CHAPTER 1

1.1- INTRODUCTION

CARGO:

In economics, cargo or freight refers to goods or produce being conveyed generally for
commercial gain by water, air or land. Cargo was originally a shipload. Cargo now covers all
types of freight, including that carried by train, van, truck, or intermodal container. The term
cargo is also used in case of goods in the cold-chain, because the perishable inventory is always
in transit towards a final end-use, even when it is held in cold storage or other similar climate-
controlled facility.

Multi-modal container units, designed as reusable carriers to facilitate unit load handling of the
goods contained, are also referred to as cargo, especially by shipping lines and logistics
operators. Similarly, aircraft ULD boxes are also documented as cargo, with associated packing
list of the items contained within. When empty containers are shipped each unit is documented as
a cargo and when goods are stored within, the contents are termed as containerized cargo.

LOGISTICS:

Logistics is generally the detailed organization and implementation of a complex operation. In a

general business sense, logistics is the management of the flow of things between the point of
origin and the point of consumption in order to meet requirements of customers or corporations.
The resources managed in logistics may include tangible goods such as materials, equipment,
and supplies, as well as food and other consumable items. The logistics of physical items usually
involves the integration of information flow, materials handling, production, packaging,
inventory, transportation, warehousing, and often security.

In military science, logistics is concerned with maintaining army supply lines while disrupting
those of the enemy, since an armed force without resources and transportation is defenseless.
Military logistics was already practiced in the ancient world and as modern military have a
significant need for logistics solutions, advanced implementations have been developed. In

1
military logistics, logistics officers manage how and when to move resources to the places they
are needed.

Logistics management is the part of supply chain management that plans, implements, and
controls the efficient, effective forward, and reverse flow and storage of goods, services, and
related information between the point of origin and the point of consumption in order to meet
customer's requirements. The complexity of logistics can be modeled, analyzed, visualized, and
optimized by dedicated simulation software. The minimization of the use of resources is a
common motivation in all logistics fields. A professional working in the field of logistics
management is called a logistician.

2
 1.2-PROFILE OF THE COMPANY

EXECUTIVE SUMMARY:

Riter Logistics specializes in total logistics requirements and services, related to your business.
As a customer, you know that competing in the Global market, takes more than just the right
product. This is where we can help you. Riter ensures delivery of your products to the Right
Place, at the Right Time and at the Right Price which makes all the difference.

BACKGROUND:

Riter Logistics provided by very well experienced operation Team. We are proud of being one of
the leading logistics service providers for all types of cargo. With unique combination of
expertise, infrastructure and dedicated personnel we ensure value added service with all the
benefits being transferred to our clients.

1.3-OBJECTIVE OF THE COMPANY

 To Emerge as India's top Logistics Company that provides World Class Quality Service at
astonishing economical rate, that adds to the pride of India
 To Our Customers; A prompt and efficient service with courtesy.
 To Our Workforce; promote a sense of participation and make them partners in progress and
also provide opportunities for personal growth and responsible corporate citizen.

3
 1.4-SERVICE OFFERED BY THE COMPANY

AIR CARGO

 Door-to-Door

SURFACE CARGO

 Door pickups and Door deliveries

 Project Deliveries

FULLTRUCK LOAD (FTL-ALLOVER INDIA)

 17feetclosedcontainers
 20feetclosedcontainers
 32feetclosedcontainers (Single & Multi axle)
 Lorry(9tons)
 Taurus(16tons)

PRODUCT HANDLING

 IT –Hardware
 Garments
 Automobiles
 Pharmaceuticals
 Electrical and Electronics

4
 1.5-TRANSPORTATION TYPES

MARINE:

Seaport terminals handle a wide range of maritime cargo.

Automobiles are handled at many ports and are usually carried on specialized roll-on/roll-off
ships.

Break bulk cargo is typically material stacked on pallets and lifted into and out of the hold of a
vessel by cranes on the dock or aboard the ship itself. The volume of break bulk cargo has
declined dramatically worldwide as containerization has grown. One way to secure break bulk
and freight in intermodal containers is by using Dunn age Bags.

Bulk cargo, such as salt, oil, tallow, and scrap metal, is usually defined as commodities that are
neither on pallets nor in containers. Bulk cargoes are not handled as individual pieces, the way
heavy-lift and project cargoes are. Alumina, grain, gypsum, logs, and wood chips, for instance,
are bulk cargoes.

