LOGISTICS MANAGEMENT - INTRODUCTION

Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (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 rather to the customers’ delight. 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 to the right target customers (consumer); and it is the science
of process having its presence in all sectors of the industry.

b. Origin and Definition of Logistics:

The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word, calculation,
reason, speech, oration"). Logistics is considered to have originated in the military's need to supply
themselves with arms, ammunition and rations as they moved from their base to a forward position.
In ancient Greek, Roman and Byzantine empires, there were military officers with the title
‘Logistikas’ who were responsible for financial management and distribution of supplies.

c. Objective of Logistics Management:

The primary objective of logistics management is to effectively and efficiently move the supply
chain so as to extend the desired level of customer service at the least cost. Thus, logistics
management starts with ascertaining customers’ needs till their fulfilment through product
supplies. However, there are some definite objectives to be achieved through a proper logistics
system. These can be described as follows:

1. Improving customer service:

An important objective of all marketing efforts, including the physical distribution activities, is to
improve the customer service. An efficient management of physical distribution can help in
improving the level of customer service by developing an effective system of warehousing, quick
and economic transportation, and maintaining optimum level of inventory.

2. Rapid Response:

Rapid response is concerned with a firm's ability to satisfy customer service requirements in a
timely manner. Information technology has increased the capability to postpone logistical
operations to the latest possible time and then accomplish rapid delivery of required inventory.

3. Reduce total distribution costs:

The cost of physical distribution consists of various elements such as transportation, warehousing
and inventory maintenance, and any reduction in the cost of one element may result in an increase
in the cost of the other elements. Thus, the objective of the firm should be to reduce the total cost
of distribution and not just the cost incurred on any one element.

4. Generating additional sales:

A firm can attract additional customers by offering better services at lowest prices. For example,
by decentralizing its warehousing operations or by using economic and efficient modes of
transportation, a firm can achieve larger market share. Also by avoiding the out-of-stock situation,
the loss of loyal customers can be arrested.

5. Creating time and place utilities:

The products are physically moved from the place of their origin to the place where they are
required for consumption; they do not serve any purpose to the users. Similarly, the products have
to be made available at the time they are needed for consumption.
6. Price stabilization:

It can be achieved by regulating the flow of the products to the market through a judicious use of
available transport facilities and compatible warehouse operations. By stocking the raw material
during the period of excess supply and made available during the periods of short supply, the prices
can be stabilized.

7. Quality improvement:

The long-term objective of the logistical system is to seek continuous quality improvement. Total
quality management (TQM) has become a major commitment throughout all facets of industry. If
a product becomes defective or if service promises are not kept, little, if any, value is added by the
logistics. Logistical costs, once expended, cannot be reversed.

8. Movement consolidation:

Consolidation one of the most significant logistical costs is transportation. Transportation cost is
directly related to the type of product, size of shipment, and distance. Many Logistical systems
that feature premium service depend on high-speed, small shipment transportation. Premium
transportation is typically high-cost. To reduce transportation cost. It is desirable to achieve
movement consolidation.
d. Logistics Management Function

Logistics is the process of movement of goods across the supply chain of the company. This
process is consist of various functions, which have to be properly managed to bring effectiveness
efficiency in the supply chain of organization. The major logistical function are shown in figure
 Logistics
Functions

Inventory Material Information

Order Ware - Transpor- Handling & Packaging
Manage - housing tation Flow
Processing Storage
ment

1. Order processing:

The starting point of physical distribution activities is the processing of customers’ orders. In order
to provide quicker customer service, the orders received from customers should be processed
within the least possible time. Order processing includes receiving the order, recording the order,
filling the order, and assembling all such orders for transportation, etc. the company and the
customers benefit when these steps are carried out quickly and accurately. The error committed at
this stage at times can prove to be very costly.

Order processing activity consist of the following

 Order checking in any deviations in agreed or negotiation terms
 Prices , payment and delivery terms
 Checking the availability in of the material stocks
 Production and material scheduling for storage
 Acknowledge the order, indicating deviation

2. Warehousing
Warehousing refers to the storing and assorting products in order to create time utility. The basic
purpose of the warehousing activity is to arrange placement of goods, provide storage facility to
store them, consolidate them with other similar products, divide them into smaller quantities and
build up assortment of products. Generally, larger the number of warehouses a firm has the lesser
would be the time taken in serving customers at different locations, but greater would be the cost
of warehousing. Thus, the firm has to strike a balance between the cost of warehousing and the
level of customer service.

