A STUDY ON CUSTOMER’S SATISFACTION MARKS CARGO PRIVATE LIMITED - 2

SANTHAN R MBA IB | PONDICHERRY UNIVERSITY

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CHAPTER - I

INTRODUCTION

Logistics is the management of the flow of goods between the point of origin and the

point of consumption in order to meet some requirements, of customers or corporations.

The resources managed in logistics can include physical items, such as food, materials,

animals, equipment and liquids, as well as abstract items, such as time, information,

particles, and energy. The logistics of physical items usually involves the overall

integration of the information flow from end to end of the process, material

handling, production,packaging, inventory, transportation, warehousing, supply chain,

and often security. 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 logistics for import and export.

Logistics is a diverse and dynamic function that is flexible and changes according to the

various constraints and demands imposed upon it. There is, realistically, no ‗true‘ name

or ‗true‘ definition that can be universally applied, because products, organizations and

systems differ. Many terms are therefore used interchangeably, in literature and in the

humanitarian world. One quite frequently accepted view in the humanitarian sector is:

Logistics = Supply + Materials Management + Distribution

The prevalent view is that the term logistics comes from the late 19th century: from

French logistique (loger means to lodge). Others attribute a Greek origin to the word:,

meaning reason or speech; meaning accountant or responsible for counting.

The Oxford English Dictionary defines logistics as "the branch of military science

relating to procuring, maintaining and transporting material, personnel and facilities."

However, the New Oxford American Dictionary defines logistics as "the detailed

coordination of a complex operation involving many people, facilities, or supplies," and

the Oxford Dictionary on-line defines it as "the detailed organization and implementation

of a complex operation." As such, logistics is commonly seen as a branch of engineering

that creates "people systems" rather than "machine systems."

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Materials_management



http://en.wikipedia.org/wiki/Production_(economics)

http://en.wikipedia.org/wiki/Packaging

http://en.wikipedia.org/wiki/Inventory

http://en.wikipedia.org/wiki/Transportation

http://en.wikipedia.org/wiki/Warehousing

http://en.wikipedia.org/wiki/Security

http://en.wikipedia.org/wiki/Simulation_software


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According to the Council of Logistics Management, logistics includes the integrated

planning, control, realization, and monitoring of all internal and network-wide material,

part, and product flow, including the necessary information flow, industrial and trading

companies along the complete value-added chain (and product life cycle) for the purpose

of conforming to customer requirements.

Logistics Process

Logistics is a diverse and dynamic function that is flexible and changes according to the

various constraints and demands imposed upon it. There is, realistically, no ‗true‘ name

or ‗true‘ definition that can be universally applied, because products, organisations and


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systems differ. Many terms are therefore used interchangeably, in literature and in the

humanitarian world.

Logistics is about moving materials, information and funds from one business to another

business or from a business to the consumer. Logistics is an important part of the

business economic system and is a major global economic activity. It encompasses

activities like freight transportation, warehousing, material handling, protective

packaging, inventory control, order processing, marketing, forecasting and customer

service.

Fierce competition in today‘s global market, the introduction of products with

short life cycles, the heighten expectations of customer and the cost cutting measures

have forced business enterprise to focus attention on logistics industry. Historically, the

logistics sector was clearly separated and restricted mainly to transportation and

warehousing. The logistics management in today‘s world however, covers all the aspects

of value chain including an efficient integration of transportation, distribution,

warehousing, reverse logistics, value added services such as payment collection,

packaging, documentation, customer brokerage facilities, kitting, repair management,

reconfiguration etc. The developments of state-of-the art IT in recent years have further

had remarkable implications for the logistics industry.

Various surveys have been conducted to estimate the logistics activities as a percentage

of whole production value, and it is found that between 12 and 20% of the final retail

price of current consumer goods is associated with logistics cost. (The three major cost

components of logistics operations are inventory carrying, transportation and

administration.) Logistics industry represents a significant part of the economy, as they

generally constitute between 10and 15% of the GDP of a country. The European market

for logistics industry can be categorized as matured and crowded with several globally

strong logistics players. The 3PLpenetration rate in Europe is also estimated to be high, at

10%. It is estimated that about11.6 million jobs are involved in logistics in this region.

Having such matured market, there is only limited scope for new entrants in Europe. In

the US, the European players have started establishing strong US networks. The US

appears as the home ground of global giants of logistics players, with a reported 3PL


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penetration rate of 8%. In 2000, total business logistics costs exceeded US$ 1 trillion and

accounted for 10.1% of the country‘s GDP. The breakdown for the total logistics cost for

the US is as follows:

Inventory carrying costs: The major cost components are interest charges, taxes,

obsolescence, depreciation, insurance and warehousing. The inventory-carrying

rate for the past 40 years has remained relatively steady at about 25%, except for

periods of recession when the rate increased to above 30%.

Transportation costs: In the US, the trucking industry has accounted for the bulk

of the transportation costs, with inter-city trucking as the key contributor.

Administrative cost: This cost is attributable to logistics administration and it

accounts for less than 5% of the total logistics costs.

Over the last decade, the logistics costs have come down from 15% to 9% in the US.

Back in the east, the strong presence of local players in Japan resulted in difficult market

entry in this region. Likewise, the consolidation in Australian logistics markets have

resulted in large domestic logistics companies, which also limits the scope for new

entrants.

The story is however different in Asia. There are no dominant integrated logistics

players, and the Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) service

providers are still growing concepts in Asia. As such, there is an urge for local players to

expand capabilities and move into unoccupied space before the global players dominate

the market. In addition, Asia is expected to show a tremendous growth in logistics market

and to account for over 50% of world cargo in 20 years‘ time. China and India

specifically are the two leading logistics markets in Asia which are forecasted to grow

more than 40% annually in this decade. As of the year 2000, the annual logistics cost for

China was estimated to be more than US$ 200 billion and the 3PL service providers

accounted for about 2% of the logistics market (lower than the Europe and US). The

logistics cost in China was recorded to be 20% of GDP, and by the first quarter of 2004,

the proportion increased to 21.4%. India, the second fastest economy in Asia after China,

with estimated GDP growth rate of 7.2% for2004 and with the value of logistics market

estimated at 13% of GDP, is expected to be at least US$ 50 billion worth of logistics


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industry and still growing. As such, the logistics industry in India has emerging

opportunities and is poised for continued significant grow thin the coming years

especially in the Fast Moving Container Goods (FMCG), textiles, retail, automotive,

pharmaceutical and manufacturing sectors. In the following sections we look at the

evolution of the Indian logistics industry and its future.

Logistics is concerned with physical material and information flows from raw material

through to the final destination of the finished product. Major emphasis is now placed on

the importance of information as well as physical flows, and an additional and very

relevant factor is that of reverse logistics – the flow of products and packaging back

through the system.

There is often confusion between ―logistics‖ and ―supply chain management‖. Logistics

is one activity of the end-to-end process of supply chain management. Humanitarian aid

in emergencies may well be ‗80% logistics‘ but it encompasses a wider spectrum of

activities; as Van Wassenhove observes : ―To many humanitarians, the definition of

logistics is open to interpretation‖.

Logistics is the process of planning, implementing, and controlling the effective and

efficient flow of goods and services from the point of origin to the point of consumption.

