near future. Cloud based services and data analytics
provide functionalities like
Integrated 3-way administration: provides real time coordination among customer-vendor-
owner
Automatic invoice generation, quick upload of bills and Proof of Deliveries using the driver
app, transparent refueling transactions using fuel cards, etc.: provide transparency, efficiency and
reliability in the operations
Geo-fencing and GIS enabled real time location tracking: help in tracking the complete fleet
of trucks and provide anytime-anywhere process visibility
Real time temperature and vehicle speed monitoring: helps in tracking the quality of the
products; speed & route deviation checks during transportation
Smart routing and planning; application of data analytics: help in optimized delivery route
planning, shipment scheduling and resource allocation.

Logistics system
The Order Management System
The OMS is the first point of logistics system contact with customers by managing order
receiving and placement. It is the front-end system of the LIS. The OMS are closely related to
WMS for checking product availability. The customer-ordered items may be available from
inventories or may be seen in the production schedules. This provides information

24
about the location of the product in the supply network, quantity available, and possibly the
estimated time for delivery. After checking product availability and accepting the delivery time
by the customers, the next step is credit checking. In this step, the OMS communicate with the
financial information system to check a customer’s credit status. Once the order is accepted, the
OMS will allocate the product to the customer order, assign it to a production location,
decrement inventory, and prepare an invoice when shipping has been confirmed.
The OMS dose not stand in isolation from the firm’s other information systems. If the customer
is to be served effectively, then information must be shared.

Evolution of customer service

Since the beginning of “customer service revolution” almost 25 years ago, business’s research
has focused on customers, especially customer satisfaction. Business consultants, corporations
and operational management have all worked together to identify the characteristics of
organizations that consistently please their customers, to develop tools that monitor customer
satisfaction, and to build continuous quality improvement systems that respond to consumer
feedback.
Although the research has been conducted by and for the corporate world, customer service and
satisfaction is not limited to the private sector only, but every company that is interested in
determining its success and ensure its continuity. During the 50’s-60’s the product costs were
continuously increasing which lead to many crises and low purchase power, the business
consultants and operational management kept searching for a tool that can take care of customer
satisfaction as well as cost and quality. In addition, the highly competitive environment at that
time made companies look for a competitive advantage. Researchers arrived to the conclusion
that logistics management has the potential to assist the organization in the achievement of both,
customer satisfaction and cost / productivity advantage and a value advantage (Christopher,
1998).

25
Logistics management is the governance of supply chain functions. Logistics management
activities typically include inbound and outbound transportation management, fleet management,
warehousing, materials handling, order fulfillment, logistics network design, inventory
management, supply/demand planning, and management of third party logistics services
providers. To varying degrees, the logistics function also includes customer service, sourcing and
procurement, production planning and scheduling, packaging and assembly. Logistics
management is part of all levels of planning and execution strategic, operational and tactical. It is
an integrating function, which coordinates all logistics activities, as well as integrates logistics
activities with other functions including marketing, sales manufacturing, finance, and
information technology.

26
 CHAPTER 3

COMPANY PROFILE

27
INTRODUCTION ABOUT OM LOGISTICS

Om Logistics Ltd. the flagship company of Om Group has been instrumental in providing
innovative and value added solutions for Indian Corporate and Multinationals. It.s the only
leading multi-modal logistics company with single window integrated logistics services for all
the elements of the supply chain management in India. Through its innovative and cost saving
methods, Om Logistics Ltd. has consistently added value for its customers, which can be
complimented by their competence to take the driving seat for generating maximum air cargo in
India. It has been dealing with corporate, multinational automobile industry and has been pioneer
in transportation, warehousing and logistics support to the sector.

QUALITY POLICY: Om Logistics Ltd. is committed to offer logistics solutions and services to
the Indian Industry, designed to suit costumer's satisfaction to help, support and grow together
with a win-win situation.

THE DRIVING SPIRIT: To redefine customer satisfaction, herald a rationalized approach of

time & cost and eventually bridge the gap between Indian requirements and global standards.

