EFFECTIVENESS

OF

LOGISTICS MANAGEMENT

1
INTRODUCTION

Origin and Definition of Logistics:

The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,
calculation, reason, speech, oration"). Logistics is considered to have originated in the
military's need to supply themselves with arms, ammunition and rations as they moved from
their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were
military officers with the title ‘Logistics’ who were responsible for financial and distribution
of supplies. The Oxford English dictionary defines logistics as: “The branch of military
science having to do with procuring, maintaining and transporting material, personnel and
facilities.”Another dictionary definition is: "The time related positioning of resources." As
such, logistics is commonly seen as a branch of engineering which creates "people systems"
rather than "machine systems".

a. Introduction to Logistics Management

Logistics management is that part of the supply chain which plans, implements and controls
the efficient, effective forward and reverse flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet
customers' requirements. Logistics as a business concept evolved only in the 1950s. This can
be defined as having the right item in the right quantity at the right time at the right place for
the right price and it is the science of process having its presence in all sectors of the industry.
The goal of logistics work is to manage the fruition of project life cycles, supply chains and
resultant efficiencies.

b. Prospects of Growth in the Industry

In years gone by, the traditional warehousing and logistics facility was located by railroad
tracks, a water port, and/or freeways, usually in the least desirable parts of cities or large
towns. This stereotype then faded as gigantic, state-of-the-art facilities began to sprout in
more rural areas on the outskirts of transportation and population hubs. The World started

2
beginning to see such facilities showing up in even less "traditional" areas. Modern
warehouses now are being located in carefully manicured industrial parks that are sprouting
as fast as the corn and wheat once did in these open spaces-often in out-of-the-way places.
Why the emphasis on such locations for logistics companies? Much of it is due to the great
flux that the logistics industry has been undergoing in the first three years of the 21st century.
Most of these changes are being driven by a growing trend in the manufacturing and retail
sectors to form partnerships with companies to which they can outsource non-core logistics
competencies-3PL providers. In turn, 3PL providers are continually looking to provide
innovative supply chain solutions to customers by focusing on value-added capabilities,
differentiating themselves from the competition. This need to partner with customers and
become more integrated into their supply chain processes has created the ancillary need to
locate close to these customers. That isn't to say the need for easy access to transportation
hubs and different modes of transportation won't continue to be important. But the above shift
in business strategy, along with the advances in technology and enhanced communication,
has opened the door for logistics facilities to operate effortlessly in a myriad of locations.
Profit warnings, share price pressures, mergers, reorganizations, relocations, disposals,
painful layoffs and great geopolitical uncertainties can sweep away even the most
comprehensive logistics strategies – and that’s despite outstanding management over many
years. These are exceptionally difficult times and it has never been more important to connect
logistics and freight planning to executive board thinking than now. It’s easy to lose sight of
the bigger picture in the rush to cut infrastructure cost and conserve cash. Hopefully
organization succeed in protecting the business, satisfying shareholders and analysts, but
what about capacity and flexibility, morale and momentum ? To be a logistics winner in the
coming years organizations need to use the downturn to reshape for growth, propelled by an
unshakeable conviction that the mission is still important, that more prosperous times lie
ahead, and that in some way the company infrastructure is helping to build a better kind of
world. Logistics is inevitable in the future and essentially the management policy also has a
significant role in the future of world. Generally the study is being featured with all aspects of
management in Logistics and Freight areas. (Logistics include Transportation, Warehousing,
Network Design, Crossdocking, and Value Adding)

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INDIAN LOGISTICS INDUSTRY

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 country’s 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.
Country LPI Score
USA 3.85
UK 3.84
Singapore 4.19
India 3.07
China 3.64
Mexico 2.64

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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.

India’s 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.

Country Logistics Cost/GDP

India 13%
U.S. 9.9%
Extensive Europe 10% fragmentation
meant the Japan 11.4% 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.

5
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 have
the opportunity to leverage economies of scale, complemented with better infrastructure, to
provide integrated logistics solutions which are cost effective.

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 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.

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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.

7
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.

8
COMPANY PROFILE

When it comes to supply chain management, the answer is:

“Leadership, Innovation and Quality Solutions”
What Shree Logistics does:
 Freight Movement
 Cargo/ Freight Management Solutions
 Full Truckload & Solution Providers
 Contract Packaging & Other Service

Vision and Mission

Shree Logistics: Best People. Best Processes. Best Value.