Types of logistics:

1. Inbound Logistics: It concentrates on purchasing and arranging the inbound

movement of materials, parts, and/or finished inventory from suppliers to

manufacturing or assembly plants, warehouses, or retail stores

2. Outbound Logistics: It is related to the storage and movement of the final product

and the related information flows from the end of the production line to the end

user

The main functions of a qualified logistician include inventory management, purchasing,

transportation, warehousing, consultation, and the organizing and planning of these

activities. One definition of business logistics speaks of "having the right item in the right

quantity at the right time at the right place for the right price in the right condition to the


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right customer". Business logistics incorporates all industry sectors and aims to manage

the fruition of project life cycles, supply chains, and resultant efficiencies.

Logistics Fields

Given the services performed by logisticians, the main fields of logistics can be broken

down as follows:

Procurement logistics

Distribution logistics

After-sales logistics

Disposal logistics

Reverse logistics

Green logistics

Global logistics

Domestics logistics

Concierge Service

RAM logistics

Asset Control Logistics

POS Material Logistics

Emergency Logistics

Procurement logistics consists of activities such as market research, requirements

planning, make-or-buy decisions, supplier management, ordering, and order controlling.

The targets in procurement logistics might be contradictory: maximizing efficiency by

concentrating on core competences, outsourcing while maintaining the autonomy of the

company, or minimizing procurement costs while maximizing security within the supply

process.

Distribution logistics has, as main tasks, the delivery of the finished products to the

customer. It consists of order processing, warehousing, and transportation. Distribution

logistics is necessary because the time, place, and quantity of production differs with the

time, place, and quantity of consumption.

Disposal logistics has as its main function to reduce logistics cost(s) and enhance

service(s) related to the disposal of waste produced during the operation of a business.

http://en.wikipedia.org/wiki/Reverse_logistics

http://en.wikipedia.org/wiki/Green_logistics


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Reverse logistics denotes all those operations related to the reuse of products and

materials. The reverse logistics process includes the management and the sale of

surpluses, as well as products being returned to vendors from buyers. Reverse logistics

stands for all operations related to the reuse of products and materials. It is "the process

of planning, implementing, and controlling the efficient, cost effective flow of raw

materials, in-process inventory, finished goods and related information from the point of

consumption to the point of origin for the purpose of recapturing value or proper

disposal. More precisely, reverse logistics is the process of moving goods from their

typical final destination for the purpose of capturing value, or proper disposal. The

opposite of reverse logistics is forward logistics.

Green logistics describes all attempts to measure and minimize the ecological impact of

logistics activities. This includes all activities of the forward and reverse flows. This can

be achieved through intermodal freight transport, path optimization, vehicle saturation

and city logistics.

RAM logistics (see also logistic engineering) combines both business logistics and

military logistics since it is concerned with highly complicated technological systems for

which Reliability, Availability and Maintainability are essential, ex: weapon systems and

military supercomputers.

Asset Control logistics: companies in the retail channels, both organized retailers and

suppliers, often deploy assets required for the display, preservation, promotion of their

products. Some examples are refrigerators, stands, display monitors, seasonal equipment,

poster stands & frames.

Emergency logistics is a term used by the logistics, supply chain, and manufacturing

industries to denote specific time-critical modes of transport used to move goods or

objects rapidly in the event of an emergency. The reason for enlisting emergency logistics

services could be a production delay or anticipated production delay, or an urgent need

for specialized equipment to prevent events such as aircraft being grounded (also known

as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure.

Emergency logistics services are typically sourced from a specialist provider.


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The term production logistics describes logistic processes within a value adding system

(ex:factory or a mine). Production logistics aims to ensure that each machine and

workstation receives the right product in the right quantity and quality at the right time.

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

value-adding processes and to eliminate non–value-adding processes. Production

logistics can operate 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 becomes more important with decreasing batch sizes. In

many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing

even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an

essential part of production logistics due to product safety and reliability issues, is also

gaining importance, especially in the automotive and medical industries.


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Business Logistics

One definition of business logistics speaks of "having the right item in the right quantity

at the right time at the right place for the right price in the right condition to the right

customer". Business logistics incorporates all industry sectors and aims to manage the

fruition of project life cycles, supply chains, and resultant efficiencies.

The term "business logistics" has evolved since the 1960sdue to the increasing

complexity of supplying businesses with materials and shipping out products in an

increasingly globalized supply chain, leading to a call for professionals called "supply

chain logisticians".

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

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 a professional

knowledge of each of these functions to coordinate 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, while the other

coordinates a sequence of resources to carry out some project (ex:restructuring a

warehouse).

Nodes of a distribution network

The nodes of a distribution network include:

Factories where products are manufactured or assembled

A depot or deposit is a standard type of warehouse thought for storing

merchandise (high level of inventory).

Distribution centers are for order processing and order fulfillment (lower level of

inventory) and also for receiving returning items from clients.

Transit points are built for cross docking activities, which consist in reassembling

cargo units based on deliveries scheduled (only moving merchandise).


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Traditional retail stores of the Mom and Pop variety, modern supermarkets,

hypermarkets, discount stores or also voluntary chains, consumer cooperative,

groups of consumer with collective buying power. Note that subsidiaries will be

mostly owned by another company and franchisers, although using other

company brands, actually own the point of sale.

There maybe some intermediaries operating for representative matters between nodes

such as sales agents or brokers.

Logistic Families and Metrics

A logistic family is a set of products which share a common characteristic: weight and

volumetric characteristics, physical storing needs (temperature, radiation,...), handling

needs, order frequency, package size, etc. The following metrics may be used by the

company to organize its products in different families.

Physical metrics used to evaluate inventory systems include stocking capacity,

selectivity, superficial utilization, volumetric utilization, transport capacity,

transport capacity utilization.

Monetary metrics used include space holding costs (building, shelving and

services) and handling costs (people, handling machinery, energy and

maintenance).

Other metrics may present themselves in both physical and monetary form, such as the

standard Inventory turnover.

Handling and Order Processing

Unit loads for transportation of luggage at the airport, in this case the unit load has

protective function. Unit loads are combinations of individual items which are moved by

handling systems, usually employing a pallet of normed dimensions.

Handling systems include: trans-pallet handlers, counterweight handler, retractable mast

handler, bilateral handlers, trilateral handlers, AGV and stacker handlers. Storage systems

include: pile stocking, cell racks (either static or movable), cantilever racks and gravity

racks.


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Order processing is a sequential process involving: processing withdrawal list, picking

(selective removal of items from loading units), sorting (assembling items based on

destination), package formation (weighting, labeling and packing), and order

consolidation (gathering packages into loading units for transportation, control and bill of

lading).

Picking can be either manual or automated. Manual picking can be both man to goods,

i.e. operator using a cart or conveyor belt, or goods to man, i.e. the operator benefiting

from the presence of a mini-load ASRS, vertical or horizontal carousel or from an

Automatic Vertical Storage System (AVSS). Automatic picking is done either with

dispensers or depalletizing robots.

Sorting can be done manually through carts or conveyor belts, or automatically through

sorters.

Transportation

Cargo, i.e. merchandise being transported, can be moved through a variety of

transportation means and is organized in different shipment categories. Unit loads are

usually assembled into higher standardized units such as: ISO containers, swap bodies or

semi-trailers. Especially for very long distances, product transportation will likely benefit

from using different transportation means: multimodal transport, intermodal transport (no

handling) and combined transport (minimal road transport). When moving cargo, typical

constraints are maximum weight and volume. Operators involved in transportation

include: all train, road vehicles, boats, airplanes companies, couriers, freight forwarders

and multi-modal transport operators. Merchandise being transported internationally is

usually subject to the Incoterms standards issued by the International Chamber of

Commerce.