ACHIEVMENTS: As per Bradstreet & Dunn rating (2001), Om Logistics Ltd. is one of the
top Logistics Service providers in India. . Indian Airlines awarded Om Logistics Ltd. for
generating maximum revenue through Air Cargo sales during 1995 to 2003. Maruti Udhyog
Limited for the year 2001-2002 selected us as the best Car Carrier in the country. Economic
Times knowledge series on Supply Chain Management Group has identified Om Logistics Ltd.
as India's one of the best Third Party Logistics company during the year 2002. . Indian Institute
of Materials Management in the year 2002 awarded them for adopting best Supply Chain
Practices in Indian Industry . . Om Logistics Ltd. was also conferred the Parivahan Shreshtha
award for the year 2003 by the Hon'ble Vice President of India. . Cargo Talk Magazine rated
them as the best auto carrier in the country. . Linux For You magazine considered their I.T
department as the best in terms of handling logistics & supply chain management operations in

28
this industry in their July 2004 edition. . Benefit magazine describe their company as best
logistics company in terms of providing best, fast services at reasonable cost in logistics
industry
in their Oct 2005 edition.

THE CTOFORM has conferred OM LOGISTICS LTD. for enhanced operating system which
led to the Business expansion after using Linux in Oct 2005 edition of their magazine. . The
performance of ER system increase the Curiosity of Intel Corporation to know how technologies
use as best. Intel was really impressed from their integrated IT setup. GROUP OF COMPANIES
UNDER OM GROUP:

OMX (EXPRESS DIVISION OF OM LOGISTICS) OMX is India's leading multi

modal logistics service provider offering an entire gamut of integrated services for all the
elements crucial to the Supply Chain Management functions. Services include Ground Express,
Train & Air Cargo movements. Packing together speed, safety, security and on the time delivery
is OMX (Express Division of OM Logistics Ltd). one of the largest organized Logistics
Solutions Company in the country. OMX is a multi- locational and multifaceted public limited
company backed by qualified professionals. OMX to its credit has deep interwoven network
across the length and breadth of the country connecting every metropolitan city as well as remote
townships. Upholding the beacon of leadership in consistent service, delivery and efficiency,
OMX dedicates its convoy of activities to utmost customer satisfaction. OMX today stands as the
unanimous choice of being the preferred cargo service provider for many of India's top notch
corporate.s. OMX has been appreciated for its expertise in handling, storing, & caring shipments,
which requires deft handling and utmost care.

SERVICES: Small Cargo: A boon for non-industrial product manufacturers or private users,
OMX providers big pride relief to small cargo senders. Retail Level: Their retail level services
are directed towards cost-effective handling of customers parcels such as sample products, B2C
Shipments etc. Door To Door Delivery: Knocking out niggling undesirable expenses their door
to door delivery services pack a lot of promises. Time Bound Delivery: Our round the clock
services assure prompt, safe and time bound deliveries. To Pay Facility: They liberate you from

29
paying for the cargo and offer the facility to collect the same from the consignee at the point of
delivery. Special Area Delivery: Going that extra mile ahead they make special arrangements to
deliver goods at areas outside their existing network. Holiday Delivery: Their customer gets what
they want when they want-even on a holiday. PATRONAGE PROFILE: The multi-modal D 2 D
services extended by OMX have chiefly found its patronage in India's: Electronic & Electrical
(Consumer & Industrial)
Pharmaceutical Technical and Engineering, White Goods (Consumer Durables) Packaged food
Product Industries Other than these, OMX is patronised by Educational, Publishing, Sensitive
Packaging and many allied industries. The patronage profile of OMX extends to .anyone having
the requirement to send a package. through a company, which has a nationwide setup!

LOGISTICS : Logistics is the management of the flow of goods, information and other
resources, including energy and people, between the point of origin and the point of consumption
in order to meet the requirements of consumers (frequently, and originally, military
organizations). Logistics involve the integration of information, transportation, inventory, ware
housing, material- handling, and packaging.

ORIGINS AND DEFINITION: The term "logistics" originates from the ancient Greek
"....." ("logos"."ratio, word, calculation, reason, speech, oration"). Logistics is considered to
have originated in the military's need to supply themselves with arms, ammunition and rations as
they moved from their base to a forward position. In ancient Greek, Roman and Byzantine
empires, there were military officers with the title .Logistikas. who were responsible for
financial and 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"....

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

30
consumption in order to meet customers' requirements. A professional working in the field of
logistics management is called a logistician. The Chartered Institute of Logistics & Transport
(CILT) was established in the United Kingdom in 1919 and was granted the Royal Charter in
1926. The Chartered Institute is one of professional bodies or institutions for the logistics &
transport sectors, that offers such professional qualification or degree in logistics management.
LOGISTICS MANAGEMENT SOFTWARE: Software is used for logistics automation which
helps the supply chain industry in automating the work flow as well as management of the
system. There are very few generalized software available in the new market in the said
topology.

