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					                                  1




                      A Project Report
                                 on
          “LOGISTICS MANAGEMENT ”
                       Under the guidance of
                    “……………………………….”
                           Submitted by
                        STUDENT’S NAME
                            ROLL NO
                    Session: November 2012
                   Submitted in partial fulfillment
                                  of
the requirements for the degree of Master of Business, Administration
                     Sikkim Manipal University.


                         Learning Centre:
             Platinum School of Distance Learning
                   Ashirwad Towers, G.E.Road
                           Raipur (C.G.)
                       Center Code-01523
                                    2




                             DECLARATION


I Akhilesh Kumar Kahar hereby declare that the project report entitled
Logistics Management is the record of authentic work carried by me during
the academic year 2011-12 in _Raipur Madras Road line.

This project is the result of original research work carried by me and the
same has not been previously submitted for any examination of this
university or any other university.




                                                   SIGNATURE

                                                   Name:
____________________
                                                   Enrollment No.
581117688
                                     3




                        BONAFIDE CERTIFICATION




     Certified that this project report titled “ Logistics Management ” is the
bonafide work of Akhilesh Kumar Kahar Who carried out the project work
under my supervision.




        SIGNATURE                                         SIGNATURE
HEAD OF THE DEPARTMENT                               FACULTY INCHARGE
SMU Learning Centre,                               SMU Learning Centre,
Adharsila Shikshan Sangh,                      Adharsila Shikshan Sangh,
Jaistambh chowk, Raipur                          Jaistambh chowk, Raipur
                                      4




                      EXAMINERS CERTIFICATION




     The is certify that Akhilesh Kumar Kahar student of MBA IV semester,
Sikkim Manipal University, Learning Center, Adharsila Shikshan Sangh,
Jaisthambh chowk, Raipur has submitted the project entitled Logistics
Management    for the partial fulfillment of   the award of MBA IV semester
and has completed this project in scheduled time.


We approve the sincere work done on this project and project report.




INTERNAL EXAMINER                                    EXTERNAL EXAMINER
                                     5




                           ACKNOWLEDGEMENT

           During the course of this project, valuable assistance and
guidance has been rendered to me by various persons.
                        I wish to record my thanks to all staff of M.B.A.
Department for their assistance and co-operation, in particular, to as my
guide for making all efforts in bringing out this paper expeditiously and in
excellent form.
                          I take this opportunity to express my sincerest
thanks to Mr. Jaggi for their unstinting help and efforts in completing this
project successfully.
                          I sincerely thanks to my respondents who were
given their precious time to fill the questionnaire which helped me to reach
to the conclusions.




                                             (AKHILESH KUMAR KAHAR)
                                              M.B.A. IVth sem.
                                      6




[CHAPTER 1]
Introduction

1. INTRODUCTION
As part of curriculum of the MBA Degree in Operation Management
course at Sikkim Manipal University of Management, students are
required to do a project in any reputed organization. For this reason, I did
my project research in Raipur Madras Roadline, Raipur. The project
work was titled “Logistics Management” in Raipur and to suggest ways and
means to improve the management strategic decisions.

1.1 OBJECTIVE OF THE STUDY

The objectives of the Project are:

•To know about Logistics Industries

•To compare the effectiveness of logistics management at Raipur Madras
Road Lines and to benchmark the organization with respect to the industry.

•To have a thorough understanding of how logistics and freight industries
work.

•To know whether the customers are satisfied with the existing range of
service pattern.
                                             7



1.2 METHODOLOGY OF THE STUDY

The data used for the study had primary and secondary character to
it.

The primary data was c o l l e c t e d t h r o u g h q u e s t i o n n a i r e m e t h o d .
T h e s e c o n d a r y d a t a w e r e c o m p o s e d t h r o u g h t h e reference of
books, websites, and interviews with various executives in different
organizations of the sample. The procured data was analyzed by a
simple percentage method and the results are supported with graphs
and charts.

1.3 SCOPE OF THE STUDY:

The scope of the study is confined to organizations of Raipur Madras Road
Lines (RMR), which are into the concerned industry. The study is
done only on industries dealing with Freight and Logistics in Chhattisgarh.

a.

Introduction to Logistics Management
Logistics management is that part of the supply chain which plans,
implements and controls the efficient, effective forward and reverse
flow and storage of goods service and information between the point
of origin and the point of consumption in order to meet customers
requirements. A professional working in the field of logistics management
is called a logistician. Logistics as a business concept evolved only in the
1950s. This was mainly due to the increasing complexity of supplying one’s
business with materials and shipping out products in an increasingly
globalized supply chain, calling for experts in the field who are called Supply
Chain Logisticians. This can be defined as having the right item in the right
quantity at the right time at the right place for the right price and it is the
science of process having its presence in all sectors of the industry. The goal
of logistics work is to manage the fruition of project life cycles, supply chains
and resultant efficiencies.
                                                    8



b. Origin and Definition of Logistics:
The term "logistics" originates from the ancient Greek "
λόγος" ("logos"—"ratio, word,                                   calculation,       reason,          speech,
oration"). Logistics is considered to have originated in the military's need to
supply themselves with arms, ammunition and rations as they moved from
their base to a forward position. In ancient Greek, Roman and Byzantine
empires, there were military officers with the title ‘Logistikas’ who were
responsible for financial and distribution of supplies. The Oxford English
dictionary defines logistics as: “The branch of military science having to
dow i t h p r o c u r i n g , m a i n t a i n i n g a n d t r a n s p o r t i n g m a t e r i a l , p e r s
onnel and facilities.”Another dictionary definition is: "The tim
e r e l a t e d p o s i t i o n i n g o f r e s o u r c e s . " A s s u c h , l o g i s t i c s i s commo
nly seen as a branch of engineering which creates "people systems" rather
than "machine systems"....

c. Prospects of Growth in the Industry
In years gone by, the traditional warehousing and logistics facility was
located by railroad tracks, a water port, and/or freeways, usually in the
least desirable parts of cities or large towns. This stereotype then
faded as gigantic, state-of-the-art facilities began to sprout in more rural
areas on the outskirts of transportation and population hubs. The
World started beginning to see such facilities showing up in even less
"traditional" areas. Modern warehouses now are being located in carefully
manicured industrial parks that are sprouting as fast as the corn and wheat
once did in these open spaces-often in out-of-the-way places. Why
the emphasis on such locations for logistics companies? Much of it is due
to the great flux that the logistics industry has been undergoing in the first
three y e a r s o f t h e 2 1 s t c e n t u r y . M o s t o f t h e s e c h a n g e s a r e
being          driven          by          a         growing            trend            in
themanufacturing and retail sectors to form partnerships with
companies to which they can                    out    source      non-core        logistics
competencies-3PL providers.
                                                   9



