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 15 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.