This is because there is no rule to generalize the system as well as work flow even though the
practice is more or less the same. Most of the commercial companies do use one or the other
custom solution. But there are various software that are being used within the departments of
logistics. Few departments in Logistics are namely, Conventional Department, Container
department, Warehouse, Marine Engineering, Heavy haulage, Etc.

The software.s that are used in these departments are, Conventional department: CVT software /
CTMS software Container Trucking: CTMS software Warehouse: WMS 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 logistics work is to manage the fruition of project life cycles, supply
chains and resultant efficiency. In business, logistics may have either internal focus (inbound
logistics), or external focus (outbound logistics) covering the flow and storage of materials from
point of origin to point of consumption. The main functions of a qualified logistician include
inventory management, purchasing, transportation, warehousing, consultation and the organizing
and planning of these activities. Logisticians combine a professional knowledge of each of these
functions so that there is a coordination of resources in an organization. There are two

31
fundamentally different forms of logistics. One optimizes a steady flow of material through a
network of transport links and storage nodes. The other coordinates a sequence of resources to
carry out some project.

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 eliminates non-value adding ones. Production logistics can be applied in
existing as well as new plants. Manufacturing in an existing plant is a constantly changing
process. Machines are exchanged and new ones added, which gives the opportunity to improve
the production logistics system accordingly. Production logistics provides the means to achieve
customer response and capital efficiency. Production logistics is getting more and more
important with the decreasing batch sizes. In many industries (e.g. mobile phone) batch size one
is the short term aim. This way even a single customer demand can be fulfilled in an efficient
way. Track and tracing, which is an essential part of production logistics - due to product safety
and product reliability issues - is also gaining importance especially in the automotive and the
medical industry.

SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of

planning, implementing, and controlling the operations of the supply chain as efficiently as
possible. Supply Chain Management spans all movement and storage of raw materials, work-
inprocess
inventory, and finished goods from point-of-origin to point-of- consumption. Some
experts distinguish Supply Chain Management and logistics, while others consider the terms to
be interchangeable. Supply Chain Management can also refer to Supply chain management
software which are tools or modules used in executing supply chain transactions, managing
supplier relationships and controlling associated business processes. Supply chain event
management (abbreviated as SCEM) is a consideration of all possible occurring events and
factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be
created and solutions can be planned. ACTIVITIES/FUNCTIONS: Supply chain management is

32
a cross-functional approach to managing the movement of raw materials into an organization,
certain aspects of the internal processing of materials into finished goods, and then the
movement of finished goods out of the organization toward the end-consumer. As organizations
strive to focus on core competencies and becoming more flexible, they have reduced their
ownership of raw materials sources and distribution channels. These functions are increasingly
being outsourced to other entities that can perform the activities better or more cost effectively.
The effect is to increase the number of organizations involved in satisfying customer demand,
while reducing management control of daily logistics operations. Less control and more supply
chain partners led to the creation of supply chain management concepts. The purpose of supply
chain management is to improve trust and collaboration among supply chain partners, thus
improving inventory visibility and improving inventory velocity

Several models have been proposed for understanding the activities required to manage material
movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Management Council. Another model is the
SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can
be grouped into strategic, tactical, and operational levels of activities. Strategic . Strategic
network optimization, including the number, location, and size of warehouses, distribution
centers and facilities. . Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational improvements such as cross
docking, direct shipping, and third-party logistics.
Product design coordination, so that new and existing products can be optimally integrated into
the supply chain, load management . Information Technology infrastructure, to support supply
chain operations. . Where-to-make and what-to-make-or-buy decisions . Aligning overall
organizational strategy with supply strategy. 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

33
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. . Production operations, including the
consumption of materials and flow of finished goods. . Outbound operations, including all
fulfillment activities and transportation to customers. . Order promising, accounting for all
constraints in the supply chain, including all suppliers, manufacturing facilities, distribution
centers, and other customers.

