A PROJECT REPORT ON

EMERGENCE OF LOGISTICS BUSINESS IN THE RECENT

PAST AND ITS POTENTIAL

SUBMITTED TO: Prepared by :

Prof. A.B.Raju Hardik Choksi

Ankita Goyal

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Acknowledgement:-

We would like to take this opportunity to express our deep gratitude to all those
who have offered their valuable help and time to help us complete the project.

We would like to thank Prof. A.B.Raju (Project Guide) for providing us the
support and guidance in the project, for providing us the necessary information and
motivation to go about the project and sparing his valuable time to share his
knowledge about the topic in depth.

We would also like to thank IIPM Ahmedabad, who gave us this opportunity to
prove our talent and provided a platform for development.

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Abstract
In the competitive world of manufacturing, companies are often searching for new ways to
improve their process, customer satisfaction and stay ahead in the game with their competitors.
Logistics has been considered a strategy to bring these things to life for the past decade or so.
This project work tries to shed some light on the basics of logistics and how logistics can be used
as a management strategy. This paper points out the fundamentals of logistics and looks into
what kind of decisions todays logistics managers have to take on a daily basis for the
improvement of their logistics model. A growing concern has been developing to control rising
global pollution, this paper also brings out some of the effects of logistics decisions on the
environment and vice versa. The project starts out by compiling the works of researchers and
logistics experts in the field of logistics in the theoretical background section. Through a survey
conducted in a few logistics firms, a small picture of the extent to which logistics has penetrated
the manufacturing world has been drawn.

Keywords: Logistics, , Logistics activities, Returns.

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 Sr.no Content Page number

1 INTRODUCTION 5

1.1 BACKGROUND 5

1.2.1 AIM 6

1.2.2 PROBLEM DEFINATION 6

1.2.3 PROBLEM DELIMITATION 7

2 METHODOLOGY 8

2.O SECONDARY RESEARCH 8

3 LOGISTIC MANAGEMENT INTRODUCTION 10

4 LOGISTIC INDUSTRY SNAP SHOT 17

5 INDIAN LOGISTIC SECTOR 20

6 GLOBAL LOGISTIC SCENARIO 25

7 LOGISTIC COMPANY IN INDIA 30

8 SURVEY 35

9 FINDING 43

10 CONCLUSION 46

11 SUGGESTION 47

12 LIMITATION OF STUDY 53

13 BIBLOGRAPHY 54

14. ANNEXURE 55

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Introduction
This section of the paper will give the reader an idea of the fundamentals of the project. The
reader will be able to get a fair idea of what this Project is all about. In the following subsections
one can understand the objectives and obstacles for this project.

1.1 Background
Competition can be seen in every field these days, and the manufacturing world is now different.
Companies are always looking for newer and newer opportunities and defects in the system so
they can be tackled. Logistics plays an important role in any manufacturing firm, as it involves
the optimal use of man, machine and material. Logistics is a small part of the company. Logistics
deals with the handling of the goods that are being returned to the manufacturer by the customer.
It covers all the activities that determine the fate of these returned goods.
This project tries to understand the basic concepts of logistics. It tries to give an idea of how
various researchers and logistics experts have defined logistics and how they have made out of it
the Operational Excellencies. It also covers some basic logistics activities and how these
activities affect the decisions that managers have to make on a regular basis in their company.
The ever growing manufacturing world and the advent of automation has resulted in mass
production and increased the number of products released into the market. This exponential
growth has resulted in the overuse of the natural resources thus increasing the amount of
industrial waste. This project also sheds some light on what activities in the logistics help
companies to move towards the Operational Excellencies in the market.

1.2 Project Specifications

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This project gives me the opportunity to put together a study on the concept of Logistics. It also
gives me the opportunity to show my skills as a Masters student, and showcase the skills that we
have learnt over the past two years. This project mainly focuses on the concept of logistics and
what role it plays in the manufacturing world today to bring out the excellence in business

1.2.1 Aim
The aim of this project is to understand the concept of Logistics and its potential in the various
industries. It also focuses on learning different aspects of the logistics and how these aspects
affect the decisions made by various firms and try to get good returns through it.

1.2.2 Problem Definition

Logistics companies tried to focus on its effects on the managerial decisions but some time it fail
in the operational excellence. Researchers have found that logistics can play an important role in
improving the operational part.
The main focus of this thesis would be to answer the following questions:

The literature review in this paper gives a clear picture about the concept of logistics.
Further the questionnaire also has been formulated so as to get clear and well defined answers.
Through the literature study, interview and survey conducted with logistics and supply chain
personnel at a few companies, this thesis tries to understand and analyze the concept of reverse
logistics.

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1.2.3 Problem Delimitation
Logistics has been found to play an important role in almost any manufacturing firm, regardless
of size, product and geographical reach of the firm. The focus initially conduct the survey
and/interviews in various firms After which a quick decision was made to change the target
group to the manufacturing firms in India. And by the time this decision was made there was
very little time for choosing the companies and conducting survey and/or interviews. Somehow
we managed to get few people from different companies to respond to the questionnaire. Also
some sort of an interview was conducted through telephone calls and chatting over the internet to
get a better understanding of the responses given by them.
As mentioned in the problem definition this thesis will focus on understanding the knowledge of
the participants with respect to logistics, and to what extent they have implemented logistics
concepts within their companies and how this affects their decisions.

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 2. Methodology
The methodology followed to achieve the set objectives of this project is in three parts:
Secondary research, survey and interview.

2.0 Secondary Research

Secondary research was conducted through various means like internet, various articles, journals,
periodicals and also the Mckinsey and KPMG reports.

2.1 The survey

A thorough literature study on the topic of this paper: Several articles were found on the topic
over the internet. After getting somewhat of a fair idea about logistics, a preliminary set of
questions were formulated for the survey.
Companies were contacted by me us over the telephone and through email. Most of the
respondents had filled the survey questions completely.

2.2 Interview
After receiving the responses to the survey for this project, interviews were conducted with the
respondents to better understand their responses and also to get a better idea of their
understanding of the concept of logistics. The interviews more like discussions were conducted
with the respondents over the phone and through online chats. These discussions were mainly
along the lines of the survey questions, since some of them had failed to answer the survey
completely. Further the purpose of this project was explained to the respondents in brief, so as to
give them an idea of the objectives and goals of the project. This led to open up the discussion,

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and give the respondents an opportunity to throw light on their thoughts on supply chain and
logistics. Thus the results and analysis sections are based on both the survey and interviews.

