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Impex Operations Internship Report
Impex Operations Internship Report
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ANIRUDH KASTHURI
RA1452001040186
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CHAPTER - 1
INTRODUCTION
The expanding economy and business opportunities have caused companies to export and
import products to develop their business. International shipping remains daunting for many new
or relatively inexperienced exporters, particularly small and medium-sized firms. Effective use
of transportation equipment and modes reduces shipping and logistics costs. However, export
and import planning entails all sorts of considerations, from inventory levels and manufacturing
lead times to customers' preferences and transportation options. Ocean export is generally much
cheaper than air export, but the transits from warehouse dock to consignee door are measured in
weeks instead of days.
Airfreight is suitable for perishable goods; it may also include light, high-value
commodities such as semiconductors and electronic components essential to running industry or
fulfilling an inventory shortfall and unexpected consumer demand. Ocean cargo often includes
goods such as automobiles, toys, and household appliances and items whose bulk, weight, and
steady consumer demand allow slow transportation.
A freight forwarder is an agent who arranges the transportation of goods for others. A
forwarder functions as a travel agent for cargo or a designer of logistics. Forwarding includes
booking cargo space for shippers, providing shipping documents, and sometimes arranging other
services as varied as shipment packing and cargo insurance. Many forwarding companies offer
assistance in transportation logistics, including freight consolidation, customs brokerage,
warehousing, distribution, and other value-added services. Further, they operate networks of
offices and agents for export and import. Freight forwarders are generally non-asset-based
1
providers, meaning that they do not own planes, ships, and other means of transport. When
forwarders book cargo space for customers, they have the flexibility to choose the best routes
and transit schedules.
Forwarders typically have service contracts with many air and ocean carriers to facilitate
economical shipping around the globe. To facilitate rate quoting and mode selection, exporters
should be prepared to answer a host of questions about these and related issues:
Further, when comparing different modes of transportation, these are some of the issues
to consider:
Speed
Frequency of shipments
Cost
Dependability
Capacity
Availability/accessibility
Additional/special services.
1.1 NEED AND IMPORTANCE OF STUDY
A study about the field of logistics is required to understand the terms of trade and their
operations which aides in pursuing a career in logistics as well as providing improvisations and
logical inputs to reduce the cost of freight for the clients and forwarder and increase
revenues/profits for the company.
The importance of the study stems from the fact that the expanding economy and global
business opportunities have caused companies to export and import products to develop their
business and the companies are looking out for effective use of transportation equipment and
modes to reduce shipping and logistics costs.
INDUSTRY PROFILE
Companies in this industry provide freight forwarding and customs brokerage services. Major
companies include CH Robinson, Expeditors International of Washington, UPS Supply Chain
Solutions, and UTi Worldwide. Freight forwarding and contract logistics continues to be a
growth industry, considering current economic circumstances. Even so, freight and logistics
companies will need to deal with numerous issues in the years ahead. For example, as trade
routes become more competitive and as freight rates fall, the industry’s traditional bargaining
power with its shippers—volume—will be challenged. One important strategy to counter this
challenge is to use balance sheet strength to acquire niche players in important trade routes and
geographies, especially in emerging markets.
Another key to growth and profitability will be the ability to analyze customers’ needs
and then respond quickly with differentiated and advanced logistics solutions. That will require
better IT tools to improve internal process efficiency and to generate analyses that result in
deeper understanding of customers’ industries and business processes.
As customers enter new markets, especially in emerging economies, they are
demanding much more than traditional transportation and warehousing services from their
freight forwarding and contract logistics providers. The ability to offer new, value-added
services such as warranty processing, returns management and light manufacturing is now a
differentiator, as is providing services such as customs and insurance brokerage, and trade and
transportation management. In other words, the ability to become a “one-stop-shop provider” is
emerging as a way to achieve differentiation and capitalize on cross-segment opportunities.
Demand is rising for advanced logistics capabilities and industry-focused solutions,
especially in emerging markets. The increasing number of assembly plants in these markets—
including Turkey, Mexico and Thailand—has positively affected the dynamics of the logistics
industry.