Configuration and Management

Similarly to production systems, logistic systems need to be properly configured and

managed. Actually a number of methodologies have been directly borrowed from

operations management such as using Economic Order Quantity models for managing

inventory in the nodes of the network. Distribution resource planning (DRP) is similar to


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MRP, except that it doesn't concern activities inside the nodes of the network but

planning distribution when moving goods through the links of the network.

Traditionally in logistics configuration may be at the level of the warehouse

(node) or at level of the distribution system (network).Regarding a single warehouse,

besides the issue of designing and building the warehouse, configuration means solving a

number of interrelated technical-economic problems: dimensioning rack cells, choosing a

palletizing method (manual or through robots), rack dimensioning and design, number of

racks, number and typology of retrieval systems (e.g. stacker cranes). Some important

constraints have to be satisfied: fork and load beams resistance to bending and proper

placement of sprinklers. Although picking is more of a tactical planning decision than a

configuration problem, it is important to take it into account when deciding the racks

layout inside the warehouse and buying tools such as handlers and motorized carts since

once those decisions are taken they will work as constraints when managing the

warehouse, same reasoning for sorting when designing the conveyor system and/or

installing automatic dispensers.

Configuration at the level of the distribution system concerns primarily the problem of

location of the nodes in a geographic space and distribution of capacity among the nodes.

The first may be referred to as facility location (with the special case of site selection)

while the latter to as capacity allocation. The problem of outsourcing typically arises at

this level: the nodes of a supply chain are very rarely owned by a single enterprise.

Distribution networks can be characterized by numbers of levels, namely the number of

intermediary nodes between supplier and consumer:

Direct store delivery, i.e. zero levels

One level network: central warehouse

Two level network: central and peripheral warehouses

This distinction is more useful for modeling purposes, but it relates also to a tactical

decision regarding safety stocks: considering a two level network, if safety inventory is

kept only in peripheral warehouses then it is called a dependent system (from suppliers),

if safety inventory is distributed among central and peripheral warehouses it is called an


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independent system (from suppliers). Transportation from producer to the second level is

called primary transportation, from the second level to consumer is called secondary

transportation.

Although configuring a distribution network from zero is possible, logisticians usually

have to deal with restructuring existing networks due to presence of an array of factors:

changing demand, product or process innovation, opportunities for outsourcing, change

of government policy toward trade barriers, innovation in transportation means (both

vehicles or thoroughfares), introduction of regulations (notably those regarding pollution)

and availability of ICT supporting systems (e.g. ERP or e-commerce).

Once a logistic system is configured, management, meaning tactical decisions, takes

place, once again, at the level of the warehouse and of the distribution network. Decisions

have to be made under a set of constraints: internal, such as using the available

infrastructure, or external, such as complying with given product shelf lifes and

expiration dates.

At the warehouse level, the logistician must decide how to distribute merchandise over

the racks. Three basic situations are traditionally considered: shared storage, dedicated

storage (rack space reserved for specific merchandise) and class based storage (class

meaning merchandise organized in different areas according to their access index).

Picking efficiency varies greatly depending on the situation. For man to goods situation, a

distinction is carried out between high level picking (vertical component significant) and

low level picking (vertical component insignificant). A number of tactical decisions

regarding picking must be made:

Routing path: standard alternatives include transversal routing, return routing,

midpoint routing and largest gap return routing

Replenishment method: standard alternatives include equal space supply for each

product class and equal time supply for each product class.

Picking logic: order picking vs batch picking


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At the level of the distribution network, tactical decisions involve mainly inventory

control and delivery path optimization. Note that the logistician may be required to

manage the reverse flow along with the forward flow.

Warehouse Management and Control

Although there is some overlap in functionality, warehouse management systems (WMS)

can differ significantly from warehouse control systems (WCS). Simply put, a WMS

plans a weekly activity forecast based on such factors as statistics and trends, whereas a

WCS acts like a floor supervisor, working in real time to get the job done by the most

effective means. For instance, a WMS can tell the system that it is going to need five of

stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts,

other considerations may have come into play or there could be a logjam on a conveyor.

A WCS can prevent that problem by working in real time and adapting to the situation by

making a last-minute decision based on current activity and operational status. Working

synergistically, WMS and WCS can resolve these issues and maximize efficiency for

companies that rely on the effective operation of their warehouse or distribution center.

Logistics Outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (logistic

service provider), which, compared with basic logistics services, has more customized

offerings, encompasses a broad number of service activities, is characterized by a long-

term orientation, and thus has a strategic nature. Outsourcing does not have to be

complete externalization to a LSP, but can also be partial:

A single contract for supplying a specific service on occasion

Creation of a spin-off

Creation of a joint venture

Third-party logistics (3PL) involves using external organizations to execute logistics

activities that have traditionally been performed within an organization itself. According

to this definition, third-party logistics includes any form of outsourcing of logistics

activities previously performed in house. For example, if a company with its own

warehousing facilities decides to employ external transportation, this would be an


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example of third-party logistics. Logistics is an emerging business area in many

countries.

The concept of a fourth-party logistics (4PL) provider was first defined by Andersen

Consulting (now Accenture) as an integrator that assembles the resources, planning

capabilities, and technology of its own organization and other organizations to design,

build, and run comprehensive supply chain solutions. Whereas a third-party logistics

(3PL) service provider targets a single function, a 4PL targets management of the entire

process. Some have described a 4PL as a general contractor that manages other 3PLs,

truckers, forwarders, custom house agents, and others, essentially taking responsibility of

a complete process for the customer.

Logistics Management

Logistics management is that part of the supply chain that 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 customer requirements. A professional working in the field of logistics

management is called a logistician.

Materials management

Channel management

Distribution (or physical distribution)

Supply-chain management

Logistics Automation

Logistics automation is the application of computer software and/or automated machinery

to improve the efficiency of logistics operations. Typically this refers to operations within

a warehouse or distribution center, with broader tasks undertaken by supply chain

management systems and enterprise resource planning systems.

Industrial machinery can typically identify products through either Bar Code or

RFID technologies. Information in traditional bar codes is stored as a sequence of black

and white bars varying in width, which when read by laser is translated in a binary


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sequence, which according to fixed rules can be converted in a decimal number.

Sometimes information in a bar code can be transmitted through radio frequency, more

typically radio transmission is used in RFID tags. An RFID tag is card containing a

memory chip and an antenna which transmits signals to a reader. RFID may be found on

merchandise, animals, and vehicles and people as well.

The Evolution of Logistics Industry in India

The Indian logistics industry has come a long way from being a labor intensive during

60‘sto the present technology oriented system that provides wide range of logistics

services. The concept of 3PL is a recent past culture in India. Traditionally,

manufacturing companies in India managed their own logistics requirements in-house.

The country then gradually evolved from the stage where the Indian organizations

outsourced their labor requirement in order to avoid labor related problems.

Subsequently, basic services such as transportation and warehousing were outsourced to

different service providers known as the (Second-Party Logistics) 2PL service providers.

With the increasing demand, the service providers started providing integrated services

together with other value added services, while the organizations focus on the core

competencies and streamline their supply chain. In terms of infrastructure, road is the

dominant mode of transport which accounts for 68% of freight movement in India.

Trucks are the most widely used mode of transportation in India.