Major decision in warehousing is as follow:

 Location of warehousing facility
 Number of warehousing
 Size of warehouse
 Design of the building
 Ownership of the warehouse

3. Inventory Management:

Linked to warehousing decisions are the inventory decisions which hold the key to success of
physical distribution especially where the inventory costs may be as high 15 as 30-40 per cent
(e.g., steel and automobiles). No wonder, therefore, that the new concept of Just-in-Time-
Inventory decision is increasingly becoming popular with a number of companies. The decision
regarding level of inventory involves estimate of demand for the product. A correct estimate of the
demand helps to hold proper inventory level and control the inventory costs. This is not only helps
the firm in terms of the cost of inventory and supply to customers in time but also to maintain
production at a consistent level. The major factors determining the inventory levels are: The firm’s
policy regarding the customer service level, Degree of accuracy of the sales forecasts,
Responsiveness of the distribution system i.e., ability of the system to transmit inventory needs to
the factory and get the products in the market. The cost inventory consists of holding cost (such as
cost of warehousing, tied up capital and obsolescence) and replenishment cost (including the
manufacturing cost).

4. Transportation:
Transportation seeks to move goods from points of production and sale to points of consumption
in the quantities required at times needed and at a reasonable cost. The transportation system adds
time and place utilities to the goods handled and thus, increases their economic value. To achieve
these goals, transportation facilities must be adequate, regular, dependable and equitable in terms
of costs and benefits of the facilities and service provided.

5. Information:

The physical distribution managers continuously need up-to-date information about inventory,
transportation and warehousing. For example, in respect on inventory, information about present
stock position at each location, future commitment and replenishment capabilities are constantly
required. Similarly, before choosing a 16 carrier, information about the availability of various
modes of transport, their costs, services and suitability for a particular product is needed. About
warehousing, information with respect to space utilization, work schedules, unit load performance,
etc., is required.

6. Facilities:

The Facilities logistics element is composed of a variety of planning activities, all of which are
directed toward ensuring that all required permanent or semipermanent operating and support
facilities (for instance, training, field and depot maintenance, storage, operational, and testing) are
available concurrently with system fielding.

Planning must be comprehensive and include the need for new construction as well as
modifications to existing facilities. Facility construction can take from 5 to 7 years from concept
formulation to user occupancy. It also includes studies to define and establish impacts on life cycle
cost, funding requirements, facility locations and improvements, space requirements,
environmental impacts, duration or frequency of use, safety and health standards requirements,
and security restrictions. Also included are any utility requirements, for both fixed and mobile
facilities, with emphasis on limiting requirements of scarce or unique resources.
Prospects of Growth in the Industry

In years gone by, the traditional warehousing and logistics facility was located by railroad tracks,
a water port, and/or freeways, usually in the least desirable parts of cities or large towns. This
stereotype then faded as gigantic, state-of-the-art facilities began to sprout in more rural areas on
the outskirts of transportation and population hubs. The World started beginning to see such
facilities showing up in even less "traditional" areas. Modern warehouses now are being located
in carefully manicured industrial parks that are sprouting as fast as the corn and wheat once did in
these open spaces-often in out-of-the-way places. Why the emphasis on such locations for logistics
companies?

Much of it is due to the great flux that the logistics industry has been undergoing in the first three
years of the 21st century. Most of these changes are being driven by a growing trend in the
manufacturing and retail sectors to form partnerships with companies to which they can outsource
non-core logistics competencies-3PL providers.
 PURPOSE OF THE STUDY

RESEARCH DEFINITION:-
Systematic investigative process employed to increase or revise current knowledge by
discovering new facts. It is divided into two general categories:

(1) Basic research is inquiry aimed at increasing scientific knowledge.

(2) Applied research is effort aimed at using basic research for solving problems or developing
new processes, services.

Research begin with an issue that comes from an observation .Somewhat happen to me, which
was really curious to know which is more preferred by customer .comparative study of GLS PVT
and VRJ Logistics PVT which brand is more preferred by the customer in terms of price ,quality
,brand values.