Companies are also responding to market and economic pressure by restructuring their
logistics organizations—consolidating service providers and functions, sharing logistics
facilities and centralizing management.
A controlling presence in key growth markets and the flexibility to respond swiftly and
innovatively to customers’ evolving needs distinguish the high performers in freight
forwarding and contract logistics. In the future, deep expertise in customers’ industries and in
the discipline of cost control will be more critical than ever. High performers will differentiate
themselves further by offering supply chain management as a shared service to customers. To
drive the continuous innovation of customer-facing applications, industry leaders will leverage
IT-driven process management collaboratively with those customers.
COMPANY PROFILE
C.H.ROBINSON
Founded in 1905, C.H. Robinson is one of the world's largest third party logistics (3PL)
providers, with 2014 gross revenues of $13.5 billion. They provide freight transportation and
logistics, outsource solutions, produce sourcing, and information services to over 46,000
customers through a network of offices in North America, South America, Europe, and Asia.
To meet the freight needs of customers, they provide access to over 66,000 transportation
providers worldwide, including contract motor carriers, railroads, air freight carriers, and ocean
carriers. With the service and dedication of more than 11,500 employees, performance-driven
culture and proven track record of success, they’ve built a strong reputation as an industry
leader.
While the tradition of leadership began with produce and truckload services, they've
evolved into an industry-leading 3PL with a comprehensive portfolio of sourcing,
transportation, and logistics services. The ongoing challenges of the supply chain industry
inspire the company to innovate and search for new ideas that challenge limits and extend
Beyond Brokerage. Their customers, contract carriers, and suppliers are the beneficiaries of
this forward-thinking approach, because they believe they deserve nothing but the best from
their 3PL. The company is not content to simply meet their expectations—they are committed
to exceeding them every single day.
Mission Statement: “Our people, processes, and technology improve the world's
transportation and supply chains, delivering exceptional value to our customers and suppliers.”
“Key trends continue to drive growth in third party transportation, such as increased
outsourcing, adoption of core carrier programs, increased reliance on technology, and
globalization of supply chains. To capitalize on those trends and meet our growth goals, we
will continue to:
Grow our share of the North American transportation and logistics market; Add new
third-party logistics services; Develop intra-continental branch networks on other continents;
and expand our global freight forwarding network.”
a) Freight Forwarding
Functions:
i. Researching and planning the most appropriate route for a shipment. Taking
account of the perishable or hazardous nature of the goods, cost transit time and
security.
ii. Arranging appropriate packing. Taking account of climate, climate, terrain, weight
and nature of goods and cost, delivery or warehousing of goods at 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.
v. Ensuring cost effective and secure solutions to small shippers with sufficient
cargo to utilize their own dedicated units.
vi. Liaising with third parties to move goods by road, air or sea in accordance with
customer requirements.
vii. Arranging insurance and assisting the client in the event of a claim.
viii. Arranging payment of freight and other charges or collection of payment on
behalf of the client.
ix. Transmitting data by internet and satellite systems, enabling real time tracking
and tracing of goods.
x. Arranging charters for large volumes out of gauge or project movements by air
and sea.
xi. Acting as broker in customs negotiations worldwide to guide the freight
efficiently through complex procedures
xii. Arranging courier and specialist hand carry services
xiii. Maintaining visibility and control through all phases of the journey, including
the production of management reports and statistical and unit cost analysis
xiv. Acting as consultant in customs
xv. Maintaining current knowledge of relevant legislation, political situations and
other factors that could affect the movement of freight
The main function in this department includes identifying the customers and
collecting information 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, transhipment 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 transhipment details and do the follow up
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.
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 petition
d) Network Design
Before making sensible decisions on what changes to make the network, a ‘base
case’ financial model needs to be developed. It should include the costs of all logistical
activities such as Warehouse costs, Transportation costs, Inventory costs and Order
Processing costs.
