A STUDY ON CARGO HANDLING

PROCESS IN LOGISTICS WITH

REFERENCE TO Y&H Pvt Ltd.

INTRODUCTION
 Cargo Handling process means any operation or service performed or provided
by the Port Authority in connection with the receiving or delivering of goods or the
loading or discharging of goods into or from a vessel, wagon or rail truck, the storage of
such goods whether in a warehouse or otherwise and any other similar type services.

The strong relationship between growth in international trade and logistics

infrastructure is widely acknowledged. Growth in trade induced requirement for
supporting infrastructure while availability of infrastructure at competitive rates promotes
trade and improve global competitiveness of the country. Availability of infrastructure is
also a key determinant of foreign direct investment (FDI) inflows. In developing
countries like India an efficient logistics infrastructure can reduce cost of transportation
which in turn can contribute directly to global competitiveness of the country. Efficient
logistics industry acts as an economic catalyst by opening up new market opportunities,
moving products and services with speed and efficiency.

The demand for cargo transportation has increased significantly over the last few years,
because product life cycles have shortened and demand for rapid delivery has
increased. Changing business models such as Just- in-Time Manufacturing and Global
out sourcing models have contributed to the rapid growth of cargo logistics business. In
such a changing business environment, where speed-to- market is a competitive
imperative, movement of inventory is no longer viewed as a compartmentalized
process. Rather, the sourcing of inputs, parts and components and the delivery of final
product are all viewed as a continuous value-adding chain. Efficient supply chain
management therefore offers significant benefits including lower inventory and
intermediary costs; and simplicity in order placement, delivery and management of
suppliers and customers. These benefits directly contribute to making businesses more
competitive.

Evidence from the 2007 and 2010 Logistics Performance Index (LPI) indicates that, for
countries at the same level of per capita income, those with the best logistics
performance experience an additional growth of 1% in Gross Domestic Product and 2%
in trade. These findings are especially relevant today, as developing countries need to
invest in better trade logistics to emerge in a stronger and more competitive position.
India’s LPI rank in 2010 was 47 down from 39 in LPI 2007. In comparison to India,
China’s 2010 LPI rank was 27 and Brazil was ranked at 411 . This should be a matter of
grave concern to India.

Cargo handling is an extensive subject and primarily involves the interface between
the cargo and port. The degree of efficiency attained to maximize cargo throughput at
a berth, quicken cargo turn-round time in port and minimize cargo-handling cost
overall affects the development of international trade and cost of the international
distribution of goods. Port managements throughout the world are becoming more
conscious of the need to provide modern equipped berths with their attendant capital-
intensive cargo-handling techniques involving low labour content as a means of
increasing their general competitiveness and encouraging trade through their port.
Modern berths with modern cargo-handling systems attract modern tonnage, thereby
offering competitive international transport distribution services. Failure of a port to
modernize its berths and attendant cargo-handling systems will encourage owners
and transporters to use other ports where practicable/possible. Any product being
transported is sometimes called freight, Any product being transported is always called
cargo. The differences between the two terms have become smaller in modern times,
but originally cargo exclusively referred to goods transported by ship or plane,
while freight was exclusively used for goods transported by truck or train.

Packaging

Freight forwarders routinely help businesses package and prepare products for export.
This task has varying degrees of complexity, based in on a product's final destination.
Case in point packaging for shipping within the US may be simpler than packaging
products for extended transportation, where items may be shipped in large cargo
containers, and may be loaded and unloaded multiple times along route. Items may also
be stored in environments of extreme high and low temperatures, and they can
experience volatile weather that can jostle the freight ships. Furthermore, air-shipped
items often require lighter-weight packaging, to keep costs down.

Labeling

Freight forwarders help businesses correctly label packages, to make sure they contain
the following information:

 An itemized list of products in the shipping container

 Any hazardous items

 Country of origin

 Correct weight, reflected in pounds and kilograms

 Port of entry details

 Any details required in the language of the destination country

Documentation

Shipping items overseas often requires a great deal of complex documentation requiring
specialist knowledge, that may include the following:

 Bill of Lading (BOL) – This is a contract between the owner of the goods and the
carrier. There are two types of BOLs; a nonnegotiable "straight" BOL, and a
negotiable "shipper's" BOL. The latter BOL can be bought, sold, or traded while
the goods are in transit. The customer usually needs an original document as
proof of ownership, to take possession of the goods.

 Commercial Invoice – The invoice is the bill for the goods, presented from the
seller to the buyer, often used to determine the true value of goods when
assessing the amount of customs duty.

 Certificate of Origin (COO) – This signed statement identifies the origin of the
export item.