THEORIES OF SUPPLY CHAIN MANAGEMENT: Currently there exists a gap in the

literature available in the area of supply chain management studies, on providing theoretical
support for explaining the existence and the boundaries of supply chain management. Few
authors such as Halldorsson, (2003), Ketchen and Hult (2006) and Lavassani, (2008) had tried to
provide theoretical foundations for different areas related to supply chain with employing
organizational theories.
These theories include: . Resource-based view (RBV) . Transaction Cost Analysis (TCA) .
Knowledge-based view (KBV) . Strategic Choice Theory (SCT) . Agency theory (AT) .
Institutional theory (InT) . Systems Theory (ST) . Network Perspective (NP) REVERSE

SUPPLY CHAIN: Reverse Logistics is the process of planning, implementing and controlling
the efficient, effective inbound flow and storage of secondary goods and related information
opposite to the traditional supply chain direction for the purpose of recovering value or proper
disposal. Reverse logistics is also referred to as "Aftermarket Customer Services". In other
words,
anytime money is taken from a company's Warranty Reserve or Service Logistics budget, that is
a Reverse Logistics operation.

34
INTRODUCTION TO THE PROBLEM .JUXTAPOSING OF OMX CLIENTE
vis a vis INDUSTRIES SOURCING D2D LOGISTICS SOLUTIONS.
BACKGROUND OF THE TASK UNDERTAKEN: Om Logistics Ltd. the flagship
company of Om Group has been instrumental in providing innovative and value added solutions
for Indian Corporate and Multinationals. OMX is India's leading multi modal logistics service
provider offering an entire gamut of integrated services for all the elements crucial to the Supply
Chain Management functions. Services include Ground Express, Train & Air Cargo movements.
Packing together speed, safety, security and on the time delivery is OMX (Express Division of
OM Logistics Ltd). OMX is the major logistics solution provider in Indian market but still there
always exists the scope of growth.

RATIONALE OF THE STUDY: The rationale of the study is to place the various
companies of major four industries side by side which contain both the present clients of OMX
and the other companies which can be the clients of OMX in near future and presently they are
the clients of some other logistics solution provider company. To know the services provided by
OM LOGISTICS.

THE SCOPE: The scope of the project is to help OMX to increase its customer data base by
providing the information of logistics used by various companies and to find the various logistics
problems faced by OM LOGISTICS. It ignores the financial part of the same but only includes
the operational part. The company also look forward to the problems elaborated in the report and
improve its services by solving them.

OBJECTIVE OF THE STUDY: . To know the distribution system and integrated logistics
activities of OM LOGISTICS. . To find out the position of OM LOGISTICS in the market. . To
help OM logistics by providing them the information of the points from where they can increase
their market share in the logistics market of India. . Problem faced by logistics companies in
managing supply chain.

35
METHODOLOGY DATA USED: The data used for research purposes consists of both
primary and secondary data. Primary data: . Data from project guide and other staff of the
organization. . Exploratory research helpful in developing concept more clearly. . The primary
data has been collected through direct face to face interaction with the various employees
working in different departments of the company. The data collected helped me in doing the
ground works of the project.
Secondary data: . Web sites . Magazines . Newspapers . Company internal documents (MIS of
the company). This data helped me too move on further with the project and also gave us the
correct path to be followed during the project work. LIMITATIONS: . Certain information
required for the research was not provided as it was against the policies of the company. . Some
companies don.t provide the data regarding the logistics they use. Also one company uses many
logistics providers for their products.

STO KNOW THE DISTRIBUTION SYSTEM AND INTEGRATED LOGISTICS

ACTICITIES OF OM LOGISTICS DISTRIBUTION SYSTEM:
COMPREHENSIVE COHENSIVE LOGISTICS SOLUTIONS: The promising global
market demands the manufacturers to hasten their products to the buyers within time and in one
piece so as to avoid competition. Just in time delivery and taking you where the opportunities
await is the equation to this trend. Based on this business principle Om Logistics Ltd. has
established its infrastructure to help, support and grow together with the manufacturers across the
world. Quick delivery, perfect organization of flow of goods combined with state-of-the-art IT
communication system, are the tools they operate with.

CONNECTIVITY: Om Logistics Ltd. connects more than thousand destinations all over the
country. The company also owns dedicated fleet for local distribution. In addition to the
exemplary mix of rail and road, there is a perfect combination of air cargo in which the company
has an edge over its competitors. With the flexible transportation set-up, Om Logistics Ltd.
provides multiple opportunities for manufacturers to enhance their supply chain radius through
out India. This is the major strength of Om Logistics Ltd. where by manufacturers may save their
capital investment by reducing the inventory cost.