At present, around 1.5 million trucks operate on the Indian roads and the number

of trucks increases around 10% a year. Railways are considered a relatively cheaper

mode of transport and are used mainly for transporting bulk materials over long

distances. About89% of its freight traffic is contributed by major commodities such as

coal, fertilizers, cement, petroleum products, food grain, finished steel, iron ore and raw

material to steel plants. The balance 11% is other commodities moving in bulk and

containers.

The present form of logistics industry in India is still in its infancy and is highly

fragmented. There are thousands of logistics companies, ranging from the international

giants to the highly localized small players in the country. As the logistics industry in

India is in nascent stage, there are a lot of logistics issues to be improved. For example,


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the Indian companies continued to perceive cost as the major consideration in selecting

their service providers.

With increased competition and global trade, and greater thrust on customer-

centricities, the companies are now realizing the value of high quality ―customer-

responsive‖ factor. Traditional transporters, freight forwarders and courier companies are

rapidly transforming themselves into integrated logistics service providers by

incorporating other activities like inventory management, order processing, collection of

bills, sales and excise duty documentation in order to effectively utilize their existing

assets and experience. The gradual deregulations over the 1990s, which includes the

opening up of sectors to foreign MNC investments, full liberalization of current account

transactions and the largely permissible of capital account transactions, have further

boosted the logistics industry. However, when compared with developed countries, the

Indian logistics industry is still considered to be underdeveloped. The major restrictions

hindering the growth of logistics industry in India include the poor conditions of

infrastructures and transport vehicles, complex tax laws, complexity of international trade

documentation process and lack of IT infrastructure, shortage of professionally

competent logisticians and insufficient technological aids and the lack of industry

readiness. Due to these restrictions, the logistics costs in India are still higher than in the

developed markets. It is estimated to be around 13%of GDP, against 9% of GDP in the

US. (This is however lower when compared to countries like China which accounts for

20% of GDP). It is also forecasted that the potential savings for India if logistics cost

decreases by 1% is about a significant amount of $4.8 billion per year. At the other end,

the average inventory level of grocery stores is recorded to be 45days of sales in India

compared 11-22 days in developed countries. Such inefficiencies indicate that there is

much to be done with the current situation in order to boost the Indian logistics industry.

Challenges faced in logistics sector in India

With increasing competition and cost, focus on outsourcing, entry of foreign players is

having positive impact on the industry.

The road transport in India as emerged as a dominant part of the transport system in

India, it has come to occupy a pivotal position in the overall transport system in India.


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The sector is growing at the rate of 10% per annum. Several factors are helping the

growth of logistics industry in India over the decade that includes changing tax system,

rapid growth in industries such as automobile, pharmaceuticals, FMCG and retail.

However, major sectors that are investing huge amounts in logistics industry are aviation,

metal & mining and consumer durables. With increasing competition and cost, focus on

outsourcing, entry of foreign players is having positive impact on the industry. Three

major contributors for the growth of the logistic industry are: emergence of organized

retail, increase in foreign trade and India becoming soon the manufacturing hub.

The Economic liberalization and the relaxed FDI norms have been a tremendous help in

the growth of the sector. Other factors that have helped are augmentation of retail,

agriculture, pharmaceutical, automobile and FMCG sector. The introduction of Value

Added Tax (VAT) and the proposed introduction of a singular Goods and Services Tax

(GST) are expected to significantly reduce the number of warehouses manufacturers are

required to maintain in different states, thereby resulting in a substantial increase in

demand for integrated logistics solutions.

Infrastructure is one of the biggest challenges faced by the Indian logistics sector and has

been a major deterrent to its growth. Infrastructural problems like bad road conditions,

poor connectivity, inadequate air and sea port capacities and lack of development of

modes of transports like railways and alternates like inland water transport and domestic

aviation have been constant irritants. Due to the infrastructural bottlenecks costs per

transaction in Indian logistics sector is very much high compared to those in the

developed markets. Less economy of scale due to high fragmentation of industry, lack of

skilled labor and manpower are also one of the major challenges for the logistic sector.

Indian subcontinent faces different challenges vis-a-vis developed nations. In foreign

countries the problem is demand; in India, demand management has been a great

challenge. India still has a long way to go in terms of best practices. Maturity level of

most of the companies on demand driven value network is low. DDVN is essentially

about being customer centric.

Apart from the above-mentioned points, the key challenge is the lack of human resources

followed by infrastructure in terms of logistics, power, and water. The other challenge


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which exists in a vast country like India is that the customer base is diverse and widely

distributed. The point I am making is that the real growth which will occur in India is

from rural areas and remote locations. For companies to win over the Indian market

which is huge, they need to have right end-to-end supply chain strategies in place,

covering network strategy, proper human resources, and infrastructure. The other key

challenge is volatile demand, needs and preferences consumers, and customers are

changing rapidly, hence creating uncertainty in the demand patterns.

The transportation market in India is expected to continue offering significant

opportunities to all concerned stakeholders. However, for the sector to reach its full

potential, the timing and economics would depend on how the various drivers and

inhibitors evolve in future. While the quality of road infrastructure is certainly likely to

improve, the pace of infrastructure development is critical to minimize losses, both

economic and environmental. In particular, delays in meeting project timelines should be

minimized, given that only around 52 percent (10.39 km as against the target 20 km in

2011–12) of the daily target of average road length to be constructed has been met.

However, not only has the demand for road connectivity been rising, focus on improving

basic road infrastructure as well as technology adoption has also increased in recent

years. The number of expressways and highways has increased; many roads have been

widened; electronic toll collection is becoming increasingly common; the ‗green channel‘

concept is gaining ground, and inter-state check posts are becoming automated, with

Gujarat serving as an example.

In terms of overall business outlook, India has an opportunity; it's just that after the

downturn, in line with the global markets, the emerging markets like India and China are

also getting stabilized at a new normal which will be slightly at the lower level vis-à-vis

what the country used to grow at. Comparing India with other emerging markets, the per

capita GDP is low but there is a lot of potential.

In India, around 10-15 percent of the product cost can be attributed to logistics.

Compared to economies of the USA, the European Union or China – this is a very high

percentage. The logistics and supply chain management sector is fragmented in India.

Generally, it is an informal sector performing logistics tasks, largely with low-tech


29

technology and support and without dedicated warehouse area. Moreover, majority of

logistics service providers consist of only a few personnels owning one or two trucks.

The sector, as a whole, is not very organized and the workload is very volatile, especially

in the big cities, where there are a vast number of unorganized small truck owners and

service providers providing stiff competition at razor thin margins.

India with its vast demography brings its own challenges. With the issues like

safety, inefficient regulations, governing risks, etc – in the supply chain, it may not be

easy to revive and evolve the behavior from within the unorganized sector, towards more

safe and structured one. Human risks are a major issue in India compared to European

countries. Providers mostly overload trucks which lead to an enormous rate of deaths

since they generally do not consider investing in security measures due to cost reasons.

Storage and warehouse related risks are also of concern; the fragmented private logistics

companies do not interface with logistic chains, thus opening another avenue of business

risk.

Regulation in India sometimes borders on over-regulation, which is a major or

constricting factor. But having said this ironically in certain ways, there is a lack of

regulations and regulation implementation throughout the country. With regard to

trucking, there is a high tendency to overload and many a times they over-speed in order

to meet their time limits. Also, safety regulations are very poor which gets worse

considering substandard road and traffic conditions. An example, TATA trucks have a

capacity of 12 tons, but loads of less than 18 tonnes are exceptions, since people either do

not care or simply do not know any better. Hence, there is a high rate of accidents at

loading facilities and on roads. Safety laws do exist, but their implementation and

enforcement is very problematic. Regarding infrastructure, the government has dedicates

some routes exclusively for trucks. But the major problem is that there is no

standardization of the quotes of logistics service providers.