 Inspection Certificate – This document may be required by the customer to certify

that the goods have been inspected and/or tested and the quality of the goods is
deemed acceptable.

 Export License – This license is a government document that authorizes the

export of goods in specific quantities to a specific destination.

 Shipper's Export Declaration (SED) – This document contains export statistics,

and is prepared via the US Postal Service (USPS) for shipments greater than
$500 in value.

 Export Packing List – This detailed packing list itemizes each item in the
shipment, the type of packaging container used, as well as gross weight and
package measurements.
INDUSTRY PROFILE

Logistics is generally the detailed organization and implementation of a complex

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

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

ORIENTATION AND DEVELOPMENT OF LOGISTICS INDUSTRY

Purpose of Logistics Industry

The purpose of logistics industry is to enable an effective transportation or timely

movement of goods from one place to another. This could be for the purpose of
industrial transportation or even private purposes.

Different mediums of Logistics services

There are three mediums of logistics services in India. These can be categorized in the
following way:
Air freight – this is a modern and the safest mode to ensure a fast delivery of goods. A
chosen one by many because of the swiftness of the system there are many companies
that are now even providing super fats deliveries by airways even on the same day.

Land transport – this is a means of logistics support that has withstood the test of time
through the extensive network of roads in India. It has been the popularly used method
and used especially in the shipments of heavy articles like machinery and vehicles. This
is also a chosen method in case of household packers and movers.

Railways – this is also an age old method of shipments and transport. Though most
used in case of domestic services this is very effective in the availability of cost effective
logistics support in India.

Waterways – an essential part of this industry this is also one of the oldest methods.
Shipments and transportation of goods is done on an international basis through this
way. It is apt in case of shipments of oil, highly sensitive or volatile articles like Uranium.

Major Drivers of Logistics Industry in India

The concept of logistics is continuing to gain strength in India. There are several major

drivers fuelling the growth of the industry.

 Organizations are realizing the huge potential savings that efficient logistics can
offer ,and its impact on revenue growth and improved profitability. Moreover, the
increasing complexity of supply networks, globalization of businesses,
proliferation of product variety, and shortening of product lifecycles forcing them
to realize that it is better to allow the experts to manage their logistics, and this
results in acceptance of outsourcing as a business practice.
 The increasingly demanding customers, coupled with the increasing cost
pressure and competition, there is an urge for companies to differentiate
themselves from their competitors through value added services and competitive
prices. As such, price and time factors, for example on-time delivery, shorter lead
time, improved service and better inventory management become important
criteria in selection of suppliers. Availability of efficient logistics service providers
become an important part of the sourcing equation.

 The globalization trend in the complex business environment worldwide also

poses great opportunities for the logistics industry in India. Worldwide companies
have started adopting global sourcing and distribution strategies and have given
higher priorities on efficient management of supply chain and logistics. Such
global strategy has significant implication on the growth of Indian logistics
industry.
 Another major driver of the logistics industry is the internet. With the emerging
ecommerce ,there is a need for e-companies to offer an efficient distribution
system that ensures fulfilment and timely delivery of goods ordered through the
internet. Companies are on lookout for the strategic logistics players who can
streamline the movement of their goods and ensure faster delivery. In addition,
with EDI, bar coding and tracking of goods in transit used widely, many
companies are depending on the logistics providers to provide the IT integration.

 The Indian government’s initiative in improving the infrastructure is a positive

factor for boosting the logistics industry. The simplification of trade rules and
regulations ,allowing private sector participation in roads, seaports and airports,
 and the increase of public funding in upgrading the infrastructure will further
support the growth the logistics industry in India.

GLOBAL LOGISTICS INDUSTRY

Presently the annual logistics price of the world is approximately US$ 3.5 trillion. For
every nation, the annual logistics price varies somewhere between 9.2 per cent along
with 20 per cent of the GDP, the figure for the US being approximately 9per cent. The
worldwide logistics promote sizes of the shoes in 1992, 1996 as well as 2000 were US $
10 billion, twenty five dollars billion as well as fifty six dollars billion, respectively. In
2003 plus 2004, the corresponding figures US $ 270 billion as well as US $ 333 billion,
registering huge growth rates. However, nearly almost all of the massive LSPs are
headquartered in Europe, the US logistics market place will be the biggest on the
planet recording one third of the planet logistics market. In 2003, it had been
approximately eighty dollars billion. In 2004, it lived to US $ eighty nine billion, and also
in 2005, it registered a remarkable growth rate of 16 per cent to cross the hundred
dollars billion mark for the very first time as well as reach 103.7 billion (Foster along with
Armstrong, 2005, 2004, 2006). Nevertheless, thinking about the point that the logistics
market place in the US is approximately 10 per cent of its annual logistics expense
(Foster and Armstrong, 2006), there's still enormous opportunity for the development of
3PL in the US particularly, what about the earth on the whole.