36
WAREHOUSING: Warehousing being an indispensable part of supply-chain Management,
Om Logistics Ltd. Provides technically efficient warehouse located at all strategic location
across the country. These state-of-art warehouses are equipped with modern material handling
equipment and complete workforce for efficient logistics coordination. NETWORK: 240 Branch
offices and 200 franchisees covering more than 1000 strategic locations across country .
Warehouses with residential accommodation for staff . Fully equipped office automation and
state-of the-art communication system . A fleet size of over 3000 Trucks, LCVs. Jumbo &
Containers . 35,00,000 Sq. Ft. covered area for warehousing . 20,00,000 Sq. Ft. covered open
area for storage . Professionally competitive and committed work force

INTEGRATED LOGISTICS ACTIVITIES: CUSTOMERS: . One to one

communication with customers . Jigsaw-fit tailored services . Responsibility cumulating
through partnership WORKFORCE: MARKET WATCH: . Data collection and analysis . Value
addition with commercial viability . Control on cost and productivity

QUALITY CONSISTENCY: . Priority to customers standards . Constant monitoring for a

regularized quality . Training to realize core competency . Interactive and spirited with you for
you . Committed and devoted . Fully trained hands with in depth knowledge

RESEARCH DEVELOPMENT: . Market research and development . IT team to keep in

sync with changing communication system . Pro active to changes APPROACHING
Maintain warehouse Maintain System .

CONVENIENCE IN REAL TIME: . IT based graphical user interface . On line and real
time applications . Consignment tracking and tracing CARGO HANDLING SYSTEM: . Fleet
information system . Incident reporting, follow up of complaints . Common language
environment . Lost and found application . Cargo automation system warehouse

37
PRODUCTIVITY AND SUPPORT SYSTEM: . Planning of personnel and equipment .
Trained and qualified management . Material and equipment management

FUTURE PLAN COMMUNICATION SYSTEM: . Workstation system for

communication technology . Digital radio communication system . Networked communication
system . Mobile communication . Monitoring of logistics application DATA PROCESSING
SYSTEM: . DP system for logistics . Database and information system . Identification and
coding system . Transport control and DP systems

SERVICES PROVIDED BY OM LOGISTICS: . Just in Time Supplies (JIT). . Comb.

of JIT and DOL. . System and Management of Spare-Parts Distribution Centres ( SPDC ). . Bin
Charging. . Kitting and Consolidation. . Carting of Loads. . Distribution through Merry Go-
Rounds. . First in First Out (FIFO). . Warehouse Management . Relocation of Warehouses. .
Bonded & Non-Bonded Warehousing . Order processing . Pre-Delivery Inspection (PDI) .
Total Inventory Management . Bar Coding / KANBAN . Dedicated Vehicles/ Designed
Vehicles . Tracking and Tracing through SWIPE Technology . Concept of .Small is Beautiful. .
Pelletizing and Securing of Load Units . Ware Houses Shrinking Films and Anti-slip Material .
Process Control for Storage . Conveyer Systems

Encoding, Labeling , Addressing, Reading . Direct On line Deliveries (DOL). . DI System. .

Concept of 2-Bin System. . Milk Run Application. . Distribution through .Hub & Spokes.
System. . Introduction of Recyclable Packaging Material. . Last in First Out ( LIFO ). . Total
Supply Chain Management ( SCM ). . Cloak Room Facility (Instant Warehousing) . MIS
(Management Information System) . Space for Segregation . Space for Testing Equipment .
Movement with Mobile Communication . Logistics related Manpower Support . Super Market
and Water Spider Concept . Transport Packaging for all kinds of Freight . Instruments of
Measuring Transport Stress with Straps, Bands, Ropes and Chains. . Storage Facility with Rack
and Shelving Systems . Material Handling Equipment Distribution System . Process Control for
Conveyer Systems . GSM based vehicle tracking .

38
TO FIND OUT THE POSITION OF OM LOGISTICS IN THE MARKET
INDUSTRIES WHICH TAKEN FOR CONSIDERATION IN THE PROJECT .

ELECTRICAL . ELECTRONICS . GARMENTS . PHARMACEUTICAL

Companies under these industries, their type of work and the logistics provider used by them
have been tabulated in the form of tables. Then the share of logistics provider has been
calculated in that industry. This provides the market share of om logistics and also the major
competitors of om logistics in that industry.