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LOGISTICS MANAGEMENT - INTRODUCTION
Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet customers'
requirements rather to the customers delight. 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 to the right target customers (consumer); 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.
Logistics is concerned with getting (or transmitting) the products and services where they are
needed or when they are desired. It is difficult to accomplish any marketing or manufacturing
without logistical support. It involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and finished inventories where
required at the lowest cost possible

Origin and Definition of Logistics:

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

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The Oxford English dictionary defines logistics as: The branch of military science having to
do with procuring, maintaining and transporting material, personnel and facilities.

The American Council of Logistics Management defines logistics asthe process of

planning, implementing and controlling the efficient and effective flow, and storage of goods,
services and related information from the point of origin to the point of consumption for the
purpose of conforming to customer requirements.

c. Objective of Logistics Management:

The primary objective of logistics management is to effectively and efficiently move the
supply chain so as to extend the desired level of customer service at the least cost. Thus, logistics
management starts with ascertaining customers needs till their fulfilment through product
supplies. However, there are some definite objectives to be achieved through a proper logistics
system. These can be described as follows:

1. Improving customer service:

An important objective of all marketing efforts, including the physical distribution activities, is
to improve the customer service. An efficient management of physical distribution can help in
improving the level of customer service by developing an effective system of warehousing, quick
and economic transportation, andmaintaining optimum level of inventory.

2. Rapid Response:

Rapid response is concerned with a firm's ability to satisfy customer service requirements in a
timely manner. Information technology has increased the capability to postpone logistical
operations to the latest possible time and then accomplish rapid delivery of required inventory.

3. Reduce total distribution costs:

The cost of physical distribution consists of various elements such as transportation,

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warehousing and inventory maintenance, and any reduction in the cost of one element may result
in an increase in the cost of the other elements. Thus, the objective of the firm should be to
reduce the total cost of distribution and not just the cost incurred on any one element.

4. Generating additional sales:

A firm can attract additional customers by offering better services at lowest prices. For
example, by decentralizing its warehousing operations or by using economic and efficient modes
of transportation, a firm can achieve larger market share. Also by avoiding the out-of stock
situation, the loss of loyal customers can be arrested.

5. Creating time and place utilities:

The products are physically moved from the place of their origin to the place where they are
required for consumption; they do not serve any purpose to the users. Similarly, the products
have to be made available at the time they are needed for consumption.

6. Price stabilization:
It can be achieved by regulating the flow of the products to the market through a judicious use of
available transport facilities and compatible warehouse operations. By stocking the raw material
during the period of excess supply and made available during the periods of short supply, the
prices can be stabilized.

7. Quality improvement:

The long-term objective of the logistical system is to seek continuous quality improvement. Total
quality management (TQM) has become a major commitment throughout all facets of industry.
If a product becomes defective or if service promises are not kept, little, if any, value is added by
the logistics. Logistical costs, once expended, cannot be reversed.

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8. Movement consolidation:

Consolidation one of the most significant logistical costs is transportation. Transportation cost is
directly related to the type of product, size of shipment, and distance. Many Logistical systems
that feature premium service depend on high-speed, small shipment transportation. Premium
transportation is typically high-cost. To reduce transportation cost. It is desirable to achieve
movement consolidation.

d. Logistics Management Function

Logistics is the process of movement of goods across the supply chain of the company. This
process is consist of various functions, which have to be properly managed to bring effectiveness
efficiency in the supply chain of organization.

1. Order processing:
The starting point of physical distribution activities is the processing of customers orders. In
order to provide quicker customer service, the orders received from customers should be
processed within the least possible time. Order processing includes receiving the order, recording
the order, filling the order, and assembling all such orders for transportation, etc. the company
and the customers benefit when these steps are carried out quickly and accurately. The error
committed at this stage at times can prove to be very costly.

Order processing activity consist of the following

Order checking in any deviations in agreed or negotiation terms
Prices , payment and delivery terms
Checking the availability in of the material stocks
Production and material scheduling for storage
Acknowledge the order, indicating deviation

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2. Warehousing:

Warehousing refers to the storing and assorting products in order to create time utility. The basic
purpose of the warehousing activity is to arrange placement of goods, provide storage facility to
store them, consolidate them with other similar products, divide them into smaller quantities and
build up assortment of products. Generally, larger the number of warehouses a firm has the lesser
would be the time taken in serving customers at different locations, but greater would be the cost
of warehousing. Thus, the firm has to strike a balance between the cost of warehousing and the
level of customer service.

Major decision in warehousing is as follow:

Location of warehousing facility
Number of warehousing
Size of warehouse
Design of the building
Ownership of the warehouse

3. Inventory Management:

Linked to warehousing decisions are the inventory decisions which hold the key to success of
physical distribution especially where the inventory costs may be as high 15 as 30-40 per cent
(e.g., steel and automobiles). No wonder, therefore, that the new concept of Just-in-Time-
Inventory decision is increasingly becoming popular with a number of companies. The decision
regarding level of inventory involves estimate of demand for the product. A correct estimate of
the demand helps to hold proper inventory level and control the inventory costs. This is not only
helps the firm in terms of the cost of inventory and supply to customers in time but also to
maintain production at a consistent level. The major factors determining the inventory levels are:
The firms policy regarding the customer service level, Degree of accuracy of the sales forecasts,
Responsiveness of the distribution system i.e., ability of the system to transmit inventory needs
to the factory and get the products in the market. The cost inventory consists of holding cost
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(such as cost of warehousing, tied up capital and obsolescence) and replenishment cost
(including the manufacturing cost).

4. Transportation:

Transportation seeks to move goods from points of production and sale to points of
consumption in the quantities required at times needed and at a reasonable cost. The
transportation system adds time and place utilities to the goods handled and thus, increases their
economic value. To achieve these goals, transportation facilities must be adequate, regular,
dependable and equitable in terms of costs and benefits of the facilities and service provided.

5. Information:

The physical distribution managers continuously need up-to-date information about

inventory, transportation and warehousing. For example, in respect on inventory, information
about present stock position at each location, future commitment and replenishment capabilities
are constantly required. Similarly, before choosing a 16 carrier, information about the
availability of various modes of transport, their costs, services and suitability for a particular
product is needed. About warehousing, information with respect to space utilization, work
schedules, unit load performance, etc., is required. In order to receive all the information stated
above, an efficient management information system would be of immense use in controlling
costs, improving services and determining the overall effectiveness of distribution. Of course, it
is difficult to correctly assess the cost of physical distribution operations. But if correct
information is available it can be analyzed systematically and a great deal of saving can be
ensured.