In turn, 3PL providers are continually looking to provide innovative
supply      chain       solutions       to      customers by focusing on value-
added capabilities,                       differentiating themselves from the
competition. They                                                   focus on key objectives,
such as implementing information technologies,
instituting effective management processes, integrating services and
technologies globally, and delivering comprehensive solutions that create
value for 3PL users and their supply chains. This need to partner with
customers and become more integrated into their supply chain processes
has created the ancillary need to locate close to these customers. That isnt
to say the need for easy access to transportation hubs and different modes
of transportation won't continue to be important. But the above shift in
business strategy, along with the advances in technology and enhanced
communication, has opened the door for logistics facilities to operate
effortlessly in a myriad of locations. Profit warnings, share price
pressures,         mergers,         reorganizations,                relocations,            disposals,
painfull a y o f f s a n d g r e a t g e o p o l i t i c a l u n c e r t a i n t i e s c a n s w e e p a
w a y e v e n t h e m o s t c o m p r e h e n s i v e logistics             strategies         –     and
that’s despite outstanding management over many years. These are
exceptionally difficult times and it has never been more important to connect
logistics and freight planning to executive board thinking than now. It’s easy
to lose sight of the bigger picture in the rush to cut infrastructure cost
and conserve cash. Hopefully organization succeed in protecting the
business, satisfying shareholders and analysts, but what about capacity and
flexibility, morale and momentum? To be a logistics winner in
the coming years organizations need to use the downturn to reshape
for growth, propelled by an unshakeable conviction that the mission is still
important, that more prosperous times lie ahead, and that in some way the
company infrastructure is helping to build a better kind of world. Logistics is
inevitable in the future and essentially the management policy also has a
significant role in the future of world. Generally the study is being featured
with all aspects of management in Logistics and Freight areas. (Logistics
include Transportation, Warehousing, Network Design, Cross docking, and
Value Adding)
                                             10




d. General Markets.)
Market Analysis India Road freight rose in volume and value during recent
years. Now Road transportation increases with substantial increases in
volume and value of transports. All states showed an increase in vehicle
value and many states having an increase in export volume., and other
states showed small decreases in export volume compared to Chhattisgarh
.Total freight import values increased 15% in 2011/12. China
remains largest import market. Exports to other largest sea freight
export markets showed substantial growth, namely Africa(25.8%),
India (28.4%) and other Asian Markets (28.4%). Over the last 6 years,
import volumes a n d v a l u e t o C h i n a a n d I n d i a h a v e c o n s i s t e n t l y
g r o w n , w h i l e i m p o r t s f r o m J a p a n i n c r e a s e d following three
consecutive years of decline. Most of this increase can be attributed
to a large i n c r e a s e i n s e a f r e i g h t i m p o r t s f r o m C h i n a , w h i c h
r o s e O t h e r substantial increases in import volume were seen from
Taiwan , Italy, N e w Z e a l a n d a n d M e x i c o , w h i l e n o t e w o r t h y
d e c r e a s e s i n e x p o r t volume were seen to Netherlands                 and USA
2011/12 saw a mixed result for Chinese and other Asian sea freight
exports. Increasing import value was led by Base Metals (principally
Ammonium Nitrate Copper Cathodes and Lead), despite recording a small
decrease in import volume in the group. Mineral Products (mainly
Liquid Gas and Iron Products) and Prepared Foodstuffs (mainly
packed FMCG Products) w e r e t h e o t h e r m a j o r commodity groups
showing an increase in value, also backed by increasing commodity prices
for these groups. Prepared Foodstuffs have shown a continual increase in
import value over the last 6years. The 2011/12 increase in Mineral
Products and Base Metal Products imports follows 3years of import
value decline in these products. (Base metals used mainly for
Automobiles, Batteries etc.)The most substantial decrease in export
volume was seen in Vegetable Products (grains and other plant products),
with an associated drop in export value. Transport Equipment also
saw a large drop in export value and volume. A decrease in export value
continues 3 consecutive years of decreases in export value in these groups.
The most constant export is for dates to neighboring nations. Dates are of
very less demand in Western regions of the globe.
                                            11



b.) Perishable Items- Animal Products: Meat, Dairy & Sea food India import
products in the Agriculture and fertilizers Products category include
Ammonium Nitrate, imports are India’s largest sea freight imports in
this category. Ammonium Nitrate s a w i n c r e a s e s i n s e a f r e i g h t
i m p o r t v a l u e d u r i n g 2 0 1 0 / 1 1 , w i t h smaller increases in total volume,
reflecting the increased price for these commodities during the period. rose
in 2010/11,. Over the last 5 years, sea freight Ammonium Nitrate
imports have been quite consistent and at a high level. The dramatic
growth in Ammonium Nitrate imports during 2010/11 comes on top of
steady growth since 2010/11.The other single largest Animal product
commodity is Tuna, with 2011/12 sea freight imports 5,178 tones.
This is well below the 2011/12 peak of w i t h d e c r e a s e s i n e x p o r t
value seen during the previous years. In addition to the sea
freightimports, Tuna is also imported by airfreight. Similar de
creases were seen in both sea and                               airfreight imports.   Frozen
Prawns, increased in volume and value during 2010/11. Grated Cheese
(including Cheddar) remains an important dairy import by sea with yearly
exports fluctuating between million over the last 6 years. Cheese curd
exports i n c r e a s e d s u b s t a n t i a l l y d u r i n g 2010/11. Imports are mainly
from Denmark, Switzerland. Grain: Wheat, Rice is India’s single largest
volume Import commodity. Import volume and value dropped across most
major commodities in the grain category. Actually had an increase in Exports
volume for Rice and Wheat for the year 2011-12.
                                           12




[CHAPTER 2]
Industry Profile

2. Logistics Industry

2.1 LOGISTICS ( INDIA - Middle East)
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. Logistics involve the integration of information, transportation,
inventory, warehousing, material handling and packaging.

In terms of value, global logistics industry has been estimated to be
more than make up significant part of the G D P w i t h r e g a r d t o I n d i a .
The Middle East is currently India's top export destination for
a burgeoning consumer electronics sector. Exports reached $175 million in
2009-10, an increase of 96 percent over the previous year, according
to the Electronics and Computer Software Export Promotion Council
(ESC). The growing trade reciprocity with China, 63 percent of respondents
to a recent China supplier survey, Middle East Export / Import Opportunities,
cited the Middle East as the next "hot" import market for Chinese-
manufactured goods. India is now in a stage of transition from an
import substitution closed economy model to an outward oriented
trade regime. The importance of logistics as an enabler of trade and
economic growth is worth mentioning. Massive improvement in
infrastructure for transportation leads to present and future
development in trade, resulting in the economic growth of the
nation. While a r o u n d b i l l i o n o f i n v e s t m e n t s h a v e b e e n m a d e
during last 5 years to augment port facilities in the country
(India), equally massive investments have also been made in
r o a d networks. The logistics/shipping/freight sector has received
keen attention from both investors and government. On the positive
point of view, new opportunities are opening up for the sector.
Trade volumes both overseas and inland are growing very fast. The pace of
growth in the specialized sectors like Liquid Natural Gas (LNG),
Containers, Goods, Electronic Equipments etc. are comparatively
                                                  13



much higher. Integrated logistics and multimode transportation are opening
up new business for logistics/ shipping companies.


