Sampl Transport Report 2

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A study on Domestic Transportation in India at Expeditor’s

EXECUTIVE SUMMARY

INDUSTRY PROFILE

India is being touted as the land of opportunity for logistics service providers all over the world.

The Indian logistics market represents $ 50billion and is growing at a rate of 7 percent annually.

Transportation costs account for nearly 40 of production costs! logistics costs around "# of

%&! compared to ' in the (). rowth in Indian economy is the ma*or driving factor for the

demand in logistics industry.

+utomobile and engineering goods! chemicals! ,-! cement and te/tiles have been identified

as the top five contributors to logistics revenues.

India has the second highest largest road network#.# million km. 1oad 2etwork carry nearly

35 of freight The Indian 1ailways boasts of being the worlds nd largest rail network spread

over '"!5"" km and covering 3'63 stations. The freight segment accounts for roughly two thirds

of railways revenues. It has " ma*or and "'4 minor intermediate ports spread across the vast

coastline of 75"7km. The " ma*or ports handle about 73 per cent of the traffic. &ort traffic to

grow to a level of 650 -illionTonnes per +nnum by 006 -inistry of )hipping. +viation holds

a small share of Indias freight market. +ir ,reight is very e/pensive in India in comparison to

road and rail. The si8e of the world air cargo market is estimated at 7 million tonnes valued at

$00 billion. India accounts for meager # of the global air cargo market. +s per an e/pert

estimate! Indian air cargo industry is going to be double by the year 0"0.

COMPANY PROFILE

9/peditors international India pvt ltd is a global logistics company which was established in the

year "676 by &eter.:.1ose and his partners in ;ashington. 9/peditors is much more than getting

a piece of freight from one point to another. The ouncil of uirements.

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9/peditors *ob is to make sure that from raw material to finished goods sitting on the retail shelf!

they provide the critical services and information necessary to give their clients a competitive

advantage in the management of their supply chains.

Need for the study:

To study about the domestic transportation of goods its current status! challenges and

re>uirements.

OBECTIVES

• To know the current status of domestic transportation.

• To know the problems facing by the customers with transporters! challenges taken to

overcome them.

• To know the modern technology used in transportation of goods.

SCOPE OF T!E STUDY

The study will help us to know the present status of the Indian logistics.

It helps to know the problems facing by the customers with transporters.

To know the modern technologies used in transportation of goods

MET!ODOLO"Y

-ethod of collecting primary data was through >uestionnaire and personnel interview and

secondary data has been collected through Internet! observation! company manual etc. ,or the

purpose of study logistics e/ecutives of manufacturing companies have been chosen as a sample

si8e of 50 through convenient random sampling. %ata collected was tabulated and simple

percentage method was used to derive conclusion. %epending on this I have made my own

suggestions ? given my own idea to improve transportation of goods.

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FINDIN"S

• -a*ority of the customers are facing the problem of shipment tracking facility in

transporting vehicles.

• -a*ority of the manufactured goods are damaged due transportation through open

trucks.

SU""ESTION AND RECOMMENDATIONS

• )ince ma*ority of the customers are facing the problem of shipment tracking hence a

tracking tool called &1) system should be adopted to measure! record and transmit parameters like date! time! speed and location to the command centre using the local

)-&1) network. The system automatically switches over to )-) wherever &1)

coverage is not available.

• In India ma*or transportation is through open trucks hence there is increase in

damageloss. )o closed trucks like canters and container transportation will be a better

alternative.

CONCLUSION

• -odern technological device called &1) should be used in transporting vehicles! so

that customers can track the vehicle.

• anters and containeri8ed transportation is adopted! so that damageloss can be

minimi8ed.

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INTRODUCTION OF T!E STUDY

uirements. )ome of the key logistics and supply chain practices that impact

performance are related to estimation of customers order! efficient and effective delivery!

integration and collaboration throughout the supply chain! sharing of vision and information

using formal and informal methods! as well as use information and communication

technology@ITA and various specialist for performing specific *obs across the supply chain. +ll

of these practices impact logistics the supply chain performance.

T#t$e of the %ro&e't

(A study o) Do*est#' tr+)s%ort+t#o) #) I)d#+,

It is virtually inconceivable in today=s economy for a firm to function without the aid of

transportation. Transportation is an essential and a ma*or subfunction of logistics that creates

time and place utility in goods. In fact! the backbone of the entire supply chain is the

transportation management that makes it possible to achieve the well known seven 1s the right

product in the right >uantity and the right condition! at the right place! at the right time! for the

right customer at the right cost.

The importance of transportation should also be seen by looking at the impact of transportation

on a country=s economy. )tudies reveal that in India the total logistics costs constitute nearly "0

percent of the 2& out of which nearly 40 percent is because of transportation alone. The ma*or

infrastructure re>uired for moving goods from one place to another in India involve the active

roles of 1oads! 1oad ,reight Industry! 1ailways! &orts and )hipping! and &ipelines! all of which

are either managed or regulated by the government in accordance with the private.

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Transportation and logistics services are generally outsourced to third parties. Transportation is

mainly by road and the leadtime of these supply chains is still as high as nine to twelve weeks.

This is >uite understandable! given the si8e of India and the state of its infrastructural facilities.

Transportation and logistics is generally through their own fleet. In some cases! it is outsourced.

1outing and scheduling software are increasingly being used for these activities. ,ive out of si/

firms use standard 91& software. There is high focus on tracking of customer orders and

customer care and technologies like bar codes and &) are being employed.

In our on site observation of 50 firms! we find that the primary focus is on >uality! cost and

service. 1ecently! responsiveness @delivery speed! safety! volume fle/ibility! shipment weight andinnovationA is also catching up management attention. orrespondingly! the ma*or concern in all

these firms and their supply chains are related to cost! clarity of demand! reliability of partners!

shortening of delivery cycle! production and logistics fle/ibility and innovation in supply chain

practices. )haring of benefits within the supply chains has not yet gained much attention. ,irm

especially in the automotive! retail! manufacturing and ,- sectors are increasingly opting to

outsource their logistics re>uirements to speciali8ed service providers! the positive business

atmosphere and a burgeoning consumer market are making the shipper community push the

logistic service propositions.



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Lo-#st#'s

Or#-#) +)d Def#)#t#o) of Lo-#st#'s:

The term BlogisticsB originates from the ancient reek BCDEFGB @BlogosBHBratio! word!

calculation! reason! speech! orationBA.


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In turn! #&< providers are continually looking to provide innovative supply chain solutions to

customers by focusing on valueadded capabilities! differentiating themselves from the

competition. They focus on key ob*ectives! such as implementing information technologies!

instituting effective management processes! integrating services and technologies globally! and

delivering comprehensive solutions that create value for #&< users and their supply chains. This

need to partner with customers and become more integrated into their supply chain processes has

created the ancillary need to locate close to these customers.

That isn=t to say the need for easy access to transportation hubs and different modes of

transportation won=t continue to be important. ut 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 location.

&rofit warnings! share price pressures! mergers! reorgani8ations! relocations! disposals! painful

layoffs and great geopolitical uncertainties can sweep away even the most comprehensive

logistics strategies P and thats despite outstanding management over many years. These are

e/ceptionally difficult times and it has never been more important to connect logistics and freight

planning to e/ecutive board thinking than now. Its easy to lose sight of the bigger picture in the

rush to cut infrastructure cost and conserve cash. Qopefully organi8ation succeed in protecting

the business! satisfying shareholders and analysts! but what about capacity and fle/ibility! morale

and momentumO

To be a logistics winner in the coming years organi8ations 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.

Kwn passion for running the race matters most of all in a downturn! when people are insecure!

see only savage cost savings! and loyalty is tested. The corporations future will be dominated by

si/ factors! or faces of a cube! spelling , ( T ( 1 9.