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

b. Mission
To set the standard for excellence in global logistics through total commitment to quality in
people and customer service, with superior financial results. To solve reliable transportation
and logistics services to the needs of the business community. Reliable services means on-

9
time delivery, undamaged goods, and correct documentation in case of deviations. To
perform continuous business improvement in order to meet and exceed customer expectation,
To create sustainable business growth in order to enhance the prosperity of employee and
benefit shareholders. Decisions can impact the success of the company as much as the
performance of the supply chain. No matter what industry or region of the world other
organization do business in, the supply chain is an integral part to the success as same as the
products, the services, and the people. In 2002, Shree Logistics , was formed to build on the
global distribution experience to help other companies lower distribution costs while
improving customer service and brand loyalty. Shree Logistics is a technology-based
company providing customized solutions that transform distribution to a source of
competitive advantage. Main motive is to provide integrated solutions from managing
transportation, inventory, and distribution centres to sophisticated forecasting, information
management, and network consulting services. Today, Shree Logistics serves more than 20
client companies, nationally, in an array of different market sectors. 12 The organization
mission is to provide best value, integrated freight and logistics solutions to clients in time-
sensitive, service-critical businesses. Organization tries to leverage and continuously improve
the capabilities. Our clients trust us and depend on our Best People and Best Processes to
help them succeed.

SHREE Logistics Service

Today, Shree Logistics employ many professionals in their branch offices and in fields
(Ports), dedicated to helping freight, transportation, clearing, forwarding and logistics needs.
Young, energetic, professional, and passionate: their humble beginnings , satisfying customer
needs has been the driving force behind every Shree Logistics employee. Shree Logistics
provide these services around nationally. Shree Logistics, focus on main areas they are:
a. Customer service to a higher level.
b. Partnering to seeking the right answers.
c. Finding solutions that optimize cost and service.
d. And always asking, how can we serve you better?
e. Analyzing every opportunity, every challenge to provide a custom solution that works best
for customer.

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Organization Functions:

a. Freight Forwarding
Departments typically arrange cargo movements to an international destination. This
department has the expertise that allows them to prepare and process the documentation and
perform related activities pertaining to international shipments. A freight forwarder organizes
the safe efficient movement of goods on behalf of an exporter, importer or another company
or person, sometimes including dealing with packing and storage. Taking into account the
type of goods and the customer’s delivery requirements, freight forwarder array, the best
means of transport, using the services of shipping lines, airlines or road and rail freight
(Indian Markets) operators.
Functions:
i. Researching and planning the most appropriate route for a 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, 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. Ensuring cost effective and secure
solutions to small shippers with sufficient cargo to utilize their own dedicated units. Liaising
with third parties to move goods by road, air or sea in accordance with customer
requirements. Arranging insurance and assisting the client in the event of a claim. Arranging
payment of freight and other charges or collection of payment on behalf of the client.
Transmitting data by internet and satellite systems, enabling real time tracking and tracing of
goods. Arranging charters for large volumes out of gauge or project movements by air and
sea.
Acting as broker in customs negotiations worldwide to guide the freight efficiently through
complex procedures Arranging courier and specialist hand carry services Maintaining
visibility and control through all phases of the journey, including the production of
management reports and statistical and unit cost analysis Acting as consultant in customs
Maintaining current knowledge of relevant legislation, political situations and other factors
that could affect the movement of freight At more senior level, the role may also involve

11
managing staff and overseeing activities within a department or specializing in a particular
area, such as sea freight or air freight.

b. Logistics Field: Bulk Operations

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

c. Clearing and Forwarding (C & F)

The main function of C&F department is to undertake the customs formalities on behalf of
the exporters or importers. The documentation process and clearing activities are done by this
department.
Functions
i. Preparation of various kinds of bill of entry and shipping bill.
ii. Arrival and clearance of vessels.

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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 petitions.

d. Cross docking – Containerization

Cross docking is a practice of logistics of unloading materials from an incoming semi trailer
truck and loading these materials to outbound trailers or rail cars, with little or no storage in
between. This may be done to change type of conveyance, or to sort materials intended for
different destinations or to combine material from different origin.
An increasing popular method of shipment is containerization. A container is a large box
made of durable material such as steel, aluminium, plywood and reinforced plastics. A
container varies in size material and construction. Its dimension is typically 8 foot high and 8
foot wide lengths usually varying. A container can accommodate most cargo but is most
suitable to packages of standard size and shape. Containers can take case of most of 4 main
packing problems. Because of container construction, a product does not have to have heavy
packaging, it gives protection against:
i. Breakage
ii. Moisture
iii. Temperature controlled
iv. Pilferage and Theft
There are mainly 2 types of containers
v. Dry Containers
vi. Special Purpose Containers
 Types / Size
 20 Foot Dry
 40 Foot Dry
 45 Foot Dry