The Indian railways are still a monopolistic organization considering logistics, with a

huge network and an integrated system including 16 zones and 75 divisions, which is not

yet ready to be opened up for private ownership. This institution is a department of the

government and a huge entity with approximately around 100,000 employees. However,


30

it remains a single inflexible company that has difficulties to associate with outside

partners. Even though there are initiatives for improvement, they all need to be approved

through a very long and inefficient internal process.

Considering the ports for logistics operations, data from Indian Ports Association

shows that ports in India suffer from high turnaround times for ships. JNPT, which is the

premier port in India, has more than two-times the turnaround time than Colombo and

Singapore ports because of congestion on berths and slow evacuation of cargo which are

unloaded at the berths. Inadequate depth at ports is also of concern. The depth at many

ports in India is not enough and dredging tenders take a long time in getting awarded. As

a result, with the existing depths many ports are not able to attract very large vessels.

Coastal shipping in India is hampered by inadequate port and landside infrastructure,

which hampers large-scale use of it for freight movement.

Finally Air cargo has also not taken off significantly in India. With increased volumes of

cargo, major airports are getting congested resulting in long waiting time. The waiting

time for exports in India is 50 hours compared to a World average of 12 hours while the

waiting time for imports in India is 182 hours compared to a World average of 24 hours.

Also the airfreight sector suffers from high fuel costs and tariffs as well as several

manpower issues. Considering Logistics as a career option, it is still not perceived as an

industry of choice for young graduates. Therefore hiring of quality professional

manpower is a challenge.

A recent study has found that a variety of skills are required in the sector. These

include technology skills, driving skills including safety procedures, industry

understanding and multi operations skills. The present state of affairs is illustrated by

example of a truck driver in India, who is a critical point of contact for the logistics

company with its customers where the truck drivers today find it difficult to accurately

log delivery records, understand delivery documents, negotiate for return business,

handle queries etc.


31

Logistics is a unique sector that plays a major role in India‘s booming economy. In 2010,

the logistics industry was valued at $125 bn and is expected to grow at this rate for the

next 3-5years.

The Indian logistics sector employs around 45 million people, which is far greater than

the number of employees in the IT and ITES sector combined (a total of 4.3 million

people). This is an indicator of the booming logistics sector and its role in India's growth.

The primary goal of a logistics company is to supply goods across the supply chain, from

raw materials to finished products for use by consumers and companies alike. Usually,

logistics companies use four modes of transport to move freight – road, sea, air and rail.

In reality, India continues to portray the image of a backward player in the global

logistics arena with barely any multimodal logistics centers. Indeed, despite its strategic

location, the country has been unable to evolve into a hub for international freight.

Poor infrastructure facilities have brought into focus two crucial areas that require

immediate attention in developing India‘s logistics chain. They are logistics costs and

value added services. Logistics costs, which include transportation, warehousing,

inventory management, packaging and administration-related costs are estimated at 13 to

14% of GDP, which is high compared to other developing nations‘ figures of 6 -

8%.Customers in India pay much higher than their counterparts in other countries for

freight services. They are also faced with significantly higher delays in freight services,

which give the Indian logistics sector a sluggish and unreliable appeal. Very often,

customers have to track the progress of their consignment to ensure it reaches its

destination on time.

Road Freight

Roads are the most popular mode of transportation in the logistics sector with 65% of

total goods transported using this mode of transport. With a total length of 3.3 million

kilometers(Economic Survey 2007-08), India boasts of the second largest road network in

the world. It is interesting to note that National Highways forms only 2% of the road

network but carry about 40% of the total road traffic. There are several challenges facing

road freight services, the foremost being miserable road conditions. For several years


32

voices have been raised against the dismal state of roads in the country. Along with

citizens, the logistics sector is severely hit by this scenario. The average speed for trucks

in India is 30-40 km per hour (kmph) compared to 60-90 kmph in other countries. As a

result, the daily average distance a commercial vehicle travels in India is 240-280

kilometers compared to 680-700 km in other developing countries. Moreover, 12% of

trips by commercial trucks are empty trips without load.

Challenges facing Road Freight:

Badly maintained roads

Low average speed for commercial trucks: 30-40km

Low daily average distance for commercial trucks: 240-280 km

Issues with octroi persist

The logistics industry is staunchly against the way octroi is collected and for a long time

has been demanding that it be abolished. There is a general feeling among industry

members that octroi does not comply with the current policy of liberalization.

Roads in India have to deal with innumerable demons in the form of

encroachment, potholes, lack of maintenance and gigantic traffic. Luckily, the

Government of India has realized the importance of good roads to provide a better

infrastructure. In the 12th Five Year Plan, investments of Rs. 2,64,000 cr have been

mooted in the road sector. The National Highway Authority of India (NHAI) has

proposed to invest Rs. 87,000 crore while the remaining investment of Rs. 1,77,000 will

be done through the private sector.

According to a recent Goldman Sachs report, India will need to spend $1.7 trillion

on infrastructure projects over the next decade to boost economic growth. Currently,

several projects have been undertaken to expand the road network nationwide. This will

help in providing connectivity in both the rural and urban areas. The Golden

Quadrilateral Project is one such example of these initiatives. The 11th Five Year Plan

saw an investment of Rs.3,141.5 bn in the roads sector.

The World Bank is providing $2 bn for building 24,000km of all weather roads in

Himachal Pradesh, Jharkhand, Meghalaya, Punjab, Uttarakhand and Uttar Pradesh. This


33

loan was approved in January 2011 under projects carried out by Prime Minister Gram

Sadak Yojana(PHGSY) to build 3,75,000km of new roads at an estimated cost of $40 bn.

Ocean Freight

Ports form the lifeline between ocean and land-based transport. India‘s long coastline is

blessed with 13 major ports that are managed by the Port Trust of India. These ports are

Kandla, Mumbai, JNPT, Mormugoa, New Mangalore, Kochi, Tuticorin, Chennai,

Ennore,Vishakhapatnam, Paradip, Port Blair and Kolkata. Apart from these, there are 200

non-major ports of which only 66 are operational.

India will be looking forward to unite the country‘s 13 main harbors into integrated

freight hubs. Many of these harbors do not have the rail and road connections needed to

handle the transport volume of ships. Containers have to frequently wait for weeks in the

harbor before they can be transported. Lack of good connectivity, equipment and

technology has contributed to significantly higher logistics costs for this mode of

transportation. Some major issues affecting ocean freight include:

Congestions are a regular feature at Indian ports. One of the main reasons for this is

increased berthing time, persistent rains, yard congestion and rail/road delays. This

creates havoc on schedules, resulting in indefinite delays for transactions. Furthermore,

lack of coordination between the customs authorities and ports delays quicker dispatch of

documentation and goods.

The average turnaround time at major Indian ports have risen to 4.38 days in 2009-2010

from 3.87 days the previous year. The average pre-berthing waiting time has risen to

11.67 hours in 2009-10 from 9.55hours the previous year Facilities at existing ports for

cargo handling, stevedoring, pilot age services, bunker services and warehousing

facilities need to be upgraded. Different levels of tariff for different types of vessels/cargo

should be implemented.

