Seshadhri Main Project

8/8/2019 Seshadhri Main Project

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CHAPTER 1

INTRODUCTION OF THE STUDY

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

LIMITATIONS OF THE STUDY

1.1 INTRODUCTION

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The purpose of this project is to introduce the concept of the Logistics Management and

to provide the logistics executive with a framework for its implementation. 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. A professional working in the field of logistics management is

called a logistician.

Logistics as a business concept evolved only in the 1950s. This was mainly due to the

increasing complexity of supplying one's business with materials and shipping out

products in an increasingly globalized supply chain, calling for experts in the field who

are called Supply Chain Logisticians. This can be defined as having the right item in the

right quantity at the right time at the right place for the right price and 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. The

following discussion will focus on the planning, strategizing, controlling and

implementing Logistics Management in Ascent Logistics

1.2 OBJECTIVE OF THE STUDY

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To know about Logistics Industry

To compare the effectiveness of logistics management at Ascent Logistics and to

benchmark the organization with respect to the industry.

To have a thorough understanding of how logistics industry works.

To know whether the customers are satisfied with the existing range of service

pattern.

1.3 SCOPE OF THE STUDY:

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This research is conducted to understand the effectiveness of Logistics

Management.

To identify how Logistics is managed in Ascent Logistics.

1.4 LIMITATIONS OF THE STUDY:

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The study is restricted to Chennai city

The Sample size is small

Ascent Logistics is still a new firm in the market

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CHAPTER - 2

INDUSTRY PROFILE

COMPANY PROFILE

REVIEW OF LITERATURE

RESEARCH METHODOLOGY

2.1 INDUSTRY PROFILE

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2.1.1 Logistics (Asia, Middle East)

Logistics is the management of the flow of goods, information and other resources,

including energy and people, between the point of origin and the point of consumption in

order to meet the requirements of consumers. Logistics involve the integration of

information, transportation, and inventory, warehousing, material-handling and

packaging.In terms of value, global logistics industry has been estimated to be more than

USD 235 billion and make up significant part of the GDP with regard to India. The

Middle East is currently India's top export destination for a burgeoning consumer

electronics sector. Exports reached $175 million in 2005-06, an increase of 96 percent

over the previous year, according to the Electronics and Computer Software Export

Promotion Council (ESC). The growing trade reciprocity with China, 63 percent of

respondents to a recent China supplier survey, Middle East Export / Import

Opportunities, cited the Middle East as the next "hot" import market for Chinese-

manufactured goods.

On the positive point of view, new opportunities are opening up for the sector. Trade

volumes both overseas and inland are growing very fast. The pace of growth in the

specialized sectors like Liquid Natural Gas (LNG), Containers, Goods, Electronic

Equipments etc. are comparatively much higher. Integrated logistics and multimode

transportation are opening up new business for logistics/ shipping companies.

2.1.2 Logistics Management and Logistics Management Software

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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 related information between the point of origin and the point of consumption in order

to meet customers' requirements. A professional working in the field of logistics

management is called a logistician.

Software is used for automating logistics activities which helps the supply chain industry

in automating the work flow as well as management of the system. Very few generalized

software are only available in the new market in the said topology. This is because there

is no common rule to generalize the system as well as work flow even though the practice

is more or less the same. Most 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 mainly in Conventional Departments and for Container Trucking.

a. Business Logistics

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Logistics as a business concept evolved only in the 1950s. This was mainly due to the

increasing complexity of supplying one's business with materials and shipping out

products in an increasingly globalized supply chain, calling for experts in the field who

are called Supply Chain Logisticians. This can be defined as having the right item in the

right quantity at the right time at the right place for the right price and 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.

In business, logistics may have either internal focus (inbound logistics), or external focus

(outbound logistics) covering the flow and storage of materials from point of origin to

point of consumption. The main functions of a qualified logistician include inventory

management, purchasing, transportation, warehousing, consultation and the organizing

and planning of these activities. Logisticians combine the professional knowledge of each

of these functions so that there is a coordination of resources in an organization. There

are two fundamentally different forms of logistics. One optimizes a steady flow of

material through a network of transport links and storage nodes. The other coordinates a

sequence of resources to carry out some project.

b. Production Logistics

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The term is used for describing logistic processes within an industry. The purpose of

production logistics is to ensure that each machine and workstation is being fed with the

right product in the right quantity and quality at the right point in time.