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6. Facilities:

The Facilities logistics element is composed of a variety of planning activities, all of which are
directed toward ensuring that all required permanent or semi permanent operating and support
facilities (for instance, training, field and depot maintenance, storage, operational, and testing)
are available concurrently with system fielding.
Planning must be comprehensive and include the need for new construction as well as
modifications to existing facilities. Facility construction can take from 5 to 7 years from
concept formulation to user occupancy. It also includes studies to define and establish
impacts on life cycle cost, funding requirements, facility locations and improvements, space
requirements, environmental impacts, duration or frequency of use, safety and health standards
requirements, and security restrictions. Also included are any utility requirements, for both fixed
and mobile facilities, with emphasis on limiting requirements of scarce or unique resources.

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The Logistics Industry SNAP SHOT

Globally, the logistics industry is valued at US$ 3.5 trillion.

The U.S., which contributes to over 25% of the global industry value, spends Close to
9% of its GDP on logistic services.

The Indian Logistics Industry is presently estimated at US$ 90 billion. (CII)

the industry has generated employment for 45 million people in the country in
comparison with the IT and ITeS sector which employs approximately 4.3 million
People.

It is forecast to grow at a Compound Annual Growth Rate (CAGR) of

approximately 8% over the next three to five years. (CII)

Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual

growth rate (CAGR) of over 16% from 2007-10. Consequently, 3PL service providers
are expected to corner an increased share of the Indian Logistics pie, from 6% in FY06 to
13% in FY11, at a CAGR of 25% (CII).

The primary growth drivers of this industry are as under:

o Investments in the infrastructure sector amounting to US$ 350 billion: Increased

efficiency and productivity of the transport system would result in lower transit times.

o Streamlining of the indirect tax structure:

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The introduction of Value Added Tax (VAT) and the proposed introduction of a
singular Goods and Services Tax (GST) are expected to significantly reduce the number
of warehouses manufacturers are required to maintain in different states, thereby resulting
in a substantial increase in demand for integrated logistics solutions.

o Robust trade growth

Strong economic growth and liberalization have led to considerable increase in

domestic and international trade volumes over the past five years. Consequently, the
requirement for transportation, handling and warehousing is growing at a robust pace and
is driving the demand for integrated logistics solutions.

o Globalization of manufacturing systems

Globalization of manufacturing systems coupled with advancements in technology are

increasingly compelling companies across verticals to concentrate on their core
competencies and avail the cost saving potential of outsourcing. This is expected to
contribute to an increase in the need for integrated logistic solutions, which is the niche of
every Third Party Logistics Service (3PL Services) provider.

The industry has been valued at US$ 125 billion in 2010. (CII)

A snapshot of the FDI regulations governing the industry is as under:

i. 100% FDI under the automatic route is permitted for all logistic services except
services mentioned in points ii and iii below.

ii. FDI up to 100% subject to FIPB approval is permitted for courier services.

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iii. FDI up to 49% under the automatic route is permitted for air transport services,
including air cargo services. It is pertinent to mention in this context, that Press Note 1
(2007) that is expected to be imminently notified by the DIPP proposes to increase the
limit of FDI on air cargo services in 74%.

The industry has been at the receiving end of increasing interest from the private equity
sector. The year 2007 witnessed just under US$ 1 billion in private equity investments
in this industry, representing approximately 7% of total private equity investments during
the year, against 3% in the previous year.

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THE INDIAN LOGISTICS SECTOR:
Wars have been won or lost on the strength of logistics capability or lack of it. Although quite an
old concept, logistics has been becoming efficient only since the globalisation wave of the early
1990s and hence, the businesses supported by it, worldwide, have been pushed for competitive
balance-sheets, providing consumers a better product/service and yet adding value to its
investors. Triggering intense competition, globalisation, coupled with liberalisation, forced both
private and public firms to commit themselves to making available to their customers the right
material of right condition, at the right time and place at the lowest cost be it a product or a
service.
The World Bank, in a recent survey Connecting to Compete: Trade Logistics in the Global
Economy, has developed a Logistics Performance Index (LPI) that can serve as a benchmarking
tool for measuring performance of businesses along a countrys logistics supply chain. The Bank
study asserts that countries that are able to connect to the global logistics web would not only
have access to vast new markets but also remain a part of the global trade growth. The report
avers that it is not the income of nations but their undergoing trade expansion that determines
their logistics efficiency, as the survey shows that nations with increasing trade (imports and
exports) to GDP emerged as the out-performers on the LPI scale relative to their income levels.
It also warns that those countries whose links with the global logistics chain are weak are bound
to face large and growing costs of exclusion from international trade. India trails behind China
on important indices such as customs procedures, overall infrastructure quality, international
shipment, logistics competence and tracking of shipments, but is ahead of the latter on the
domestic logistics efficiency front. Healthy economic growth in India is increasingly supported
by robust industrial growth. One of the relatively lesser known but significant sectors that
support almost all industrial activity - the logistics sector - is also witnessing this growth as a
follow through. However, not withstanding its importance and size (INR 4 trillion), it has
traditionally not been accorded the attention it deserves as a separate sector in itself.

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The level of inefficiency in logistics activities in the country has been very high across all
modes. With the evolving business environment creating a strong demand pull for quality and
efficient logistics services, core issues around enabling infrastructure, regulatory environment
and the fragmented nature of the industry are being overcome gradually. The required pace of
efficiency and quality improvement will demand rapid development of capabilities of logistics
service providers. And with logistics being a service oriented sector, skill development will
emerge as a key capability while skill issues exist in varying degrees in all segments of logistics;
those segments where the gaps are not only wide but also widening at a relatively fast pace. The
most severe and immediate requirement for skill development is found to be in the road freight
and warehousing segments. Indias spend on logistics activities - equivalent to 13 percent of its
GDP is higher than that of the developed nations. The key reason for this is the relatively higher
level of inefficiencies in the system, with lower average trucking speeds, higher turnaround time
at ports and high cost of administrative delays being just a few of the examples. These
inefficiencies have arisen over the years from a combination of a non-conducive policy
environment, extensive industry fragmentation and lack of good basic infrastructure. India's
indirect tax regime discouraged large centralized warehouses and led, over time, to
fragmentation in the warehousing sector. At the same time, the absence of a single logistics
'champion' (whether in form of a ministry or otherwise) in the government (or industry) led to a
disintegrated approach to development of the sector.