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INDUSTRY PROFILE

uick look back at some logistics history may prove

very enlightening.


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application of the same by him for the betterment of his organi8ation. The logistics manager

ensures that the company is benefited by an effective and efficient system of logistical

management. Qe also needs to ensure that the right kind of products and services are provided at

the right time and for a right price! whether inside the organi8ation=s premises or delivery of

shipments outside the premises of the organi8ation.

uisite knowledge to deliver

sustainable enhancements in the field of supply chain management. +s has been the case

throughout most of logistics history! the task of a logistics manager involves a clear vision and a

drive within to deliver results under strict deadlines in addition to his usual responsibilities.

Lo-#st#'s #) I)d#+


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5. It has the nd largest pool of >ualified technical workforce.

India spends "# percent of its ross %omestic &roduct @%&A on logistics as opposed to the

usual practice of "0 percent by other developing nations. The Indian economy is striving for

improvements in the field of logistics and supply chain management to gain the competitive edge

in today=s worldwide economy. The Indian government has favored the logistics market of India

by making some helpful plans and policies to assist in its growth.

There are several events organi8ed for the promotion of logistics in India which are focused in

their approach and relevant to the business solutions besides providing a solid platform for

allowing people from a wide industry spectrum to meet and provide business within them from

all over the country. This has been an emphatic source of providing business solutions and their

development.

)everal global third party logistics providers @#&


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key sectors include fashion! gems! *ewelry! pharmaceuticals! precision tools and engineering

goods! all of which need special shipping provisions.

S#/e of the I)d#+) $o-#st#'s #)dustry

The annual logistics cost in India is estimated to be "4 of the %&! which translates into ()%

"40 billion assuming the %& of India to be slightly over ()% " trillion. Kut of this ()% "40

billion logistics cost! almost 66 is accounted for by the unorgani8ed sector @such as owners of

less than 5 trucks! affiliated to a broker or a transport company! small warehouse operators!

customs brokers! freight forwarders! etc.A! and slightly more than "! i.e. appro/imately ()%

".5 billion! is contributed by the organi8ed sector. )o! one can see that the logistics industry in

India is in a nascent stage. Qowever! the industry is growing at a fast pace and if India can bring

down its logistics cost from "4 to 6 of the %& @level in the ()A! savings to the tune of ()%

50 billion will be reali8ed at the current %& level! making Indian goods more competitive in the

global market. -oreover! growth in the logistics sector would imply improved service delivery

and customer satisfaction leading to growth of e/port of Indian goods and potential for creation

of *ob opportunities.

Lo-#st#'s M+)+-e*e)t +)d Lo-#st#'s M+)+-e*e)t Soft.+re

uirements. + professional working in the field of logistics management is called a logistician.

)oftware is used for automating logistics activities which helps the supply chain industry in

automating the work flow as well as management of the system. Rery few generali8ed software

are only available in the new market in the said topology. This is because there is no common

rule to generali8e the system as well as work flow even though the practice is more or less the

same. -ost of the commercial companies do use one or the other custom solution. There are

various software that are being used within the departments of logistics.

The softwares that are used in these departments are!

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onventional %epartmentL RT software T-) software

ontainer TruckingL T-) software

Bus#)ess Lo-#st#'s


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process. -achines are e/changed and new ones added! which gives the opportunity to improve

the production logistics system accordingly. &roduction logistics provides the means to achieve

customer response and capital efficiency. &roduction logistics is getting more and more

important with the decreasing batch si8es. 9ven a single customer demand can be fulfilled in an

efficient way. Track and tracing! which is an essential part of production logistics due to

product safety and product reliability issues is also gaining importance especially in the

automotive and the medical industry.

Fe+tures of I)d#+) Lo-#st#'s I)dustry

S+ number of smallintegrated players.

STransportation costs account for nearly 40 of production costs.

S


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"ro.th Dr#2ers for Lo-#st#'s #) I)d#+

Seneral growth of the Indian economy.

S-anufacturing boomfor e/ports as well as for domestic

market.

S9/pected rise in International trade from India.

S-2s setting up manufacturing in India2okia! ,le/tronics.

Sovernments thrust on Infrastructure ()$"7 billion to upgrade highway networks.

SImplementation of R+T will lead to growth in warehousing business.

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SKpening of organi8ed retail sector attracting retail chains like ;al-art and arrefour into

Indian players like &antaloon and 1eliance.

overnment )upport

The Indian government is making great efforts by

S&rivati8ing ports and airports.

SIncreasing the number of gateway ports

SInvesting in highway pro*ects

S)treamlining customs and e/cise procedures

SImplementing 9%I systems

SImproving the rail network .

SThe government plans to invest $"7 billion in transport infrastructure between 0030"0.

So*e of the %ro&e'ts +re

• +mend in the 2ational Qighway +ct to e/pedite land ac>uisition! permit private

financing and allow tolling.

• Improvement in rural access by launch of the &rime -inisters 1ural 1oads

&rogram.

• 1eduction of congestion on rail corridors and improvement of port connectivity by

launch of 2ational 1ailway %evelopment &rogram.

• (pgradation of infrastructure and connectivity in the country=s twelve ma*or ports by

initiating the 2ational -aritime %evelopment &rogram.

• 9stablishment of Tariff +uthority for -a*or &orts to regulate tariffs.

•



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• Kn a perannum basis! (nited )tates invests 5 percent of its annual logistics spend on

infrastructure! India is investing # percent or over four times as much.

Industry rowthues reen! -anaging %irector ,ed9/India!

-iddle 9ast ?+frica.

+uto

• Kutsourcing in +uto sector could be worth $#75 billion by 0"5 and India could

capture up to $5 billion of this amount. VsourceL-cWinseyX

hemicals

• Indias chemical e/ports could reach $"5 billion by 0"5. V)ourceL -cWinseyX.

9lectrical and 9lectronic &roducts

• Indias e/port in electrical and electronic products could reach upto $"' billion a year by

0"5VsourceL -cWinseyX.

1etail

• Kpening up of the organi8ed retail sector is attracting big retail chains like ;al-art and

arrefour in addition to big Indian retailers like &antaloon and 1eliance.

• +ll this would re>uire the presence of professional logistics players in the market to carry

out supply chain activities.

Thus demand for logistics services would be largely driven by the growth of the Indian

economy.



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#.Integrates logistical activities

• In conventional management environment! various activities of logistics work in isolation

under different management functions. 9ach pocket trying to sub optimi8e its ob*ectives

at the cost of overall organi8ational ob*ectives. &urchasing trying to purchase at minimum

price at the cost of what is needed by operations. Kperations produce large >uantities at

minimum production cost ignoring demand leading to doom inventory. uality parameters like performance ? reliability! where brands are almost

irrelevant! competitive edge is that of availability of product and service in terms of time!

place and >uantity.

5.


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marketing function. -arketing is trying to sell the product in the market place. uality of performance is vanishing and brands are losing their magic.

+s a result of above we find that availability is an important determinant of purchasing decision.

7.


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OPERATIONAL OBECTIVES OF LO"ISTICS

". 1apid response

,fle/ibility ob*ective of an organi8ationL )ome companies measure this as response time to

customers order. Kn an average how much time do we need to fulfill one particular type of

customers order in a yearO This is a measure of 1apid response.


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single piece flow as practiced by :IT companies in :apan or elsewhereX. uality of product fails logistics will have to ship the product out of customers premises

and repeat the logistics operation again. This adds to costs and customer dissatisfaction.

Qence logistics should contribute to TY- initiative of management. In fact! commitment to

TY- has made the managements world over wake up to the significance of logistics

function. uality improvement by improving the

>uality of logistics performance continuously and continually.

3.


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1igid laws prohibiting unscientific disposal of items associated with product VpackagingX

1igid laws making recycling mandatory

9rroneous order processing by supplier

1everse logistics is an important component of logistics planning.