THE LOGISTCS INDUSTRY IN INDIA

Logistics is essential to the functionality of the economic system and it is essential in

matching the generation of products to the industrial need (as inputs) as well as
households (as individual consumption). Logistics pursuits represent a sizable value
added economic procedure. The main logistics highlights for the Indian ventures
incorporate transportation, warehousing, freight forwarding alongside other esteem
included exercises as Management Information Systems (MIS). Of these highlights,
transport and freight forwarding were customarily outsourced to outside specialist co-
ops with correlated framework and mastery. Beside the standard transport specialist co-
opts that offer transportation benefits available, the speedy development of 3PL and
additionally 4PL which supply end- to-end logistics medicines recommends that
organizations are leaving the logistics highlights to the stars and focus on the center
skills of theirs. The MIS and warehousing capacities have been normally overseen in
house by the businesses. The spread of composed rundown part requires the specific
logistics capacities, particular transport, for example, refrigerated cars, working of center
and talked compose for conveyance, JIT logistics, etcetera. Consequently, conveying
the best possible item at the best possible time, at the correct place and at the best
possible cost achieves better logistics proficiency. The logistics proficiency or
effectiveness might be estimated by the price, benefit quality and time.

Company profile

Y&H CARGO PVT LTD is a A-Class freight forwarder approved by Ministry of

Commerce of INDIA member IGLN (Inter-Global Logistics Network ), WCA (World
Cargo Alliance) and MTO ( Multi Model Transport Association.) ( DELHI CHAMBER OF
COMMERCE). FNC NETWORK MEMBER & MOTION NETWORK Member.

Y&H CARGO PVT LTD was established in 2011, For 9 year's expanding and
development Y&H CARGO are becoming one of the leading integrated logistic
companies in INDIA.

We are focus on international sea freight and air freight business and integrating
trucking, Customs clearance and warehousing into a large-sized modern logistics
enterprise. Y&H CARGO PVT LTD owns professional fleet of haulage vehicle, licensed
customs broker, specially we have more than 2000 S. Q. M warehouse in Mumbai
Nhava Sheva Port , and it is serve for the foreign client who doing free trade and
providing to the customer 4 PL Service, Facility.

We have a strong presence in ASIAN COUNTRY, EUROPE & USA SECTORS with a
vast network Y&H CARGO Having Own offices in almost 5 locations in INDIA , we can
proudly state that "we know CHINA - INDIA - VIETNAM like no one else does". We
cover every port and major city in CHINA - INDIA - VIETNAM and you can safely rely on
us for scheduled delivery and distribution to any part of the country.

 Mission
To forge long-term alliances by developing a thorough understanding of our clients
businesses, their goals and aspirations and employing cutting edge technology
solutions that can enable us to be a logistics partner of choice.

 Vision
 Delivering Value-Customers are the life line for any business and we constantly work
towards strengthening our customer relationships and developing newer ones. We
strive to meet and exceed customer expectations by developing and delivering highly
attractive and innovative products and services.

 Quality Policy

Our Company- Y&H CARGO Pvt Ltd. is a rapidly expanding clearing, freight
forwarding and shipping company. Our customer-centric and people-friendly policies are
the key to our success.

 We Strive Towards
 Customer Satisfaction and Delight- To continuously improve our processes and
offerings so as to enable us to deliver products and services that meet our customers'
expectations.

 Accountability- To take responsibility to meet our commitments, individually

collectively.

 Innovation- To encourage, recognize and reward sustainable innovation that can help
us service our clients better.

 Team Work- A commitment from every employee to contribute towards the overall
success of the company and all fellow employees.

 Y&H CARGO Pvt Ltd. Family- A cohesive effort in the continuous improvement of
our Quality Management Systems and in achieving greater milestones in the times to
come.

Y & H Cargo Private Limited is a Non-govt company, incorporated on 18 Jan, 2011. It's
a private unlisted company and is classified as 'company limited by shares'.

Company's authorized capital stands at Rs 50.0 lakhs and has 40.0% paid-up capital
which is Rs 20.0 lakhs. Y & H Cargo Private Limited last annual general meet (AGM)
happened on 20 Sep, 2017. The company last updated its financials on 31 Mar, 2017
asper Ministry of Corporate Affairs(MCA).
Y & H Cargo Private Limited is majorly in Transport, storage and Communications
business from last 9 years and currently, company operations are active. Current board
members & directors are RAKESH, JYOTI, RAMESH KUMAR MISHRA and JAGAN
NATH PARSHAD.