2.2 Logistics Management and Logistics Management Software
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 relate information between the point of origin
and the point of consumption in order to meet customers' requirements. A
professional working in the field of logistics management is called a
logistician. Software is used for automating logistics activities which
helps the supply chain industry in automating the work flow as well as
management of the system. Very few generalized software are only
available in the new market in the said topology. This is because
there is no common rule to generalize the system as well as work
flow even though the practice is more or less the same. Most of the
commercial companies do use one or the other custom solution.
There are various software that are being used within the departments of
logistics mainly in Conventional Departments and for Container Trucking.

a. 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 it is the science of process having its
presence in all sectors of the industry. The goal of logistics work is to
manage the fruition of project life cycles, supply chains and resultant
efficiencies.I n b u s i n e s s , l o g i s t i c s m a y h a v e e i t h e r i n t e r n a l f o c u s
( i n b o u n d l o g i s t i c s ) , o r e x t e r n a l f o c u s (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 the
activities. Logisticians combine the professional knowledge of each
of these functions so that there is a coordination of resources in an
organization. There are two fundamentally different forms of logistics.
                                              14



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.

b. Production Logistics
The term is used for describing logistic processes within an industry. The
purpose of production logistics is to ensure that each machine and
workstation is being fed with the right product in the right quantity and
quality at the right point in time. The issue is not the transportation itself,
but to streamline and control the flow through the value adding processes
and eliminate non-value adding ones. Production logistics can be
applied in e x i s t i n g a s w e l l a s n e w p l a n t s . M a n u f a c t u r i n g i n a n
e x i s t i n g p l a n t i s a c o n s t a n t l y c h a n g i n g 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 size. Even a single customer demand can be fulfilled in an efficient
way. Track and tracing, which is an essential part of production logistics d u e
to product safety and product reliability issues is also gaining
i m p o r t a n c e e s p e c i a l l y i n t h e automotive and the medical industry.


[CHAPTER 3]
Company Profile

When it comes to supply chain management, the answer is:
“Leadership, Innovation and Quality Solutions”

What Raipur Madras Road Lines. does:
• Freight Movement
•Cargo/ Freight Management Solutions
•Full Truckload & Solution Providers
•Contract Packaging & Other Services
•Warehouse Operations (Outsourced) and Management
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3. Raipur Madras Road Lines (RMR) Overall View:
3.1 Vision and Mission Raipur Madras Road Lines (RMR) :


Best People. Best Processes. Best Value.

a . Vision

To become a leading freight transportation, Clearing and logistics company in middle
east india. To be the recognized industry leader, through total
commitment        to     customer        service,      by      maintaining      our
uncompromising integrity, in the support and development of our
People, Communications and Systems in sustained growth and profitability.

b . Mission
To set the standard for excellence in global logistics through total
commitment to quality in people and customer service, with superior
financial results. To solve reliable transportation and logistics services to
the needs of the business community. Reliable services means on-
time d e l i v e r y , u n d a m a g e d g o o d s , a n d c o r r e c t d o c u m e n t a t i o n
in      case        of     deviations.         To perform            continuous        business
improvement in order to meet and exceed customer expectation,
To creates u s t a i n a b l e b u s i n e s s g r o w t h i n o r d e r t o e n h a n c e t h e
p r o s p e r i t y o f e m p l o y e e a n d b e n e f i t shareholders.Decisions            can
impact the success of the company as much as the performance of
the supply chain. No matter what industry or region of the world
other organization do business in, the supply chain is an integral
part to the success as same as the products, the services, and
the people. In 2002, Raipur Madras Road Lines, RMR was formed to build on
the global distribution experience to help other companies lower distribution
cost while i m p r o v i n g customer service and brand loyalty. Raipur Madras
Road Lines, RMR is a technology-based company providing customized
solutions that transform distribution to a source of competitive advantage.
Main motive is to provide integrated solutions from managing
transportation, inventory, and distribution centers to sophisticated
forecasting, information management, and network consulting services.
                                                        16



Today, Raipur Madras Road Lines, RMR more than 35 client companies,
globally in an array of different market sectors.

The organization mission is to provide best value, integrated freight
and          logistics          solutions          toc l i e n t s i n t i m e - s e n s i t i v e , s e r v i c e -
c r i t i c a l b u s i n e s s e s . O r g a n i z a t i o n t r i e s t o l e v e r a g e a n d continuo
usly improve the capabilities. Our clients trust us and depend on our
Best People and Best Processes to help them succeed.

3.2 Raipur Madras Roadlines Service
Today, RMR employ many professionals in their branch offices and in fields
(Ports), dedicated to helping freight, transportation, clearing, forwarding and
logistics needs. Young, energetic, professional, and passionate: their humble
beginnings, satisfying customer needs has been the driving force behind
every Raipur Madras Road Lines employee. RMR provide these services
around globally and main focus to Chhattisgarh and Indian markets Raipur
Madras Roadlines focus on main areas they are:

a. Customer service to a higher level.
b. Partnering to seeking the right answers.
c. Finding solutions that optimize cost and service.
d. And always asking, how can we serve you better?
e. Analyzing every opportunity, every challenge to provide a custom solution
that works best for customer.

3.3 Continuous Improvement in the Organization
Raipur Madras Road Lines employees and other contracting people
and         other         exceptional           people           are         the        cornerstone
of organizations service, they                         are experts in their                      fields.
Energetic, always looking for ways to drive cost out of the supply
chain         and all          the       while         working            to        improve          the
service.I n i t i a l l y f r o m t h e b e g i n n i n g , o r g a n i z a t i o n h a s h i r e d o n l
y t h e b e s t a n d b r i g h t e s t . T h e m o s t committed. Every member of
the team is empowered to create and implement client-centered
solutions. Deploying the management team regionally means decision-
making              and            is          kept             local,             on-the-scene.
The team structure means good ideas can come from anywher
e w i t h i n t h e company.
                                                 17



a.
Customers need solutions now. Raipur Madras
R o a d l i n e s g e t t h e m o n t h a t moment.

With world-class technology as the backbone of the solutions
and service. Integrating systems and providing real-time information to
help reduce cost by moving the products of customers to market as
efficiently as possible. Organizations “Can Do” culture is rooted in
customer service, flexibility and innovation. It’s been that way since the
Raipur Madras Roadlines organization was launched over 10 years
ago. Organization has got a rich tradition of redefining service for the supply
chain management, freight management and logistics industry. This
commitment to quality customer service led Raipur Madras Roadlines
to become the third-party logistics provider to be certified by India as best
system standards. Today, the Quality                           Management                  System
n o t o n l y s e r v e s a s t h e foundation of the on-going Continuous
Improvement in day-to-day procedures, it also serves as the
cornerstone of the Raipur Madras Roadlines. The process driven
approacht o p r o b l e m s o l v i n g h e l p s t h e o r g a n i z a t i o n e x c e e d c u s t o
m e r s ' e x p e c t a t i o n s , a s t h e organization helps tackle service and cost
issues within their supply chains.