5
Neo-bulk cargo comprises individual units that are counted as they are loaded and unloaded, in
contrast to bulk cargo that is not counted, but that are not containerized.

Containers are the largest and fastest growing cargo category at most ports worldwide.
Containerized cargo includes everything from auto parts, machinery and manufacturing
components to shoes and toys to frozen meat and seafood.

Project cargo and the heavy lift cargo include items like manufacturing equipment, air
conditioners, factory components, generators, wind turbines, military equipment, and almost any
other oversized or overweight cargo which is too big or too heavy to fit into a container.

AIR:

Air cargo, commonly known as air freight, is collected by firms from shippers and delivered to
customers. Aircraft were first used for carrying mail as cargo in 1911. Eventually manufacturers
started designing aircraft for other types of freight as well.

6
There are many commercial aircraft suitable for carrying cargo such as the Boeing 747 and the
bigger An-124, which was purposely built for easy conversion into a cargo aircraft. Such large
aircraft employ quick-loading containers known as unit load devices (ULDs), much like
containerized cargo ships. The ULDs are located in the front section of the aircraft.

Most nations own and utilize large numbers of military cargo aircraft such as the C-17 Globe
master III for logistical needs.

Popular commercial aircraft transformed to a cargo aircraft such as Saab 340A is designed for
high revenue and profitability in short / medium haul operations.

7
RAIL:

Trains are capable of transporting a large number of containers that come from shipping ports.
Trains are also used for the transportation of water, cement, grain, steel, wood and coal. They are
used because they can carry a large amount and generally have a direct route to the destination.
Under the right circumstances, freight transport by rail is more economic and energy efficient
than by road, especially when carried in bulk or over long distances.

The main disadvantage of rail freight is its lack of flexibility. For this reason, rail has lost much
of the freight business to road transport. Rail freight is often subject to transshipment costs, since
it must be transferred from one mode of transportation to another. Practices such as
containerization aim at minimizing these costs. When transporting point-to-point bulk loads such
as cement or grain, with specialized bulk handling facilities at the rail sidings, rail mode of
transport remains the most convenient and preferred option. Many governments are currently
trying to encourage shippers to use trains more often because of the environmental benefits.

8
ROAD:

Many firms, like Parcel force, FedEx and R+L Carriers transport all types of cargo by road.
Delivering everything from letters to houses to cargo containers, these firms offer fast,
sometimes same-day, delivery.

A good example of road cargo is food, as supermarkets require deliveries daily to replenish their
shelves with goods. Retailers and manufacturers of all kinds rely upon delivery trucks, be they
full size semi trucks or smaller delivery vans. These smaller road haulage companies constantly
strive for the best routes and prices to ship out their products. Indeed, the level of commercial
freight transported by smaller businesses is often a good barometer of healthy economic
development as it is these types of vehicles that move and transport literally anything, including
couriers transporting parcel and mail. You can see the different types and weights of vehicles
that are used to move cargo around.

9
Shipment categories:

Freight is usually organized into various shipment categories before it is transported. An item's
category is determined by the type of item being carried. For example, a kettle could fit into the
category 'household goods'. how large the shipment is, in terms of both item size and quantity.
how long the item for delivery will be in transit. Shipments are typically categorized as
household goods, express, parcel, and freight shipments:

Household goods (HHG) include furniture, art and similar items.

Very small business or personal items like envelopes are considered overnight express or express
letter shipments. These shipments are rarely over a few kilograms or pounds and almost always
travel in the carrier’s own packaging. Express shipments almost always travel some distance by
air. An envelope may go coast to coast in the United States overnight or it may take several days,
depending on the service options and prices chosen by the shipper.

Larger items like small boxes are considered parcels or ground shipments. These shipments are
rarely over 50 kg (110 lb), with no single piece of the shipment weighing more than about 70 kg
(154 lb). Parcel shipments are always boxed, sometimes in the shipper’s packaging and
sometimes in carrier-provided packaging. Service levels are again variable but most ground
shipments will move about 800 to 1,100 km (497 to 684 mi) per day. Depending on the origin of
the package, it can travel from coast to coast in the United States in about four days. Parcel
shipments rarely travel by air and typically move via road and rail. Parcels represent the majority
of business-to-consumer (B2C) shipments. Beyond HHG, express, and parcel shipments,
movements are termed freight shipments.