Company is registered in Delhi (Delhi) Registrar Office. Y & H Cargo Private Limited
registered address is Plot No. 112 A, Third Floor, Wazirpur Group Industrial Area, Delhi
New Delhi DL 110052 IN.

Our Employees

Our above growth has been possible only because we have always considered our
Clients & Employees as our strength. An equal Opportunity Employer, today our
employee strength is over 250 direct & indirect in all our 8 offices situated all over
Southern India. Combination of professional skills, innovative techniques and the
resolution to excel, we endeavor to achieve total customer satisfaction. Over the years,
we have learnt that we just can't offer services, but have to deliver what the customer
demands. We offer personalized services to our clients to maximize our clients
satisfaction. Our long-term association with our clients arises out of the results we
deliver & the professional relationship we foster with them. with its state of art computer
hardware and software constant up gradation of its IT resources, RYK in association
with its global partners is able to offer you the most satisfying service with periodic
reports to you on work status.

PRODUCTS
Services provided by Y&H CARGO Pvt Ltd.

RAIL SERVICE
Following the policy of “ONE BELT AND ONE ROAD” , we provide rail services
from China to Russia , Europe , Central Asia countries include Kazakhstan, Uzbekistan,
Kyrghystan, Turkmenistan, Tajikistan . We can pick up cargo from all of China with
competitive price.

SEA FREIGHT
We are very close to APL/OOCL/ZIM/HMM/COSCO/CMA/PIL/WANHAI/RCL/EMC
,based on our volume and our professional knowledge , we get very competitive price
from above carriers,customers save certain costs and improved their competition from
other suppliers .We ensure your consignment ship out by the most cost -effective route
to everywhere whatever LCL or FCL.Sea cargo services available from/to anywhere in
the world includes special needs with our multi-modal end to end according to specific
requirements - General cargo, Dry cargo- Pharmaceutical- Chemical- Hazardous
materials- Temperature controlled container- Perishable Special
handling include Oversized cargo, Flat rack, Open top ,Break Bulk .

ROAD FREIGHT
We have all kinds of Vehicles at our disposal , from small vans to tail lift vans and 40ft
trailers . We can arrange dedicated vehicle shipments for a comprehensive road freight
service throughout all China under EXW ,DDU , DDP etc .Our truck team handle
oversized cargo ,Flat Rack ,Open top every month which makes them much more
experienced ,trust us ,trust Y&H.

AIR FREIGHT
For all of your import and export needs ,we provide a range of air cargo service that get
your cargo quickly ,safely and cost -effectively worldwide .Our team is very professional
in handling the air cargo including booking / picking up from nominated places /
clearance / moving from warehouse to air line warehouse .We have good relationship
with MU / EY / CA / UPS / CZ etc and enjoy good rates from them to save the
costs . We want to deliver more than just the air cargo you contacted us for, we want to
deliver satisfaction, trust, and a strong business partnership that will endure long after
your flight touches down. We make the world smaller by acting as your liason to
international business on a global scale.

WAREHOUSING
We have our own warehouse in Shanghai and Ningbo , we are well equipped with latest
warehouse management systems and cargo moving & handling equipments. We also
offer value added services such as packaging, labeling, sorting, segregation etc. as per
customer requirements. We have rich experiences in handling Steel Coil / Oversized
Machines etc with competitive price .Our warehouse applied a wise system to manage
all the cargo which is much effective
BREAK BULK
We have a professional team especially to handle Break Bulk cargo ,our service cover
Shanghai / Tianjin /Qingdao / Shenzhen /Guangzhou / Fangcheng gang .

CROSS BORDER E-COMMERCE LOGISTICS

Hangzhou is the headquarter of Alibaba Group, and the paradise of E-commerce.
Since the opening of Xiasha Cross Border E-commerce Logistics Zone, the volume of
Hangzhou cross boarder E-commerce has been expanded exponentially. Y&H was one
of the first companies getting into cross boarder E-commerce logistics business. The
company can provide optimized logistics solution to meet the needs of clients in
overseas shipping, domestic customs clearance, warehouse distribution, and so on.
Y&H is also spending more efforts in the cultivation of professional talents in cross
boarder E-commerce logistics, in the hope to make improvement together with business
partners in cross boarder E-commerce, in order to provide better commodities and more
benefits to domestic consumers from all over the world.
EXW /FOB / DDU AND DDP SERVICE
Construction of overseas network has been the first priority strategy for Y&H since its
establishment. After 16 years' hard work, the company now has a large overseas
agency network worldwide. We can promptly offer various DDU/DDP prices to any
service spot in most of the countries, and provide the genuine door-door services. Our
team is well trained to offer price / cargo tracing / loading / unloading / clearance after
proceeding . Welcome to work with Y&H.