3.4 Organization Functions:

a. Freight Forwarding
Departments typically arrange cargo movements to an international
destination. This department has the expertise that allows them to prepare
and process the documentation and perform related activities pertaining to
international shipments. A freight forwarder organizes the safe efficient
movement of goods on behalf of an exporter, importer or another company
or person, some times i n c l u d i n g d e a l i n g w i t h p a c k i n g a n d s t o r a g e .
T a k i n g i n t o a c c o u n t t h e t y p e o f g o o d s a n d t h e customer’s
delivery requirements, freight forwarder array, the best means of transport,
using the services of shipping lines, airlines or road and rail freight (Indian
Markets) operators. Functions:

i.      Researching and planning the most appropriate route for
        a s h i p m e n t . T a k i n g a c c o u n t o f the perishable or hazardous
        nature of the goods, cost transit time and security.
                                      18



ii.    Arranging     appropriate     packing.      Taking      account    of
       climate, climate, terrain, weight, nature of goods and
       cost, delivery of warehousing of goods as their final
       destination.
iii.   Obtaining, checking and preparing documentation to meet customs,
       excise and insurance requirements, packing specifications and
       compliance with overseas countries regulations and fiscal regimes.
iv.    Offering consolidation services by air, sea, and road.

O Ensuring cost effective and secure solutions to small shippers with
sufficient cargo to utilize their own dedicated units.

O Liaising with third parties to move goods by road, air or sea
i n a c c o r d a n c e w i t h customer requirements.

O Arranging insurance and assisting the client in the event of a claim.

O Arranging payment of freight and other charges or collection of payment
on behalf of the client.

O Transmitting data by internet and satellite systems, enabling real
time tracking and tracing of goods.

O Arranging charters for large volumes out of gauge or project
movements by air and sea.

O Acting as broker in customs negotiations worldwide to guide the
freight efficiently through complex procedures

O Arranging courier and specialist hand carry services

O Maintaining visibility and control through all phases of the
journey, including the production of management reports and statistical
and unit cost analysis

O Acting as consultant in customs

O Maintaining current knowledge of relevant legislation, political
situations and other factors that could affect the movement of freight
                                         19



O At more senior level, the role may also involve managing staff and
overseeing activities within a department or specializing in a particular area,
such as sea freight or air freight.

b. Logistics Field: Bulk Operations

The main function in this department include s identifying the
customers and collectinginformation about the amount of
material to be exported, the product, place of exports. The
department also undertakes cargo booking, provides information on the
rates, the schedules, the arrival, departure time, name of the ship,
transshipment details and does the follow up. Functions

   i.      Identifying the customers by the marketing person of this
           department.
   ii.     Convincing the shipper of the services that company
           provides to be better than the other shipping service providers.
   iii.    Enquire about the place or commonly referred to as the
           destination port to which the shipper would like to export the
           cargo.
   iv.     Enquire about the type and quantity of the cargo, that he would like
           to export.
   v.      The type of container and the number of containers that the shipper
           would like to take.
   vi.     Analyzing the rate the shipper expects from his cargo movement.
   vii.    Informing the shipper the rate and negotiating with him.
   viii.   Scheduling the arrival and department time of the vessel
   ix.     Listing out the transshipment details and do the follow up.

c. Clearing and Forwarding (C & F)
The main function of C&F department is to undertake the customs
formalities on behalf of the e x p o r t e r s o r i m p o r t e r s . T h e
documentation process and clearing activities are done by
t h i s department. Functions

   i.      Preparation of various kinds of bill of entry and shipping bill.
   ii.     Arrival and clearance of vessels.
   iii.    Determination of value for assessment.
   iv.     Conversion of currency.
                                        20



   v.      Nature and description of documents to be filed with kinds
           of bills of entry & shipping bill.
   vi.     Procedures for assessment and payment of duties.
   vii.    Examination of merchandize at the customs stations.
   viii.   Prohibitions on imports and exports items.
   ix.     Re-importation and conditions for free re-entry.
   x.      Check offences under the act
   xi.     Refund procedures, appeals and revision petitions.

d. Network Design

A Logistics Network Design initiative is a strategic analysis of entire supply
chain. Some of the strategic questions are:

• To ensure enough facilities to meet future capacity requirements?
• Which facilities should be closed and/or consolidated?
• Is there an opportunity to make changes to the network to reduce logistics
costs? Develop the Current Financial Model:

Before making sensible decisions on what changes to make the
network, a ‘base case’ financial m o d e l n e e d s t o b e d e v e l o p e d . I t
should include the costs of all logistical activities such as
Warehouse costs, Transportation costs, Inventory costs and Order
Processing costs. Software Selection: Due to the complexity of this analysis,
a network optimization software package is in order. The software selection
phase may be completed concurrently with the financial model-building
phase above. One person on the project team should be responsible
for sourcing the right software to meet the projects modeling needs.
Data Gathering & Validation: This is one of the key drivers to a
successful project. It is imperative that the data from your current
data warehouse (transactional data) be accurate. For example, when
An item is received into the warehouse, are the correct product
characteristics captured accurately? Some characteristics of interest
would be cube weight, carton dimension, hazardous materials, etc. One of
the activities further into the project will be to create a summary of the
product flows. This is accomplished by creating family groupings of products.
If the data is not ‘clean’ the flows will be misrepresented and this will affect
the accuracy of the model. Analyze Current State of Operations: A
throughput and capacity analysis should be completed for the
                                                21



existing    operations.    This    will     help  determine     if  there  is
additional capacity in the existing facilities or if there is excess capacity
available. This will help develop the ‘scenarios’ later on. The impact
to the other logistical operations may then be identified.

e. Warehousing
A warehouse is a commercial building for storage of goods. Warehouses are
commonly used by manufacturers, importers, exporters, wholesalers,
transport businesses, customs, e t c . T h e y a r e usually large plain
buildings in industrial areas of cities and towns. They come
equipped with loading docks t o l o a d a n d u n l o a d t r u c k s ; o r
s o m e t i m e s a r e l o a d e d d i r e c t l y f r o m railways, airways or seaports.
T h e y a l s o o f t e n h a v e cranes and forklifts for moving goods, which
are usually placed on ISO standard pallets loaded in to pallet racks. Most
warehouses are completely automated, with no workers working
inside. The pallets and product are moved with a system of
automatedconveyorsandautomated storage and retrieval machinescoor
dinated by programmable logic controllersandcomputersrunninglogistics
 automations o f t w a r e . T h e s e s y s t e m s a r e o f t e n i n s t a l l e d i n refriger
atedwarehouses wheret e m p e r a t u r e s a r e k e p t v e r y c o l d t o k e e p
the         product             from       spoiling,           and    also    where           land
isexpensive, as automated storage systems can use vertical s
p a c e e f f i c i e n t l y . T h e s e h i g h - b a y storage areas are often more than
10 meters            high,        with      some         over    20    meters       high.      The
direction and tracking of materials                             in   the   warehouse             is
c o o r d i n a t e d b y t h e W M S , o r Warehouse Management System, a
database driven computer program. The WMS is used by logistics
personnel to improve the efficiency of the warehouse by directing
put a ways and to maintain accurate inventory by recording warehouse
transactions. Modern warehouses are also used at large by
exporters/manufacturers as a point of developing retail outlets in a
particular region or country. This concept reduces the end cost of the
product to the consumer and thus enhances the production sale ratio.
Warehousing is an age old concept which can be used as sharp tool
by original manufacturers to reach out directly to consumers leaving
aside or bypassing importers or any other middle agencies or person. The
Warehouse are to be well guarded with safety provisions to counter
pilferage, fire, floods &other calamities. The Warehouses are in
                                        22