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Extensive fragmentation meant the incapacity of industry players to develop the industry as a
whole and poor support infrastructure, such as roads, ports and telecom, led to a situation where
the opportunity to create value is limited. However, much of this is changing with the
government now demonstrating a strong commitment towards providing an enabling
infrastructure and creating conducive regulations. There is significant current and planned
investment in infrastructure to the tune of (INR 15 trillion) over the next few years and an
increased emphasis on public-private partnership. At the same time, regulations around
rationalization of tax structures and prevention of overloading for example are creating an
environment of positive change. Players now ave the opportunity to leverage economies of scale,
complemented with better infrastructure, to provide integrated logistics solutions which are cost
effective.
In addition, the evolving business landscape and increasing competition across industries, is
creating the need for more efficient and reliable logistics services than what exist today For
example, rapid growth of organized retail and the need to reach out to the large untapped rural
markets in India are necessitating development of strong back end and front end supply
networks. Fundamentally, a fragmented industry with low average scale - and consequent limited
investment and market development capability - is worst placed to serve these needs. It is not
surprising therefore that there is a frantic pace of consolidation and organic growth that the
industry is witnessing (refer box and figure 4). While logistics service providers are struggling to
keep pace with the growth, logistics service users with limited or no outsourcing are finding it

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increasingly difficult and / or undesirable to manage this non-core activity in house. The result is
a wide need gap that is seemingly widening much faster than it is being filled. It is in this context
that capability development of logistics service providers assumes critical importance. While
rapid development across all dimensions of organizational capability will be required to achieve
and sustain demand growth, logistics being a service industry, manpower capabilities assume
utmost 5 importances. The sector currently employs about 40
million people, a number that will rise rapidly with exponential growth expectations in the
sector. 6 A look at the financials of a set of 80 logistics companies in India across sectors reveals
that manpower spends comprise 8-10 percent of overall sales of the sector. This roughly
translates to about an INR 500 billion spend on logistics manpower in the country annually. Only
about 13 -14 percent of the overall manpower costs are spent on non salary, manpower
development items (welfare, training etc.). This share for the unorganized companies would
expectedly be much less. As against this leading global logistics companies spend around 20
percent of their employee expenditure on non-salary items. This lack of focus on developing
manpower and skills for the logistics sector has resulted in a significant gap in the numbers and
quality of manpower in the sector. This gap, unless addressed urgently, is likely to be a key
impediment in the
growth of the logistics sector in India, and in consequence, could impact growth in industry and
manufacturing sectors as well. This underscores the need for identifying areas where such
manpower and skill gaps are critical, and developing focused action plans to improve the
situation. In the next section, we analyze each segment of the Logistics sector in India to identify
the skill gaps that exist in each. These gaps are then prioritized to identify key focus areas, and
the action that needs to be taken to bridge the gaps.

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SIZE OF THE LOGISTICS MARKET IN INDIA:

Indian Supply Chain and Logistics Industry is more than USD 100 Billion in size and is the
backbone of Indian Economy. Our industry is growing at a rate of 8-10% annually and has been
a crucial contributor in the growth and development of the Indian economy. In the near future,
Traditional Logistics services like Transportation and Warehousing would continue to growth at
a good rate. However, the big ticket growth would come from the Value Added Logistics
services in the near future. At present, Outsourced Logistics accounts for only one-third of the
total Logistics market in
India, which is a significantly lower proportion vis--vis the developed markets. Growth in this
industry is currently being driven in India by over USD 300 billion worth of
infrastructure investments, the phased introduction of VAT, the development of organized Retail
and Agro-processing industries, along with a strong manufacturing growth. In addition, we
expect strong Foreign Direct Investment inflows in the Indian markets, which would lead to
increased market opportunities for providers of Third-Party Logistics in India. Therefore, India
possesses substantial opportunities for growth in the Supply Chain & Logistics industry in the
coming years, notwithstanding the temporary jolt due to the economic slowdown.

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GLOBAL LOGISTICS SCENARIO:

In a move to cut down costs, producers are exploring around the globe in search for the
lowest cost exporters/suppliers. Lured towards developing countries in south-east Asian
region for lower-wages, transportation industry is stretching its reach longer than ever before.
Major players are focusing overseas markets for outsourcing cheap manufacturing as well as
expanding their businesses. This result in outbound logistics. And acceleration in manufacturing
capacity is driving many producers to shutter superfluous plants. The rest of the plants are
gaining the developing rhythm, but must export overseas now to sustain their positions in the
market. Boom in the Internet based services made overseas suppliers capable to match foot with
local suppliers. Web-based sales, services and supplies are emerging vertically. The expanding
reach has compelled logistic industry to spur cross-border trade. Regardless-of this outbreak
of activity, it is commonplace also for expert managers of local logistics to get acquainted with
the complexity of international trade logistics. Global transportation and relevant services
includes much complex documentation than for domestic shipments. It almost includes longer
delivery times. Evaluation of the arrival times of international shipments is just a magic than
solid fact. The business players always look for just-in-time shipments, thus it aspires enhanced
build to order model and lot-size-of-one shipments, which results more pressure on logistics
industry. Logistics industry has usually been old-fashioned traditions. Usually, the shipping
personals would decide for carriers, customs agents and so on. Normally, their search doesnt go
beyond the initial service providers who cover all the minimum requirements. Once the shipment
kicks-off its journey towards its destination, it is really hard to assume reaching time. For
example, a ship that started its journey from Asia could meet harsh weather, which
may delay its reaching on the West Coast for three days. On the other hand, the trucks at the
West Coast would have to wait and sat empty and ideal for the three days, which would certainly
result in big loss. These kind of unpredictable losses are usual in international logistics. Thus,
even the largest multi-national companies avoided logistic services on a worldwide basis. They
opt to establish their operations in each country and let them to manage logistics individually.
The boom in Internet services changed international logistics rapidly. At present, vendors can
cater massive numbers of global shipments. Complying with this, they create and uphold
substantial databases, which cover country-specific laws and regulations. Factually, thousands of

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combinations of containers, ports, and so on are likely counted for moving a shipment.
International logistics vendors also maintains cost and route information on hundreds of
hundreds carriers, which are operational in dozens of regions, which offers both lower freight
bills and cutting of delivery times. A biggest disadvantage in international logistics is the
vagueness in arrival times. Materials managers have had modest choice, so they had get around
by adding more safety stocks. Thus, the costs of inventory management in the overseas parts are
naturally higher. The uncertainty of delivery time is due to not tapping of international shipments
closely and step by- step. This is easier said than done. However vendors are now offering
tracking system, which is necessary in continuous tracking of both international logistics
network, and electronic visibility in each yard and carrier. Although there is much to be done to
achieve this stage, the pieces of the puzzle are gradually coming together. Even though vendors
are offering a worldwide network, significantly added and dedicated, equipment is still required.
For example, tracking completed products needs a yard management system, which recognizes
each container in the yard and its placement. The radio frequency Identification (RFID) tags in
containers, whose place is detected by antennas
located in the yard. Maintaining the clear vision also needs tracking the containers as soon as
they leave the yard. This tracking is possible by Global Positioning (GPS) systems and satellites,
however, use of these systems are not usual at present. As a result, the industry does not provide
step-by-step tracking of container. An important trend among logistics services providers would
aid the industry. Logistics industry veterans unveil that logistics service providers are extending
reach worldwide and
expanding their services too. Regardless of understandable limitation, global logistics should
obviously improve. Web-based companies and technically ground-breaking carriers such as UPS
Logistics, Ryder, and others will carry on showing the way. Global logistics in near future should
be distant more faultless and reasonably priced than ever.