The issue is not the transportation itself, but to streamline and control the flow through

the value adding processes and eliminates non-value adding ones. Production logistics

can be applied in existing as well as new plants. Manufacturing in an existing plant is a

constantly changing process. Machines are exchanged and new ones added, which gives

the opportunity to improve the production logistics system accordingly. Production

logistics provides the means to achieve customer response and capital efficiency.

Production logistics is getting more and more important with the decreasing batch sizes.

Even 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.

2.2 COMPANY PROFILE

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Introduction

ASCENT LOGISTICS involve in the area of Freight, Warehousing, transportation and

cross docking, now established a tie-up with its associates having vast experience and

excellent rapport with State and Central Government Offices to serve our client in the

areas of value added activities like Indirect Taxes such as Central Excise, Sales Tax and

DGFT matters thus increasing the scope of its operations

a. Vision

To become a leading freight, transportation, clearing and logistics company in India. 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 provide timely, speedy and efficient service. To achieve 100% customer satisfaction.

To stay evergreen Organization in the field. To set the standard for excellence in logistics

through total commitment to quality in people and customer service, with superior

financial results.

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DETAILS OF SERVICES OFFERED

FREIGHT FORWARDING

Arranging Freight forwarders from any corner of world into India.

Pick-up from place of shipment and deliver at the door steps.

Monitoring the movement of consignment during transit

Updating Customers about the movement of consignment in transit.

CUSTOMS CLEARANCE - IMPORTS

Filing of Bill of Entry

Processing

Inspection of consignment

Execution of Bonds and Bank Guarantees as and when required.

Clearance and delivery of goods.

Arranging for Chartered Engineers Certificate in case of Import of Second HandGoods / Second Hand Capital Goods

CUSTOMS CLEARANCE PROJECT IMPORTS

Execution of Bonds

Registration

Filing of Bill of Entry

Arranging Chartered Engineer for valuation

Processing

Clearance

Follow-up for installation certificate from Customer

Fulfilling of obligation to Customs after installation

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CUSTOMS CLEARANCE - EXPORTS

Pick-up consignments from Customers place

Offer for Inspection by Customs

Arrange for sealing of Consignment

Filing of Shipping Bill

Processing of Shipping Bill

Obtaining let-export Order

Communicating to Customers

CUSTOMS CLEARANCE RE-EXPORT AND RE-IMPORT

Collection of Consignments along with related documents

Filing of Shipping Bill / Bill of Entry as the case may be.

Arranging for inspection with reference to Import / Export documents as the case maybe.

Arranging for Chartered Engineers Certificate where ever necessary

Processing of Shipping Bill / Bill of Entry as the case may be.

Obtaining let-export order / Gate pass as the case may be.

Arranging for delivery of goods.

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VALUE ADDED SERVICES.

Assistance in getting warehouse licenses

Assistance in getting registrations / permissions from STPI

Assistance in getting permissions from Customs for STPI / 100% EOU.

Assistance in getting Annexure III from Central Excise to avail benefit ofnotifications wherever necessary.

Assistance in getting End use Certificates from Central Excise Department as per theprovisions of Notification No. 21/2002 to get benefit of Customs Duty.

Assistance in canceling the End Use Bonds / P D Bonds / Undertaking Bonds etc.,

whether executed through us orthrough any other agent.

Collection of Customs Duty Cheques / Drafts and documents from Customers placeor Bank as the case may be.

Assistance in getting licenses from DGFT such as IEC, EPCG, Advance license forDirect and Deemed Exports, or any other specific licenses.

Assistance in getting in Duty Refunds including Project Deposits and EDD.

Assistance in getting Duty Drawback under Section 74 and 75

Assistance in obtaining SVB Circular including filling SVB Questionnaire,submission, site visit, follow-up and final order both at Chennai and Bangalore.