Lo-#st#'s fu)'t#o)s

". Information management

-anagement is appreciating importance of information as an element of logistics of late! now.

The role of information is vital in order processing. Yuality of information is critical as error

in composition of information re>uirement creates potential disturbance in the supply chain.

Incorrect order processing due to erroneous information will result into product recall and

reshipment if the sales opportunity still e/ists.

,aster and >uality information flow from customer to processor results into cost effective

logistics. ,orecasting and order management are two areas of logistical work dependent on

information.

,orecasting is an effort to estimate future re>uirements to position inventory or assets devoted

to inventory. +s forecasting becomes unreliable in a fast changing environment! control

strategies like :IT! Yuick 1esponse and ontinuous 1eplenishment came into being. 2ow it is

the task of the logistics function to use information technology to strengthen operation control

and forecasting to the best advantage of the organi8ation.


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#. Transportation

Transportation is the most visible of all elements of logistics and high contributor to logistics

e/penditure. osts of transportation are mainly as followsa. -ovement costsL money paid for moving material across geographical terrain

b. &reservation costsL money spent on preserving the material during transit

c. ost of idle assetL inventory is unavailable for conversion during transit. This results into

costs for organi8ation

d. +dministration costsL money spent on administrationTransportation is accomplished in three ways

a. Knes own fleet P private carriage

b. ontract with specialists on long term basis P contract carriage

c. ontract on individual shipment basis P common carriage

E3%e't+t#o)s fro* tr+)s%ort+t#o) ser2#'e +re

a. -inimum cost P transportation costs are e/plained earlier

b. )peedL speed of transport means the speed with which goods reach the destination.

c. onsistencyL consistency in speed is achieving the same speed over a long period of time.

onsistency reflects on the reliability of carrier. +ny une/pected variance can play havoc with

logistics. -odern information technology has made continuous tracking of consignments

possible. This takes the element of surprise out. IT has helped logistics managers to seek out

ways and means to improve speed and consistency. ;hat is becoming important is a

combination of speed and consistency.

1e>uirement of speed depends on type of industry. In some situations speed may not be

important. Then transportation service offering high speed increases cost. )o logistics

managers have to strike a balance between service and cost. Three important aspects of

transportation are facility location! transportation cost and consistency.

%esign of logistics system should consider total costs rather than elemental cost of

transportation

4. ;arehousing



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;arehousing is holding material before dispatch after it is produced. +lthough warehousing is

conventionally considered to be a storage facility! it plays a much higher role from logistics

viewpoint. It is perceived to be a switching facility rather than a storage facility. ;arehouse

ownership can be private! public or third party contract. ;arehouse provides economic and

service benefits to the logistical system.9conomic benefits are -ovement onsolidation! reakbulk! rossdock!

&rocessing&ostponement ? stock piling.)ervice benefits are spot stocking! assortment! mi/ing ? production support

5. -aterial handling

-aterial handling covers receiving! moving! storing! dispatching activities. It has an impact on

cost Vcapital as well as runningX! >uality and safety. Kne of the principles of material handling

is minimum movement. ommonly used material handling e>uipment are forklifts! 9KT ranes! hoists! pulley blocks! trolleys! railroad cars!

onveyors! ropes and slings etc.

3. &ackaging

&ackaging is done to make handling and transporting cost effective. It protects the product in

transit and handling. &acking is e/pected to facilitate lifting and moving by providing easy

access to forks or hooks. &acking is also e/pected to display universal symbols and other

instructions for handling.9.g. &allets and containers! wooden bo/es! wrapping etc.

Future prospects

%espite problems! The Indian logistics industry is growing at 0 vis[vis the average world

logistics industry growth of "0. )ince the organi8ed sector accounts for merely " of the

annual logistics cost! there is immense potential for growth of the sector. The ma*or opportunities

are highlighted below.

• -any large Indian corporate such as Tata and 1eliance Industries have been attracted by

the potential of this sector and have established logistics divisions. They started providing

inhouse logistics services! and soon sensing the growth of the market! have started

providing services to other corporate as well.



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• ually important as cost to remain competitive in this global economy.

• The Indian economy is growing at over 6 for the last couple of years @compared to the

world %& growth rate of #A! which implies more outputs and more demand for

speciali8ed logistics services.

• The Indian government has focused on infrastructure development. 9/amples include the

golden >uadrilateral pro*ect! eastwest and northsouth corridors @connecting four ma*or

metrosA! ,ree Trade and ;arehousing \ones @,T;\A in line with )pecial 9conomic

\ones @)9\A with "00 ,oreign %irect Investment @,%IA limit and publicprivate

partnerships @&&&A in infrastructure development. It is e/pected that infrastructure

development would boost investments in the logistics sector.

• In India! "00 ,%I is allowed in logistics whereas in hina! until recently! foreign

investment was not allowed in domestic logistics. +lmost all large global logistics

companies have their presence in India! mainly involved in freight forwarding. ,or

domestic transportation and warehousing! they have tieups with Indian companies. +s

the Indian logistics scenario looks promising! these -2s are e/pected to play a bigger

role! probably forming whollyowned subsidiaries or taking the ac>uisition route. The

latter may be the preferred route of investment since the target company is readily

ac>uired with its asset base and distribution network! and the need for buildingeverything from scratch can thus be avoided. The benefits for the ac>uired company

include the patronage of an -2 and access to the -2s global network. +s an

9/ample! %Q< %an8as! the biggest logistics company in the world! has taken over lue %art.



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M+)+-er#+$ I*%$#'+t#o)s

)tudies on logistics indicate that in this highly competitive and highcost! lowmargin business!

logistics managers have to not only focus on differentiating the services rendered by their

companies! but market the differentiating factors of their services appropriately to the clients.

They also need to make their cost structures transparent! and convince clients to foot the bill

towards investments in >uality assets and new technologies such as 1,I% and &) @lobal

&ositioning )ystemA leading to improved! and differentiated! delivery of service. )ince clients

usually prefer a singlepoint solution to all their logistical problems! managers need to broaden

the range of their service offerings! internationali8e operations and cover as many industry

verticals as possible. They may focus on key customer accounts gradually moving away from

accounts generating low! even negative! profitability. Qowever! smalltomediumsi8ed

companies that seem to have high growth potential should not be ignored in the process. In order

to become a single point of contact for clients! logistics companies may pursue ac>uisitions or

alliances! which! however! pose the challenge of integration of diverse cultures. +ttracting!

recruiting! training! motivating and retaining management talent are also a great challenge that

logistics managers need to take on @


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necessary but not sufficient conditions for success in logistics. The findings of the survey may

provide a useful guideline to logistics managers for allocation of scarce resources.

+s far as the Indian logistics industry is concerned! logistics managers of user firms need to

reali8e that! with supply chains getting more and more comple/! outsourcing part or all of their

logistical activities to e/perienced


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Ro+d fre#-ht #)dustry: The industry is highly fragmented and largely unorgani8ed. The

unorgani8ed sector accounts for nearly '0 of the market share. Qowever! changing policies

with regards to ta/ structure are likely to give a competitive edge to the organi8ed sector. 1oad

transport comprises of freight and passenger traffic. It accounts for over 30 of goods traffic and

over '0 of passenger traffic.

R+#$.+ys se'tor:

Indian 1ailways has one of the largest and busiest rail networks in the world! transporting over

"' million passengers and more than million tonnes of freight daily. It is the world=s largest

commercial or utility employer! with more than ".4 million employees. The railways traverse the

length and breadth of the country! covering 3!606 stations over a total route length of more than

3#!#7 kilometers @#6!#50 miA. +s to rolling stock ! I1 owns over 00!000 @freightA wagons!