26 | P a g e
Size of the global logistics industry

Currently the annual logistics cost of the world is about USD 3.5 trillion. For any country, the
annual logistics cost varies between 9% and 20% of the GDP, the figure for the US being about
9%. US-based Armstrong & Associates, Inc. tracks the issues and trends in the world logistics
market and in the US logistics market, in particular, in their annual surveys of top 25 global
LSPs. According to the firm, the global logistics market sizes in 1992, 1996 and 2000 were USD
10 billion, USD 25 billion and USD 56 billion, respectively. In 2003 and 2004, the
corresponding figures were USD270 billion and USD 333 billion, registering high growth rates.
Though most of the large LSPs are headquartered in Europe, the US logistics market is the
largest in the world capturing one-third of the world logistics market. In 2003, it was about USD
80 billion. In 2004, it grew to USD 89 billion, and in 2005, it registered an impressive growth
rate of 16% to cross the USD 100 billion mark for the first time and reach USD 103.7 billion
(Foster
and Armstrong, 2004, 2005, 2006). However, considering the fact that the logistics market in the
US is about 10% of its annual logistics cost (Foster and Armstrong, 2006), there is still immense
potential for growth of 3PL in the US in particular, and in the world in general.

27 | P a g e
Current status and dynamics of the industry

The extant literature on the logistics industry points to a number of issues that service
providers have to address, such as pricing pressures, high costs of operations and low returns on
investments, hiring and retaining talent, pressure from clients to broaden the range of service
offerings and internationalize operations, demand for customized solutions and more value-
added services, besides infrastructural bottlenecks and government regulations. Service providers
complain that clients expect them to have the latest software, databases and ERP (Enterprise
Resource Planning) packages, and invest in new technologies such as RFID and satellite-based
real-time tracking systems. Clients perceive that these investments are part of the basic service
package, and often do not want to match the same with increased payments for these additional
services. Pressure from clients to broaden the range of service offerings and internationalize
operations, has forced service providers to look for suitable alliances, mergers and acquisitions
that help fill the gaps in service offerings, and industry verticals and geographic areas served,
achieve economies of scale and enhance service providers
capability to support international operations. Currently, the world logistics market is going
through a consolidation phase. Tibbett & Britten Group of North America was acquired by Exel
Logistics in August, 2004, and Deutsche Post World Net, parent company of DHL, took over
Exel in December, 2005. Bax Global was taken over by Deutsche Bahn, parent company of
Schenker, in November, 2005 while A. P. Mller acquired P&O Nedlloyd in February, 2006, and
TNT Logistics was sold to Apollo Management L. P. in November, 2006. However, mergers and
acquisitions have their
own set of problems in terms of integration of two diverse business units. Carbone and Stone
(2005) tracked the evolution of 20 leading European LSPs between 1998 and 2004 in terms of
btheir approach to mergers, acquisitions and alliances, and found that although growth led to
more coverage, integration of two different cultures was one of the most difficult challenges
faced by these firms in the consolidation process. Recent trends in the logistics industry indicate
that to be successful, service providers have to differentiate themselves from their competitors in
terms of offering value added services, focus on key customer accounts that have the potential to
generate high

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profitability for a long term, enter into suitable alliances to complement the range of services
offered and geographic areas served, and sell logistics services to clients suppliers and
customers, thus leading to complete supply chain integration.

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Logistics Companies of India

The land which opens up wide array of opportunities for the logistics service providers
across the world is India. The high demand for the logistics services is due to the significant
growth of economy. A few years back the value of the India logistics market was is $14 billion
and will grow at a rate of 7-8 per cent. The logistics companies in India cater to millions of
retailers and meet the requirements of about a billion people. The list below gives

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 Best logistics companies in India.

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 TOP LOGISTICS COMPANIES OF INDIA:
TNT Express:

This company is a key leader in the international market in the sector of global express
services. The company ensures safe and on time delivery of your documents, freight and parcels.
The company offers time and day definite delivery in about 200 nations across the world. It
operates 47 jet freighter aircraft and 26,000 road vehicles and has a network of 2,300 companies.

AFL:

One among the acknowledged leaders among the logistics companies in India is AFL.
Through its domain of logistics services, the company has delivered world class service in India.
In 1979,the company introduced the first ever courier service by forming an alliance with DHL
World Wide Express. The company offers services like Logistics and warehousing, Courier
Company and Custom Consultant.

DHL:

This company is one among the major logistics companies in India. It is a market leader
globally in overland transport, air freight and international express. The company ranks No.1 in
the world in contract logistics and ocean freight. The biggest logistics and express network in the
world has a network in about 220 territories and ountries,72,000 vehicles,350 Aircrafts,36 hubs
and 4,700 bases.

Blue Dart:

This logistics company is South Asia's top integrated express package Distribution and
Courier Company. The domestic network of the company covers about 21,340 locations and
provides service to 220 countries by the company's sales alliance with DHL. It provides the best

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service like Free Pick up from Your location, Regulatory Clearances, Real Time Tracking, Free
Computerized Proof of Delivery etc.
Gati:

The company is a key leader in the arena of express cargo delivery and a significant one in the
supply chain management solutions and distribution in India since the year 1989.The company
provides services like the Ware Housing, Express Cargo etc. Logistics Solutions of the company
are Warehousing, Supply chain Management. The Distribution Solutions of the company are
Gati Surface Express, Gati coast to coast and Gati Air Express etc.

Self-express:

It is one of the largest express company in India. The company offers the best and integrated
logistics solutions. In 2002 the Limca Book of Records declared the company as the Largest
Logistics service Provider in India. The company has a network over 550 locations in 28 states
and 7 countries. It has 3000 weather proof ISO-9002 vehicles.

Ashok Leyland:

The leading provider of logistic vehicles for the India Army is this company. It is a key leader in
the tractor-tailers and multi axle trucks. The company manufactures buses, trucks, engines and
special application vehicles in India. It is promoting a new company called Ashley Transport
Services Ltd. for exchange of information and integrated services related to logistics in order to
tackle the business of freight contractors.