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2.3 REVIEW OF LITERATURE

LOGISTICS MANAGEMENT

a. Demand Chain Management

Understanding demand requires a comprehensive knowledge of your customers, You

should know what products / services are demanded by your customers; how do they

make their purchases, how often they order and what constraints they face on the

purchasing process. Very few companies have mastered this concept. Ascent Logistics

was able to know all the above concepts through considerable focus into customer needs

and grievances.

b. Achieving Competitiveness in Logistics, Freight, Supply Chain

Reduced lead time, inventories, lower operating costs, product availability and customer

satisfaction are the benefits which grow out of effective logistics and supply chain

management. The decisions usually carried on by Ascent Logistics; cover both the long

term and short term. Strategic decisions deal with the corporate policies, and look at

overall design and logistic chain structure. Tactical, Operational decisions are those

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dealing with everyday activities and problems of the organization. Change is the

inevitable factor for each and every day situation within and outside the organization. The

decisions must take into account the strategic decisions already in place. Therefore

organization must structure the logistics ideas through long term analysis and at the same

time focus on every time situations. Furthermore, market demands, customer needs,

transport considerations and pricing constraints are the factors in order to structure the

logistics, freight. Ascent Logistics realized the fact and are prepared to face any

unexpected situations like inflation/ deflation in the economy, price factors, climatic

problems etc.

c. Vendor Managed Inventory

Vendor managed inventory, coordinated by an integrated logistics system, allows

inventory to be optimized together with transportation. Ascent Logistics try to know the

product value as well as storage capacity (mainly warehouse how much to outsource).

As a routine job the company collects information on consumption rate, current inventory

levels, forecasted demand and status of shipments. Thus the system can optimize the right

quantities of replenishments to be sent at the right time to ensure that service levels are

maintained while minimizing cost of inventory and transportation.

d. Mode of Transportation

Transportation generally is movement of product, goods, raw materials to different stages

in supply chain. Essentially in supply chain logistics plays a major role, the manner in

which product is moved from one location to another is through road, rail, truck, air, sea.

Ascent Logistics essentially uses four modes for their operation; they are road, rail, air

and sea. The goods being delivered to end customer is brought to port or to the place

through containers or other methods like wagons, or cold enclosures like frozen storage.

Ascent Logistics strategically manage the procurement, movement, and storage of

materials, parts and finished inventory through the organization and its marketing

channels. Essentially from companies angle, there are two categories, initially inbound

logistics, i.e., handling goods that are brought into the company, through road transport

and storing and making them available. Another main phase is the outbound logistics,

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taking the cargo or the goods through channels, and is being done with considerable

effort to various parts of the world as per the customer requirements.

i. Intermodal Transportation System Used

This is the use of one or more than one mode of transport to move a

shipment to its destination. Ascent Logistics use this in an efficient way.

Variety used is road and sea in the case of organization. Referring to

Global trade, this is the only option as factories and markets may not be

next to ports. It helps reduce cost in operation. Helps reduce cost that

cannot be matched by single mode. Essentially it is very convenient for

shippers as well as consignee.

ii. Attributes: The price charged is reasonable with regard to the consignee,

as organization has got a long term relation with all the customers. Usually

goods being transported are electronics and frozen stocks from warehouse.

The relevant focus is on warehouse, transportations services offered.

Service is another aspect which focuses the advanced need of the

customer, initially with proper timing maintenance, order management.

e. The Challenge Faced by Organizations

In todays world, competence is taking on new dimensions. The ability to compete is

being determined by the degree of responsiveness to customers and key issues handling.

How fast you deliver the goods/ products, what the price paid by customers and what

value customer is getting throughout the service is considered in a schematic and ordered

way. Markets are quick demanding and customization of each logistics activities is

essential for each customer, and has become the essential factor in logistics management.

Ascent Logistics faces lot of ups and downs in each operation and improves operation on

each situation while dealing with each customer. Ascent Logistics dominant

improvement methods used are:

i. What are the customer expectations?

ii. How are your competitors performing in each aspect of operations?

iii. Determining the gaps in each phase and try to fill it.

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2.3.1 Studies on Inventory, Back Order, Lost Sales, Stock Outs, Packaging and

Packaging Materials.

a. Inventory

Inventory is a list for goods and materials, or those goods and materials themselves, held

available in stock by a business. Inventory are held in order to manage and hide from the

customer the fact that manufacture/supply delay is longer than delivery delay, and also to

ease the effect of imperfections in the manufacturing process that lower production

efficiencies if production capacity stands idle for lack of materials.