Y & H Cargo Private Limited Details

CIN U63013DL2011PTC212841

Date of Incorporation 18 Jan, 2011

Status Active

Company Category Company limited by Shares

Company Sub-category Non-govt company

Company Class Private

Business Activity Transport, storage and Communications

Authorized Capital 50.0 lakhs

Paid-up Capital 20.0 lakhs

Paid-up Capital % 40.0

Registered State Delhi

Registration Number 212841

Registration Date 18 Jan, 2011

Listing Status Unlisted

AGM last held on 20 Sep, 2017

Balance Sheet last updated on 31 Mar, 2017

OBJECTIVES OF THE STUDY

The main objective of the study is based on primary and secondary.

PRIMARY STUDY:

 To analyse the cargo handling process in logistics with reference to

Y&H Cargo Pvt Ltd.

SEONDARY STUDY:

 To study about the various safety procedure while handling cargos.

 To identify the issues of freight forwarders with importers and exporters.

 To examine full cargo loading (FCL)and lower cargo loading (LCL) container
clearance.
REVIEW OF LITERATURE

Konstantin Makukha and Richard Gray (2000) said although logistics

partnerships are common, incentives for entering into strategic arrangements and the
determinants of their success are not well researched. Many logistics partnerships,
being operational in nature, are of a logistics partnership on a shipper's strategic moves
and competitive positioning has not been researched thoroughly.

A Delphi investigation reveals that although large companies form logistics partnerships,
the perceptions of partnership formation motives, inhibitors and orientations by shippers
and logistics service providers (LSPs) are likely to differ. In particular, shippers tend to
avoid close integration with LSPs, whereas LSPs claim to be true strategic partners but
remain unable to provide the service required. The failure to integrate on a strategic
level suggests a lack of strategic management knowledge by relevant managers. The
study suggests that most existing logistics partnerships are still operational rather than
strategic in nature.

Lars Erik Gadde et al., (2001) pointed out that for the last couple of decades
the interest in logistics alliances and third party logistics (TPL) has been growing in
academia and industry. The common perspective is to consider TPL as outsourcing of
logistics activities.The aim of this paper is to take a complementary perspective by
looking at TPL rather as in sourcing of resources; i.e. the shipper gets access to the
providers’ resources. We start by presenting some basic characteristics of the
established view of TPL and some of the problems with TPL identified in prior studies.
We further discuss how these problems could be tackled if viewed as resource in
sourcing rather than activity outsourcing.

The analysis indicates that such a perspective provides a useful complement for the
understanding of TPL in the four phases of pre-alliance considerations, implementation,
alliance operations, and performance assessment. For example, as resources are
shared among a number of actors, adaptations in the resource collection of each party
are required. This can reduce costs for all participants, but demands a longterm
perspective with regards to investments. Further, the fear of losing control when using
TPL can be helped through developing close relationships thus gaining indirect control
of the provider’s resources.

Another example concerns the implementation phase where a resource insourcing

perspective would recommend the shipper to avoid detailed direction of suppliers who
have been chosen for their competence to provide good services.

Murphy et al., and Daley et al., (1992) explained in their article that the freight
forwarders are referred to as international trade specialists offering a variety of services
to facilitate the movement of international shipments. They also have studied the
determinant factors of international freight forwarders selection and concludes that
forwarder’s expertise and reliability of service are the most important selection criteria
while forwarder size emerged as the least important one.

Jacob Koshy (1999) In his study GAC strives to blend traditional excellence and
trust with professional competence and state of the art technology to provide service in
Marine and inter modal transport .

The shipping industry as a whole at Cochin will experience more uplift because the
trend in the foreign trade will increase in the coming years. It has also been noted that
the clearing and forwarding and shipping procedures, the custom formalities etc. is
being more complex than that in Chennai, Mumbai etc. Therefore, the services of such
accredited agents are very helpful and necessary.

Mike W. Peng and Anne S. York (2001) Intermediaries perform an important

“middleman” function by linking individuals and organizations that otherwise would not
have been connected. Many smaller firms are intimidated by the challenges associated
with exporting. Despite having more resources, many larger firms may be unwilling to
commit to newer, nonessential markets. In such cases, export intermediaries may
emerge as indirect distribution channels connecting domestic firms and foreign
customers. A number of different “intermediaries” exist, ranging from freight forwarders,
customs house agents, custom brokers, and trading companies (all in the exporting
country) to manufacturers’ representatives and distributors (in the importing country).
Our research focuses on “middlemen” located in the exporting country, who help
exporters find customers or make sales for them – in short, “export intermediaries”.