COMPANIES IN ELECTRICAL INDUSTRY, THEIR TYPE OF WORK AND THE

LOGISTICS SERVICES THEY USE: COMPANY TYPE OF WORK LOGISTICS
COMPANY
HAVELLS Electrical products company manufacturing Electrical products India ranging from
building circuit protection, industrial switchgear, lighting solutions DIRECT LOGISTICS
ANAND POWER Telecom rectifiers, UPS and lightning equipment manufacturer OM
LOGISTICS .

BAJAJ ELECTRICALS Electrical appliances manufacturer DYNAMIC LOGOSTICS

BHARAT HEAVY ELECTRICALS Power transmission equipment manufacturer M/S
BHARTIYA ROADLINES PVT. LTD..
M/S ASSAM BENGAL ROADWAYS LTD. M/S ASSOCIATED ROAD CARRIERS
LIMITED M/S ECONOMIC TRANSPORT ORGANISATION DYAN HITECH Manufacturer
of battery charges, DC converters DIRECT LOGISTICS INDIA GOLDEN PEACOCK
OVERSEAS Manufacturer of lightning components DEHANG INTERNATIONAL
LOGISTICS LTD

39
JAI HIND ELECTRICAL Control panel manufacturer OM LOGISTICS L&T ELECTRICAL
BUSINESS Manufacturer of switchgear products FEDEX NIRMAL POWER SYSTEMS
Manufacturer of SMPS, UPS NAVIGATORS LOGISTICS PVT. LTD
PANASONIC BATTERY Novino brand batteries manufacturer DYNAMIC LOGISTICS SAFE
POWER TECHNOLOGIES Manufacturer of UPS, inverters & batteries JAI SHREE
TRANSPORT COMPANY SAI ELECTRICALS Voltage stabilizer manufacturer EXPERT
LOGISTICS PLAZA ELECTRICALS Manufacturer of electrical wires and components SELF
USHA LEXUS Home appliance manufacturer DYNAMIC LOGISTICS WAVES
ELECTRONICS Manufacturer of instrumentation control systems SICAL LOGISTICS
OM LOGISTICS & SUPPLYCHAIN MANAGEMENT .

40
 CHAPTER 4

REVIEW OF LITERATURE

41
Freight forwarding
Freight forwarders typically arrange cargo movement to a destination. Also referred to as
international freight forwarders they have the expertise that allows them to prepare and process
the documentation and perform related activities of International shipments. Some of the typical
information reviewed by a freight forwarder is the commercial invoice, shipper’s export
declaration, bill of lading and other documents required by the carrier or country of export,
import, or transshipment. Much of this information is now processed in a paperless environment.
The original function of the forwarder, or speedier, was to arrange for the carriage of his
customers' good by contracting with various carriers. His responsibilities included advice on
documentations and customs requirements in the country of destinations. His correspondent
agent in far-away lands looked after his customers' interests and kept him informed about matters
that would affect movement of goods. In modern times the forwarder still carries out those same
responsibilities for his client. He still operates either with a corresponding agent overseas or with
his own company branch-office. In many instances, the freight forwarder also acts as a carrier for
part of a movement it can happen that in a single transaction the forwarder may be acting either
as a carrier (principal) or as an agent for his customer.
Custom Clearance
It is a procedural activity which is performed by government personnel. The shipment has to
clear all the norms of custom clearance. Custom clearance differs from country to country. Tariff
classifications, value declaration, and duty management can increase costs. Customs and security
initiatives have imposed new regulations on companies that make it more challenging than ever
to trade internationally.
Transportation
It is the movement of people and goods from one location to another. Transport is performed by
various modes, such as air, railroad, water, cable, pipeline and space. Infrastructure consists of
the fixed installations necessary for transport, and may be roads