There are three basic reasons for keeping an inventory:

i. Time - The time lags present in the supply chain, from supplier to user at every

stage, requires that you maintain certain amount of inventory to use in this "lead

time"

ii. Uncertainty - Inventories are maintained as buffers to meet uncertainties in

demand, supply and movements of goods.

iii. Economies of scale - Ideal condition of "one unit at a time at a place where user

needs it, when he needs it" principle tends to incur lots of costs in terms of

logistics. So Bulk buying, movement and storing brings in economies of scale,

thus inventory.

[The Management of Business Logistics, Coyle, Bardi,

Langley]

b. Back Order

A company having to back order an item that is out of stock will incur expenses for

special order processing and transportation. The extra order processing traces the back

orders movement, in addition to the normal processing for regular replenishments. The

customer usually incurs extra transportation charges because a back order is typically a

smaller shipment and often incurs higher rates. The seller may need to ship the back

ordered item a longer distance. The seller may need to ship the back order by a faster and

more expensive means of transportation. We could estimate the back order cost by

analyzing the additional order processing and additional transportation expense. If

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e. Packaging and Packaging Materials

Mainly this is a main division in warehouses. Packaging interacts with the

logistics system in number of different and important ways. The size of and protection

afforded by the package affect the type of materials handling equipment used and the

level of product damage incurred. The package has an impact on the stacking height of

the product in the warehouse and thereby on the utilization and cost of the warehouse.

Packaging is quite important for effective damage protection, not only in the warehouse

but also during transportation. Packaging may contribute nothing to a products value but

its influence on logistics costs is considerable.

Packaging size may affect a companys ability to use pallets or shelving or

different types of materials handling equipment. Many companies design packages that

are too wide or too high for efficient use of either a warehouse or transportation carrier.

So, coordinating packaging with warehousing and with transportation is quite important.

We need to note, poor packaging can contribute to higher handling charges and result in

lower future sales if the goods arrived damaged.

Two types of packing exist: consumer packaging and industrial packaging.

Consumer packaging provides information important in selling the product. i.e. giving the

product most visibility when it comes with others on the retail shelf. On the other hand

industrial packaging is of primary concern to the logistics.

Materials generally used in previous years was wood and other harder materials

for no breakage, but it added considerable shipping weight to the transport and it further

increased transportation cost. Generally new era has come up with efficient packaging

materials, organization nowadays use most cost effective packaging with focus on

security and minimizing cost. Cushioning materials protect the product from shock,

vibration, and surface damage during handling. Cushioning materials include shrink

wrap, air bubble cushioning, cellulose wadding, and plastics. Companies often use shrink

wrap for consumer packaged goods. Packaging also helped reduce pilferage and product

tampering in warehouse and during transport. Air bubble cushioning is made of plastic

sheets that contain air pockets. There are other factors while considering packaging they

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are environmental protection. They are considered in situations of perishable items like

food and drugs.

2.4 RESEARCH METHODOLOGY

Research methodology is the systematic design, collection, analysis and reporting

of data and findings relevant to a specific marketing situation facing a company. It may

be understood as a science of study how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them.

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific investigation. The advanced learners Dictionary of current

English lays down the meaning of research as A careful investigation or inquiryespecially through search for new facts in any branch of knowledge.

Redman and Mory defines research as A systemized effort to gain new

knowledge.

D.Selsinger and M.Stephenson in the Encyclopedia of social sciences define

research as the manipulation of things, concepts or symbols for the purpose of

generalizing to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art.

2.4.2 RESEARCH DESIGN:

A research is purely and simply the framework or plan for a study that guides the

collection and analysis of the data.The objective of the study has been achieved byusing both Primary and Secondary Datas. The datas obtained for the study was

primarily from field investigation carried out among the employees of Ascent

Logistics, on the basis of an extensive questionnaire.

2.4.2.1 Qualitative approach:

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Qualitative approach to research is concerned with subjective assessment

of attitudes, opinions and behavior. Research in such a situation is a function of

researchers insights and impressions. Such an approach to research generates

results either in non-quantitative form or in the form which are not subjected to

rigorous quantitative analysis.

2.4.3: DATA COLLECTION:

The type of data collection adopted for this research was primary data. Data was

collected from the employees personally with the help of questionnaire. Hence, more

qualititative and better responses were obtained from the employees.

2.4.3.1 Collection of primary data:

The primary data was collected during the course of doing the research.

The data has been obtained through observation and direct communication with

respondents through personal interviews and questionnaire.