Agarwal Packers and Movers:

This popular Indian logistics company provides logistic services like the home shifting, car
packing etc. across India. The company believes in keeping technology and people and of course

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heart and soul in the movement of the individuals respective items. The company offers quality
service in transportation and packing.

DTDC:

The biggest Domestic Delivery Network Company is DTDC. The company offers high class
delivery service in about 3700 Indian locations and 240 international places. The company
dispatches about 10 million parcels in a month. It also offers low cost for bigger parcels to US,
UK, India, Nepal, Dubai and other places across the world.

First Flight:
This logistics company in India specializes in courier services worldwide. The multi-tracking
programs of the company are Domestic, International, First Wheels, First Wings and many
others. The overseas offices of the company are in Malaysia, Singapore, UK, US, UAE, Quatar,
Oman.

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SURVEY

Which of the following logistics services do you provide?

20 19
Ocean freight forwarding LCL
18
16
15 Ocean freight forwarding FCL
16
14
14 AIR FRIGHTENING
12
10
Warehousing
10
8 Cross docking
6 6
6 5 5 5 5
3 Value adding logistics (e.g.
4
2 labelling, packaging, etc.)
2 Value adding services (e.g. order
0 management, customer /
financial services)

Transportation of full loads

Transportation of part loads

Parcel distribution

Returns management

OTHER

ANALYSIS:AS WE SEEN ABOVE WAREHOUSHING ,TRANSPORTATION OF FULL LOADS& PART

LOADS,PRACEL DISTRIBUTION ISBEEN PROVIDED BY LOGISTIC COMPANY

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Do you use bar-code identification on your products?

NO
40%
YES
NO
YES
60%

.
ANALYSIS:AS ABOVE DIAGRAM BARCODE IS USD FOR IDENTIFICATION FOR PRODUCTS

How much warehousing space do you can provide

20
18
16 Floor storage m
14
12
10
8 Pallet racking Pallet
6
4 locations
2
0 Shelf storage m

Bin Storage m

Other

ANALYSIS; SELF STORAGE AND FLOOR STORAGE IS PROVIDED BY WAREHOUSING

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Do you provide any special storage requirements

NO
40%
YES
NO
YES
60%

ANALYSIS: AS SHOWN ABOVE DIAGRAM SPECIAL STORAGE RQIREMENT IS PROVIDED

V.A.S

19 18
20
15 14
9
10 6 Cross docking
5 6
0 Freight Consolidation
Series1 Pick and pack
assembly,
packing & labelling,
customization any

ANALYSIS: V.A.S INCLUDE OST PICK AND PACK , ASSEMBLY &PACKAGING AND LABELLING AS
IT SHOWN ABOVE DIAGRAM

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Are there seasonal influences in the order pattern ?

NO
23%

YES

YES NO
77%

ANALYSIS:AS SHOWN ABOVE IT SHOW YES THERE IS SEASONAL INFUENCE IN ORDERN

PATTERN

Do you provide express shipments?

NO
40%
YES
NO
YES
60%

ANALYSIS: AS SHOWN ABOVE EXPRESS SHIPMENT IS PROVIDED.

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Which all certification you have ?

18
20
15
10 9
5 3
0 ISO 9000,
Series1 TAPA,
HAZARADOUS GOODS

ANALYSIS:AS SHOWN ABOVE CERTIFACTION MOST REQUIRED IS ISO9000.

What all is included in your business profile?

Other Transportation
5% Management
13%
Transportation
Management
Inventory Finished Goods Handling
Control
22%
Finished Raw Material Handling
Goods Handling
32% Inventory Control
Raw Material
Handling
28% Other

ANALYSIS; AS SHOWN PIE DIAGRAM FINISHED GOODS HANDLING INCLUDE IN BUSINESS

PROFILE

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What all are the Product Characteristics for what you provide services

20 19
18
16 15 15
14 13 Carton Dimensions
12 Carton Weight
10 8 8 Pallet Dimensions
8
Special Handling
6 4
3 3 Special Storage
4 2
2 Stackable
0 Lot Control / Serial Number
Security / Temperature
Control Considerations
FIFO

ANALYSIS:AS SHOWN ABOVE PALLET AND CARTOON DIMENSION, SECURITY TEMPERATURE

ANF FIFO ARE PRODUCT CHARCTERISTIC BEEN PROVIDED HIGHEST.

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Storage Information of your firm

Shelving
Other
12% Shelving Bulk / Floor Stack
19%
Carousels Pallet Rack
ASRS 8%
4% Flow Rack
Bulk / Floor
Stack Secure Storage
Secure Storage
15% 15%
ASRS

Carousels
Flow Rack Pallet Rack
9% 18%
Other

AS SHOWN ABOVE PALLET RACK AND SHELVING STORE INFORMATION IS BEEN AT HIGHEST
PERCENTAGE THEN SECURE STORAGE AND BULK/ FLOOR STACK.

Order Processing / Picking

Two Days
17%
>Two Days
23%
>Two Days
One Day 1 to 4 Hours
27% 1 to 4 Hours One Day
33%
Two Days

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ANALYSIS : ORDER PROCEESING MAXIMUM TAKES 1 TO 4 HOUR THEN ONE DAY

Shipment that you provide

8
8
7 Forwarder
6
6 5 Rail
5 4 Ocean
4 3 Other:
3 LTL Truck
2 1 1 1 1 Full Truck
1
Integrator
0
Will Call
Other

ANALYSIS: AS SHOWN ABOVE LTL TRUCK AND FULL TRUCK SHIPMENT FORWARDER SHIPMENT
IS PROVIDED THE MOST

Shipment Information

14

12

10

8 Domestic:
6 International:
Both
4

0
Domestic: International: Both

ANALYSIS: AS SHOWN ABOVE BOTH DOMESTIC AND INTERNATINAL SHIPMENT

INFORMATIN IS PROVIDED.

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FINDINGs

1. The logistics performance index shows the performance of country in the global
logistics industry, customs, trade-related infrastructure, inland transit, logistics services,
information systems, and port efficiency are all critical to whether countries can trade goods and
services on time and at low cost. Here India LPI score is 3.07 and secure 39th position in the
global logistics industry. As the share of Indian Logistics Industry is more than the Mexico and
less than the USA, UK and Singapore witness that Indian Logistics industry is one of the growth
drivers for Indian economy.

2. In the global logistics sector India at the top position among the all the low income group
countries, that show that Indian Logistics sectors perform better among all the low income
countries or developing countries.

3. Logistics cost contribution of India in GDP is 13 % which shows the high logistics cost of the
Indian Logistics industry and also higher than the developed countries. Due to the poor
infrastructure and other logistics service is not better than the developed countries like USA and
Japan.