50!000 coaches and '!000 locomotives. I1 carries a huge variety of goods ranging from mineral

ores! fertili8ers and petrochemicals! agricultural produce! iron ? steel! multimodal traffic and

others. &orts and ma*or urban areas have their own dedicated freight lines and yards. Indian

1ailways makes 70 of its revenues and most of its profits from the freight sector! and uses

these profits to crosssubsidies the lossmaking passenger sector. Qowever! competition from

trucks which offer cheaper rates has seen a decrease in freight traffic in recent years. )ince the

"660s! Indian 1ailways has switched from small consignments to larger container movement

which has helped speed up its operations. -ost of its freight earnings come from such rakes

carrying bulk goods such as coal! cement! food grains and iron ore.

4+ter Tr+)s%ort+t#o)

;ater transport can be broadly divided into two groups Inland water transport and )hipping.

)hipping! in turn! can again be divided into two categories oastal shipping and Kverseas

shipping.

I)$+)d 4+ter Tr+)s%ort+t#o):


http://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Rolling_stockhttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Rolling_stock


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Inland water transport includes natural modes as navigable rivers and artificial modes such

as canals. The Inland waterways have played an important role in the Indian transport system

since ancient times. Qowever! in recent times the importance of this mode of transport has

declined considerably with the e/pansion of road and rail transport. In addition! diversion of

river water for irrigation has also reduced the importance of inland water transport. The

decline is also due to deforestation of hill ranges leading to erosion! accumulation of silt in

rivers and failure to moderni8e the fleet to suit local conditions. The transportation of goods

in an organi8ed form is confined to ;est engal! +ssam! parts of 2orth 9astern region and

oa.

%evelopment of inland water transport commenced from the )econd ,ive ]ear &lan and up

to the end of ,ifth &lan the total e/penditure on this sector was 1s. #4 crores. It was only in

the )i/th &lan that this sector was given priority and specific schemes of inter)tate and

national importance for development of inland water transport were taken up. The )eventh

&lan was an important landmark in the development of inland water transport. The

e/penditure on this sector in the &lan @at 1s. "#".'5 croresA was more than the e/penditure

incurred right up to the end of the )i/th &lan. Three ob*ectives were laid down in the

)eventh &lan for the development of inland water transport

%evelopment of inland water transport in the regions where it en*oys natural advantage.

-oderni8ations of vessels and country crafts to suit local conditions and

Improvement in the productivity of assets. The Inland ;aterway +uthority has been set up

which is a big step forward and should help in the accelerated development of inland water

transport.

Co+st+$ Sh#%%#)-L

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India has a long coastline of 7!5"3.3 kms! a number of ports @"" ma*or and "#6 minor

working portsA and a vast hinterland. Therefore coastal shipping holds a great promise more

so because it is the most energy efficient and cheapest mode of transport for carriage of

bulky goods like iron and steel! iron ore! coal! timber! etc. over long distances. Qowever!

despite this fact @and despite the fact that coastal shipping was reserved e/clusively for

Indian ships after IndependenceA! there has been a sharp decline in coastal shipping

operations. ,or instance! the number of ships fell from 67 in "63" to only 53 in "6'0 while

ross 1egistered Tonnage @1TA fell from #." lakhs to .5 lakhs over the same period.

Qowever! at the end of "664 the fleet strength was 4#' vessels of 3.# million 1T. The main

factors affecting the growth of coastal shipping adversely have been MQigh transportation

costs especially for movement other than those between a pair of water front locations! port

delays! poor turnaround time of coastal ships on account of overaged vessels! lack of

mechanical handling! facilities etc.N The coastal fleet is ageing fastU about 5 per cent of the

tonnage is already overdue for replacement. +lso! there is imbalance in coastal traffic

movement as traffic is not e>ually available in both directions. This makes it necessary for

coastal ships to sail in ballast! at times! on return *ourney. -oreover! slow handling of the

cargo at port and undue port delays inflict heavy losses on shipping! companies. It is

estimated that at present 70 per cent of ship time is spent at ports and only #0 per cent on

voyage.

O2erse+s Sh#%%#)-L

ecause of the importance of overseas shipping in international trade! considerable attention

has been paid to increase the shipping tonnage in the planning period. +s a result! the share

of Indian shipping in the transportation of India=s overseas trade has slowly and consistently

increased in the planning period. ,rom around 5 per cent in the first &lan! it increased to

around #4.0 per cent at the end of "66#64. as compared to ".6 lakh 1T @ross 1egistered

TonnageA at the time of Independence! shipping tonnage increased to 3.#0 lakhs 1T in

"664.

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In the ,irst &lan 1s. "'.7 crores were spent on shipping while the e/penditure in )econd &lan

stood at 1s. 5.7 crores. +n important step taken during the )econd &lan was the

establishment of a nonlapsing shipping development fund for grant of loans to shipping

companies for the ac>uisition of tonnage. The Third &lan made a provision of 1s. 55 crores

for shipping which rose to 1s. "#5 crores in the ,ourth &lan. The )i/th &lan envisaged the

augmentation of shipping tonnage for meeting increased re>uirements of Indias foreign

trade and also to replace the overaged tonnage especially the coastal vehicles. JThe outlay in

this plan was kept at 1s. 70 crores while actual e/penditure was only 1s. 4#.64 crores.

The resources constraint had forced the )eventh &lan to keep the outlay at 1s. 36#.4 crores

and the actual e/penditure was only 1s. 370.05 crores. The broad ob*ectives for development

of shipping in this plan were kept as followsL

-oderni8ation of fleet on the basis of improved ship designed and fuel efficiency in

engines.

1eplacement of over aged fleet on a selective basis.

%rivers fi/ation of fleet by ac>uisition of cellular container ships and speciali8ed product

carriers.

+ddition to fleet on a selective basis! keeping in view the longterm ob*ective of achieving

selfsufficiency in tanker fleet.

Ports

Indias coastline of about 3!000 km is dotted with "" ma*or! "" intermediate and "3' minor

ports. 2early 65 per cent of the countrys foreign cargo @by volumeA moves by sea and!

therefore! portsand their development assume an important place in policy making.

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%evelopment and maintenance of Indias ma*or ports are the responsibility of the entral

overnment! while Kther &orts are in the oncurrent list.

M+&or Ports:

Indias ma*or ports are governed by the Indian ports +ct "60' and the -a*or &ort Trusts +ct

"63#. The former allow the )tatutory to declare any port a ma*or port! define port limit! levy

charges etc. while the formation of &ort trust oards and vests the administration control and

management of ma*or ports in these oards.

+t the time of independence! India had five ma*or &orts! vi8. -umbai! alcutta!

Rishakhapatnam! hennai! and ochin. ;ith the Warachi &ort going to &akistan after

&artition! there were four ma*or ports on the western coast. + new port was developed at

Wandla! which was declared a ma*or port in "655. The -armugao &ort! developed by the

&ortuguese! *oined the ranks of ma*or ports in "634 after the liberation of oa in "63. &ara

deep! on the eastern coast! was declared a ma*or port in "633. 9ight years later! 2ew

-angalore and Tuticoin were added to the list of ma*or ports. The inclusion of the

:awaharlal 2ehru &ort at 2hava )heva on the western coast took the number of ma*or ports

to %evelopment of port after the independence! the development of ma*or ports was taken up

in a planned manner. -echani8ation and moderni8ations of cargohandling facilities at &orts

have been a thrust area in recent years! with emphasis on development of dedicated

infrastructure. %eepening of ports to receive lager vessels has been another priority area.

Rishakhapatnam and hennai ports have already been deepened.

M#)or +)d #)ter*ed#+te %orts:

-inor and intermediate ports fall in the oncurrent list and their administration is the

responsibility of the respective coastal states. Their number as well as their categori8ation

into minor or intermediate &orts has varied from time to time! depending upon the volume of

cargo and the number of passenger they handle. There were "" intermediate and "3' minor

ports and state wise distribution wasL Krissa! +ndhra&radesh"! Tamil2adu"0!