2.4.3.2 Collection of Secondary data:

Secondary data means data that are already available i.e., they refer to the

data, which have been already collected and analyzed by someone else. Here the

Secondary data has been taken from various sources. Secondary data may either

be published data or unpublished data. Usually published data are available in:

Technical and trade journals.

Books, Magazines and newspaper.

Reports and publication of various associations connected with

business and industry, banks, stock exchanges.

Reports prepared by research scholars, universities, Economies.

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2.4.4 POPULATION SIZE:

The population size of this research is the entire members working in the Ascent

Logistics

The members working in the Ascent Logistics are highly cooperative and have a good

communication within them.

2.4.5 Sample Unit:

Sample unit consists of the members of Ascent Logistics

2.4.6 Sample Size:

The numbers of respondents surveyed in Ascent Logistics are 30.

2.4.7 QUESTIONNAIRE DESIGN:

This method of data collection is very common and has been used to perform this

research. The questions were carefully framed keeping in mind the objectives of the

research. The questionnaire was prepared in an unbiased manner giving enough scope to

the employees to speak out what they feel. A total of 20 questions were asked in the

questionnaire.

Questionnaire type:

There are four types of Questionnaires, they are as follows:

Non- disguised structured questionnaire

Non- disguised non-structured questionnaire

Disguised structured questionnaire

Disguised non-structured questionnaire

The Non- disguised structured questionnaire is used for the study. This approach

employs a standardized questionnaire to collect the data on belief, feelings and attitudes

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from the respondents. So nothing about the purpose of study is concealed from the

respondents.

2.4.7.1 Types of Questions

The Questions are of two types, they are as follows:

Open-ended questions

Close-ended questions

2.4.7.1.1 Open-ended questions: These questions are used to get the

suggestion from the respondents in order to get feedback to the company.

2.4.7.1.2 Close-ended questions:

It is of two types, they are as follows

2.4.7.1.2.1 Dichotomous (Yes/No) question

In this type of questions the respondents are given two choices in

which the respondents has to select one. For this type of questions we can

apply statistical tools like internal estimate method.

2.4.7.1.2.2 Multiple choices questions:

In this type of questions the respondents are given 4-5 choices in

which the respondents has to select one. For this type of questions we can

apply statistical tools like Chi-square and weighted average method.

2.4.8 STATISTICAL TOOLS USED:

The collected data is processed, analyzed and interpreted to obtain a certain level

of quality in the analysis of data. Editing is the process by which data collected is

prepared for subsequent coding which in turn is the procedure of classifying the answers

to a question into meaningful categories. After data is collected, it is processed; various

suitable statistical techniques were used to obtain the results.

Tabulation Method

Percentage Method

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Bar Diagram

a. Simple Bar Diagram

b. Multiple Bar Diagram

Pie diagram

Statistical Tool applied for the project is

Percentage Analysis Method.

2.4.8.1 Tabulation Method:

The data has to be presented in a tabular form in an orderly way before the

analysis and interpretation of data. Tabulation is defined as the order of

systematic representation of numerical data and columns, designed to facilitate

the comparison between the figures.

Tabulation is a statistical tool used for condensation of the data in a

statistical tool used for condensation of the data in a statistical process. Thus all

the data collected are tabulated for easy analysis.

2.4.8.2 Percentage Method:

Percentage method is used for analysis and interpretation for most of the

collected data. Further the data tabulated and classified under different heads for

administering the Percentage method. Percentages refer to a special kind of ratio,

which are used in making comparison between 2 or more series of data.

Percentages are used to describe relationships. It can also be used to compare the

relative terms, distributions of two or more series of data.

2.4.8.3 Bar Diagram:

Bar diagram is a popular form of diagrammatic representation. This

diagram consists of series of rectangular bars standing on a common base. This

comparison among the bars is only based on their lengths. The length of the bar

diagram is proportional to their magnitude.

2.4.8.4 Simple bar Diagram:

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A simple bar diagram represents single variables like sales, production,

profits, etc.

2.4.8.5 Multiple bar Diagrams:

Multiple bar diagram is used for comprising two or more sets of statistical

data. Bars are constructed side by side to represent the sets of values for

comparison.

2.4.8.6 Pie Diagram:

The pie diagram ranks its components and a circle can be divided in to

sectors. As their 360 degrees at the centers, proportionate sectors are cut takingthe whole data equal to 360 degrees.