4. 3PL service providers share is less in overall industry of India as compare to Japan, USA and
Europe. The third party logistics (3PL) market in India is still in a relatively nascent stage.
While multinational companies in all industries have been predominant users of these services
but the Indian companies are not. Also significant cost Reduction and several other benefits
provided by these companies. This is also one of Reason of high cost in India.

5. Organized sector include the cost of inventory holding, transportation, warehousing,

packaging, losses and related administration which shows the high logistics cost in India due to
less organized sectors. But organized sectors are well established in Japan, USA and Europe also
one of the reasons to low logistics cost.

6. Major sectors investment in Indian Logistics industries are Aviation, Metal & Mining and
consumer durable. Among these sectors share of Aviation sector is higher due to increasing
international business in India also cost of transportation is higher, fast and safe for overseas
movement of goods.

7. Now 3PL service providers are start investment in India to reduce the logistics cost which
include both domestic and international companies. Shreyas Shipping and Logistics is investing
high as compare to the DHL, TNT and Gati. This shows that trend of 3PL providers is increased
in India.

8. Revenue generated from 3PL providers increase the Indian economy and also the percentage
growth the revenue increased continuously from 2005 to 2008. According to Planning

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Commission India this is growth continuous and it reached to $3556 million till 2012 is
estimated.

9. Logistics industry also improves the performance of other industries in India as these are auto,
IT and pharmaceutical industries that shows high growth rate. Logistics grow with 810 % rate
between 2002- 2007 implies that improvement in the supply chain of the other industries in India

10.Logistics cost play an important role for the growth of industry. Logistics cost contribute to
sale indicate importance of logistics in different industries. As logistics cost share in sale of
cement industry higher than other industries shows it play an important role in sale.

11.Different transportation modes in India also improved with the increase in the international
market. Among the different modes of transportation maximum road is used most preferred
mode of transportation due maximum area cover by the roads as compare to other modes of
transportation. But maximum growth is shown by the rail and sea as compare to the road and air.

12. Road is use maximum for the movements of goods in India due better area coverage of road
as compare to the other modes of transportation and also the economic and faster some time due
to that road is preferred first and maximum for the movement of goods in India, this shows the
continuously improvement in roads freight in India.

13. Rail freight also increase with the improvement of logistics industry in India due to less cost
as compare to the other modes of transportation and also growth of the infrastructure of the
railways.

14.Sea freight also shows the improvement due to better movement for the overseas movement
of goods and also least cost incur when shipping of goods by sea but it takes more time and less
safe than the air modes.

15.Air mode of transportation is help in both the domestic and international movement of goods
as it incur high cost but this is safe and fastest modes of transportation than the others modes. Air
mode of transportation is used maximum for the overseas movement as compare to the domestic
therefore growth in air mode of transportation higher in international level as compare to the
domestic.

16.Cargo movement also witnesses the choice of the transportation mode in India movement of
cargo by road is maximum than other modes. But sea and air mode shows the least percentage
for the cargo movement due to less share of India in the International market as compare to the
domestic.

17.Growth of container volume represents the increasing share of the Indian logistics industry in
International market as it is grow continuously from year to years. Road transportation is
currently the most dominant form of transportation with more than half of the goods in the
country being moved by road. Almost every mode of transportation in India is fraught with

44 | P a g e
inefficiencies. For instance, ports that are vital for foreign tradehave very high turnaround
times when compared with statistics for other countries. Similarly, the railways, which were a
popular mode for freight transportation (especially the movement of bulk goods), have lost
ground to road transportation due to limited access to smaller towns. Air, on the other hand, is a
costly mode and its use is restricted to courier shipments. It is rarely used for bulk transportation

18.Industrial cluster in India can be dividing into four economic zones based on the
concentration of the key industries like pharmaceutical, auto, textiles, machinery and electronic
goods. West zone is show high attractiveness due most prominent destination for the Logistics
industry. Also upsurge in the retail sector along with the fact that has several industrial clusters
of industries.

45 | P a g e
CONCLUSION

Indian Logistics industry is continuously improving its performance in the global logistics
industry by improvement of customs, trade-related infrastructure, inland transit, logistics
services, information systems, and port efficiency help to provide trade goods and ervices on
time and at low cost. The World Bank's 2007th Global Logistics Report ranks India 39 amongst
150 countries in terms of logistics performance during the year as well as its future potential.
Indian Logistics industry has low performance than developed countries like USA, UK and
Singapore in global logistics sectors due inefficiency in logistics services and highest among the
low-income group countries. India spend in Logistics activities equivalent to 13 % of its GDP is
higher than that of developed countries. The key reason is the relatively high level of inefficiency
in the system with lower average trucking speeds, higher turnaround time at ports and high cost
of administrative delays. 3PL service provider share is less in logistics sector in India as compare
to developed countries and still at the nascent stage.

Multinational companies in all industries have been predominant users of this service as one of
reason for lesser share 3PL in India. Also in India organised sector not well established as
compare to developed nation this contain cost of inventory holding, transportation, warehousing,
packaging, loss and related to administration is higher. In Indian logistics sector major sector
investors are Aviation, Metal & Mining and Consumer Durable.

Also logistics industry in India improves the performance of other industries year to year and
share of logistics cost in sale also important which is maximum in cement sector. Transportation
modes grow with of domestic and international market and in India road better mode of
transportation because of well infrastructure of roads in India as compare to other
mode like water, rail and sea. Road freight in India grows with increase of domestic and
international trade also large area coverage. Railway freight also increases due low freight as
compare to road but cover some of area and better for long distance movement of goods. Sea
freight also increase better for overseas movement of goods at low cost as compare to air but
consume more time as compare to air. Air mode of transportation is also helps in both domestic
and international movement of goods but for international movement is more as compare to the
domestic due to the higher cost, safe and faster way as compare to others modes.

46 | P a g e
SUGGESTIONS & RECOMMODATIONS

Scheduling of service time point of arrival and departure of rails, ships and plane has
great scope for improvement. They never run on time and require national discipline.

Legal system is not in keeping with the modern outlook of life and business. The laws
are out mode and require comprehensive amendments. The laws are infect remnant of
British Rule and provision contained therein do not meet the requirements of modern
and complex international trade.

It augurs well observing development of national and selected state highways for
faster movement of traffic. It is response to free trade regime being speedily
established under the compulsive auspicious of WTO in the interest of humanity. It is
hoped that the implementation of the gargantuan project would be on schedule or at
least without much time cost overrun.

The system and procedure obtaining in government department are incontinent, time
consuming and not at all business centric. The official are trained as ever in manage
development. There should be time to bound programme of simplify procedure and
format.