CONCEPT OF STUDY
The basic concept of my research has TO find out the best services between GLS PVT and
VRJ Logistics PVT in new Mumbai for that i started my research by first reading the history
and current project of both companies then i chose my target market ,then i did an questioners to
find out the response of the ends users about the product and also collected primary and
secondary data which was very important to reach the conclusion and come to know about the
facts that GLS is most preferred .

RESEARCH DESIGN:-
RESEARCH OBJECTIVE

Scope of The Study

 TO DO COMPARATIVE STUDY OF LOGISTICS SERVICES OF GLOBAL

LOGISTICS SOLUTIONS AND VRJ LOGISTICS SOLUTIONS IN KHARGHAR.

 TO KNOW ABOUT ATUAL QUALTY OF SERVICE.

 THE STUDY PROVIDES THE IMPACT OF THE LEVEL OF LOGISTICS

SERVICE IN THE MARKET.

 THE PROJECT DETERMINES THE TRADE AND LOGISTICS MANAGEMENT

FACILITY.

 THE PROJECT DEALS WITH MEASUREMENT OF SERVICE, AND LINKS

WITH INTERNAL PERFORMANCE APPRAISAL AND IMPROVEMENT
PROCESS OF TRADE INDUSTRY.

 THE MAIN REASON FOR THIS STUDY IS TO KNOW WHICH BRAND IS

MAKING MONEY OVER OTHER BRAND BY ITS POPULARITY, QUALITY
AND MANY OTHER FEATURE.

TYPE OF RESEARCH:-
On the basis of information to be collected research designs are classified
into the following three categories.

 DESCRIPTIVE

1 - DESCRIPTIVE RESEARCH: (surveys).

As the name implies, descriptive research methods are used when
the researcher wants to describe specific behavior as it occurs in the environment. There are a
variety of descriptive research methods available, and once again, the nature of the question that
needs to be answered drives which method is used. Traditionally, descriptive research involves
three main categories: observation, case studies, and surveys. As I have gone through these three
category which eventually helped me to come to conclusion of the research
RESEARCH METHODOLOGY
The objective of the present study can be accomplished by conducting a systematic market
research. Market research is the systematic design, collection, analysis and reporting of data and
findings that are relevant to different marketing situations facing the company. The marketing
research process that is adopted in the present study consists of the following stages:

a. Defining the problem and the research objective:

The research objective states what information is needed to solve the problem. The objective of
the research is to study the Indian Logistics industry growth drivers and its comparison with the
other countries.

b. Developing the research plan:

Once the problem is identified, the next step is to prepare a plan for getting the information needed
for the research. The present study adopted the descriptive approach wherein there was a need to
gather large amount of information before making a conclusion.

c. Collection and Sources of data:

Market research requires two kinds of data, i.e., primary data and secondary data. Secondary data
was collected from various books and web sites. Secondary data is use to complete this project
report from various source like World Bank, CII and other consultant firms.

1) PRIMARY DATA COLLECTION:-

Primary data is the first hand data which is collected from the respondent .Here structured
Questionnaire was used to collect primary data through survey.

2) SECONDARY DATA COLLECTION:-

The secondary Data has been collected for other useful resources
and information essentially required in order to successfully complete the Project Report and
other findings and accurate data and company figures from the internet, books, magazines as
well as newspapers. small business

 Target Market: -
 The study is targeted to the small business.
3) SAMPLING PLAN:-
1) SAMPLE SIZE :-

i) 50 consumers has selected as sample size for research.

2) SAMPLE METHOD :-

i) I have use questionnaires for this project.

ii) Random sampling is used for research project.

3) AREA OF SURVEY :-

i) I have survey in area of Kharghar Navi Mumbai region.

d. Analyze the collected information:

This involves converting raw data into useful information. It involves tabulation of data, using
statistical measures.

Statistical Tools:
 Percentage Analysis
 Bar Diagrams
 Column Diagram

d. Report research findings:

This phase marks the culmination of the marketing research effort. The report with the research
findings is a formal written document.