When exporting, manufacturers essentially have two channel options: (1) direct export,
or (2) indirect export via export intermediaries. Therefore, to ensure that exporters
choose the second choice, export intermediaries must lower their clients’ export-related
transaction costs relative to those of the first choice. Their performance thus depends
on how successful they are in lowering these costs.

Svensson (2002) in his article states that logistics is usually concerned with
satisfying the supply of the customers’ needs and wants in a marketing channel (or a
distribution channel or a supply chain), while marketing usually focuses on satisfying the
demands of the customers’ needs and wants in the same channels. Marketing and
logistics may be seen as a chain of inter dependent activities that complement each
other in order to facilitate the exchange processes between the buyers and the sellers.

Wood et al., (2002) the researcher has highlighted that Intermediaries have an
important role to play in the shipping industry. They provide various vital services to
shipping lines as well as shippers and an important link between the two intermediaries
exist because they improve the efficiency of marketing channels.

Siju Joseph (2002) the researcher concludes that the advent of globalization
has witnessed dramatic changes in the way of business that have operated across the
world during the last decade. New client requirements, low transport cost and
development have given major boost to international trade. The study based on
container movement from Cochin port to European sectors has provided that quantity of
exports and the container movement shows upward trend. It also reveals that the role of
shipping agent in international trade is an inevitable one.

Aghazadeh (2003) presents four relevant criteria for selecting an effective 3PL
such as: similar value, information technology systems, key management, and
relationship. He also illustrated the five steps involved in this selection, which are:
making decision on the need to use or not use a 3PL; developing criteria and objectives
which the provider should meet, weeding out process by making a list of possible 3PL;
determining the top prospect to meet the potential 3PL; and beginning the new
partnership with the chosen provider.

Lummus et al., (2003) have discussed this topic. They noticed how, quantity
discounts and promotions can result in forward buying, where items are brought in
advance of requirements, because of an offer. In addition, trade deals are often region
based, which leads to diversion, where material in one area is resold in other markets
where the deal is not running.

Chapman, Soosay and Kandampully, (2003) in the article of Chapman et.al,

the internal business perspective translates the customer perspective into what the
company must do in order to meet its customer’s expectations. For a logistics service
provider, these innovations can mean to change from short a long distance transport
and new communication systems such as RFID or web services. Financial performance
indicators, measure whether the company’s strategies, implementation and execution
contribute to bottom – line improvement.

Delfmannet et al., (2002); Lai et al., (2004) the 3PL can perform logistics
functions of their customer either completely or only in part and currently, they have
their own warehouses, transport fleets and their credits are often deployed throughout
the world. Most 3PL have specialized their services through differentiation, with the
scope of services encompassing a variety of options ranging from limited services to
broad activities covering the supply chain (Sink et al., 1996).
 Melnyk, et al., (2004) describes that customers increasingly expect shorter
delivery times and more accurate services. As a result control of logistics service
providers increases in complexity. Performance indicators can support the management
of complex systems. The increasing use of information and communication technology
– also in small medium sized companies – facilitates data collection on a broader scale
and could lead to more extensive performance measurement.

Aneesh (2004) in his study highlighted that across the globe, shipping lines and
their exclusive general agents are fighting a battle against the survival of the fittest. The
agent renders a number of services like documentation, cargo consolidation, loading
and unloading and customs operations. In addition there are short term information
flows like arrival and unloading status, custom release status and information about pre-
mentioned schedules. Agent’s participants have different level of technical
sophistication.

Sreenath (2005) in this study the researcher has concluded that airlines have
considered cargo as a by-product of passenger transport. But the advantage of
freighters and combi craft has sowed a new status in the air transport industry. Besides
that the new schemes and policies such as e-freight has become a strong base for the
growth of cargo transmission through Air.

The effect of modernization has also made new advancement in the air cargo handling
by way of e-business revolution. In air cargo as early specified e-freight system has
made a surprising change and in passenger traffic the e-ticketing, system, bar-coding
boarding system etc. To conclude, IATA is emerging with new schemes and policies to
increase the share of air cargo in the new business world and till this day the growth of
air cargo is increasing beyond expectation.