Software Selection:
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. 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.
e) Warehousing
Most warehouses are completely automated, with no workers working inside. The
pallets and product are moved with a system of automated conveyors and automated storage
and retrieval machines coordinated by programmable logic controllers and computers
running logistics automation software. These systems are often installed in refrigerated
warehouses where temperatures are kept very cold to keep the product from spoiling, and
also where land is expensive, as automated storage systems can use vertical space efficiently.
These high-bay 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 coordinated by the WMS,
or Warehouse Management System, a database driven computer program. The WMS is used
by logistics personnel to improve the efficiency of the warehouse by directing pathways and
to maintain accurate inventory by recording warehouse transactions.
i. Breakage
ii. Moisture
iii. Temperature controlled
iv. Pilferage and Theft
1. Dry Containers
2. Special Purpose Containers
a. Types / Size
b. 20 Foot Dry
c. 40 Foot Dry
d. 45 Foot Dry
3. Open top containers
4. Flat rack for over sized cargo
5. 40 foot refrigerated containers/ reefers
6. High cube containers (40 foot, 45 foot & Reefers)
BUSINESS STRATEGY
e. Mode of Transportation
C.H.ROBINSON essentially uses only 2 modes for their operation they are air and
sea. The goods being delivered to end customer is brought to port or to the place through
containers or other methods like wagons, or cold enclosures like frozen storage.
C.H.ROBINSON strategically manages the procurement, movement, and storage of
materials, parts and finished inventory through the organization and its marketing channels.
Essentially from companies’ angle, there are two categories, initially inbound logistics, i.e.,
handling goods that are brought into the company, through 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.
i. Intermodal Transportation System: This is the use of one or more than one mode
of transport to move a shipment to its destination. C.H.ROBINSON uses 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
C.H.ROBINSON with favorable order management, and ease of doing business is
attained by logistics organization like C.H.ROBINSON.
C.H.ROBINSON faces lot of ups and downs in each operation and improves
operation on each situation while dealing with each customer. C.H.ROBINSON dominant
improvement methods used are:
iii. Determining the gaps in each phase and try to fill it.
g. Economic Ordering Quantity (EOQ)
Efficient order quantities consider the Purchase Order Cost (POC), the Annual
Demand rate (AD), the Inventory Carrying Rate (ICR), and Unit Inventory Volume (UIV).
Large Order Quantities 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.
Generally during research the analysis shows, few organizations believe EOQ
analysis is 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 reducing the costs of placing purchase orders. The lower the purchase
order cost, the more 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
labor 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, e-procurement, online catalogs, online bidding and
online exchanges, is the extent to which inventory levels and lost sales costs may be reduced
in the supply chain and there to the efficiency of logistic operations. C.H.ROBINSON has a
considerable drawback in this scenario comparing to the other firms. Cost is high in this
situation for ordering costs to the firm.
Studies on Inventory, Back Order, Lost Sales, Stock Outs, Packaging and Packaging
Materials, Documentation from C.H.ROBINSON
1. Inventory
Inventory is a list for goods and materials, or those goods and materials
themselves, held available in stock by a business. Inventory are held in order to
manage and hide from the 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 if production capacity stands idle for lack
of materials.
There are three basic reasons for keeping an inventory:
a) 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"
b) Uncertainty - Inventories are maintained as buffers to meet uncertainties
in demand, supply and movements of goods.
c) Economies of scale - Ideal condition of "one unit at a time at a place
where user needs it, 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]
2. 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]
3. 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 out has caused a lost sale. The seller’s direct loss is the
loss of profit on the item that was unavailable when the customer wanted it. Thus, a
seller can determine the direct loss by calculating profit on one item and multiplying
it by the number the customer ordered.
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 an item is out of stock, the customer may never
indicate a quantity and the seller will not know the amount of the loss.
4. 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.
REVIEW OF LITERATURE
Third party logistics (3PL) is a business dynamic of growing importance all over the
world. However, it is at a very nascent stage in India, though some domestic and multinational
companies are trying to establish themselves in this sector. This paper is an attempt to provide a
3PL perspective in India. The paper focuses on three major issues – present extent of usage of
third party logistics services, reasons for outsourcing and impact of usage of third party logistics
services on business results. The paper reveals that most 3PL users are satisfied with the current
level of services provided by 3PL service providers as it has led to a positive impact on business
results. As a result, the usage of third party logistics services is likely to increase substantially
(40 percent) in the future.