Less-than-truckload freight:

Less than truckload (LTL) cargo is the first category of freight shipment, which represents the
majority of freight shipments and the majority of business-to-business (B2B) shipments. LTL
shipments are also often referred to as motor freight and the carriers involved are referred to as
motor carriers.

10
LTL shipments range from 50 to 7,000 kg (110 to 15,430 lb), being less than 2.5 to 8.5 m (8 ft
2.4 in to 27 ft 10.6 in) the majority of times. The average single piece of LTL freight is 600 kg
(1,323 lb) and the size of a standard pallet. Long freight and/or large freight are subject to
extreme length and cubic capacity surcharges.

Trailers used in LTL can range from 28 to 53 ft (8.53 to 16.15 m). The standard for city
deliveries is usually 48 ft (14.63 m). In tight and residential environments the 28 ft (8.53 m)
trailer is used the most.

The shipments are usually palletized, stretch [shrink]-wrapped and packaged for a mixed-freight
environment. Unlike express or parcel, LTL shippers must provide their own packaging, as
carriers do not provide any packaging supplies or assistance. However, circumstances may
require crating or other substantial packaging.

Air freight:

Air freight shipments are very similar to LTL shipments in terms of size and packaging
requirements. However, air freight or air cargo shipments typically need to move at much faster

11
speeds than 800 km or 497 mi per hour. Air shipments may be booked directly with the carriers,
through brokers or with online marketplace services. While shipments move faster than standard
LTL, air shipments don’t always actually move by air. In the US, there are certain restrictions on
shipments moving via air freight on passenger aircraft. Shippers in the US must be approved and
be "known" in the Known Shipper Management System before their shipments can be tendered
on passenger aircraft.

In the United States, shipments larger than about 7,000 kg (15,432 lb) are typically classified as
truckload (TL) freight. This is because it is more efficient and economical for a large shipment to
have exclusive use of one larger trailer rather than share space on a smaller LTL trailer.

By the Federal Bridge Gross Weight Formula the total weight of a loaded truck (tractor and
trailer, 5-axle rig) cannot exceed 80000 lbs in the United States. In ordinary circumstances, long-
haul equipment will weigh about 15,000 kg (33,069 lb), leaving about 20,000 kg (44,092 lb) of
freight capacity. Similarly a load is limited to the space available in the trailer, normally 48 ft
(14.63 m) or 53 ft (16.15 m) long, 2.6 m (102.4 in) wide, 2.7 m (8 ft 10.3 in) high and 13 ft 6 in
or 4.11 m high over all.

While express, parcel and LTL shipments are always intermingled with other shipments on a
single piece of equipment and are typically reloaded across multiple pieces of equipment during
their transport; TL shipments usually travel as the only shipment on a trailer. In fact, TL
shipments usually deliver on exactly the same trailer as they are picked up on.

Shipping costs:

Often, an LTL shipper may realize savings by utilizing a freight broker, online marketplace or
other intermediary, instead of contracting directly with a trucking company. Brokers can shop
the marketplace and obtain lower rates than most smaller shippers can obtain directly. In the LTL
marketplace, intermediaries typically receive 50% to 80% discounts from published rates, where
a small shipper may only be offered a 5% to 30% discount by the carrier. Intermediaries are
licensed by the DOT and have requirements to provide proof of insurance.

Truckload (TL) carriers usually charge a rate per kilometre or mile. The rate varies depending on
the distance, geographic location of the delivery, items being shipped, equipment type required,

12
and service times required. TL shipments usually receive a variety of surcharges very similar to
those described for LTL shipments above. In the TL market, there are thousands more small
carriers than in the LTL market. Therefore, the use of transportation intermediaries or brokers is
extremely common.

Another cost-saving method is facilitating pickups or deliveries at the carrier’s terminals. By

doing this, shippers avoid any accessorial fees that might normally be charged for lift gate,
residential pickup/delivery, inside pickup/delivery, or notifications/appointments. Carriers or
intermediaries can provide shippers with the address and phone number for the closest shipping
terminal to the origin and/or destination.