Dinu Domnic (2005) in this study the researcher came to know about the
importance of multimodal transportation and the problems faced by multi modal
transport operator’s (MTO’S) in doing multimodal transportation. In today’s complex
business environment, multi modal transportation plays an important role in the supply
chain of the companies in order to make the delivery cost effective and of high quality
service. The multimodal transport operator has to pay special attention to their activities.
Hence research in this area is necessary to identify the problem faced by multimodal
transport operators and also to find a solution for that.

Grant et al., (2006) suggests that attempts to seek markets opportunities have
been made due to the fact that the industrialized nations have matured – that is to say,
their economic growth rates have slackened. Manufacturers have increased raw
materials and component acquisition from other countries (i.e. global sourcing). A global
financial network has developed that allows multinational enterprises to expand their
operations. Hence, there is a need for logistical operations so as to enable free
movement of goods and services.

Girish Gujar (2006) analyzed the multimodal transportation system in India;

identified the numerous facets of the system; and studied the role of multimodal
transportation in the economic growth of the country. It also highlights the shortcomings
and challenges India is facing because of legislation, policy failures, infrastructure
limitation and operational deficiencies and suggests measures for improving efficiency
and operation.

Mishra et al., (2006) studied the Problems, Challenges and Opportunities of

Logistics with special reference to Indian Economy. They believed that the logistics
industry in India is evolving rapidly and it is the interplay of infrastructure and
technology. A new type of service providers have emerged and they will define whether
the industry will be able to help its customers to reduce their logistics costs and provide
effective services.

Jean Francois Arvis et al., (2007) in their article, they remarked that the increase in
global production sharing the shortening of product life cycles, and the intensification of
global competition all highlight logistics as a strategic source of competitive advantage.
Since the advent of modern trade several centuries ago, the international movement of
goods has been primarily organized by CHAs & freight forwarders. Typically large
networks of companies with worldwide coverage, capable of handling and coordinating
the diverse actions are required to move goods across long distances and international
borders. More recently, the rise of intermediaries (CHAs, express carriers and third
party logistics providers) has expanded the scope of services available to traders.

Savitha (2007) in this study, the researcher reveals that their role in logistics is
significant for the purpose of export and import. The exporters and importers find less
risk for the documentation procedures. The number of active cargo handling and
custom house agents has been increased for the upliftment of export and import. The
smaller exporters are benefited by custom house agents. Multimodal transportation has
to gain importance in India. The logistics activities are in a developing stage and a
successful road and rail transportation has to be improved.

AnishaAlphonse (2008) in this study, the researcher brings into practice, the
containerization and container movement. Everywhere in the study, it is noticed that the
container movements through CONCOR was only with the help of ICDs, CFSs etc.
Freight forwarders and shipping companies earn more profit through exports and
imports. The new millennium has a large potential for the development of containerized
traffic, provided, matching infrastructural facilities are also developed. Hence, there is
further scope for containerized traffic.

Kannan (2008) this paper aims at providing a framework to exim firms for the
selection of an optimal Custom House Agent (CHA) by using the Analytic Hierarchy
Process (AHP).In his article, he stated that the firms involved in export import
operations select their optimal Custom House Agent (CHA) by using Analytical
Hierarchy Process (AHP). Exim firms often face the problem in selecting their optimal
CHA for clearing their export or import goods from customs. This is a vital decision
because delay in custom clearance will halt the goods and will lose their time utility. An
optimal CHA will ensure timely clearance of goods from customs and thus contribute to
time utility of the same. It is concluded that in real life situations, the exim firms shall
select the optimal CHA with ease by applying this framework based on Analytical
Hierarchy Process.

Logannathan (2009) in his study, the researcher has suggested that the
Customs stands to safe guard and promote the export trade and import trade. Therefore
it should serve these business men by providing sufficient requirements such as easy
documentation, increase of drawback rates and the reducing tax for import of
machineries. Though after 2011, there will be high flow of goods from our country to
another, the Custom formalities and cumbersome documentation will prove to be a
hindrance and the basic requirements for the easy and comfortable business is to know
the Custom regulations.

Arviset et al., (2010) Specialists of World Bank evaluate the logistics industry in
world countries by LPI, i.e. Logistic Performance Index. It analyzes the effectiveness of
clearance process, the quality of trade and transport related infrastructure, the ease of
arranging competitively priced shipments, also quality and competence of logistics
services, ability to track and trace consignments, frequency with which shipments reach
the consignee within the scheduled or expected delivery time. The evaluation of
competitiveness of countries in a view of global economy is presented by GCI, i.e.
Global Competitiveness Index. It analyzes basic requirements (institutions and its
regulations, infrastructure, macroeconomic environment, health and primary education),
efficiency enhances (higher education and training, the efficiency of goods, labor and
finance markets, technical readiness and market size) and innovation and business
sophistication factors.