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2.4.8.7 STATISTICAL TOOL APPLIED FOR THE PROJECT

2.4.8.7.1 Percentage analysis:

Percentage refers is a special kind of ratio. Percentages are used in

making comparison between two or more series of data. They are used to describe

relationship. More over percentages can also be use to compare the relative terms

of the distribution of two or more series of data.

Formula:

Percentage of Respondents = No. of respondents * 100

Total no. of respondents

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CHAPTER - 3

DATA ANALYSIS AND

INTERPRETATION

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3.1 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 datacollected from the questionnaire was entered into spread sheet and the data has been

interpreted. The questionnaire comprises of fourteen questions.

The topics covered are with decisions of each operational area, employee numbers

of each firm, service offering, organizational effectiveness and customer satisfaction.

a) Which are the logistics services organizations offers?

Table -3.1.1 Service Offer

Sl. No. Service Percentage

1 Freight 100

2 Warehousing 89

3 Crossdocking 88

4 Network Design 66

5 Value Adding 98

Chart-3.1.2 Service Offer

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The pie chart above shows the service offer of each organization. The chart shows

that 100% of the respondents provide freight service and almost 90% provide

Warehousing and 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) Operating with other logistical providers and reasons for decisions.

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Table -3.2.1 Operate With Logistical Providers

Sr. No. Decisions Percentage

1 Operational Stability 112 Cost Effectiveness 10

3 Customer Needs 36

4 Other 96

Chart-3.2.2 Operate With Logistical Providers

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The pie chart above shows the operational decisions and reasons for operations with

other logistical providers. The chart shows that 96% of the respondents operate with

other service providers for different reasons like coordination, clearance, bulk

operations etc. Almost 36% have operations with other providers as per customer

needs. Only 11% and 10 % were providing service along with other providers for the

purpose of operational stability and cost effectiveness respectively. It is stated that

96% of organizations operate with other logistical providers and remaining 4% asstandalone.

C) Which is the area of the activity, that organizations feel best in their service?

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Table-3.3.1 Best Activity

Sl. No. Service Percentage

1 Freight 98

2 Warehousing 86

3 Crossdocking 87

4 Network Design 4

5 Value Adding 97

Chart -3.3.2 Best Activity

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The pie chart above shows the best activity which organization feels in their operations.

The pie chart shows 98% of organizations have freight in the predominant area, followed

by 86% of warehousing. Another significant area is Crossdocking with 87% as best

activity. There is only a minor activity based on network design with 4% in pie graph.

Most of the organizations have a mixture of all the activities in their day to day and 97%

of organization says other activities bring in more revenue and the best of their activities,

which includes packaging, labeling etc.

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d) What are the locations to which the company caters to?

Table 3.4.1 Catering Locations

Sl. No. Catering Locations Percentage

1 Within India 802 Outside India 20

Chart 3.4.2 Catering Locations

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Catering Location

Within India

80%

Outside India

20%

Within Indi

Outside In

The chart shows 100% of organizations cater to consumers of which 80% are provided to

customers within India and 20% to customers who are outside India.

e) Which division of logistical activity earns the maximum rate ofprofit?

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Table 3.5.1 Maximum Rate of Profit (Ascent Logistics)

Profit

Scale

Freight Passenger Warehousing NetworkDesign

Cross

dockTransportation Other

Ascent

Logistics

10 5 10 5 10 10 10

Chart 3.5.2 Maximum Rate of Profit (Ascent Logistics)

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Ascent Logistics

0246

81012

Freight

Passenge

r

Warehou

sing

CrossD

ockin

g

NetW

orkDesign

Tran

sport

ation

Othe

r

The bar chart shows each organizations maximum rate of profit in each area on scale of

1-10, where 1 denotes least profit, 5 denotes average profit and 10 denotes the service

that fetches excellent profit. The chart shows Ascent Logistics has ample amount of profit

in Freight, Transportation, Warehousing, crossdocking and other value added activities.

Other areas such as Passenger and Network Design fetch average profit.