Shipping experts optimize their service and costs by sampling rates from several carriers, brokers
and online marketplaces. When obtaining rates from different providers, shippers may find a
wide range in the pricing offered. If a shipper in the United States uses a broker, freight
forwarder or other transportation intermediary, it is common for the shipper to receive a copy of
the carrier's Federal Operating Authority.[6] Freight brokers and intermediaries are also required
by Federal Law to be licensed by the Federal Highway Administration. Experienced shippers
avoid unlicensed brokers and forwarders because if brokers are working outside the law by not
having a Federal Operating License, the shipper has no protection in the event of a problem.
Also, shippers normally ask for a copy of the broker's insurance certificate and any specific
insurance that applies to the shipment.

Overall, shipping costs have fallen over the past decades. A further drop in shipping costs in the
future might be realized through the application of improved 3D printing technologies.

13
 SOME OF OUR VALUABLE CUSTOMERS:

 Samsung
 Celebrity Fashion
 Zydus Health Care
 Butterfly
 Lupin
 Otto Clothing

CUSTOMER BENEFITS:

 A goal of Riter logistics is to provide you with efficient and cost saving solutions.
 Our unique combination of experience passion, excellence and innovation gives peace of mind to
our customers around our country.
 Riter logistics customize solutions extend across your entire supply chain.
 Our customers known their cargo is handled with care and delivered on time through our global
network of talented and caring professionals.
 Has one of the top international freight forwarding and management companies in the world.
 We have developed a turnkey proven formula for success across all aspects of transportation and
logistics.

Riter logistics provide the following benefits:

 Logistics plants and site surveys.

 Air Sea Rail and ground transportation.
 State of the art warehousing export packing and staging facilities.
 Full service licensed customs brokerage staff.
 No contracts to sign no commitments no intern fees.
 Excellent service and market competitive rates.
 Single point of contact with spot or contract pricing.

14
ADVANTAGES OF LOGISTICS IN TRANSPORTATION:

 As a business owner, you may be well aware of the economic value of outsourcing your
company’s supply chain management to a third party logistics provider. However, if you
have yet to consider a 3PL provider for one reason or another, now may be the time to
reevaluate. Value-added 3PL services offer an array of advantages that many companies
are becoming privy to resulting in strong and continued growth in the third party logistics
sector. Still unsure? Check out these 10 Benefits to Outsourcing your Company’s
Logistical Services:
 Time Saving – Outsourcing cannot only save you money in the long run but it will also
save you something of equal value – you’re time. Relieving yourself and your employees
of the burden of daily logistical tasks allows for you to spend more time on growing your
business.
 Cost Efficiency – Don’t saddle your business with the cost and hassle of establishing
your logistical needs when a 3PL services will provide you with warehouse space,
technology, and transportation for you.
 Accountability – Putting an aspect of your company into someone else’s hands isn’t easy.
A good 3PL service provider will take responsibility for your business and be held
accountable to your standards.
 Innovation – Much like you are an expert if your scope of business, 3PL providers are an
expert in theirs. A provider has the ability to work with you and apply their knowledge to
enhance and improve your bottom line in an innovative way.
 Expertise – Most 3PL providers are passionate about what they do. As a result, they will
integrate their level of expertise with your business practices to ensure the best customer
service experience possible.
 Adjustable – As a 3PL provider owns the warehouse space and transportation, they also
have the ability to increase all your logistical needs as your business grows. Also if your
company offers a seasonal product or sales are cyclical, a good 3PL provider will adjust
your needs accordingly.

15
  Optimization – Having the necessary resources that you may not have access to on your
own, helps ensure that your logistical needs are met in the most effective manner.

Technology – 3PL companies have the ability to make significant investments in their
technology and software that would be unfathomable for a smaller business.

Network– 3PL providers have a vast network of resources and established relationships with
providers that can offer the most cost-efficient service possible.

Reduce Risks – Outsourcing your company’s logistical needs not only reduces labor risks on
your end but it also reduces your financial risk of an investment in property, equipment, and
transportation in the even your company or business downsizes.

Outsourcing your business’s logistical services to another company is a big step. It not only
suggests that your company is growing, but will continue to do so. It’s important to consider the
benefits of investing in a value-added 3PL service provider as they can assist you with achieving
a significant return over time. If you have any questions regarding the possibility of outsourcing
your company’s logistical needs or you are looking to request a 3PL quote, please contact us at
M&W Logistics Group. We are happy to help tailor our solutions to meet your individual needs.

DISADVANTAGE:

Irregularities on the part of Third-party company may lead to problems.

Once a courier company hires a 3PL company for its logistics distribution, it allows some of the
control of the entire shipping process to slip away. When there is complete lack of control over a
particular process, there is always a chance that a problem may crop up. And if it does, it may
cause harm to the reputation of the company.