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&ondicherry"! +ndaman and 2icobar!


35/84


national and international routes would give a boost to industry! +))KQ+- &resident

Renugopal %hoot said.

In spite of a reduction in freight rates! railways goods traffic saw a downward trend. 1evenue

generated from freight has declined to '.7 per cent in 00' from "" per cent in 007. The

proposed dedicated freight corridor @%,A is likely to sharply increase railways goods traffic! but

the e/treme longterm nature of the pro*ect gives air cargo the advantage! the report says.

&orts and shipping saw a gradual decline in annual growth rates from "".# per cent in 00503 to

"0.4 per cent in 00307 to 6.5 per cent in 0070'. In contrast! total air cargo traffic has

increased from "5.3 per cent in 00503 to ".5 per cent in 00307! clocking a compound

annual growth rate @+1A of 6.5 per cent for the last si/ years.

International air cargo traffic increased from 6.75 lakh tonnes in 00307 to "".0 lakh tonnes in

0070'. %omestic air cargo traffic swelled from "4.'" tonnes to "7.66 tonnes in the same

period! registering a +1 of " per cent for the past si/ years! compared to 7.7 per cent for

international cargo traffic.

The total cargo traffic of all ma*or ports increased from 4.# lakh tonnes in 00503 to 4.34 lakh

tonnes in 0070'! registering a +1 of 7 per cent. ut this lagged behind overall goods

traffic! which grew by an average "0.# per cent during the same period.

argo growth in the railways was the lowest of the three! with a +1 of 3.3 per cent over the

last si/ years. 1ailways freight traffic has increased from 3.3' lakh tonnes in 00307 to 7.3

lakh tonnes in 0070'! but the growth rate has declined from "0.6 per cent to '.3' per cent over

the same period.



36/84


Co*%+)y %rof#$e

9/peditors is much more than getting a piece of freight from one point to another. The ouncil

of uirements.

Kur *ob is to make sure that from raw material to finished goods sitting on the retail shelf! we

provide the critical services and information necessary to give our clients a competitive

advantage in the management of their supply chains

5676 88 1 location

;e register as a single office ocean forwarder in )eattle! ;ashington as 9/peditors International

of ;ashington! Inc.

5695 88 9 locations

9/peditors become a global logistics company in :uly! when &eter :. 1ose! :ames uickly makes us one of the

largest (.).based air freight forwarder of goods from the ,ar 9ast.

569 88 11 locations

;e e/pand our (.). e/port market by hiring senior e/port e/ecutives to lead branch offices in

the (.). and key foreign markets. ;e add e/port capabilities to hicago! )eattle! 2ew ]ork! )an,rancisco and


37/84


569; 88 12 locations

9/peditors become a public corporation with stock traded over the counter on 2+)%+Y

@symbolL 9Z&%A. %uring our first year as a public company! we report more than $50 million in

gross revenues and $." million in net earnings. ;e open our Toronto office this year! and we

now have "3" employees.

569< 88 13 locations

Kur first move into the ocean business with the ac>uisition of &ac ridge! a ma*or nonvessel

ocean common carrier @2RKA and e/pansion of less than container load @


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566> 88 32 locations

Kur russels office becomes our first in continental 9urope. ;e also open offices in Wuala


39/84


9/peditor launches a argo Insurance division. ;e also gain a new address! on the internetL

httpLwww.e/peditors.com.

566= 88 114 locations

9/peditors name a %irector of Yuality and formali8e its global pursuit of I)K 600 certification.

+ total of 7 offices are I)K 600certified as five more offices achieve the accreditation in +sia

and 9urope. The number of employees tops #!000 @#!50A. ;e open our first offices in India!

&akistan! and angladesh. The class B+B license we hold in ei*ing is e/tended to four more

ma*or hinese trading points! bringing our total offices in hina to eight. ;hile its employees

are recogni8ed as the best trained in the industry! 9/peditors raises its minimum annual training

re>uirement for employees from #0 hours to 5 hours! in recognition of the increasingly

sophisticated needs of its customers.

5667 88 13! locations

;e add more than "!000 employees in one year! for a total of 4!500. ;e continue networking

offices on the northern and southern borders of the (nited )tates. The arrangement of offices on

both sides of the (.). -e/ico border is uni>ue among customs brokers! and this offers

unprecedented efficiency and speed in processing customs entries. The four new offices in

,rance will soon be *oined by other new locations in 9urope! as 9/peditors continues to

selectively e/pand its global network.

5669 88 149 locations

I)K 600 certification is achieved in #' offices throughout the (nited )tates! anada and

-e/ico! bringing the total number of 9/peditors offices certified in this standard to 35 in "7

countries. ross revenues top $" billion for the first time @$"!"'6!044!000A and the number of

employees tops 5!000 @5!#00A.


http://www.expeditors.com/http://www.expeditors.com/


40/84


5666 88 163 locations

;e celebrate our 0th year! continuing our reputation as a full service global logistics provider.

The number of employees grows to 3!4'0. 9/peditors services include +ir and Kcean ,reight

,orwarding! Rendor onsolidation! 2RK! ustoms learance! -arine Insurance!

%istribution! and other value added global logistics services. 1ecognition from our customers

@isco )ystems and ritish +irways atering name us as )upplier of the ]earA helps reinforce

the mission at 9/peditors.

?>>> 88 177 locations

This year the number of employees tops 7!000 @7!3""A! and offices are opened in &hnom &enh

and )aigon. 9/peditors places emphasis on reducing employee turnover and increasing

productivity. Improvements are made on a globally consistent -anagement Trainee &rogram and

%ocument Imaging.

Qolding strongly to the belief that you can=t buy e/cellence but have to create and nurture it has

resulted in continued success for our company. It was confirmed when 9/peditors attained the

goal of e/cellence and was given the Best ompanies to ;ork ,orB award by ;ashington 9K

-aga8ine. ut the greatest vote of confidence 9/peditors can receive is to have good customers

willing to trust 9/peditors with their important business.

?>>5 88 191 locations

This year 9/peditors was ranked third by ,ortune for +merica=s -ost +dmired companies in the

,reight %elivery industry! and the :ournal of ommerce awarded 9/peditors with the est

Intermediary award. ,orbes named the company to the list of +merica=s top 400 companies. Kur

employees made all of this possible by servicing our customers! one shipment at a time.



41/84


?>>? 88 19 locations

,irst year with more than $ billion in gross revenues @$!63!60#!000A. ,irst year with more

than $"00 million in net earnings @$""!56!000A. 2umber of employees tops '!000. 2amed to

the 2+)%+Y "00.

9/peditors views its role in the future of international trade as the preferred global logistics

solutions company. The company will continue to satisfy its customers= needs through a

responsive! highlytrained work force! integrated information systems and a global network.

?>> 88 2"6 locations

9/peditors continues to thrive in a competitive and challenging industry and world economy.;hile other logistics companies fail to control costs and stay afloat! 9/peditors continues to

grow the number of offices! employees and total revenue! all while staying profitable. +ir argo

;orld ranks the company as the second overall freight forwarder and second in the trans+tlantic

region. In 00#! 9/peditors adds full service offices to )an :ose @osta 1icaA! Krlando @,loridaA!

+ustin @Te/asA and Tampa @,loridaA. Kur first year with more than $" billion in assets

@$"!044!07'!000A.

?>>; 88 211 locations

+ number of milestones mark our 5th yearL it=s the first year with more than $# billion in gross

revenues @$#!#"7!466!000AU the number of employees tops 6!000 @6!445AU and net earnings of

$"53!"3!000.