convenient locations & well connected by roads to facilitate on time
delivery to customers.


f. Cross docking – Containerization
Cross docking is a practice of logistics of unloading materials from an
incoming semi trailer truck and loading these materials to outbound trailers
or rail cars, with little or no storage in between. T h i s m a y b e d o n e t o
change type of conveyance, or to sort materials intended for
d i f f e r e n t destinations or to combine material from different origin. An
increasing popular method of shipment is containerization. A container is a
large box made of durable material such as steel, aluminum, plywood and
reinforced plastics. A container varies in size material and construction.
Its dimension is typically 8 foot high and 8 foot wide lengths usually
varying. A container can accommodate most cargo but is most
suitable to packages of standard size and shape. Containers can take
case of most of 4 main packing problems. Because of container
construction, a product does not have to have heavy packaging, it
gives protection against:

   1.   Breakage.
   2.   Moisture.
   3.   Temperature controlled.
   4.   Pilferage and Theft there are mainly 2 types of containers.
   5.   Special Purpose Containers.
   6.   Open top containers.
   7.   Flat rack for over sized cargo.
   8.   40 foot refrigerated containers/reefers.
   9.   High cube containers (40 foot, 45 foot & Reefers)

3.5 Organization Structure
Organization is headed by Organization Head, and all other
e m p l o y e e s r e p o r t t o h i m . F i r m comprises of 12 employees for
internal works and other team for activities including freight
forwarding, logistics, clearing and forwarding. Organization acts as
a 3PL for other firms on behalf of carry/forward, logistics.
Warehouse activities are being outsourced based on the demand
situations, as goods are being stocked in different warehouses, and
is based on the customer requirements.
                                              23



3.6 Business Drivers
The following are the business drivers in logistical operation:
   a) Cost Drivers: The average materials moved by manufacturers to
      export market is low, but where as to import market is high in
      figure. The high technology portion reaches to 60%t o 7 2 % o f
      imports. Number of labor hours is a factor, tonnage of
      i m p o r t s ; s i z e o f inventory, number of suppliers, number of
      batches, number of employees etc. are all major concern in
      cost. Raipur Madras Road Lines, RMR keep a major favorable
      concern on the above, as from the basic get-together of employees
      during the off peak hours in work .I was able to figure out, employees
      were not happy with their present situations in office and in the
      working hours. The situation has a major impact in operational
      stability. The s i t u a t i o n l e a d s t o l e n g t h e n i n g / o f d e l i v e r y
      b i l l s a n d o t h e r m a j o r i n v o i c e f o r m s . A s t o manager’s
      words, it is deciphered that situations are improving day by
      day. By using Activity Based Costing (ABC) method of costing
      the organization can identify unprofitable warehouse Lines,
      RMR implement cost based on ABC, the firm can improve and
      eliminate unprofitable situations, improve and implement new facilities
      with much broader focus on future. To any organization cost reduction
      is the ultimate method to get a much wider profit.


[CHAPTER 4]

Review of Literature
The help of questionnaires and through formal interviews with
officials not many         organizations    have   this     generally.     All
organizations will be implementing the cost method within the near future.

4. Review of Literature

a. Demand Chain Management
Understanding demand requires a comprehensive knowledge of your
customers, You should k n o w w h a t p r o d u c t s / s e r v i c e s a r e
demanded          by   your     custome rs;    how    do     they      make
t h e i r purchases, how often they order and what constraints they face on
the      purchasing   process.   Very  few   companies    have     mastered
                                           24



this concept. Lintas Freight and Logistics was able to know all the above
concepts through considerable focus into customer needs and grievances.

b. Achieving Competitiveness in Logistics, Freight, Supply Chain
Reduced lead time, inventories, lower operating costs, produc
t a v a i l a b i l i t y a n d c u s t o m e r satisfaction are the benefits which grow
out of effective logistics and supply chain management. The decisions
usually carried on by Lintas Freight and Logistics (3PL), cover both the long
term and short term. Strategic decisions deal with the corporate
policies, and look at overall design and logistic chain structure.
Tactical, Operational decisions are those dealing with everyday
activities and problems of the organization. Change is the inevitable
factor for each and every day situation within and outside the
organization. The decisions must take into account the strategic
decisions already in place. Therefore organization must structure
the logistics ideas through long term analysis and at the same time
focus on every time situations. Furthermore, market demands,
customer needs, transport considerations and pricing constraints are the
factors in order to structure the logistics, freight. Lintas Freight and
Logistics realized the fact and are prepared to face any unexpected
situations like inflation/ deflation in the economy, price factors, climatic
problems etc.

c. Operational Fleet Routing & Loading
The organization derives routes in transportation are mainly long-haul
(Optimization). For short haul deliveries, there are ready solutions that
are tightly integrated to warehouse management systems (outsourced
facility), to efficiently route fleets of vehicles and vessels and plan picking
and loading. Stipulated time windows for pick-ups and
d e l i v e r i e s a n d v e h i c u l a r w e i g h t a n d spatial capacities would be
used, as will constraints such as delivery within specified period
minutes upon pickup (useful for perishable goods). Time required at various
stops - in terms of fixed time to park and variable time dependent on
amount to be loaded or off loaded can be specified. Travel speeds
along various types/zones of road scan be stipulated by traffic
information services. The organization schedules arrival and
departure times for each stop can thus be worked out quite
accurately. Routes can be generated dynamically and ad hoc
backhaul              or other opportunities can also be assigned to the
                                            25



m o s t s u i t a b l e v e h i c l e . T h e b e n e f i t s o f operational fleet routing
include considerable reduction in fleet operating cost and improved
customer service with better estimated arrival time.

d. Vendor Managed Inventory
Vendor managed inventory, coordinated by an integrated logistics system,
allows inventory to be optimized together with transportation. Lintas
Freight and Logistics try to know the product value as well as storage
capacity (mainly warehouse – how much to outsource). As a routine job
the company collects information on consumption                       rate,         current
inventory levels, forecasted demand and status of shipments.
T h u s t h e s y s t e m c a n o p t i m i z e t h e r i g h t q u a n t i t i e s o f repl
enishments to be sent at the right time to ensure that service levels
are maintained while minimizing cost of inventory and transportation.