Challenges facing Air Freight:

Only major airports have infrastructure to handle air cargo

Waiting time 50 hours for export cargo


34

Waiting time 182 hours for import cargo

Infinite delays in transactions

Poor warehouse infrastructure

Indian ports have outdated infrastructure with outdated mechanized systems to handle

cargo. Bigger ships find it difficult to approach ports with access channels not having the

required depth. Moreover, night navigation is almost absent with ships having to wait for

daylight to begin operations. There is an urgent need to increase port capacity and

number of berths. This will ensure smoother movement of goods movement through

ports.The congestion period is particularly long at Haldia (7/8 days), Kandla (8/12 days),

Paradip (4days), Vizag (5/6 days), Tuticorin (2 days), Nhava Sheva (5 days) and Goa (2/3

days).

There are huge opportunities for port development. Petroleum products, coal, steel and

iron ore containers will require over 1600 million tonnes by 2025. For FY12, the

Government is likely to award 23 PPP projects worth Rs 16,700 cr in 2011-12, adding

230 million tonnes to India's yearly cargo handling capacity.

As the country is beset with sever infrastructure niggles, several logistics companies have

wisely invested in setting up Container Freight Stations (CFS) at strategic port locations

across the country. These state-of-the-art facilities provide excellent warehousing

capabilities, inventory management, cargo packaging and scope for container

parking/repairs.

Air Cargo

Over the last couple of years, air freight has gained prominence for the logistics sector.

Even though the air cargo business has picked up steadily, basic infrastructure still lags

behind. It is a fact that five major airports – Bangalore, Delhi, Kolkata, Chennai and

Mumbai – account for close to 88% of the total air cargo handled in India. Air cargo in

India accounts for only 6-7% of total freight in terms of tonnage but 35 per cent in value.

The lack of onsite storage facilities is one of the biggest challenges facing providers of air

cargo services. There is an urgent need to improve India‘s airport infrastructure and more


35

dedicated cargo terminals should be introduced. Even though air cargo provides a clear

advantage over other forms of freight services, it is severely hampered by poor

warehouse infrastructure.

India has 67 airports in a country that has an area of 3.3 million sq. km. This is woefully

inadequate and works against the cause of air cargo development. On the contrary, the

number of airports in the USA exceeds 15,000.There are often huge delays resulting in

sever losses, especially in the case of perishable goods. In export cargo, airport waiting

time is 50 hours compared to a global average of 12hours. Similarly, for import cargo,

airport waiting time in India is an astonishing 182 hours compared to 24 hours in other

countries. Moreover, average charges at Indian airports are78% higher than those offered

in other countries.

Apart from the major airports, the remaining ones are underutilized and will require

massive infrastructure spending. The current 11th Plan envisaged the development of 35

non-metro airports that did not have proper terminals, lounges and modern equipment. It

is anticipated that air cargo activity shall expand from metro airports to non-metro

airports after necessary infrastructure has been put in place.

Rail

In India, freight trains travel on the same tracks as passenger trains, thus causing

considerable delays in transportation of goods. A slow average speed of 25 kmph has

now encouraged several logistics players to shift from rail to road to ensure faster

delivery of goods.

The rail logistics sector is mainly dependent on the Indian Railways and port terminal

operators to function smoothly. There are several issues that need to be looked into such

as stability of rakes, service guarantee and dedicated freight corridors. Also, the cost of

transport per tonne per kilometer is very high in India when compared with other

countries such as China, the US and the UK. A dedicated freight corridor is capable of

boosting rail logistics in India to a very great extent by reducing the cost of transportation

and inventory.


36

Dedicated freight corridors are essential because it will bring about the establishment of

industrial corridors and logistic parks along its alignment. Two freight corridors – the

Western DFC and Eastern DFC- spanning a total length of about 3300 route km are

currently being built.

The Eastern Corridor will traverse through the states of Haryana, Uttar Pradesh, Bihar

and terminate at Dankuni in West Bengal. The Western Corridor will traverse the

distance from Dadri to Mumbai, passing through the states of Delhi, Haryana, Rajasthan,

Gujarat and Maharashtra.

The Indian Government has understood the plight of the logistic players in the country

and is focusing on overcoming infrastructure-related issues in a big way. This will help

logistics players provide better value-added services to the customer. Businesses are

bound to benefit from an enhanced logistics industry and this will, in turn, boost the

economy. It is important to integrate different modes of transport into a seamless network

so that costs delays are kept to a minimum. India has a lot of catching up to do with other

countries that offer far superior logistics services. Even though the Government has

begun the process of infrastructure development, it is crucial that policies and regulations

favoring the logistics industry are also passed to ensure a bright and secure future for this.


37

OBJECTIVES OF THE STUDY

To study the customer‘s level of satisfaction on the services provided by Marks

Cargo Private Ltd, Pondicherry.

To understand the effectiveness of the current services in Marks Cargo Private

Limited.


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LIMITATIONS OF THE STUDY

This study considered only the customers from Agriculture, Chemical, Cosmetics,

Cottage, Electronic and Grocery Industry Sectors. Therefore the results may vary if it

includes the customers from the other sectors.

The study covered only 54 respondents out of the total customers of the Marks

Cargo Private Limited. Therefore, the increase in sample size may provide better results

than the findings of this study.


39

SCOPE OF THE STUDY

The scope of this study of the practical implementations and the functioning of services

process within Marks Cargo Private Limited is to understand the importance of customers

feedback and the numerous benefits that accrue primarily to the functions within the

company, as it can be seen through the course of this project, helps in the individual

development of the employers and as well as to the customers which will in turn assist in

the development of the company.

The study also attempts to find out the possible weak links in the current

functioning of the services and to assist the company to fortify these links. Furthermore,

the study wishes to find the accuracy and the usage of this Customer Feedback and

encourage the proper usage of this and so as to ensure the proper functioning of

management within the company.


40

CHAPTER - II

A. COMPANY PROFILE

Marks Cargo Private Limited was established in 2006 with 5 branches, and has since

grown into the leading cargo handlers. To meet the growing demands of their valuable

and supporting customers they have established 9 branches at present. At each step they

take towards advancement and always realize that customers are the foundation stone of

the success. With unique combination of expertise, infrastructure and dedicated personnel

Marks Cargo Private Limited ensure value added service with all the benefits being

transferred to our clients.

The goal is to build long term association with our valued customers for mutual benefits

and understand well about their requirements, to serve them better. Main objective is the

satisfaction of the customers by providing timely service, information and guidance. The

office at Pondicherry doing India distribution and worldwide Logistics solutions.

As Logistics is a part of Product offering, Marks Cargo Private Limited is committed to

provide a real value for money, by way of giving critical information, so as to contribute

to their winning advantage. Marks Cargo Private Limited, is well-versed in providing

prompt, reliable and consistent service, also assured to their customers with affordable

and comprehensive business solutions. Marks Cargo Private Limited is mounting firm

headquartered at Pondicherry, India, amongst the renowned global logistics service

providers.

Marks Cargo Private Limited is committed to become a full-fledged third party logistic

solution provider, attributing world-class service to their customers, across globe.

Integrity

Commitment

Professionalism

Innovation

Adaptability

Consistency


41

Dedicated Customer service

Understanding & Development

Global Supply Chain

Managing inventory is a very big challenge now‐a‐days to manage within their budget

and its time-sensitive. And now it is very common to go global sourcing for most of the

business houses. However, they are committed to provide the valued customers for

fruitful, reliable business partner for end‐to‐end supply chain activity, as well.