42
railways, airways, waterways, canals and pipelines, and terminals such as airports, railway
stations, bus stations, warehouses and seaports.
Customer Service
Customer service means to resolve customer complaints. Customer service is the provision of
service to customers before, during and after a purchase.
Eight ways to provide excellent customer service
1. Work as a team
2. Listen and share
3. Friendly, empathetic support
4. be honest
5. Improve empathy
6. Deep product knowledge
7. Timeliness
8. Identify ways to improve processes
Customer satisfaction
Customer satisfaction measures how well the expectations of a customer concerning a product or
service provided by a company have been met. Customer satisfaction is an abstract concept and
involves factors such as the quality of the product, the quality of the service provided, the
atmosphere of the location where the product or service is purchased, and the price of the
product or service. Businesses often use customer satisfaction surveys to gauge customer
satisfaction. These surveys are used to gather information about customer satisfaction. Typical
areas addressed in the surveys include: Quality of product Value of product relative to price - a
function of quality and price Time issues, such as product availability, availability of sales
assistance, time waiting at checkout, and delivery tiAtmosphere of store, such as cleanliness,
organization, and enjoyable shopping environment. Customer satisfaction provides an important
indicator of consumer purchase intention and loyalty, among the mostly collected indicator, their
principal use is twofold: 1- Within the organization, analysis of the collected data sends a
message about the

43
importance of tending to customers and ensuring that they have a positive feedback and
experience with the company goods and services. 2- Throughout market share, it can indicate
how well a firm is performing, customer satisfaction is the best indicator of how likely it is that
the firm’s customers will make further purchases in the future. Most of researchers described the
customer satisfaction as the most important indicator of company existence and product life.
There are many conferences and papers concerning customer satisfaction and how it can be
improved from a marketing view. Nowadays it is a sure thing that customer satisfaction has
many aspects and is not just linked to the quality and the costs of the product (Kristianto et al.,
2012; Meybodi, 2015). Customer satisfaction is linked closely with intellectual capital
relationship which is a nonlinear field of intangibles (Bratianu, 2009). It has been ascertained, in
particular, that a logistic dimension is important in customer satisfaction. Lai and Cheng (2009,
p. 111), mentioned for instance, its link to the ability to deliver the right amount of right product,
at the right place, at the right time, in the right condition with the right information. 25 years ago,
some researchers showed a positive relationship between customer satisfaction requirements and
delivery and logistics solutions (Sharma et al., 1995; Choi and Eboch, 1998; Cermak et al., 2011;
Beamon, 1999). Cermak et al. (2011) even discussed the fact that customers can participate in
the specification and delivery of the services. In this sense, suppliers have to react to customer’s
demand in a timely manner increasing their abilities to master all the processes including the
logistic ones. Logistics has
been defined as being a very important tool for integrating the internal operations of an
organization with the supply chain processes to increase customer satisfaction. For instance,
Bowersox et al. (2002) investigated all the supply management processes which can affect
logistics and customer satisfaction and reported that a logistical value proposition and logistics
have a big impact on customer satisfaction leveraging on order processing, inventory
management, transportation, handling and packaging and production, as well as facility network
design Zhang et al. (2005) demonstrated a quantitative inquiry carried out in US industrial
organizations that logistics flexibility is a fundamental requirement for responding to changing
customer needs.

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Lastly, logistics nowadays increased customer’s attention, according to the results of the
literature review. However, in the literature, there’s a lack of understanding of what these
solutions are for, in what way and to what degree they affect the customer. In particular there’s
no trace of quantitative simulations that can demonstrate the relative importance of these issues
to the customers. Anyhow, from the literature review, some specific theoretical key issues were
emerged. Each key have been linked with the main literature as per the following list:
K1: customer satisfaction is affected by warehouse and inventory management solutions
(Sharma et al., 1995; Beamon, 1999; Bowersox et al., 2002; Sbihi and Eglese, 2010; Genchev et
al., 2011)
K 2: customer satisfaction is affected by the control and integration of the supply chain into the
company’s operations (Bowersox et al., 2002; Cermak et al. 2011; Del Baldo, 2011; Vona, 2011)
K3: customer satisfaction is affected by the sharing and managing of common Information
Communication Technology (ICT) processes (Gunasekaran et al., 2004; Bienstock et al., 2008
K4: customer satisfaction is affected by the sharing and managing of common key performance
indicators (KPIs) and performance data (Gunasekaran et al., 2001; Tracey and Leng Tan, 2001;
Gunasekaran et al., 2004; Khan et al., 2012)
K5: customer satisfaction is affected by the mastery of knowledge and skills linked to logistics
from the supplier (Zhang et al., 2005; Cermak et al. 2011; Lun et al., 2015)
K6: customer satisfaction is affected by the green logistics solutions adopted by the supplier
(Fleischmann et al., 2000; Rogers and Tibben‐Lembke, 2001; Sbihi and Eglese, 2007)