$"!000 invested in 9/peditors at the I&K price of $6.00 a unit @share and a warrantA is worth

$##!300 on %ecember #"! 004! @assuming warrant e/erciseA for a compound annual rate of

return of '.

Babasabpatilfreepptmba.com Page 4"


42/84


?>>< 88 226 locations

In a year of more mergers among other logistics providers and carriers! 9/peditors stays true to

its vision of organic growth! with five new locations in +sia! si/ in 9urope! two in >= 88 233 locations

-eeting key strategic goals in +sia! 9-+I1! )outh &acific and the +mericas! 9/peditors

focused on delivering a consistent level of customer service and productivity around the world.

9ntering onto the ,ortune 500 list for the first time with $4.3 billion in revenue! 9/peditors also

stood out as ,ortune=s ^" -ost +dmired ompany in its industry.


9/peditors continued to focus on delivering a consistent level of customer service and

productivity around the world. 2ew as a ,ortune 500 company with $5. billion in revenue!

9/peditors stood out as one of ,ortune=s -ost +dmired companies in their industry for 007.


ood consistent customer service has always been our goal here at 9/peditors and 00' was no

different. 9/peditors continued to open new offices and made capital e/penditures for two beautiful new offices in Qong Wong and )hanghai. &eter 1ose was named one of arrons top #0

9Ks for 00' and usiness ;eek ranked 9/peditors 2o. # on their Top 50 est &erforming



43/84


ompanies. 006 is our #0th anniversary and we look forward to the coming year and to all the

surprises it will bring.

+wards "66#

•


44/84


o +ffords greater fle/ibility in structuring import operations to allow the conduct of

certain customs business that is otherwise restricted.

• ;ashington 9K -aga8ine

o Kne of the best places to work in ;ashington

•


45/84


o 9/peditors awarded ^" est )ervice ompany to )ell ,or

+wards 00#

•


46/84


o &eter :. 1ose! 9K! is named 9/ecutive of the ]ear.

• ritish +irways

o +wards 9/peditors for outstanding service.

• &hilips

o arrier 1ecognition +ward for lobal +irfreight for the third year in a row.

• )amsung

o


47/84


• )amsung

o 9/peditors hina receives the )amsung est &artner awards for the second year

in a row.

+wards 003

• lobal


48/84


o 2amed 9/peditors as one of the "5 outstanding suppliers

• &fi8er

o +warded 9/peditors! Indianapolis! roker of the Yuarter

+wards 007

• lobal


49/84


•


50/84


o Kutstanding +chievement +ward

• )amsung

o est &artner +ward

M#ss#o) St+te*e)t

To set the standard for e/cellence in global logistics through total commitment to >uality in

people and customer service! with superior financial results.

"o+$s

To be the recogni8ed industry leader! through total commitment to customer service! by

maintaining our uncompromising integrity! in the support and development of our &eople!

ommunications and )ystems in sustained growth and profitability.

Str+te-y

+s a nonasset based company! we are able to give our clients several options for freight

management. Kur investments are made in people and systems. Through organic growth! not

ac>uisition! we give our clients and employees peace of mind knowing their day to day business

won=t be disrupted by merger painsU our systems integrity is kept intact! not disrupted by

companies whose business was founded on a different platform. Kur customers are most

interested in the >uality and consistency of service we provide regardless of the country in which

we=re doing business.

Cu$ture

A%%e+r+)'e

• &rofessionalism is at the core of our identity.



51/84


Att#tude

• + passionate! caring and winning attitude is focused on the basics of teamwork.

Co)f#de)'e

• ;e must believe to achieve! not only in ourselves! but also in our coworkers.

Cur#os#ty

• e the type of person who wants to learn more about something.

E3'e$$e)'e

• %oing not *ust what=s e/pected! but doing the best that=s physically possible.

I)te-r#ty

• ,airness! honesty! and dignity.

Pr#de

• It=s the personal commitment we make.

Reso$ute

• )ay what you do and do what you say`

Se)se of !u*or

•


52/84


LITERATURE REVIE4


53/84


\ealand! while )ahay et. al.! @00#A discuss supply chain strategies and structures in India. These

surveys rank the perceived importance of some )- activities! types of hindrances and

management tools on the success of )- using representative samples! mostly from

manufacturing. Yuayle @00#A surveys )- practices in (W industrial )-9s @)mall

-anufacturing 9nterprisesA while Wemppainen and Repsalainen @00#A probe current )-

practices in ,innish industrial supply chains through interviews of managers in si/ supply chains.

They analy8e the change of )- both in terms of operational practices and organi8ational

capabilities. hin et. al.! @004A conduct a survey that e/amines the success factors in developing

and implementing )- strategies for Qong Wong manufacturers. ,eldmann and -uller @00#A

e/amine the problem of establishing an incentive scheme to furnish reliable and truthful

information in supply chains.

Wwan @"666A investigates the use of IT in )- in )ingaporean electronics and chemical

industries and finds that the top barrier to the use of IT is the lack of education and training.


54/84


tools is still at a relatively low level. ,orecasting is the prime area for collaborative efforts.

Qowever! most firms have a long way to go to take full advantage of the promises of supply

chain integration.

Need for the study:

To study about the domestic transportation of goods its current status! challenges and

re>uirements.

O0&e't#2es of the study:

To study the current status of domestic transportation of goods.

To know the customers problems with transporters and challenges taken to overcome

those problems by customers

To know the latest technology used in domestic transportation of goods.

S'o%e of the study:

The study will help us to know the present status of the Indian logistics.

It helps to know the problems facing by the customers with transporters.

To know the modern technologies used in transportation of goods.



55/84


RESEARC! MET!ODOLO"Y

S+*%$#)- Methodo$o-y:

• S+*%$e u)#t:

The area of survey conducted is angalore city

• S+*%$e s#/e:

)ample si8e for this pro*ect is 50 customers of manufacturing companies!

retail! pharmaceuticals! garments and telecom.

• S+*%$#)- *ethod:

I have used 2on probability sampling i.e. 1andom )ampling.Rese+r'h %$+):

In this research plan of pro*ect the study was conducted by the survey method.51 Taking sample of 50 customers of manufacturing companies! retail!

pharmaceuticals! garments and telecom by commencing sampling using the

research instrument as the >uestionnaire.?1 &ersonal interview is considered as the sample plan.1 ,or this pro*ect area of research is angalore ity.



56/84


D+t+ 'o$$e't#o) *ethod:

I have collected the data from the following sourcesL

• Pr#*+ry d+t+:

The data collected from the company persons.

Yuestionnaires

• Se'o)d+ry d+t+:

ustomers of manufacturing companies.

Internet

Me+sur#)- too$:

,or preparing this pro*ect I have considered >uestionnaire as measuring tool for collecting the

data.



57/84


DATA ANALYSIS AND INTERPRETATION

+fter the data have been fully prepared and entered into the computer! the tabulation

work begins. 1eaearcher should *ust prepare a plan specifying which items of data are to

tabulated and whether each item is to be tabulated separately or in combination with other items.



58/84


TA#$E % 1

Ta&le s'o(in) t'e types o* industries+

S$1No1 I)dustr#es No1of

M+)uf+'ture

rs

Per'e)t+-e

" +utomobile?9ngineering oods

#5 70

onsumer %urables 7 "4

# 1etail 5 "0

4 Kthers # 3

Tot+$ 5>>

,-A./01

,rap' s'o(in) t'e types o* industries+

Analysis+ 0 ,rom the above table we can analy8e that ma*ority of the industries i.e. 70 of them

are manufacturers of automobile and engineering goods. ,ollowed by ne/t ma*ority of the

industries i.e. "4 of them are consumer durables. "0 of them are retail sector and remaining

3 of them are engaged in other industries like telecom! pharmaceuticals and hitech goods.