With the ever increasing focus on cost reduction, product leadership and customer
intimacy, the need for Supply Chain Management practices rises across many industries. Over
the last two decades Logistics Service Providers have become important players in many chains
and industries. New challenges arise due to the emergence of technologies. Data and information
can be found anywhere, however, to make the proper decisions we need to have an insight in
how decisions should be made, and what is important for the company and what not. In order to
do so we sollicited the Key Performance Indicator (KPI) literature -focussing on the areas of
general management, supply chain management, logistics service provision and warehousing. In
our earlier work we proposed a KPI framework that we here revisit and validate in the
Warehousing domain – through the means of expert interviews.
CHAPTER - 4
RESEARCH METHODOLOGY
The need for the study was to assess the effectiveness of Logistics Management in
C.H.ROBINSON compared with other organization in the same industry. The organization also
needs relevant data as to how it can improve its management policies in order to gain future
market share.
The type of research is analytical. Data regarding the division of logistics management such as
Freight, Warehousing, Cross docking, Network Design etc. in which C.H.ROBINSON 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 C.H.ROBINSON was
evaluated. As to my study I believe I have selected the right mix of techniques for the
comprehensive approach, which can be suited well for the organization.
Primary Data: The major tool used was interview with managers and staff of the branch office,
questionnaire was developed focusing various aspect.
Secondary Data: Books of Logistics Management for literature reference, Internet Web Portals,
Websites of each firm, Company Brochures.
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 Chennai only 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.
CHAPTER - 5
The data collected through the questionnaire are analyzed to know about the respondents
opinions about various particulars asked in the questionnaire. The data collected from the
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.
Network Design; 66
FreightWarehousingCrossdockingNeWtawroerhkoDuseisnig;n89Valuse Adding
Crossdocking; 88
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.
11 10
Operational Stability
36
96 Cost Effectiveness
Customer Needs
Other
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%
have operations with other providers as per customer needs. Only 11% and 10 % were
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.
37
63
Strategic
Tactical
88
Operational
The pie chart above shows the mode of decisions regarding the operations. The pie chart shows
88% of organizations take tactical decisions followed by 63% with operational decisions and
37% 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.
4) Which is the area of the activity, that organizations feel best in their service?
Freight
97 98
Warehousing
4
87 86 Crossdocking
Network Design
Other
The pie chart above shows the best activity which organization feels in their operations. The pie
chart shows 98% of organizations have freight in 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.
Table-5i Employees
Sl. Departments In Organizations Number of Percentage
No People in Each
.
1 Top Management 452 11
2 Operations 468 11
3 Accounts / Finance 451 11
4 Marketing 517 13
5 Human Resource 371 09
6 Documentation /Others 1847 45
Table- 5ii Employees in CH Robinson
Sl. CH Robinson : Departments Number of Percentage
No. People
1 Top Management 3 14
2 Operations 4 18
3 Accounts / Finance 4 18
4 Marketing 3 14
5 Human Resource 0 0
6 Documentation /Others 8 36
The line charts above shows the comparison of employees in each functional division of
organization with C.H.ROBINSON. The line chart shows around 14 percentages of people
belong to top management and industry standards has 11 percent, followed by 18% for
operations and industry standards has 11%. Human Resource has to be enhanced and need to be
further improved or need to start in the organization. Documentation also needs to be further
strengthened. Marketing comprises of 14% working in the said area. Most of the organizations
have a mixture of top management with marketing in their activities and functional area. Human
Resource comprises of 371 people and other main area is documentation and workers in the
areas of loading, operational area. This comprises of only 36% and industry standards are of
45%.