Communication problems

Two completely different companies are working towards achieving the same goal, and in a
scenario such as this, communication is of very high importance. But, since the message must
travel from one company to another, complications may arise, which in turn could lead to

16
misinterpretation of facts or complete miscommunication. When this happens, most often than
not, the delivery becomes a failure.

Therefore, it is vital for a company to be responsible while hiring a third party logistics company.
All the advantages and the disadvantages have to be put through extensive scrutiny.

17
 CHAPTER – 2

Policy of the company

 The vision of the proposed policy is to drive economic growth and business
competitiveness of the country.
 Logistic companies plan, implement, control the movement and storage of goods ,
services are information within a supply chain and between the point
of origin and consumption.
 The interactive relationship between logistics industry policy and regional economy is
found by adjusting parameters of the model and get hold of the policy measures which is
suitable for the development of the logistics system.
 Thus, we simulate the model changing technical input efficiency, increasing
investment in fixed assets, adjusting industrial structure and
 comprehensive policy.

Policy Ⅰ: Change the technology investment efficiency Essentially, the technology policy is to
improve the rational allocation of resource elements by changing the investment conversion rate.
With economic development, the international competitiveness of industry is stepping into
innovation-driven stage after experiencing a factor-driven and capital-driven stage. The
reasonable input of new technologies and new programs enhance the investment transformation
effect. we will change the investment conversion from 30 to 50 to analyze other variables of the
system.

Policy Ⅱ: Increase the investment in fixed assets Increasing investment in fixed assets refers to
perfect the logistics infrastructure construction so as to provide a good development environment
for the logistics industry. This paper designs the proportion of fixed assets investment to increase
by 2% to analyse other variables of the system.

18
Policy Ⅲ: Adjusting industrial structure the industrial structure policy means the priority
selection of the industry development. It is made by government through affecting industrial
structure transformation to achieve the optimization of the industrial structure and accelerate
economic growth. According to the historical data analysis, the industrial structure of Beijing is
constantly changing. The proportion of primary industry has declined year by year. In contrary,
the proportion of tertiary industry has increased. Therefore, this paper makes the proportion of
the first, second and tertiary industry 1%, 24% and 75% respectively.

Policy Ⅳ: Comprehensive policy This policy combines changing technical input efficiency
policy, increasing investment in fixed assets policy, adjusting industrial structure policy. The
investment conversion rate and the industry structure are adjusted according to the Policy Ⅰ and
Policy Ⅲ. The proportion of fixed assets investment is increased by 0.5%. -584.

Retire logistics, we are committed to delivering high quality and effective services that
contribute to a better future for diversified needs and demands of our customers and society. This
commitment is driven by our corporate mission to become the world’s preferred supply chain
logistics company, and by our values and behaviors under management initiatives.

Health & Safety

We ensure a safe and supportive work environment with a focus on compliance regardless of
location, office, or facility.

Standardize Process
We commit to develop processes for our customers and business that deliver a level of service
customers can trust, no matter where in the world they do business.

Activities
We consistently work to find better ways of delivering our services and improving our quality to
our customers through Activities at every level of our business.

19
 CHAPTER 3

3.1-ORGANIZATIONAL STRUCTURE

DEPARTEMENTS

 HR

 Shipping

 Warehousing

 Material Handling

 Packaging

 Disposal

3.2-FUNCTIONS OF DEPARTEMENTS

 HR

 In simplest terms HUMAN RESOURCE departement is a group who is responsible for

managing employee, recruiting, training and firing.

 All these activities taken over by a higher level of the management.

 SHIPPING

 location or factory to the consumer.

 Key points in logistics are transportation, delivery and truck freight.

 Everybody in the world benefits from shipping.

20
 WAREHOUSE
 Inventory control: by having warehouse it is much easier for business to manage a large
amount of inventory.
 Adding value: it is just one part of an efficient logistics system, all goods are kept together in
one place.
 Keeping goods safe: it is a place where the goods are been kept safe and security measures
are taken.
 MATERIAL HANDLING
 It is the function of moving the right materials to the right place in the right time, in the
right amount, in sequence, and in the right condition to minimize production cost.

 Packaging

 Packaging is to keep the product safe and secure from the outside environment, packaging
needs to keep the product away from the external environment.