Value Chain

Marks Cargo Private Limited is designed to ensure that each and every stages of the

supply chain activity will carefully planned and coordinated well. An outstanding team of

professionals, committed to the excellence by way of providing timely and accurate

information and guidance, as real value for the customer‘s money.

To make use of their agent network and Logistics partners across the globe, they

obviously support all the customer‘s sourcing and selling anywhere to anywhere in the

globe.

SOP – Standard Operating Procedures

To understand well about the specific logistics needs and requirements. The study is

conducted all expectations of a customer in order to setting up a detailed process flow to

check all the deviations and ensure a reliable business module to the industry specific.

The effective way of implement standardized operating procedure, the firm develops and

implement and maintain a real‐ time solution, which is fundamental and instrumental to

all customer‘s supply chain management.

GROUPING (CONSOL)

A cost‐effective way of freight management to do advance space block in the respective

airlines.

Marks Cargo Private Limited facilitate to their customers by doing cargo consolidation

air/sea which includes the transportation of cargo to the loading point, loading the cargo


42

into containers, processing the shipping documents with execution of necessary custom

formalities, use premium air/sea carriers and make sure that the cargo will in‐time to the

respective destinations well before the stipulated time indicated by the most of their

customers.

List of Services

Customs Clearance

World-Wide Sea-Freight and Air-Freight

Warehousing and Packaging solutions

Value Added Services for companies who require a reliable partnership with a

credible global logistics business

Door to Door

Reverse Logistics

Sea Freight Services

Reliable, safe, competitive sea-freight solutions

LCL (Less than Container Load)

FCL (Full Container Load) – Standard, Open Top, Flat-Rack, Tanker, Reefer

containers available

Break-Bulk

Roll-On-Roll-Off

Out-of-Gauge cargo

Hazardous cargo

Specialists in large project shipments, but at Marks Cargo no shipment is too

small

World-Wide Import/Exports, including Cross-Trade shipments

Regular sailings utilizing their network of overseas partners and all major carriers

Air Freight Services

Fast, reliable, secure and competitive air-freight solutions

Flights to all major international destinations


43

We regularly handle anything from heavy plant – industrial – light domestic

Equipment

Daily low cost consolidations world-wide, all-cargo carriers, and charters are

utilized

Services include door-destination airport, and door-door

Packaging suitable for Air-Freight is an important issue –can offer solutions

Custom Clearance Services

Marks Cargo Private Limited expert team files many of customs entries, and handle all

aspects of customs process, including: import / export clearance, declarations, proforma

invoices and certificates of origin. The expertise in the field also covers customs

regulations, bond requirements, and duty rates.

The customs clearance services for various import and export consignments include the

following:

Guidance and consultation, liaisioning and follow up with various reputed

Organizations.

All post shipment formalities and endorsements.

Documentation procedures i.e. preparation and handling of documents.

Drawback and several other export benefits.

Clients who have their freight and Customs clearances combined with Marks

Cargo, enjoy smoother transits through international border countries.

The clients have access to a specialist 24/7 service meaning you can ask us a

question any time of day.

Contact Marks Cargo Private Limited to discuss how assistance can be provided

with all the Customs Formalities.

WAREHOUSING SOLUTIONS

Marks Cargo Private Limited, can deal into various projects of the supply chain

Management for simple storage.


44

The customs clearance services for various import and export consignments include the

entire inventory management of packing and distribution solutions. The company is

equipped to handle various types and sizes of your stocks from fire, pilferage, damage,

shortage… etc....

Marks Cargo Private Limited has a team of experienced in all the aspects of duties and

responsibilities of receiving, documenting, storage, billing and distribution by end to end.

3PL Services

Pick & pack

Custom bonded warehousing

Dangerous goods handling and storage

Expertise in handling FMCG/Pharma/Engg/Autoparts. Consumer Electronics,

Etc.,

Just-In-Time Inventory management

Temperature controlled storage.

Consulting – Optimising the Logistics process

Factory Logistics

Project Logistics

Marks Cargo Private Limited is equipped with handling pin to the extraordinary size of

inventory to customize a unique warehousing solution that fit into your real needs, as

well. To facilitate real value for the customer money, Marks Cargo Private Limited

engages the existing warehouse setup itself; and will provide exclusive arrangement to

store your cargo.

As third party Logistics solutions provider, Marks Cargo Private Limited can give

customer, their, best possible and reliable solutions to reduce your warehousing budget

and time significantly and efficiently.

TRANSPORT LOGISTICS

Marks Cargo Private Limited, can move customer shipments from one place to another

place at the right time and right mode and the right cost by within the country or across


45

the borders by simple cargo or individual truck loads by regular or express mode of

transshipment.

They are able to manage complex and dedicated distribution mechanism, also provide

cost effective time bound solutions to manage client inventory planning. They are

supported by a wide range of additional solutions like Insurance, Import and Export

customs processes and export pacing solutions.

Marks Cargo Private Limited can offer client the standardized and tailor-made solutions

to manage the supply chain management. They establish necessary arrangements for

truck transport operations with fleet owners, in which consist of many kinds of vehicles

ranging from small, medium and heavy trucks carrying small packets to mega tankers and

a special equipments like Liquids, Fragile cargo, ODD size cargo, special containers,

tankers dangerous goods handling and storage and break bulk cargo.

Distribution Logistics

Document related Services

Dangerous Goods Handling

Dangerous Goods Handling

Special / Heavy Transport

Supply Chain Management

Temperature controlled Transport

Time Bound Transport.

Package Solutions.

Insurance

Interim Storage.

TRADE LOGISTICS

Can work as an ―Importer‖ and Marks Cargo Private Limited can provide

complete Logistics support to many of their customers

Give them consulting and advisory services to our customers who is wishing to

source their requirements in Indian Market.

Vendor selection and maintaining business agreements


46

Overseas quality aspects and ensure compliances to all the above.

All the Logistics related supports including consolidation of shipment from

multiple buyers and seller

Identifying channel partners who is willing to supply to fulfill customer‘s

requirements

Industry Specific Solutions

Marks Cargo Private Limited experience in the Logistics industry comes into play both in

the multi-user facilities like customer specific with dedicated user sites. It is being

extended includes comprehensive value added services to the best suited for all customers

in all the industry and also for real-time retail distribution modules.

Marks Cargo Private Limited having the ability to source the new locations as well as

able to manage existing customer‘s warehouse based on customer

requirements/commitments. Also, they offer to customers both dedicated as well as

shared warehouse locations.

Pick & pack

In-plant stores Management.

In-Plant Logistics Management

Kitting

Line Feeding

Order management

Insurance.

Receivable Management

Meeting tax compliances

Cash Management.

To facilitate the above, customers only can focus on their core-competencies and

production Management alone and leave us the entire inventory management to us.

They also have the expertise in in-plant management and can engage the activity of

supplying raw-materials to client production-line to deliver the finished goods to the end

user, as well.


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Company Factsheet

Nature of Business Logistics

Additional Business

Manufacturer

Supplier

Wholesaler

Importer

Exporter

Year of Establishment 2006

Total Number of

Employees 51 to 100 People

Infrastructure Location Type - Urban

Building Infrastructure - Permanent

Size of Premises - 1,500 square feet

Space Around - 1500 sqft

Statutory Profile

Banker - Indian Overseas Bank

PAN No. - AADFU0687L

DGFT/IE Code - 2511001551

Central Sales Tax No. - 34350015548C

Value Added Tax Registration No. - 34350015548V

Infrastructure:

Marks Cargo owns / has access to warehouses and storage spaces to adapt to

emerging services. All trucks owned by us are maintained on a regular basis and undergo

periodic overhauls to ensure trouble-free operation at all times. The trucks are operated

by highly trained and experienced specialists thereby ensuring safe and efficient

operation. It has set up teams at different points to meet the requirements of the

customers at various stages.