e. Mode of Transportation
Transportation generally is movement of product, goods, raw
materials to different stages in supply chain. Essentially in supply
chain logistics plays a major role, the manner in which product is
moved from one location to another is through road, rail, truck, air, sea.
Raipur Madras Road Lines, RMR essentially uses only 2 modes for their
operation they are air and s e a . T h e g o o d s b e i n g d e l i v e r e d t o
end customer is brought to port or to the place through
containers or other methods like wagons, or cold enclosures like frozen
storage. As in UAE rail transport does not exist, so it has got a
relevant drawback for the company, as company has to stick on
road for short routes and even routes between states of UAE and
which is very                  much expensive and increases the operational
cost. Raipur Madras Road Lines, RMR strategically manage the
procurement, movement, and                           storage of         materials, parts
and finished                          inventory                through               the
organization and its marketing channels. Essentially from com
p a n i e s ’ a n g l e , t h e r e a r e t w o categories, initially inbound logistics,
i.e., handling goods that are brought into the company, t h r o u g h
road transport and storing and making them available
Another main phase is the outbound logistics, taking the
cargo or the goods through channels, and is being done with
considerable effort to various parts of the world as per the customer
requirements inter modal Transportation System Used This is the use of one
                                             26



or more than one mode of transport to move a shipment to its
destination. Raipur Madras Road Lines, RMR use this in an efficient
way. Variety used is road and sea in the case of organization. Referring
to Global trade, this is the only option as factories and markets may not be
next to ports. It helps reduce cost in operation. Helps reduce cost that
cannot be matched by single mode. Essentially it is very convenient
for shippers as well as consignee.

ii. Attributes: The price charged is reasonable with regard to the consignee,
as organization has got a long term relation with all the customers.
Usually goods being transported are electronics and frozen stocks from
warehouse. The relevant focus is on warehouse, transportations services
offered. Service is another aspect which focuses the advanced need of
the customer, initially with proper timing maintenance, order
management. As the consignee is offered service by 3PL like Raipur Madras
Road Lines, RMR w i t h f a v o r a b l e o r d e r m a n a g e m e n t a n d e a s e o f
d o i n g b u s i n e s s i s attained by logistics organization like Raipur Madras
Road Lines, RMR.

f. The Challenge Faced by Organizations
In today’s world, competence is taking on new dimensions. The
ability to compete is being determined by the degree of responsiveness
to customers and key issues handling. How fast you deliver the goods/
products, what the price paid by customers and what value customer is
getting      throughout the               service is considered in a schematic
a n d o r d e r e d w a y . M a r k e t s a r e q u i c k demanding and customization
of each logistics activities is essential for each customer, and has become
the essential factor in logistics management. Raipur Madras Road Lines,
RMR faces lot of ups and downs in each operation and improves operation
o n e a c h s i t u a t i o n w h i l e d e a l i n g w i t h e a c h c u s t o m e r . Raipur
Madras Road Lines, RMR d o m i n a n t improvement methods used are:

   i.     What are the customer expectations?
   ii.    How are your competitors performing in each aspect of
          operations?
   iii.   Determining the gaps in each phase and try to fill it.
                                            27



g. Economic Ordering Quantity (EOQ)
Efficient order quantities consider the Purchase Order Cost (POC),
the Annual Demand rate( A D ) , t h e I n v e n t o r y C a r r y i n g R a t e
(ICR), and Unit Inventory Volume (UIV). Large Order
Q u a n t i t i e s y i e l d O r d e r Q u a n t i t i e s yield high inventory levels and
high inventory carrying costs but fewer orders and lower ordering
costs. High ordering costs and demand rates suggest large order quantities.
High ICRs and high unit inventory values suggest small order quantities.
Gene rally during research the analysis shows, few organizatio
n s b e l i e v e E O Q a n a l y s i s i s outdated and quite few with enhanced
focus on it. There is relevant need for EOQ in this era.EOQ analysis
should be completed as a part of any inventory strategy. The
analysis suggests appropriate reordering intervals for all items each
organization is handling. Competitors focus on r e d u c i n g t h e c o s t s o f
placing purchase orders. The lower the purchase order cost,
t h e m o r e economical it becomes to order in small increments and
the less inventory will be there in the system. The purchase order
costs is typically dominated by the labour and paperwork costs
of planning, negotiating, executing and tracking purchase orders.
Large number of organization extent to which these functions can be
automated via automated purchase order planning, procurement,
online catalogs, online bidding and online exchanges, is the extent
to which inventory levels and lost sales costs may be reduced
i n t h e s u p p l y c h a i n a n d t h e r e t o t h e efficiency of logistic operations.
Raipur Madras Road Lines, RMR has a considerable drawback in this
scenario comparing to the other firms. Cost is high in this situation for
ordering costs to the firm.

4.2 Studies on Inventory, Back Order, Lost Sales, Stock Outs,
Packaging and Packaging Materials, Documentation from Raipur Madras
Road lines

a. Inventory i s a l i s t f o r g o o d s a n d m a t e r i a l s , o r t h o s e g o o d s
and materials themselves, held available in stock by a
business. Inventory are held in order to manage and hide
f r o m t h e customer the fact that manufacture/supply delay is longer
than delivery delay, and also to ease the effect of imperfections in
the manufacturing process that lower production efficiencies
                                                 28



if production capacity stands idle for lack of materials. There are three basic
reasons for keeping an inventory:

   i.      Time - The time lags present in the supply chain, from
           supplier to user at every stage, requires that you maintain
           certain amount of inventory to use in this "lead time"
   ii.     Uncertainty – Inventories are maintained as buffers to meet
           uncertainties in demand, supply and movements of goods.
   iii.    Economies of scale - Ideal condition o f "one unit at a
           t i m e a t a p l a c e w h e r e u s e r n e e d s i t , when he needs it"
           principle tends to incur lots of costs in terms of logistics. So
           Bulk buying, movement and storing brings in economies of scale,
           thus inventory.

[The Management of Business Logistics, Coyle, Bardi, Langley]
 b. Back Order A company having to back order an item that is out of stock
will incur expenses for special order processing and transportation. The
extra order processing traces the back orders movement, in addition
to the normal processing for regular replenishments. The customer usually
incurs extra transportation charges because a back order is typically
a smaller shipment and often incurs higher rates. The seller may need to
ship the back ordered item a longer distance. The seller may need to ship
the back order by a faster and more expensive means of
transportation. We could estimate the back order cost by analyzing
the additional order processing and additional transportation
expense. If customers always back ordered out of stock items, the
seller could use this analysis to estimate the cost of stock outs. The
seller could then compare this cost with the cost of carrying excess
inventory.