Logistics development is absolutely necessary. In the absence of flow less and latest
logistics, the MNCs shy away from doing business in India. There is need to increase
FDI in logistics sphere and relaxing of norms relating to entry, taxation, import of
material handling and movement of equipment etc.

At present agriculture contribute nearly 25 % to Indian economy (GDP) and also

require development of warehouse sector. This service sector has good prospects of
equipping top place in services of diverse types.

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A level-wise look at skill development required

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Taking a level-wise view of skill issues, these can be broadly classified as follows:

1. Skills required at the Operational level:

As the industry matures, the level of specialization and sophistication will inevitably increase.
For instance, truck drivers for trucks carrying liquids / bulk would need to have specialized
knowledge different from the current stock of drivers;
technological advancement will require that the operational manpower interfacing with systems
is adequately trained to operate the systems. Skill development at this level would hence be
defined by the need to

a. build deeper skills in specific areas

b. address increasing requirement of the numbers of specialize workers in the shortest
possible time
c. have defined standards for skill levels across workers

2. Skills required at the Middle and senior levels:

As the industry consolidates horizontally and integrates vertically, the breadth of skills required
at the middle and senior levels will increase. For instance, middle and senior management in a
courier company moving into the full fledged 3PL logistics business would need to be able to
develop skills for managing a different type of business. In addition, increasing levels of
competition will require sharper business acumen in developing strategies for sustainable
differentiation at the senior most management levels. Skill development at this level would hence
be defined by the need to

a. develop new skills for managing a new business line

b. enhance strategic / conceptual skills
c. ensure continuous updation of knowledge of industry developments

3. Skills required for transitioning from one level to another:

Given the manpower crunch not just in the logistics industry but across most industries as a
manifestation of the healthy growth in them, the first step in plugging gaps ought to come from
training / up skilling existing manpower well-versed with industry practices before external
resource generation is considered. This means that effective transition from operations / front
line skills to middle management and from middle management to senior management is
indispensable. Skill development at this level would hence be defined by the need to:

a. develop entrepreneurial and managerial skills

b. leverage existing core logistics skills in transitioning from operational
to management and from management to entrepreneurial levels

Thus this were the Suggestions and Recommendations from our side.

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LIMITATION OF STUDY

The study is based on the survey that are limited upto only 9 respondent and secondary data
published in newspapers, books and journals of the researchers. Sometimes data which is
published by the researchers cannot analyse fresh situation means old data and wrong data is
collected by inherent error.

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 BIBLIOGRAPHY

1. Vinod V. Sople (2007) Logistics Management Pearson Publication; pp

2 to 13.
2. Donald J. Bowersox & David J. Closs (2007) Logistics Management
Tata McGraw-Hill Publication; pp 3 to 20
3. Skill Gap in Indian Logistics Sector (2007) published by CII and
KPMG
4. Trade Logistics In Global Economy (2007) report by World Bank.
5. Indian Logistics Industry (2008) published by Cushman & Wakefield
Mckinseys Report

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 ANNEXURE

We the student of IIPM, conducting the research on EMERGENCE OF LOGISTICS BUSINESS

IN THE RECENT PAST AND ITS POTENTIAL. All the information taken here by is only for
academic purpose and is not going to be disclosed. Thank you for your co-operation.

55 | P a g e
 1. Which of the following logistics services do you provide?

o Ocean freight forwarding; Consolidation services (LCL)

o Ocean freight forwarding; Full container loads (FCL)
o Air freight forwarding
o Warehousing
o Cross docking
o Value adding logistics (e.g. labelling, packaging, etc.)
o Value adding services (e.g. order management, customer /
o financial services)
o Transportation of full loads
o Transportation of part loads
o Parcel distribution
o Returns management
o Other, (Please describe).....................................

2. Do you use bar-code identification on your products?

o Yes
o no

3. How much warehousing space do you can provide

(Total warehousing space required m)

o Floor storage m
o Pallet racking Pallet locations
o Shelf storage m
o Bin Storage m
o Other

4. Do you provide any special storage requirements

o Yes
o No

5. V.A.S

o Cross docking
o Freight Consolidation
o Pick and pack
o assembly,
o packing & labelling,
o customization any

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6. Are there seasonal influences in the order pattern

o Yes
o No

7. Do you provide express shipments

o Yes
o No

8. Which all certification you have ?

o ISO 9000,
o TAPA,
o Hazardous goods

9. What all is included in your business profile

o Transportation Management
o Finished Goods Handling
o Raw Material Handling
o Inventory Control
o Other

10. What all are the Product Characteristics for what you provide services

o Carton Dimensions
o Carton Weight
o Pallet Dimensions
o Special Handling
o Special Storage
o Stackable
o Lot Control / Serial Number
o Security / Temperature
o Control Considerations
o FIFO

11. Storage Information of your firm

o Shelving
o Bulk / Floor Stack
o Pallet Rack
o Flow Rack

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 o Secure Storage
o ASRS
o Carousels
o Other

12. Order Processing / Picking

o >Two Days
o 1 to 4 Hours
o One Day
o Two Days
13. Shipment that you provide

o Forwarder
o Rail
o Ocean
o Other:
o LTL Truck
o Full Truck
o Integrator
o Will Call
o Other

14. Shipment Information

o Domestic:
o International:
o Both

15. Rank the below mention areas in scale of 1 to 7 where 1 is are most important to
Improve?

o Reliability
o Availability
o Transit
o On-time
o Expense
o Customer service
o Supply Chain Visibility

16. Please identify area(s) in which you have experienced in?

o Analysis of routing and mode of transportation

o Space booking with carriers
o Preparation, elaboration and submission of trade documents in compliance with customs
o Clearing of goods through customs
o Import/export insurance arrangement

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 o Payment arrangement with bank

17. What industry type(s) of goods do you generally handle?

o Automotive
o Chemical
o Computer hardware and software
o Construction
o Drugs/pharmaceutical
o Electronic related products
o Energy and utilities
o Food stuff
o Other
18. How often each importing shipment is inspected?

o Routinely
o On a random basis
o Selectively based on a risk analysis
o Other

19. On a selective inspection please indicate?

o The percentage in which a shipment is electronically scanned

o The percentage in which a shipment is physically inspected

20. What all specialized services you provide

o Bulk
o Tank
o Hazardous material
o Refrigerated Goods
o Other

21. Time constrained Services in your firm.

o JIT
o Overtime
o Same day
o Shipment
o Tracing

22. Warehousing and distribution

o Public warehouse
o Regional Warehouse
o Contract warehouse

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23. Technology you use in operation

o Bar-coding
o Radio Frequency
o VMI
o Other

24. IT support used by your Firm

o Yes / no
o Logistics information system and other software
o Web based solution

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