 Disposal

 Disposal logistics include the collection of all types of waste and the subsequent sorting,
packaging, storage and transport. 
 It can also help to reuse or recycle resources.

21
 3.3 ORGANIZATION CHART

3.4 KEY PERSONNEL

 Key personnel refers to the individuals who are specifically and uniquely important to the
study.

 ey personnel had a authority and responsibility for planning directing and controlling the
activities of the buisness.

 When you think of key personnel you must likely picture a company’s CEO, Wise president.

22
 The person who guided me was HR (Mr. Chandrasekar), he is the one who helped me to
learn more about the work. He is very kind and gentle in nature and he explained me everything
how it works in the organization.

KEY POSITION IN A COMPANY

 Operation manager

 Safety manager

 Environmental manager

 Accountant

 Receptionist

 Purchase manager

These are the top six positions in the company which every company should maintain the right
persons at the right position to build a good organization.

23
 CHAPTER – 4

WORK EXPERIENCE

The experience was a new life style. The internship gave a new life style to me. It made me to
wake up very early in the morning with alarm clock at 5.30 A.M to get ready for work. I had to
sit for 9 to 10 good hours in a day typing and preparing either reports or doing an online research
about a particular task. The hours on the new living situation clearly made socializing more
difficult than before. This challenge later become normal and part of my daily life activities as
the days moved on.

I also encountered financial difficulties including food and transportation. Financial challenges
can happen to everyone at some point and the stress and worry can get to anyone. However
realizing that there is an important task I get to complete kept me going. It is not easy to
overcome it.

The major problem for me was I had no prior working experience for the beginning I found
myself waiting but has time went on. I gained practical experience on the job then the work
become less difficult.

All these challenges have helped me to gain valuable experience and real life exposure. It has
allowed me to harness the skill knowledge and theoretical practice taught in the university.

24
 CHAPTER – 5

5.1 Position I worked – SUPERVISOR

Logistics Supervisors must attend many tasks to ensure that goods are shipped and delivered in a
timely manner and that inventory levels are sufficiently maintained.

Schedule Shipments and Deliveries

A main responsibility of a Logistics Supervisor is to oversee the transportation of products from

one location to another, such as from loading docks to warehouses or warehouses to stores. They
will arrange product pickups and deliveries with transportation companies and route drivers
accordingly. A Logistics Supervisor will typically conduct a cost analysis of several
transportation companies in order to select one that is cost-efficient and able to handle the
shipment loads.

Build Relationships with Vendors

It is up to the Logistics Supervisor to communicate with trucking companies, warehouse

supervisors, customs brokers, sales forces and customers. They must ensure that all parties are
working together to guarantee that shipments are packed, sent and delivered in a timely manner.
This responsibility includes contacting various transportation companies to get shipping quotes
and deciding on the best carriers based on cost, availability and reliability.

Maintain Warehouse Inventory

25
A Logistics Supervisor will study client or customer needs and manage inventory based on these
needs. This often includes analyzing product orders to research the need for keeping certain
items in stock. They are responsible for re-ordering product as needed to maintain sufficient
inventory levels.

5.2 JOB DESCRIPTION :

A Logistics Supervisor essentially oversees the shipping and delivery of materials and warehouse
personnel. They mainly work in warehouse settings and for retailers and wholesalers and are
involved in managing the loading of trucks, setting up delivery routes and unloading of material.
Logistic Supervisors also manage inventory and maintain communications with carriers,
suppliers, warehouses, custom brokers and others involved in the shipping and delivery of
merchandise. Logistics Supervisors can also work for federal, state or local government
organizations.

5.3 LAYOUT:

As every logistics company, we also had an warehouse for storing goods, trucks and lorry to
import and export of goods from one place to one.

Tally , Excel software used for financial uses and to store data of the organization

26
 CHAPTER – 6

6.1 WHAT I LEARNT AND HOW IT WILL BE HELPFUL IN FUTURE:

As a management student I learnt the process of planning, effective product distribution and
discuss method of transportation. As a supervisor I learnt

 How to handle the employees and customers,

 How to handle the hard situation in work place and
 Learnt to manage the shipment and deliveries of goods on time.

The experience I had from the internship will help in many ways in my future like handling

 Time management,
 Pressure &
 People

6.2 PROBLEM FACED:

The major problem for me was I had no prior working experience for the beginning I found
myself waiting but has time went on. I gained practical experience on the job then the work
become less difficult.