[The Management of Business Logistics, Coyle, Bardi, Langley]
c. Lost Sales Most companies have competitors who produce
substitute products, and when one source does not have an item
available, the customer will order from another source. In such cases the
stock o u t h a s c a u s e d a l o s t s a l e . T h e s e l l e r ’ s d i r e c t l o s s i s t h e
loss of pro fit on the item that was unavailable when the
customer               wanted       it. Thus, a seller                 can determine the
d i r e c t l o s s b y calculating profit on one item and multiplying it by the
number the customer ordered.
                                                 29



E.g.: If the order was 100 units and the profit is 10$, the loss is 1000$.

If the effort is made by a sales man and if the effort is wasted and in that
sense it is an opportunity loss. Whether including such a cost is valid would
depend upon whether the company uses sales people in its marketing effort.
Another aspect is determining the amount of a lost sale may be different and
difficult in certain circumstances. Numerous companies customarily take
orders by telephone.

A customer may initially just enquire about items availability without
specifying how much is desired. If items o u t o f s t o c k , t h e c u s t o m e r
may never indicate a quantity and the seller will not know the
amount of the loss. d. Stock out Cost incurred to a firm when current
inventory is exhausted for one or more items. Lost sales revenue
costs are incurred when the firm is unable to meet current orders because of
a stock out condition. e. Packaging and Packaging Materials Mainly this is
a main division in warehouses. Packaging interacts with the logistics
system in number of different and important ways. The size of and
protection afforded by the package affect the type of materials
handling equipment used and the level of product damage incurred.
The package has an impact on the stacking height of the product in the
warehouse and thereby on the utilization and cost of the warehouse.
Packaging is quite important for effective damage protection, not
only in the warehouse but also during transportation. Packaging
may contribute nothing to a products value but its influence on logistics
costs is considerable. Packaging size may affect a company’s ability to
use pallets or shelving or different types of materials handling
equipment. Many companies design packages that are too wide or too high
for efficient use of either a warehouse or transportation carrier. So,
coordinating packaging with warehousing and with transportation is
quite        important.           We       need         to       note      poor          packaging
canc o n t r i b u t e t o h i g h e r h a n d l i n g c h a r g e s a n d r e s u l t i n l o w e r f
u t u r e s a l e s i f t h e g o o d s a r r i v e d damaged.
                                      30



[CHAPTER 5]
Research Methodology

Two types of packing exist: consumer packaging and industrial
packaging. Consumer packaging provides information important in
selling the product. i.e. giving the product most visibility when it
comes with others on the retail shelf. On the other hand industrial packaging
is of primary concern to the logistics. The packaging protects goods
that a company will move to store in the warehouse and also permits the
company the effective use of transportation vehicle space. Materials
generally used in previous years was wood and other harder
materials for no breakage, but it added considerable shipping weight
to the transport and it further increased transportation cost.
Generally new era has come up with efficient packaging materials,
organization nowadays use most cost effective packaging with focus on
security and minimizing cost. Cushioning materials protect the product from
shock, vibration, and surface damage during handling. Cushioning materials
include shrink wrap, air bubble cushioning, cellulose wadding, and
plastics. Companies often use shrink wrap for consumer packaged
goods. Packaging also helped reduce pilferage and product
tampering in warehouse and during transport. Air bubble
cushioning is made of plastic sheets that contain air pockets.
T h e r e a r e o t h e r f a c t o r s w h i l e considering packaging they are
environmental protection. They are considered in situations of
perishable items like food and drugs.

5.1 Objective of the Study:

• To compare the effectiveness of logistics management at Raipur Madras
Road Lines, RMR and to bench mark the organization with respect to the
industry.

• To have a thorough understanding of how logistics and freight industries
work.

• To identify the drivers behind Logistics and Freight.
                                             31



5.2 Research Problem:
The need for the study was to assess the effectiveness of Logistics
Management in the Lintas Freight & Logistics LLC. Compared with
other organization in the same industry. T h e organization also needs
relevant data as to how it can improve its management policies in order to
gain future market share.

5.3 Research Methodology:
The type of research is analytical. Data regarding the division
of logistics management such as Freight, Warehousing, Cross docking,
Network Design etc. in which Lintas Freight and Logistics are at present in
business were collected from other similar firms in the industry. The
indicators selected are ease of service, client handling, customer
service, website information, employee efficiency in general. Other
indicators for the freight and warehouse divisions are lead-time,
inventory management, product availability; time elapsed in transit,
operating cost and customer satisfaction. The collected data was analyzed
and performance of Raipur Madras Road Lines, RMR w a s e v a l u a t e d . A s
to my study I believe I have selected the right mix of
t e c h n i q u e s f o r t h e comprehensive approach, which can be suited well
for the organization.

5.4 Sample Selection:
Convenience sampling is used for study, as I’ am interested
here in getting an in expensive approximation of the truth.
Operations of Raipur Madras Road Lines, RMR are mainly
c o n c e n t r a t e d a t l a r g e s c a l e A N - V i z a g P o r t , India and having its
branch office in Raipur. The t o t a l                          numbers        of   logistics
organizations in and around this po rt are 600 in number,
w h i c h constitutes the population. Similar, 10 organizations having major
operations in the Freight and Logistics have been selected as sample for the
survey. The selection was based on the sampling said above.

5.5 Method of Data Collection:
Primary Data: The major tool used was interview with managers and
staff of the branch office, questionnaire was developed focusing various
aspect.
                                                  32




Secondary Data: Books of Logistics Management for literature reference,
Internet Web Portals, Websites of each firm, Company Brochures.

5.6 Statistical Tools:
 Percentage Analysis
 Bar Diagrams
 Pie Charts

5.7 Limitations of Study:
•A few organizations did not publish the exact values for each question
especially in sales turnover and other similar figures.

•The study was conducted in the Mumbai area only aiming at the main Dubai
Centre and confined to the freight division of the logistics management.

•Certain monetary values were not being filled by organizations.

•Due to organizations security reasons documents like Bills,
Warehouse Bills, etc could not be gained.

•Mo s t o f t h e q u e s t i o n n a i r e a n s w e r s w e r e f i l l e d o v e r i n t e r n e t e
m a i l f a c i l i t y ; t h e r e f o r e contact was through phone and emails.