100
80
60
CH Robinson
40 Other
20
The pie chart above shows each organizations catering location in the world. The chart shows
100% of organizations cater to Asian region followed by 6% to Europe and 89 % to USA. Each
organization has tremendous catering locations with 86% to Australia, 71% to Africa, 98% to
Russia, 98% to Middle East, and 90 % to other locations. Locations mentioned as other is
company catering frequently with repeat orders of customers. Chart 6ii shows C.H.ROBINSON
can enter African markets and other favorable market is the middle-east. This can be looked into
very seriously in future business.
7) Which division of logistical activity earns the maximum rate of profit for each
organization on a scale of 1-10 and overall profit of each organization?
16.5
16 Profit
15.5
15
14.5
14
CH Robinson Industry
Average
The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10,
where 1 denotes least profit and 10 denotes the service that fetches excellent profit. The chart
shows CH Robinson has ample amount of profit in Freight area followed by Warehousing , Cross
docking and other value adding activities with 9 , 8 and 7 each in scale. The chart 7i shows
industry average value for all the services and it is inferred that freight is giving ample amount of
profit and all other services are well above the industry standards. The chart 7ii shows profit
percentages said by each organization. We can infer that overall profit percentage for CH
Robinson is 1.82 percentage higher compared to industry average. The organization should
sustain its strategies and operations to stay above the industry mark.
CH Robinson 3 4 4 2 3
Industry Average 3.84 3.76 3.82 3.29 3.83
4.5
4
3.5
3
2.5
2
1.5
1 CH Robinson
0.5 Industry Average
0
The chart shows Ease of Service is not up to the mark, it shows only 3 for CH Robinson and
the industry standards is 3.84. So organization can increase their Ease of Service. Client
handling and Website ease are satisfactory compared with industry standards. Customer
service also has remarkable value compared with industry. Employee efficiency is not up to
the mark, it shows only 3 for CH Robinson and the industry standards are 3.83. It can be
brought up with a considerable effort by proper handling of human activities by Human
Resource Department.
9) What is the significant lead-time for each service rendered with previous years
data of each organization?
The above chart shows the service executed last year in logistics area and the significant lead-
time of each area. The chart shows 4122 numbers of freight service jobs has been executed with
average lead-time of 21 days. Similarly warehousing jobs with 224 and lead-time of 22 days.
While comparing with industry standards Freight is dominating and similarly the main lucrative
area is other (Packaging, Labeling etc.), which has 833 in number and 21 days lead-time.
Organizations lead-time is excellent except for Cross docking. Focus should be to reduce lead-
time and increase more service.
10) Average elapsed time between order receiving and delivery of the service
(Inventory).
Elapsed time
8
7
6
5
Elapsed time
4
3
2
1
0
CH Robinson Industry
Average
The above chart shows the physical verification check and average elapsed time between order
receiving and delivery of the service. The chart shows 89% of organizations have physical
verification. Average elapsed time between order receiving and delivery of service has an
average of 6.9 days. The total value of elapsed time is 613 days for 89 organizations, hence the
average days are 6.9 as explained in the figure for Industry average. CH Robinson elapsed time
is remarkable compared to industry standards.
11) Were there any shortage/ excess of stocks noted, in the last verification done?
Inventory Shortage
25
20
Inventory
15 Shortage
10
5
0
CH Robinson Industry Average
Inventory Excess
6
5
4
3
2
1 Inventory Excess
0
The above charts show the Inventory Excess and Shortage faced by organization during
verification. It is evident that shortage faced by CH Robinson is less compared to industry
standards; there is a difference of 8. Another aspect is regarding the excess of inventory; in this
scenario, CH Robinson has a satisfactory lead with comparison to industry.
Chart – 14 Complaints
Complaints
185
180
175
170
Complaints
165
160
155
150
145
140
CH Robinson Industry
Average
The above chart shows average number of complaints. The complaints for CH Robinson is 153
and whereas to industry average is around 180 in number. Hence organization should try to
maintain or further reduce the complaints arising. This can be achieved by increasing new
modern methods and facilities to customers. Organizations need to heavily focus onto the issue
to reduce number of complaints arising in operations, customer satisfaction and other similar
areas.