The hours on the new living situation clearly made socializing more difficult than before. This
challenge later become normal and part of my daily life activities as the days moved on.

I also encountered financial difficulties including food and transportation. Financial challenges
can happen to everyone at some point and the stress and worry can get to anyone. However

27
realizing that there is an important task I get to complete kept me going. It is not easy to
overcome it.

6.3 Guidelines which are lacking / missing in the management:

 Communication: there was no proper communication between the employees and the
senior management.

 Delivery: due to lack of communication delivery of the goods got delayed.

 Employee: they don’t have sufficient employees to work. It would be better if they increase
the number of employees.

WHAT CAN BE DONE:

Upto my knowledge I have done the given work properly, but I could have learnt more from the
higher level people.

HOW COULD I HAVE ENHANCED MY EXPERIENCE:

I wish I could have concentrated more into the job to get better experience.

Apart from working time I could have spent more with co-employees and asked more questions
related to the work I have done.

28
 CHAPTER – 7

7.1 RECOMMENDATION

Manufacturing leaders must always strive to be something better for their customers. They
understand that behaving purposefully allows their entire business to compete productively and
efficiently and the way they do that is through logistics management.

The Council of Supply Chain Management defines logistics management as:

“that part of supply chain management that plans, implements and controls the efficient,
effective forward and reverse flow and storage of goods, services and related information
between the point of origin and the point of consumption in order to meet customers’
requirements.”

While every business has different needs (and therefore different logistics strategies), certain
strategies work across the board. To help business leaders with the daunting task of maintaining
sustainable business processes, we’ve compiled a list of four basic logistics management tips.

1. Facilitate dialogue between employees.

The character of a business is represented by the behaviors of its employees. Which, in turn, is
representative of a business and its objectives by committing to strengthening employee
relationships, manufacturing managers are committing to strengthening their entire business.

Creating a culture of success starts with a conversation. Manufacturing managers should talk to
the people they hired to learn more about their experiences. Here are some tips to keep in mind:

Take advantage of little moments. It’s best that managers get out of their office and interact with
as many people as they can every day. Something as simple as asking someone about their day
can get them to open up about logistics issues.

Listen to what’s already being said. Just like how businesses shouldn’t assume what their
customers are thinking, management should take the time to listen to what their employees are
saying.

29
Be transparent about decisions. If an employee comes forward with a suggestion that’s unlikely
to be implemented, it’s important that their manager handles it respectfully. Managers should not
only explain why it won’t work, but collaborate to recommend another solution.

When you talk to employees, they’ll start talking to each other, too. It’s not only a function of
human nature, but a strengthening tool that allows businesses to compete efficiently.

2. Maintain an efficient inventory.

Inventories can make or break businesses. Manufacturing leaders must have the ability to
manage their inventory in order to manage their operations and, arguably more importantly, the
relationships they share with customers.

What it comes down to is staying organized. To do that, managers must rethink their inventory
practices. Who is managing the inventory? Is quality control a priority? Can the current system
support future growth?

Prioritizing inventory management allows businesses to efficiently eliminate waste. When

businesses are able to show they can manage their customers needs by maintaining an accurate
depiction of their inventory, they’ll be able to increase their business profitability.

3. Keep customers informed:

Smooth logistics management results in great customer service which leads consumers to spend
money. In fact, 70 percent of customers are willing to spend more money with companies they
believe provide excellent customer service.

Customers are a business’s most important asset. Not only do they hold purchasing power, but
their opinions have the power to influence other consumers. Therefore, it’s vital to keep them “in
the know.” In other words, it’s necessary to be honest with them.

That means businesses have to be wholly transparent throughout the logistics of the purchasing
process. When customers are informed, they’ll be happy. Sending informative emails, viable

30
 tracking numbers and other updates can ensure they aren’t in the dark. In turn, they’ll offer their
support.

4. Learn from the competition:

Inspiration can be found anywhere — even in the competition. That’s why businesses should
take note of their competitors’ experiences as a source of free knowledge. Some things managers
can look out for:

 New methods of logistics management

 Efficient staff training programs
 Modern software systems

By learning what practices work well for their competitors, logistics managers will be able to
stay up to date with industry updates.