Lei Wang (2011) in his article he pointed out that today's international market
competition is in full range competition. Enterprise has profoundly realized individual
efforts are less preferable for the increasingly fierce competition in the market.
Enterprises need to use their core strengths to seek and attract multilateral cooperation
with other enterprises in order to realize win-win. The bold use of the partners'
advantageous resource to seek their own economic interests represents that supply
chain management is going through a transformation from traditional transaction
management to the relationship management. (Mengyan Zhang, Aimin Shi; 2008) With
the development of logistics economy, logistics demand will become more inclined to
the direction of "one-stop" and "globalization". This ever-increasing customer
requirements make any logistics enterprises find it difficult to adapt to it, of course, the
port is no exception.

Rupin S Parikh (2012) in this article, the researcher has stated that custom
house agents are very important person whenever you are importing or exporting any
goods. By definition he is a person who has acquired a license to act as an agent for
transaction of any business related to departure or entry of transportations or the
exporting or importing goods at any custom station. Generally the business that imports
or exports goods don’t have knowledge about the rules and regulations of the
government neither do they have any time to look into these matters. Hence they
appoint an agent to act on their behalf. However all the duties performed by the CHA
are administered by a government body known as Custom House Agent Licensing
Regulations.

RESEARCH METHODOLOGY

RESEARCH DESIGN

Research is a systemized effort to gain new knowledge. Research is

an original contribution to the existing stock of knowledge making for its advancement. It
is the pursuit of truth with the help of study , observation ,comparison and experiment.
Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action. The research has
been defined as “A careful investigation or enquiry especially through search for new
facts in any branch of knowledge”. Research is the specification of the method and
procedure for acquiring the information needed to solve the problem. It is the overall
operational pattern or frame work of the project that stipulates what information to be
collected from which source and by what procedures.

SOURCE OF DATA: The study has been used both primary and secondary data.

Primary data: The data has been collected from the importers and exporters in
Chennai city. The Convenience sampling technique has been used to choose the
respondents. The sample size used for the study is 50 samples. The structured
Questionnaires was used to collect the primary data.
Secondary data: The Secondary data was gathered from the records of freight
forwarders association, Reports, Journal articles, Magazines, Books, Websites,
Previous studies, and libraries. The collected data were tabulated and coded for
analyzing in the SPSS software. The study is confined to importers and exporters in
Chennai city.

SAMPLING METHOD:

The convenience sampling technique was followed. In this process the

sample is taken from a group of people easy to contact or to reach.

Questionaire

Name: ……….……………………………… Designation: ……………………………………

Contact No.: …………………….................. CompanyName: ……………………………

Company Product: …………........……… Company Address: …………………………

1 Which attracts you to choose a freight forwading service provider?

(a)Order Processing Time

(b)Delivery consistant

(c)Delivery frequency

(d)Timely delivery

(e)Fastely delivery

2. Which one would you prefer first when choosing the logistics service
provider?
(a)Volumes to be handled

(b)Speed in handling

(c)Productivity

(d)Product characteristics

(e)Nature of the Product

3. Shipment of Logistics is mainly depend on,

(a)Quality of Operations

(b)Flexibility

(c)Speed of operation

(d)Capacity utilization

(e)Total Productivity

4. From the following please select the top 3 challenges that you think you organization
face today.

(a)Increased competitive pressures

(b)Meeting the demands

(c)Low cost of products

(d)Improve low productive

(e)Increased fuel prices

5. Whether you prefer to maintain business tie-ups with suppliers or select them as &
when required.

(a)Maintain business tie-up

(b)Select when export order is obtained

(c)Both
6.Do you own a packhouse unit or get the product packed from other packhouses?

(a)Own a packhouse unit

(b)Get it packed from other packhouse

7. FCL and LCL freight forawarding are more suitable way of safe cargo movement

(a)Highly Agree

(b)Agree

(c)Neutral

(d)Disagree

(e)Highly disagree

8. Internationally - for international shipments of hazardous materials, the hazard class

number must be displayed in the bottom corner of both primary and subsidiary labels.

(a)Highly Agree

(b)Agree

(c)Neutral

(d)Disagree

(e)Highly disagree

9.what does your company use for quality metrics in logistics?

(a)lead time

9b)error free

(c)loading and unloading times

(d)reliability

10.will you implement 3PL for solving your logistics problem?

(a)definitely

(b)never

(c)future plans
(d)implementing different logistics plans

11.what should be the main logistics activity that a 3PL should improve?

(a)inventory management

(b)transportation and delivery

(c)quality of goods

(d)overall logistics process