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59/84


In*erence+0,rom the above analysis we can infer that ma*ority of the industries are

manufacturers of automobiles and engineering goods.

TA#$E%2

Ta&le s'o(in) serices reuired in transportation *or manu*acturers+

S$1No1 Ser2#'es No1 of users Per'e)t+-e

" ,ull truck loads and &art loads ## 33

9ZI- container trailers "0 0

# 1ail 5 "0

4 Kthers 4

Tot+$ 5>>@

,-A./02

,rap' s'o(in) t'e serices reuired in transportation *or manu*acturers+

Analysis+,rom the above table we can analy8e that ma*ority of the manufacturers i.e. 33 of

them use full truck loads and part loads. 0 of them use 9ZI- container trailers."0 of them

use railways. +nd remaining 4 of them use others means for transportation.



60/84


In*erenceL-,rom the above analysis we can infer that ma*ority of manufacturers use full truck

load and part load for transportation.

TA#$E % 3

Ta&le s'o(in) .art loads (ei)'t *or s'ipment+

S$1No1 P+rt $o+ds-s No1 of Users Per'e)t+-e

" "00 0 0

"0" to 500 4

# 50" to "000 "0 0

4 "000 #' 73

Tot+$ 5>>@

,-A./03

,rap' s'o(in) t'e .art loads (ei)'t *or s'ipment+

AnalysisL ,rom the above we can analy8e that 73 of the customers go for more than "000kgs!

0 of them go for 50" to "000kgs and 4 them go for "0" to 500kgs in case of part loads

weight for shipment.



61/84


In*erenceL,rom the above analysis we can infer that ma*ority of the customers use part loads of

more than "000kgs for shipment.

TA#$E % 4

Ta&le s'o(in) t'e .remium o**er i* t'e serice leels (ere met+

S$1No1 Pre*#u* No1 of

Res%o)de)ts

Per'e)t+-e

" 5 4

"0 0 0

# "5 0 0

4 2o 4' 63

Tot+$ 5>>@

,-A./04

,rap' s'o(in) t'e .remium o**er i* t'e serice leels (ere met+

AnalysisL ,rom the above table we can analy8e that ma*ority of the customers i.e. 63 of

them wont pay a premium and only 4 of them pay a premium for transportation service.



62/84


In*erenceL ,rom the above analysis we can conclude that ma*ority of the customers wont pay a

premium if the service levels of transporters were met.

TA#$E%

Ta&le s'o(in) pro&lems *acin) &y t'e customers (it' present set o* transporters+

S$1No1 Pro0$e*s No1of

Res%o)de)ts

Per'e)t+-e

" )hipment trackers 43 6

%amage>@

,-A./0

,rap' s'o(in) t'e pro&lems *acin) &y t'e customers (it' transporters+

AnalysisL ,orm the above table we can analy8e that ma*ority of customers ie.6 of them are

facing the problem of shipment tracking facility.4 of them are facing damageloss and

remaining 4 of them are facing with &K% confirmation.



63/84


In*erenceL ,rom the above we can conclude that ma*ority of customers are facing the problem

of shipment tracking facility in the transporting vehicles

TA#$E%6

Ta&le s'o(in) c'allen)es taen &y t'e customers to oercome 5dama)eloss o* s'ipment+

S$1No1 Re+so)s No1 of

Res%o)de)ts

Per'e)t+-e

" Improper loadingunloading "3 #

Transportation through open truck 5 50

# ad vehicle condition 3 "

4 Improper stuffing and lashing # 3

Tot+$ 5>>@

,-A./06

,rap' s'o(in) c'allen)es taen &y customers to oercome dama)eloss o* s'ipment+

AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 50 of

damageloss is due to transportation through open truck! # is due to improper

loadingunloading! " is due to bad vehicle condition and remaining 3 is due to improper

stuffing and lashing

Babasabpatilfreepptmba.com Page 3#


64/84


In*erenceL ,rom the above analysis we can conclude that a ma*ority of damage loss is due to

transportation through open trucks.

TA#$E%7

Ta&le s'o(in) t'e process o* decidin) on t'e rates to &e paid *or t'e transportation

serices+

S$1No1 Ty%e of r+tes No1of

Res%o)de)ts

Per'e)t+-e

" )pot rates "0 0

1ate of contract by 1,Y #3 7

# +nnual rate contract 4 '

4 Kthers 0 0

Tot+$ 5>>@

,-A./07

,rap' s'o(in) t'e process o* decidin) on t'e rates to &e paid *or t'e transportation serices+

AnalysisL ,rom the above table we can analy8e that 7 of the respondents go by rate of

contract by 1,Y!0 of them go by spot rates and remaining ' of them go by annual rate

contract.

In*erenceL ,rom the above analysis we can infer that ma*ority of the respondents go for rate of

contract by 1,Y.



65/84


TA#$E%!

Ta&le s'o(in) t'e mode o* transportation+

S$1No1 Mode of tr+)s%ort+t#o) No1 of

Res%o)de)ts

Per'e)t+-e

" 1oad #4 3'

1ail " 4

# +ir 4 '

4 )ea 0 0

Tot+$ 5>>@

,-A./0!

,rap' s'o(in) t'e mode o* transportation+

AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 3' of

them use road transportation followed by rail i.e. 4 and remaining ' by air.

In*erenceL ,rom the above analysis we can infer that a ma*ority of transportation is by road.



66/84


TABLE 6

Ta&le s'o(in) ('et'er t'e respondents 'ae any importexport car)o+

S$1No1 S+t#sf#ed No1 of

Res%o)de)ts

Per'e)t+-e

" ]es #' 73

2o " 4

Tot+$ 5>>@

,-A./09

,rap' s'o(in) ('et'er t'e respondents 'ae importexport car)o+

AnalysisL

,rom the above table we can analy8e that large ma*ority of the respondents i.e. 73 of

them have importe/port cargo and only 4 of them do not have importe/port cargo.

In*erenceL

,rom the above analysis we can conclude that a large ma*ority of the respondents have

importe/port cargo.



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TA#$E%1"

Ta&le s'o(in) (eat'er i* yes ('at alue t'ey see in inte)rated serices o* domestic and

international le)+

S$1No1 V+$ues No1 of Res%o)de)ts

Per'e)t+-e

" ,low of information 4 4'

)ingle point of credit 4

# )avings 0 0

4


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TA#$E%11

Ta&le s'o(in) ('et'er t'e importexport decision on transportation is taen &y t'e 58ustom

/ouse A)ent8/A:+

S$1No1 De'#s#o) o) tr+)s%ort+t#o) No1 of

Res%o)de)ts

Per'e)t+-e

" ]es "' #3

2o # 34

Tot+$ 5>>@

,-A./011

,rap' s'o(in) (eat'er t'e importexport decision on transportation is taen &y t'e 58/A+


them say that the decision on transportation is not taken by the Q+ and #3 of them say that

the decision on transportation is taken by Q+.

In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents say that

the decision on transportation is not taken by the ustom Qouse +gent.



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TA#$E%12

Ta&le s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation serices+

S$1No1 S+t#sf#ed No1 of

Res%o)de)ts

Per'e)t+-e

" ]es 4' 63

2o 4

Tot+$ 5>>@

,-A./012

,rap' s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation serices+


them are satisfied with their transportation services and only 4 of them are not satisfied with

their transportation services.

In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents are

satisfied with their transportation services.



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TA#$E%13

Ta&le s'o(in) 'o( t'e customers deal (it' t'e c'an)e in t'e *uel price+

S$1No1 Pr#'e De'#s#o) No1 of

Res%o)de)ts

Per'e)t+-e

" &re decided as per the contract 3 "

-utual consent 44

# 2o increase or decrease given 44

4 Kthers 0 0

Tot+$ 5>>@

,-A./013

,rap' s'o(in) 'o( t'e customers deal (it' t'e c'an)e in t'e *uel price+


them go by mutual consent!44 of respondents wont give any e/tra charges when their is

increase or decrease in the price and remaining 3 of them go as per the pre decided contract.