CARGO INSURANCE RECOMMENDATIONS:

Cargo insurance is physical loss or damage insurance of goods carried by vessel, road, rail,
aircraft, post, or by any other conveyance. This insurance protects those who have an
insurable/financial interest in the cargo (buyer or seller and intermediaries, if so structured).
Shipping insurance coverage ranges from all Risks to Named Perils, with common extensions as
well as customized wordings.

31
Cargo insurance is physical loss or damage insurance of goods carried by vessel, road, rail,
aircraft, post, or by any other conveyance. This insurance protects those who have an
insurable/financial interest in the cargo (buyer or seller and intermediaries, if so structured).
Shipping insurance coverage ranges from All Risks to Named Perils, with common extensions as
well as customized wordings.

The decision of whether or not to ensure your cargo is not always a clear-cut, simple choice.
There are many factors to consider, such as the total value of the cargo, the shipping origin and
destination, the mode and cost of transportation, or if any agreement or request was made
between the buyer and seller of the cargo. The next step is to determine how to insure your
cargo.

One option is to ensure your shipment for the replacement of the goods shipped in case of total
or partial loss or damage, request insurance for the commercial invoice value of the goods. This
does not provide any coverage for the freight charges, insurance cost, or any other ancillary
charges.

PNG Worldwide recommends and offers all of our insurance quotes as CIF + 10% cargo
insurance. This type of insurance covers your shipping costs too in the case of damage or loss
where the repair or replacement must be done somewhere other than the consignee’s location.

32
Recoverable freight charges may be prorated based on the portion of the shipment damaged in
the case of partial loss/damage.

CIF + 10% Terms = (Commercial invoice value + insurance costs + freight= CIF value x 110%
(10% for any unforeseen costs or charges)

Breakdown as below:

C = Cost/invoice value (purchase cost if your client is the buyer, or selling price if they are the
seller)

I = Insurance premium

F = Freight and associated charges

PLUS an additional 10% to cover additional charges incurred due to fluctuations in currency or
additional freight cost.

This type of insurance covers not only your cargo, but also your shipping costs in the case of
damage or loss where the repair or replacement must be done somewhere other than the
consignee’s location. Recoverable freight charges may be prorated based on the portion of the
shipment damaged in the case of partial loss/damage.

Below is a sample shipment for CIF + 10% cargo insurance:

Commercial Invoice value = $20,000.00

Freight Charges = $2,000.00

Insurance Cost = $120.00

Total CIF+10% insured Value = $22,000.00 x 110%=$24,200 + $120 = $24,320.00 (Amount to

Insure)

The value of the shipment declared for insurance should accurately reflect the full value of the
shipment at the intended final destination, including the costs incurred to get the goods to the
final destination. If a loss occurs and the amount declared is found to be less than the true value,

33
the claim settlement may be pro-rated to a lesser amount. In these situations, it is if the insured is
acting as a co-insurer of the shipment and sharing in the loss.

WHAT TO DO IF LOSS OR DAMAGE IS DISCOVERED

First step, advise PNG Worldwide who will assist with managing the claims process. Follow the
instructions outlined on your Certificate of Insurance. Report the loss to the carrier in writing
advising them that you intend to submit a claim for the loss. Contact the surveyor at the
destination (usually shown on the Certificate of Insurance), who will attend and establish the
cause and extent of the loss.

Proper notation on shipping documents and notification to the appropriate parties is essential to
ensure the ability to process a claim. Like all insurances, payment of the premium and freight
charges is required in order for coverage to be confirmed and a claim to be filed and ultimately
settled.

34
 7.2 CONCLUSION:

After working for the time span of 45 days of my internship project of Master of Business
Administration.

I came to know the working of the Cargo company. And got the exposure of the international
market and knowledge about the different countries.

In economics, cargo or freight refers to goods produce being conveyed generally for commercial
gain by water, air or land. Cargo was originally a shipload. Cargo now covers all types of freight,
including that carried by train, van, truck, or intermodal container. The term cargo is also used in
case of goods in the cold-chain, because the perishable inventory is always in transit towards a
final end-use, even when it is held in cold storage or other similar climate-controlled facility.

According to me and my conclusion the Cargo Company is the fruitful place for the students of
Master of Business Administration.

35
REFERENCE

R.K. INDUSTRIES

K.CHANDRASEKARAN

NO:23, Singaram street

Old vandipalayam

Cuddalore District

Pin Code-607004

Ph No: 8438124891

Email: rkindustries2014@yahoo.com

36