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vii. Open top containers
viii. Flat rack for over sized cargo
ix. 40 foot refrigerated containers/ reefers
x. High cube containers (40 foot, 45 foot & Reefers)

Organization Structure
Organization is headed by Organization Head, and all other employees report to him. Firm
comprises of 12 employees for internal works and other team for activities including freight
forwarding, logistics, clearing and forwarding. Organization acts as a 3PL for other firms on
behalf of carry/ forward, logistics. Warehouse activities are being outsourced based on the
demand situations, as goods are being stocked in different warehouses, and is based on the
customer requirements.

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Objective of the Study:
“ To understand the effectiveness of logistics management at Shree Logistics and to
know about Logistics Industries.”

Research Problem:
The need for the study was to assess the effectiveness of Logistics Management in the
Shree Logistics, 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.

Research Methodology:
The type of research is analytical. Data regarding the division of logistics management
such as Freight, Cross docking, Network Design etc. in which Shree Logistics are at present
in business were collected from other similar firms in the industry. The indicators selected are
ease of service, client handling, customer service, 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 Shree Logistics 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.

Sample Selection:

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 Convenience sampling (non probability method) is used for study the operations of
Shree Logistics are mainly concentrated at large scale JNPT and BPT and having its branch
office in Vashi, Navi Mumbai. There are innumerous logistics firms in Mumbai region which
have similar operations as that of Shree logistics .

Method of Data Collection:

 Primary Data: The major tool used was interview with managers and staff of the
branch office, questionnaire was developed focusing various aspect.
 Secondary Data: Books of Logistics Management for literature reference, Internet
Web Portals, Websites of each firm, Company Brochures.

Statistical Tools:
 Percentage Analysis
 Bar Diagrams
 Pie Charts

Data Analysis and Interpretation

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.

a) Which are the logistics services organizations offers?

Table - Service Offer

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Sr. No. Service Percentage

1 Freight 100
2 Warehousing 89
3 Crossdocking 88
4 Network Design 66
5 Value Adding 98

Chart- Service Offer

100%

90%

80%

70%

60%
NO
50%
YES
40%

30%

20%

10%

0%

The bar 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
Crossdocking. Only 66% were providing service of Network Design. Other service includes
value adding, which represents 98% of the sample. It includes packaging, labeling etc.

b) What is the area of activity that organizations feel is the best in their service?

Table- Best Activity

Sr. No. Service Percentage

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 1 Frieght 98
2 Warehousing 86
3 Crossdocking 87
4 Network Design 80
5 Value Adding 97

Chart -Best Activity

Efficiency level in service

100
90 The
80
70
bar
60
50 Efficiency level in service
40
30
20
10
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chart above shows the best activity which organization feels in their operations. The bar chart
shows 98% of organizations have freight in the predominant area, followed by 86% of
warehousing. Another significant area is Crossdocking with 87% as best activity. There is
only a minor activity based on network design with 80%. 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.

c) Number of employees in each type of the service rendered of the organizations

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 Table-1 Employees

Sr.No Departments In Organizations No. Of People In Percentage

.
1 Top Management 9
2 Operations 13
3 Accounts / Finance 11
4 Marketing 13
5 Human Resource 9
6 Documentaion/Others 45

Table-2 Employees in Shree Logistics

Sr.No Departments In Organization No. Of People In Percentage

.
1 Top Management 10
2 Operations 20
3 Accounts / Finance 14
4 Marketing 16
5 Human Resource 2
6 Documentaion/Others 38

Chart-Employees

45
40
35
30
25
20
15 Other Orgs
10 Shree Logistics
5
0
t s s g
gm on unt tin HR aio
n
M ati o ke t
p er Ac
c ar en
To Op M cum
do

The charts above shows the comparison of employees in each functional division of

19
organization with Shree Logistics. The chart shows around 10 percentages of people belong
to top management and industry standards has 9 percent, followed by 20% for operations and
industry standards has 13%. 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 16% working in the area. Most of the organizations
have a mixture of top management with marketing in their activities and functional area.
Human Resource comprises of 9% and other main area is documentation and workers in the
areas of loading. This comprises of only 38% and industry standards are of 45%.

d) 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?