LIMITATION OF STUDY
 The study is based on the secondary data published in newspapers, books and
journals of the researchers. Sometimes data which is published by the researchers
cannot analyse fresh situation means old data and wrong data is collected by
inherent error.
 The study confined to kharghar and may not be relevant to other counter parts.
 Since only 50 samples were taken for study the generalization made for the entire
population may not be true.
 The study is targeted to the small business.

CHAPTER 2
COMPANY PROFILE

COMPANY INTRODUCTION
INTRODUCTION
 Global Logistics Solutions India Pvt. Ltd. caters to the 3PL requirements, local
distribution and express between Mumbai-Pune of the Customers across industries. and
overseas Air, Sea Shipments today has a strong customer base of Multinationals,
Domestic Giants and New entrants.

GLS has grown from a team of few to now over 300 employees, over N number of
vendors spread at multiple location in India as well as world

Achievements So far:
 2006: Incorporation of the company
 2007: Expanded operations to Delhi, Chennai & Kolkata.
 2008: Opens Banglore, Ahmedabad office.
 2010: Becomes 2nd consolidator in Kolkata.
 2011: Among top 7 consolidator in Mumbai.
 2011: Joined GobaLink Network.
 2012: Among top 7 consolidator in India.
 2014: ISO 9001:2008
 2015: Tied up with the largest consolidator in china
 2016: Going strong with the team of 300+

Company Overview
 Mr.Asif Mujawar , Mr.Jiss Mathew, and Mr.Naveen Prakash established Global Logistics
Solutions in the year 2006. Global Logistics Solutions founded by this young team of
professionals in their pursuit to establish an enterprise that stands for sound business
ethics and practices, progress through customer satisfaction and develop people who
value relationship and professionalism. The founders with their combined experience of
over 40 years in various import/export, sales and managerial positions focused to provide
innovative, focused customer oriented solutions to the consolidation and freight
forwarding industry.

The Organization today...

 Over the years Global Logistics has grown as one of the largest Neutral LCL consolidator
and FCL freight forwarder in India and have a staff strength of more than 250 people ( as
on May 2016) ,have 10 own offices and 23 network offices across India. Global Logistics
 realizes that clients have specific requirements with regards to their shipments. We
therefore spend considerable time to consult clients individually to understand their
specific requirements and provide a customized solution for all our client base. The loyal
client base of GLS has helped us to grow at a rate of more than 50% year after year.

Technology
 We have invested heavily in having the latest technology to serve the customers and
worldwide associates. The custom made software of GLS can provide upto date
information on movement of cargo and all e-commerce activities can be carried out
through the same. GLS was the first Shipping company in India to offer Mobile
application for their clientele and agents.

Network
 GLS is associated with regionally strong network in each continent which ensure that
GLs can deliver/receive cargo to more than 2000 destinations around the world through
35 hubs. Our business associates around the world enable us to weave a global network
that integrates with our promise to deliver your goods effectively on time every time.

Neutrality
 GLS is committed to supporting the forwarding community and is a 100% neutral LCL
consolidator

Services
 LCL Export Consolidation

 LCL Import Consolidation

 Multicity Console Boxes

 FCL Freight Forwarding

 Project Logistics

 Air Freight

 LCL Export Consolidation


GLS operate Direct weekly export consoles to….
Singapore Port Kelang Hongkong Busan

Jakarta Auckland Sydney Melbourne

Bangkok Manila Jabbel Ali Jeddah

Durban Mombassa Veracruz New York

Los Angeles Montreal Toronto Santos

Felixtowe Rotterdam Lehavre Marseille

Hamburg Genoa Barcelona Copenhagen

Gothenburg Oslo Istanbul Pireaus

Ashdod Dublin B.Aires Buenaventura

Karachi Shanghai Tokyo

With an objective to provide integrated logistical solutions, through innovative processes and
systems, GLS have established their Direct LCL Export Console services to 40 international
destinations in the U.S, Canada, U.K, Germany, Spain, France, Netherlands, Australia, Japan,
Korea, Gulf, Far-east and Africa from Indian ports. GLS serves more than 2500 locations around
the world through these 40 Global hubs.

GLS also offers Hazardous console box services to worldwide destinations from Indian ports.