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Relations between customer satisfaction and logistics management:
All researchers and business consultant agreed that the logistics management is consists of all
parties (including manufacturers, marketers, suppliers, transporters, warehouses, retailers, and
even customers) directly or indirectly involved in fulfillment of a customer’s need. The main
objectives of the logistic are to improve the overall organization performance and customer
satisfaction by improving products or service delivery to customer. The relation between the
customer satisfaction and logistics management has many indicators; one of the most import
indicators is the cost of the product. The logistics analyze aims to reduce the cost from suppliers
to final user, taking into consideration the quality and the time, two of the major customer
satisfaction indicators are the costs and the waiting time. Both customer satisfaction indicators
are implied in the logistics process which result to a cheap product (using a cheap raw material,
choose the cheapest transportation method, high production with low labor costs, low cost
storage and delivery).

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 CHAPTER 5

SWOT ANALYSIS

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SWOT ANALYSIS

SWOT analysis means that the strength, weakness, opportunity and threats. Actually, SWOT
analysis is a very needful factor in forming a company. Only with this they are able to know
about where they will face a problem and howsoever come that. Also, and then only they can
take ourselves know about what is our strength. So that SWOT analysis is such a needful thing
for the formation of company. It is present in all the company and it is a tool to measure the
success of the company.

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Strength
o Since construction will be happen everywhere, they have always a chance to grow.

o The employees are the biggest strength of them.

o The connections that they built in the suppliers.

o The trust that they have made to our customers.

o Quality of the delivered products.

o Humble and effective interaction with the customers and suppliers.

o Providing a unique and simple execution of delivery and management.

o A friendly atmosphere they created in the company may helpful to communicate free without
fear.

o Hardworking employees and staffs.

o Punchuality in shipment of goods.

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Weakness

Have to reduce rates for better sales

Have to pay in advance in some cases.

Lack of products available.

Lack of availability of transportation

Lack of resources

Common complaints about online shopping will be a problem.

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Opportunity

Since the constructions running throughout, they have enough source top achieve.

They are providing the products at the best rates so at the customer are forced to be with us.

The best and efficient customer service is actually providing us a great platform to build our
company much larger.

The unnecessary growth of price in retail shops.

Threats

The contractors that are dealing with a fixed person may won't interested with them.

But since they are the only online building materials dealing company, they don't have more
competition.

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 CHAPTER 6

FINDINGS , SUGGESTIONS AND

CONCLUSTIONS

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FINDINGS

It is found that there are various shippers for single customer from whom the cargos are being
exported

The shipper has to place bookings with the forwarder before 7 days of shipment but it is found
that they place bookings in less than 7 days.

It is found that some booking details placed by the shipper do not match with the customer’s
PO details. The mismatches have to be sent to customer and get approval again only then the
shipment will be planned.

It is found that most of the bookings placed by the shipper have been approved

It is found that in some of the cases, shippers do not send the documents at the right time. this
will impact the dispatch of original documents to customers at the right time.

It is found that the shipper does not make payment on the right time. Proper follow-up has to
be done so that there is no outstanding payment.

SUGGESTIONS
High end IT solutions can be used like SAP to increase the data management and to get latest
information about the dockets position. Quality of services must be increased like packaging, on
time delivery, openness of the systems used etc. Suggestions of customers and dealers should be
taken into consideration time to time to solve their problems if any. Customers expect more trade
discounts from the company. So company should take necessary actions on behalf of customers
demand. Company should also focus on global expansion by increasing their cargo services.
Increase sub distributers to increase the market share. Increase promotional activities to bring
about awareness within the market.

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CONCLUSION

This study has tried to put together the basics concepts of freight forwarding and the
warehousing benefits of consolidation of shipments as it reduces cost and saves time. The
necessary information was gathered to complete this project starting from collecting the data for
the theoretical background, going through numerous articles to find the right kind of information,
understanding the concepts. The study also helps to know the challenges faced by the forwarder
and how to overcome it. Also, it helps to know the necessary steps for order placement, planning
and shipment execution of a shipment and meeting the customer needs.

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BIBLIOGRAPHY

o CII Warehouse and distribution Text Book

WEBSITES
o www.Om logistics.com

o www.naukri.com

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