Table -Maximum Rate of Profit (Shree Logistics Compared with Industry Average)
Profit Scale 1- Freight Warehousing Crossdockin Network Other
10 g Design
Shree Logistics 9 0 5 0 6
Profit Scale
Industry Profit 8 6 5 5 6
Average

Chart- Maximum Rate of Profit

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 10

4 Shree Logistics profit scale

Industry Profit average
3

0
t g g ng
igh in in ign di
Fr
e ous ock des d
eh sd r k ea
ar os wo alu
W Cr t V
Ne

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 Shree Logistics has ample amount of profit in Freight area followed by Crossdocking
and other value adding activities with 9 and 6 in scale. The chart 7i shows industry average
value is 8 for freight followed by 6 for warehousing. It is inferred that freight is giving ample
amount of profit and Cross-Docking, Other including labeling and packaging has industry
standards. The organization should implement more strategies to reach industry mark.

e) Comparison of service offered by Shree Logistics and rating of other organization in the
industry on a scale of 0-5.

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 Table- Service Comparison (Scale 0-5)

Ease of Client Customer Website Employee

Service Handling Service Efficiency
Shree Logistics 4.5 4 4.6 0 4
Industry Average 4 4.2 4.3 3.3 3.8

Chart-Service Comparison

5
4.5
4
3.5
3
2.5
2
1.5 Shree logistics
Industry average
1
0.5
0
ice in
g ice ite nc
y
rv dl rv bs cie
se n se e
of
t ha er w effi
se ien to
m ee
Ea Cl s oy
Cu pl
Em

The chart shows Ease of Service is up to the mark, it shows 4.5 for Shree Logistics and
the industry standards is 4. Client handling is slightly low compared with industry standards.
Customer service also has remarkable value compared with industry. Major area to look into
is Website, Shree logistics have to start their own website and should try to give excellent
service on website. Employee Efficiency is satisfactory compared with industry standards.

f) What is the significant lead-time for each service rendered with previous years data of
each organization?

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 Table – Lead Time in Days

Lead Time in Freight Warehousing Crossdocking Network Other

Days(LT) Design
Shree 21 0 25 0 21
Logistics
Industry 23 22 30 12 24
Average

Chart – Lead Time in Days

30

25

20

15 Shree Logistics
Industry average

10

0
Freight Warehousing cross docking network design other

The above chart shows the service executed last year in logistics area and the significant lead
time of each area. The chart shows freight service jobs has been executed with average lead-
time of 21 days. Similarly warehousing jobs lead-time is 22 days. While comparing with

23
industry standards Freight is dominating and similarly the main lucrative area is other
(Packaging, Labeling etc.), has 21 days lead-time. Organizations lead-time is excellent as
compare to the industry average . Focus should be to increase more service.

g) Average number of customer complaints generated and industry average.

Table- Complaints (Shree Logistics with Industry Average)

Shree Logistics Industry Average
Complaints generated last 123 185
year

Chart – Complaints (Shree Logistics with Industry Average)

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 Complaints generated last year
200
180
160
140
120 complaints generated last
year
100
80
60
40
20
0
Shree Logistics Industry average

The above chart shows average number of complaints. The complaints for Shree Logistics is
123 and whereas to industry average is around 185 in number. This has been achieved by
increasing new modern methods and facilities to customers. Organization heavily focused
into the issue to reduce number of complaints arising in operations, customer satisfaction and
other similar areas.

h) How does the organization follow up to retain customers.

Table- Customer Retention

Sr. No. Service Rating

1 Customer Complaints given preference 100
2 Phone 100
3 Service Intimation 100
4 Gifts 5
5 Email 100
6 Fax 10
7 Other 100

Chart- Customer Retention

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 Rating
120
100
80
60
40
20
0
rating
ce on
e on s ail fa
x
he
r
r en h ati gift em ot
e p m
ef nti
pr e i
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ive r vic
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g se
lain
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com
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om
st
cu

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 Findings
i) The quality of service as rated is above average in the case of Shree Logistics compared to
industry. But the organization should continuously try to improve the quality aspect
as is being done by other players in the field. This is quite a necessity as otherwise the
figures may fall down. Continuous improvement is a must so that the customers will
prefer Shree Logistics as their first choice in Logistics and Freight industry category. This
can be achieved with more modern equipments and proper guidance to employees and the
rating can go high to excellent service.

ii) Pricing of service is satisfactory, which organization can further enhance with proper
management. Present employee strength is satisfactory compared to other
organization but more focus should be made to documentation and human resource 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.

iv) Operation with other logistical providers should be given more preference to achieve
cost effectiveness.