With the elaborate and extensive network using these 40 hubs worldwide, GLS make sure that
they provide the most-effective logistical solutions that add value to the customer’s supply chain
requirements. Value added services such as ex-works pick-up, door delivery at destination, duty
paid deliveries in various countries and a strong IT systems based information tracking has led to
Global Logistics growing their presence in this segment of the logistics business.
The key benefits of GLS Export LCL console service are as follows.

 Online Tracking and tracing and other online service through GLS "e-Solutions".
 Mobile application which support online tracking and e-Commerce activities.
 Personalized service with dedicated person for providing customer support.
 Weekly Bonded trucking service from various ICD's to Nhava sheva and Chennai.
 Better transit time due to direct console service from Indian ports to major destinations.
 Competitive rates.
 Hazardous console box service to all destination from Indian ports.

Vision and Mission:

Vision
"To emerge as a market leader in providing logistics solutions and to be recognized for its values
and ethical business practices by delivering professional and customized services to achieve
highest levels of client satisfaction."

Our Mission
"To provide Easy, Efficient, Economical and Empowering integrated logistics solutions through
innovative processes and systems implemented by a highly inspired team of professionals that
adds value to the customer's supply chain needs."
INTRODUCTION
VRJ Logistics Pvt. Ltd. is one of the emerging International Freight Forwarding Organization having its
offices at Mumbai, Ahmedabad and Pune in India to provide complete Logistics solutions to the
Importers and Exporters. We believe in integrity, transparency and passion in whatever we do.

We offer International Freight Forwarding, Transportation, Distribution, Insurance, Custom Clearance,

Third Party Imports and Exports and Warehousing. We seek to differentiate ourselves by offering the
most reliable, flexible and cost effective solutions to our customers. A benchmarked quality,
standardized processes and operation excellence makes us win all our customers’ trust.

We do believe that the keyword to the success of any business is “EXCELLENT CUSTOMER
SERVICE” which is our motto when handling your cargo.
We provide all our customers with the services that they require under single window. Our extensive
portfolio of services, rapidly increasing geographical coverage and systematic operations has helped us
establish ourselves as one of the growing International Freight Forwarders.
We are involved in providing Freight Forwarding Services and acts as an importer & exporter agent. Our
ocean freight forwarding services ensure that the products will get to the proper destination as per the
specified date in good condition, as we have tie-ups with carriers of all kinds, from air freighters and
trucking companies. We can easily handle the considerable logistics of this task including insurance and
customs documentation and clearance for our clients.

We can handle all air freight shipments in the most professional, reliable and expeditious means
possible. Our international Air Freight Forwarding Services are ideally suited for consignments requiring
time-critical delivery. We provide air freight forwarding service and sea freight forwarding service in
India, ensure reliable air freight services with our door-to-door service to major metropolitan areas
around the globe.

We select most appropriate carrier for the shipment taking into account the variations in timetables and
size & weight restrictions. This helps our customers to avoid unnecessary costs and delays in shipping.

VISION :
“To provide the most competitive single window end-to-end supply chain management solutions on
time.“
MISSION :

“We have committed ourselves to being the leading global logistics provider in terms of service
excellence, quality, innovation and environmental care. We carry out our commitment to customers by
being responsive to their needs and providing them with logistics solutions that create value and
support their success”

FREIGHT FORWARDING

We offer International Freight Forwarding, Transportation, Distribution, Insurance, Custom

Clearance, Third Party Imports and Exports and Warehousing. We seek to differentiate
ourselves by offering the most reliable, flexible and cost effective solutions to our customers.

CUSTOM CLEARNACE

Our highly efficient and experienced customs brokerage service is designed to take the
complexity out of the customs process and we maintain the best industry practice standards
throughout the clearance process.

TRANSPORTATION

We can help to make your road freight more cost-effective and easier to manage. Our
commitment is to offer the most viable transportation option.
VRJ LOGISTICS AT
VRJ LOGISTICS AT A GLANCE:
At VRJ Logistics, our approach to work is simple – identify customer needs, provide timely solutions,
measure customer satisfaction and improve the speed at which services are brought to the customer’s
work place.VRJ Logistics can provide your company with the Logistics solutions it needs – no matter how
big or small you are but you are valuable to us. We provide services that reduce costs and manage your
supply chain to its maximum efficiency.