In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents go by

mutual consent and no e/tra charges given when increase or decrease in the price.

TA#$E%14



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Ta&le s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+

S$1No1 M+)+-e*e)t No1 of

Res%o)de)ts

Per'e)t+-e

" #rd party 44

)elf ' 53

Tot+$ 5>>@

,-A./014

,rap' s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+

AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 53 of the

warehouses or distribution centers are managed by self and 44 of them are managed by # rd

party peoples.


the warehouses are managed by self.

TA#$E%1



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Ta&le s'o(in) (eat'er t'e (are'ouse or distri&ution center dc: and t'e transportation is

mana)ed &y t'e same serice proider+

S$1No1 M+)+-e*e)t of

DCTr+)s%ort+t#o)

No of

Res%o)de)ts

Per'e)t+-e

" ]es 4

2o 4' 63

Tot+$ 5>>@

,-A./01

,rap' s'o(in) (eat'er t'e (are'ouse or distri&ution center and transportation is mana)ed

&y same serice proider+


them say that the warehouse or distribution centers and transportation services are not managed

by same service provider and only 4 of them are managed by same service provider.


the warehouses or distribution centers and transportation services are managed by same service

provider.

TA#$E%16



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Ta&le s'o(in) ('et'er t'e )oods are insured &y customers+

S$1No1 "oods #)sured Per'e)t+-e

" ]es "00

2o 00

Tot+$ 5>>@

,-A./016

,rap' s'o(in) ('et'er t'e )oods are insured &y customers+

AnalysisL ,rom the above table we can analy8e that large ma*ority of the respondents i.e. "00

of the goods are insured by customers.

In*erenceL ,rom the above analysis we can conclude that "00 ma*ority of the respondents

say that the goods are insured! without insurance they wont transport.

TA#$E%17

Ta&le s'o(in) t'at i* t'e )oods are insured t'en on ('ose ris+

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S$1No1 De'#s#o) o) r#s No1 of

Res%o)de)ts

Per'e)t+-e

" Its an open policy 44

Kwners risk "5 #0

# arriers risk "# 3

4 Kthers 0 0

Tot+$ 5>>@

,-A./017

"r+%h sho.#)- th+t #f -oods #)sured the) o) .hose r#s:

AnalysisL

,rom the above table we can analy8e that ma*ority i.e.44 of the customers go for open

policy!#0 of them on owners risk and remaining 3 of them on carriers risk.

In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents go for

open policy.

FINDIN"S



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-a*ority of the respondents i.e. @70A of them are manufacturers of automobile and

engineering goods.

-a*ority of the respondents i.e. @33A of them use full truck loads and part loads.

-a*ority of the respondents i.e. @73A of the customers go for more than "000kgs of part

loads for shipment.

-a*ority of customers i.e. @6A of them are facing the problem of shipment tracking

facility.

-a*ority of the customers i.e. @63A wont pay a premium if the service levels of transporters

were met.

-a*ority of the respondents i.e. @7A of them go for rate of contract by 1,Y.

-a*ority of respondents i.e. @3'A of damage loss is due to transportation through open

truck.


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-a*ority of the respondents i.e. @44A of them go by mutual consent and no e/tra charges

given! when increase or decrease in the price.

-a*ority of the respondents i.e. @53A of them say that the warehouses are managed by self.

-a*ority of the respondents i.e. @63A of them say that the warehouses or distribution

centers and transportation services are managed by same service provider.

-a*ority of the respondents i.e. @"00A of them say that the goods are insured! without

insurance they wont transport.

-a*ority of the respondents i.e. @44A of them go for open policy! while deciding on the risk

factor.



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SU""ESTIONS AND RECOMMENDATIONS

+fter the study! it can be interpreted that domestic transportation has to improve in all the

aspects of this logistics industry. Qowever as a continues improvement e/ercise! the following

points highlighted may be looked into.

• )ince much of domestic transportation is done through road! the transporters should offer

customerspecific transportation and 1eady solutions to part load or full truck load

transportation. The availability of the right e>uipment! at the right place and at the right

time! is what defines their uni>ueness and it results in shorter leadtimes and more

reliable flow of goods.

• Timely delivery services with accuracy and reliability in both domestic and crossborder

deliveries should be the main task of transporters and persistent effort should be made to

make the consignment available on the committed date and time! at a reasonable cost and

with due consideration to safety.

• ustom clearance forms a ma*or part in the uipments like fork lift and

belt conveyors should be used.



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CONCLUSION

+fter the study! we can come to a conclusion that! domestic transportation has to improve

in all the aspects of Indian logistics industry! the logistics industry can still strengthen its position

by looking into the following.

• -any customers are facing the problem of delivery service becauseU the transporters are

not delivering the goods on time. Qence timely delivery services with accuracy and

reliability in both domestic and crossborder deliveries should be the main task of

transporters and persistent effort should be made to make the consignment available on

the committed date and time! at a reasonable cost and with due consideration to safety.

• -a*ority of customers are facing the problem of shipment tracking facility in transporting

vehicles so a tracking tool called &1) system should be adapted to measure! record and

transmit parameters like date! time! speed and location to the command centre using the

local )-&1) network. The system automatically switches over to )-) wherever

&1) coverage is not available.

• In India ma*or transportation is through open trucks hence there is increase in

damageloss when the goods e/posed to atmosphere. )o closed trucks like canters and

container transportation will be a better alternative.

• -any of the goods are damaged due to improper loadingunloading! stuffing and lashing

hence proper material handling e>uipments like fork lift and belt conveyors.



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BIBILIO"RAP!Y

Refere)'e Boos

Indian logistics %r. 1aghuraman


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Guest#o))+#re Do*est#' '+r-o I)d#+

De+r S#rHM+d+*

%ateL

ompany nameL

&erson contactedL

%esignationL

ontact numberL

". ;hat are the type of commodities do you deal inO

. ;hich is the industry verticalO

+utomobiletelecom&harmaceuticals,-9ngineering goodsonsumer durablesQitecharments1etail

Kthers @specifyA

#. ;hat are the type of services do you re>uire in transportationO

• 9ZI- container trailers &ort to factory% and vice versa

• % trailers +nywhere to anywhere

• ,ull truck loads @,T


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4. Incase of part loads! typically how much is the weight for shipmentO

aA"00kgsU bA"0" to 500kgsU cA50" to "000kgs dA"00"kgs

5. &lease provide the list of top 5 lanes and shipment volumes

3. ;hat do you e/cept in terms of service levels from a transporterO @wish listA

7. ;ould you pay a premium! if these service levels were metO If yes! how muchO

aA5 bA"0 cA"5 dA0 eAotherL

'. ;hat are the top # M&roblemsN you face with the present set of transportersO

• )hipment trackers• )ecurity

• %amage


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"0. Windly describe the process of deciding on the rates to be paid for the transportation

services

• )pot rates• 1ate contract by 1,Y

• +nnual rate contract

• KtherL

"". Qow much is monthly spend @in I21A on transportation by road! air and rail

respectively.

". %o you have any importe/port cargoO If yes what value do you see in integrated

services of domestic and international legO

• ,low of information

• )ingle point of credit

• )avings

•


83/84


"3. %o your products need any warehousing or distribution centre in IndiaOIf yes!

Windly provide the location and the space re>uirements.

ftAL

"7. These warehouses or distribution centers are managed by!

• #rd party

• )elf

"'. Is the warehouse or distribution centre and the transportation managed by the same

service providerO

]es2o

"6. If no why notO

+dvantage %isadvantage

0. If yes! whyO

+dvantage %isadvantage

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