6. Data Analysis and Interpretation
The data collected through the questionnaire are analyzed to
know about the respondentsopinions about various particulars
asked in the questionnaire. The data collected from the

[CHAPTER 6]
Data Analysis and Interpretation
questionnaire was entered into spread sheet and the data has been
interpreted. The questionnaire comprises of fourteen questions with subparts
for each. The topics covered are with decisions of each operational area,
employee numbers of each firm, profitable area in operation, catering
location, service offering, organizational effectiveness, inventory, location,
product availability and customer satisfaction.
                                        33



  a) Which are the logistics services organizations offers?
                           Table -1 Service Offer

 Sr.           Service                       Percentage
 No.
01      Freight                   100
02      Warehousing               89
03      Cross docking             88
04      Network Design            66
05      Value Adding              98


                            Chart-1 Service Offer

The pie chart above shows the service offer of each organization. The chart
shows that 100% of the respondents provide freight service and almost 90%
provide Warehousing and Cross docking. Only 66% were providing service of
Network Design. Other service includes value adding, which represents 98%
of the sample. It includes packaging, labeling etc.



  b) Operating with other logistical providers and reasons for decisions.
     Table -2 Operate With Logistical Providers


 Sr.           Decision                      Percentage
 No.
01      Operational Satiability   11
02      Cast effectiveness        10
03      Customer Needs            36
04      Other                     96


                 Chart-2 Operate With Logistical Providers
The pie chart above shows the operational decisions and reasons for
operations with other logistical providers. The chart shows that 96% of
the respondents operate with other service providers for different reasons
like coordination, clearance, bulk operations etc. Almost 36%h a v e
                                       34



operations with other providers a s per customer needs. Only
1 1 % a n d 1 0 % w e r e providing service along with other providers for the
purpose of operational stability and cost effectiveness respectively. It is
stated that 96% of organizations operate with other logistical providers and
remaining 4% as standalone’s) What is the mode of decisions regarding
the operations?

                               Table-3 Mode of Decision
Sr.     Operational              Percentage
No.     Decisions
01      Strategic                37
02      Tactical                 88
03      Operational              63

                             Chart-3 Mode of Decision

The pie chart above shows the mode of decisions regarding the operations.
The pie chart shows88% of organizations take tactical decisions
followed by 63% with operational decisions and37% strategic
decisions. Most of the organizations have a mixture of all the decisions in
their day to day as well as in long and short term plans.

  c) Which is the area of the activity, that organizations feel best in their
     service?
                Table-4 Best Activity

 Sr.            Service                     Percentage
 No.
01      Freight                  100
02      Warehousing              89
03      Cross docking            88
04      Network Design           66
05      Value Adding             98


                 Chart -4 Best Activity

The pie chart above shows the best activity which organization feels in their
operations. The pie chart shows 98% of organizations have freight in
                                        35



the predominant area, followed by 86% of warehousing. Another
significant area is Cross docking with 87% as best activity. There is only a
minor activity based on network design with 4% in pie graph. Most
of the organizations have a mixture of all the activities in their day to day
and 97% of organization says other activities bring in more revenue and the
best of their activities, which includes packaging, labeling etc.

   d) Number of employees in each type of the service rendered of
      the organizations
                        Table-5i Employees

Sr.      Department          In       Number of People In Percentage
No.      Organization                 Each
01       Top Management               45                  11
02       Operations                   46                  11
03       Accounts/Finance             45                  11
04       Marketing                    51                  09
05       Human Resources              37                  13
06       Documentations/Others        184                 45


                               Table-5ii Employees

Sr.      Employees in RMR             Number of People In Percentage
No.                                   Each
01       Top Management               03                  14
02       Operations                   04                  14
03       Accounts/Finance             04                  18
04       Marketing                    03                  18
05       Human Resources              0                   00
06       Documentations/Others        08                  36

The line charts above shows the comparison of employees in
e a c h f u n c t i o n a l d i v i s i o n o f organization with Raipur Madras Road
Lines, RMR . The line chart shows around 14 percentages of people
belong to top management and industry standards has 11 percent,
followed by 18% for
                                       36




i)      Industry category. This can be achieved with more modern
        equipments and proper guidance to employees and the rating
        can go high to excellent service.
ii)     Pricing of service is satisfactory, which organization can further
        enhance with proper management. Present employee strength is
        satisfactory compared to other organization where the firm has
        lesser employees compared to other organizations.
iii)    Network Design is an area that the organization should not
        start immediately due to low rate of returns is recorded as
        the industrial average. Design of new warehouse areas and
        proper allocation of work with more sophisticated software facility
        can be done through outsourced way during implementation.
iv)     Decision making is excellent for organization with respect to other
        organization in the industry.
v)      Operation with other logistical providers should be given more
        preference to achieve cost effectiveness.
vi)     Rearrangement of employees may be a better solution.
        Downsizing of personnel in the Finance and Accounts section
        and deploying them for the HR function separately is
        recommended.
vii)    The organization client handling, ease of service and
        c u s t o m e r s e r v i c e i s h a v i n g remarkable difference from the
        industry standards. The main focus need to be on the ease of
        website and employee efficiency. From the data we can infer that
        areas which need to be improved are Website and employee
        efficiency. Employee efficiency can be improved with a proper
        Human Resource department.

viii)   Service offer presently has good impact with other
        organizations service offers. There makeable areas are
        Freight, Cross docking, and Value Adding. Company can
        further enhance operations of Value Adding through proper
        methods.
ix)     As logistics industry is concerned F reight is the domin
        ant service followed by         Warehousing     and Cross-
        Docking. Another important area where organizations feels
        very lucrative is Value Adding.
                                     37



x)      It is observed that most of the organizations operate with
        other logistical providers.96% of organizations are doing it and
        remaining 4% organizations stays independent. It is inferred that
        for efficient logistical activity, support from other organizations in
        essential.
xi)     Tactical decisions are mostly followed by organizations followed by
        operational and a few strategically.
xii)    Freight and Value Adding is considered to be the best
        service which organizations offer in industry. Another major
        observation is about Network Design, it has low value and no
        organization feels it to be lucrative area in industry.
xiii)   Organization can enhance operations to European areas and
        another major favorable area is Africa. From data Lintas can
        get good market share if they cater to African regions.
xiv)    Organization profit is good compared to industry standards for
        freight and can further work on warehousing. This shows a
        difference of 2 points from industry standards. Whereas for
        Cross Docking it shows same as to industry standards.
                                              38




[CHAPTER 8]
Conclusion

ii)     Organization can initiate Human Resource Department to further
        enhance employee m o t i v a t i o n . T h i s w i l l h a v e f a v o r a b l e
        i m p a c t f o r t h e o p e r a t i o n a l a s w e l l a s t o t a l strengthening of
        organization.
 iii)   Decision making is quite effective and can be followed for future
        operations.
 iv)    Operations with other logistical providers need to be enhanced
        further for operational effectiveness; more focus should be given to
        customer delight and cost effectiveness.
v)      Quality of service can be further enhanced to increase customer
        delight.
vi)     Client handling and service need to be followed in the same
        way and can be further enhanced with more support. This can
        be achieved by proper guiding of employees and other workers
        in the logistical areal.
vii)    Lintas can enter other markets in the Middle East
        especially to Saudi Arabia where the po tential of
        market is very high for Logistics industries and can
        e v e n diversify to other areas in logistics.
viii)   Lintas can focus to African regions for freight handling, as from the
        data the potential market is high for those regions.

Conclusion
The universe everyday is witnessing unimaginable growth in
majority of the industries. The logistics and freight industry is one
such industry that is rapidly growing. Worldwide logistics Conclusion.

				
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