Rating
100 100 100 100 100
100
90
80
70
60
50
40
30 11
20 3
10 Rating
0
The above chart shows preference of complaints and how organization follow up to retain
customers. Its been noted that cent percent of organization follow up with customers for
customer complaints. Most of the preferable methods for contacting customers for new service
intimation and customer realtionship are telephone, email and other methods like marketing /
sales, customer office visit with 100 rating. The least preferred are gifts and fax with 3 and 11 in
rating.
14) Does the organization has proper system for handling customer handling, and does
customer know whom to contact when a problem arises, ascertain the level of
satisfaction, feedback by customer and is customer suggestion given preference in
the organization?
Rating
100
8
60
4
20 Rating
The above chart shows all organization in sample has propers system for handling customer
complaints. Its been revealed that 100% from sample, customers know the sytem of handling
customer complaints in the firm. Whom to contact in case of complaints is having rating of 94.
Customer feedback and customer suggestion is having rating of 88 and 83 respectively.
CHAPTER - 6
FINDINGS
ii) Pricing of service is satisfactory, which organization can further enhance with
proper management. Present employee strength is satisfactory compared to other
organization but more focus should be made to human resources and
documentation areas 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.
43
vi) The organization client handling, website management and customer
service is having remarkable difference from the industry standards. The main
focus need to be on the ease of service 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.
vii) Service offer presently has good impact with other organizations
service offers. The remarkable areas are Freight, warehousing, and Value Adding.
Company can further enhance operations of cross docking and network design
through proper methods.
xi) 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.
xii) Organization can enhance operations to African areas and another
major favorable area is the middle-east. From data, CH Robinson can get good
market share if they cater to African regions.
xv) In the sample taken only a few organizations has inventory short and
excess. Values are 119 and 29 for shortage and excess. CH Robinson had
shortage, but no excess in inventory and while comparing with industry CH
Robinson have remarkable value.
xvi) The efficient methods for retaining customers are Phone, Email, Sales
Agents and least preferred methods are Fax and Gifts.
6.1 SUGGESTIONS
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.
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 area
vii) CH Robinson can enter other markets in the Middle East especially to Saudi
Arabia where the potential of market is very high for Logistics industries and can
even diversify to other areas in logistics.
CHAPTER – 7
CONCLUSION
BIBLIOGRAPHY
Reference:
a) Logistical Management – Tata McGraw 2000 Edition.
Written by Donald. Bowersox, and David. Closs.
b) The Management of Business Logistics – 7th Edition:
Written by Edward J. Bardi, C.John Langley, and John Joseph Coyle
c) Logistics and Supply Chain Management: Creating Value - Adding
Networks Written by Martin Christopher.
Websites:
i) http://www.idsc.com.sg/images/service_logistics_img1.jpg
ii) http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
iii) http://www.chrobinson.com/
iv) http://www. shipping.net/C-H-Robinson.html
ANNEXURE
Logistics Survey
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Name:
Location:
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4 Marketing/Sales
5 Human Resources
6 Others if any
3) Which is the area of activity; you feel you are the best?
Network Design
Any Other
(specify)
Ease of Service
Client handling
Customer Service
Website Information
Employee Efficiency
7) What is significant lead time in days for each consignment and Number of
service executed last year. (Kindly mention with previous year’s data)
Freight
Warehousing
Cross docking
Network Design
Value Adding
8) What is the average elapsed time between the time of receiving order from the
customer to your firm to release the item from the ware house and the time the
item is ready for moving from the ware house with proper documentation.
Days
9) Were there any shortage / excess of stocks noted, in the last verification done?
1 Phone Call
3 Gifts
4 Email
5 Fax
12) What is the total number of customer complaints received in each division last
year?
Number
12) Do you have a proper system of handling customer complaints?
Yes / No
13) Do you have a system of contacting customers after completing all the
formalities of an order, to enquire whether they have any complaint and to
ascertain the level of satisfaction the customer enjoyed?
Yes / No
14) What is the number of customers you had business last year?
Numbers
15) Out of the above how many are there who availed your services repeatedly?
Numbers
16) How many of them avail same services from others (your competitors) as well
Numbers