v) Rearrangement of employees may be a better solution. Down sizing of personnel in

the Finance and Accounts section and deploying them for the HR function separately
is recommended.

vi) The organization ease of service, employee efficiency and customer service is having
remarkable difference from the industry standards. The main focus need to be on the
ease of website and client handling . From the data we can infer that areas which
need to be improved are Website and client handling.

vii) Service offer presently has good impact with other organizations service offers. The
remarkable areas are Freight, Cross docking, and Value Adding. Company can further

27
enhance operations of Value Adding through proper methods.

viii) As logistics industry is concerned Freight is the dominant service followed by

Warehousing and Cross-Docking. So that the organization should start to provide
warehousing services to the customer. Another important area where organizations feels
very lucrative is Value Adding .

ix) 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.

x) Organization profit is good compared to industry standards for freight and can further
work on warehousing. This shows a difference of 2 points from industry standards.
Whereas for Cross Docking it shows same as to industry standards.

xi) Commenting on ease of service, website and employee efficiency, the organization
needs to further improve.
xii) Freight Service when compared with other industry freight service has got more
value. Warehousing has a difference of 30 and is negligible but Cross-Docking need
to be reviewed. Another favourable area as mentioned earlier is Value Adding and it
shows a difference of 447 works done compared to industry standards.

xiii) The efficient methods for retaining customers are Phone, Email, Sales Agents and
least preferred methods are Fax and Gifts.

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 Suggestions

i) Organization can further strengthen the employee strength in the documentation

department. This can lead to further rapidity for operations.

ii) Organization can initiate Human Resource Department to further enhance employee
motivation. This will have favourable impact for the operational as well as total
strengthening of organization.

iii) Decision making is quite effective and can be followed for future operations.

iv) Operations with other logistical providers need to be enhanced further for operational
effectiveness, more focus should be given to customer delight and cost effectiveness.

v) Quality of service can be further enhanced to increase customer delight.

vi) Client handling and service need to be followed in the same way and can be further
enhanced with more support. This can be achieved by proper guiding of employees
and other workers in the logistical area.

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 Limitations of Study:

 A few organizations did not publish the exact values for each question especially in
sales turnover and other similar figures.
 Certain monetary values were not being filled by organizations.
 Most of the questionnaire answers were filled over internet email facility; therefore
contact was through phone and emails.

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 Conclusion

The universe everyday is witnessing unimaginable growth in majority of the industries. The
logistics industry is one such industry that is rapidly growing. Worldwide logistics industry is
distinguished by fast technological advances and is growing rapidly than most other
industries over the past years. With stiff competition around, the company is likely to reduce
the profitability but with proper management of operations and by proper customer desired
services, and also effectively utilizing its alliances it can maintain and improve the
performance. Joint operational ventures for developing the customized services for its steady
growth. The organization has enormous opportunities to grow beyond the expectations.
Shree Logistics has come a long way from being just a service provider. The
organization now has the value of being an ultimate service provider for Freight ,
Transportation, Cross-docking and Value Adding as per customer needs. The present
scenario and the future of the organization with regard to the management are satisfactory.
The organization can increase the market share by improving with more state of art
technology. The organization can diversify into related other business areas like Warehouses
for lease to other organizations, state of art technology providers for other organizations.
More importance is to be given for HR development by having a separate department for it.
With the development of such a department, several favourable impacts such as increase in
output per employee, increased loyalty, team spirit etc can be generated.
As far as Shree Logistics is concerned it can be stated that through its excellent
service and aggressive logistics service, organization has shown a noticeable increase in the
market share. However, there are some areas where the company is not at the top-most
position but it can certainly gear up in the near future and is committed to acquire that spot.
On implementation of the above recommendations, the management can lead Shree Logistics
to the top most position when bench marked in the coming years.

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Appendix

32
33
 Bibliography

1. C. R. Kothari, Research Methodology, methods and techniques, New Age

International
2. Logistical Management – Tata McGraw 2000 Edition: Written by Donald. Bowersox
and David. Closs.
3. The Management of Business Logistics – 7th Edition: Written by Edward J. Bardi , C.
John Langley, and John Joseph Coyle.
4. Logistics and Supply Chain Management: Creating Value - Adding Networks:
Written by Martin Christopher.

Websites:
i) Source: http://www.idsc.com.sg/images/service_logistics_img1.jpg
ii) http://www.indexuae.com/Top/Business_and_E conomy/Services/Logistics
iii) http://www.google.com

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