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

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Table-3.6.1 Customer Retention

Sl. No. Service Rating

1 Customer Complaints given preference 100

2 Phone 1003 Service Intimation 100

4 Gifts 3

5 Email 100

6 Fax 11

7 Other 100

Chart-3.6.2 Customer Retention

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The above chart shows preference of complaints and how organization follow up to retain

customers. Its been noted that cent percent of organization follow up with customers for

customer complaints. Most of the preferable methods for contacting customers for new

service intimation and customer realtionship are telephone, email and other methods like

marketing / sales, customer office visit with 100 rating. The least preferred are gifts and

fax with 3 and 11 in rating.

3.9 CHI SQUARE ANALYSIS

Logistics Customer Profitability Total

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Management Service

Good 12 2 14

Average 3 10 13

Bad 0 3 3

Total 15 15 30

Setup Hypothesis:

Null Hypothesis (H0): There is no association between Customer focus & Profitability

Alternative Hypothesis (H1): There exists some association between Customer focus &

Profitability.

Chi Square Table:

Oi Ei Oi Ei (Oi Ei)2 (Oi

Ei)2/ Ei

12 7 5 25 3.57

3 6.5 -3.5 12.25 1.88

0 1.5 -1.5 2.25 1.5

2 7 -5 25 3.57

10 6.5 3.5 12.25 1.88

3 1.5 1.5 2.25 1.5

Total 13.9

(Since the Value of Ei is more than 5)

Calculation of Table value:

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Degree of Freedom, v = (r-1) (c-1)

v = (3-1) (2-1)

= 2

Consider the level of Significance as 5% i.e., 0.05

Therefore, the Chi Square table value for LOS (0.05) at d.f, v = 2 is,

Comment:Here, Chi Square Calculated Value is >than Chi Square Table Value

So, Reject H0

i.e.,there exists some association between Customer service & Profitability.

3.9.2 WEIGHTED AVERAGE METHOD

Variables 1 2 3 Weighted Average

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2 tab = 5.99


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Sales Activities 1 12 2 10.33

Technical Support 2 2 11 12.33

Customer Service 13 1 1 6

The above table is used to analyze the weighted average of the Strategy involved in the

Logistics Management. The Calculation is as follows:

Calculation:

Weighted Average = (1*1) + (12*2) + (2*3) / 3

(For Sales Activites) = 10.33

Similarly,

For Technical Support = 12.33

For Customer Service = 6

Result:

Therefore from the above calculation it is clear that the Weighting Average

method used for evaluate a Strategy in the Logistics Management is 6.

(Since the lower WA has Higher Weightage)

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CHAPTER 4

FINDINGS

SUGGESTIONS

CONCLUSION

4.1 Findings

i) The quality of service as rated is above average in the case of Ascent 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 Ascent Logistics as their first choice

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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 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) Decision making is excellent for organization with respect to other

organization in the industry.

v) Operation with other logistical providers should be given more preference to

achieve cost effectiveness.

vi) The organization client handling, ease of service and customer service is

having remarkable difference from the industry standards. The main focus

need to be on the ease of website and employee efficiency. From the data we

can infer that areas which need to be improved are Website and employee

efficiency. Employee efficiency can be improved with a proper Human

Resource department.

vii) Service offer presently has good impact with other organizations service

offers. The remarkable areas are Freight, Crossdocking, and Value Adding.

Company can further enhance operations of Value Adding through proper

methods.

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

Warehousing and Cross-Docking. Another important area where an

organization feels very lucrative is Value Adding.

ix) It is observed that most of the organizations operate with other logistical

providers. 96% of organizations are doing it and remaining 4% organizations

stays independent. It is inferred that for efficient logistical activity, support

from other organizations is essential.

x) Tactical decisions are mostly followed by organizations followed by

operational and a few strategically.

xi) Freight and Value Adding is considered to be the best service which

organizations offer in industry. Another major observation is about Network

Design, it has low value and no organization feels it to be lucrative area in

industry.

xii) Organization can enhance operations to European areas and another major

favourable area is Africa. From data Lintas can get good market share if they

cater to African regions.

xiii) 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.

xiv) Commenting on ease of service, website and employee efficiency, the

organization needs to further improve.

xv) The efficient methods for retaining customers are Phone, Email, Sales Agents

and least preferred methods are Fax and Gifts.

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4.2 Suggestions

i) Organization can further strenghten the employee strength in the

documentation department. This can lead to further rapidity for operations.

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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.

Ascent 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 Ascent 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

Ascent Logistics to the top most position when bench marked in the coming years.

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Seshadhri Main Project

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