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Management Structure

Profile of the Managing Director

1986 to 1991 – Corporate Couriers, Chennai.

1991 to 2000 – First Flight Couriers Ltd, Chennai.

2001 to 2007 - Hall Mark Cargo, Cofounder.

2006 to Present - Marks Cargo Pvt Ltd, Founder & MD.

Quality Commitment:

Marks Cargo‘s reputation is aptly based on the quality of services offered.

Customer satisfaction continues to be the guiding principle of the company‘s strategy for

growth achieved through innovation, commitment and performance. The professionals

take special measures to transport your shipment safely and securely.


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Mission Statement:

To Emerge as India's top Cargo Company that provides World Class Quality

Service at astonishing economical rate, that adds to the pride of India.

To Our Customers; A prompt and efficient service with courtesy.

To Our Workforce; promote a sense of participation and make them partners in

progress and also provide opportunities for personal growth.

To the Community; A responsible corporate citizen


50

B. RELATED ARTICLES

1) Dubey, Pradeep Kumar and Shah, Janat (2010) in their study titled ―Moving up

the Value Chain : Impact of Strategic Attributes and Value Added Services on

Logistics Service Provider in India‖ examines the relationship between the

Strategic Attributes (SA) and Value Added Services (VAS) of Logistics Service

Providers (LSPs) in India as they move up the Value Chain. This study was

undertaken to understand the structure and evolution of Logistics Service

Providers to a higher level in the Value Chain. The study addresses the

relationship between the Strategic Attributes and Value Added Services which

help a Logistics Service Provider to grow upward. Sample of 159 organizations

participated in this study. The respondents were top management executives

which includes Chairman, MD, CEO, Heads etc. The study not only supports the

existence of a relationship between the Strategic Attributes and Value Added

Services, but also that the degree of the relationship is increasing linearly when

there is an upward movement in the Value Chain. The findings of the study are

useful for LSPs to plan the superordinate goals as they move up the Value Chain.

The Logistics Service users can understand the level at which the service provider

is working with them. The Strategic Attributes and Value Added Services are

useful to the Logistics Service users while making a criterion for the selection of

an LSP.

2) Divakaran, Deepa and Kumar, G. S. Gireesh (April 2014) in their study titled

―The Impact of Currency Depreciation on Logistic Sector in India ―, in this

chapter of most concern for India during last two years has been the weakening of

the rupee against the dollar. It is not only that the rupee has lost its value in the

global context but also that the dollar has improved its performance in the global

trading markets. Though the weakening of the rupee is beneficial to some sectors,

it is a real threat for the country's overall fiscal health and increases the current

account deficit heavily. Depreciation leads to more costly imports, and prices of

various imported commodities like gold, oil, etc., rise, thereby increasing overall

inflation higher. The logistics sector in India plays an important role in the


51

economic growth of the country. Rupee depreciation has a great impact on the

Indian logistics sector. The paper makes an attempt to appraise factors

contributing to currency depreciation and the impact on the Indian logistics sector.

3) Parkan, Celik and Dubey, Rameshwar (2009) in their study titled ―Recent

Developments in the Practice of Supply Chain Management and Logistics in

India‖ outlined the Indian manufacturing and service industries are at a defining

moment of rapid advancement and explosion, which is expected to take the

country to the next level of global competitiveness. This paper reviews the recent

events that have shaped the country's economic and business landscape and

argues for the urgency of a significant modernization of its logistics and supply

chain management practices.

4) Divakaran, Deepa and Kumar, G. S. Gireesh (2014) in their study titled ―The

Impact of Currency Depreciation on Logistic Sector in India‖ discusses the most

concern for India during last two years has been the weakening of the rupee

against the dollar. It is not only that the rupee has lost its value in the global

context but also that the dollar has improved its performance in the global trading

markets. Though the weakening of the rupee is beneficial to some sectors, it is a

real threat for the country's overall fiscal health and increases the current account

deficit heavily. Depreciation leads to more costly imports, and prices of various

imported commodities like gold, oil, etc., rise, thereby increasing overall inflation

higher. The logistics sector in India plays an important role in the economic

growth of the country. Rupee depreciation has a great impact on the Indian

logistics sector. The paper makes an attempt to appraise factors contributing to

currency depreciation and the impact on the Indian logistics sector.

5) Nandita Abraham (2013) in her study titled ―The apparel aftermarket in India - a

case study focusing on reverse logistics‖ aims to map and understand the reverse

logistics systems in the apparel aftermarket in India. It clarifies the processes

involved from the procurement of used clothing until its resale in the aftermarket.

The paper identifies that collaboration between stakeholders can improve

logistics, business predictability and margins. Design/methodology/approach - In

total, 93 in-depth interviews were conducted with stakeholders. Questions


52

revolved around strategic and operational factors of reverse logistics in the

aftermarket. Findings - This fragmentation and isolation of stakeholders'

businesses is identified as the cause of most stakeholder inefficiencies. It was

found that benefits accrued by collaboration in the reverse logistics chain are

increased market knowledge, more predictable business and better margins.

6) Srivastava, Samir K (2006) in his study titled ―LOGISTICS AND SUPPLY

CHAIN PRACTICES IN INDIA‖ aims to comprehensively examine and present

the state of logistics and supply chain practices in India. We consider the two

separately as they have still not integrated seamlessly in the Indian context. Our

study is based on both field observations and secondary data. We focus on supply

chain collaboration and partnerships, supply chain structure, facilities network

design, transportation and logistics and the role of Information and

Communications Technologies (ICT). On-site observations and informal

discussions and interviews with middle and top managers of 25 select firms are

carried out. These are substantiated with data and information from literature and

other secondary sources. We analyze and assess logistics and supply chain

practices in order to discern important issues such as emerging trends and areas of

concern.

7) Mitra, Subrata(2006) in their study titled ―A Survey of Third-party Logistics

(3PL) Service Providers in India‖ focuses on third-party logistics (3PL) service

providers in India. Association of 3PL with the outsourcing of transportation;

Evolution of the 3PL market in India; Surveys that assess the use of 3PL services

by manufacturing firms; Major problems to the growth of the 3PL market in the

country including the lack of trust and awareness among Indian firms.

8) Vijayvargiya, Ankit and Dey, A. K (2010) in their study titled ―An analytical

approach for selection of a logistics provider‖ have affirmed that dealing with

multiple logistics provider restricts negotiation power, service commitments,

customer satisfaction and leads to higher transportation cost and time delays due

to multiple points of contact. The purpose of this paper is to document

CAPARO's aim of selecting one common logistics provider for all their units in

north India for export-import logistics, warehousing, packaging and value added


53

services in order to minimize all the above stated problems.

Design/methodology/approach - This paper, in the form of case study, provides a

structured decision-making model for selection of the most suitable logistics

provider using the analytic hierarchy process (AHP). With this technique, several

criteria like freight charges, inland charges, schedule flexibility, warehousing

capacity, track and trace system, port presence and custom clearance are

considered that make it possible to select a suitable logistics provider. Findings -

The case example establishes that AHP can be effectively used to analyze the

logistics provider selection, which is based on real data. Research

limitations/implications - The case extends the scope for future researchers to

enhance the criteria for selection of any logistics provider. Practical implications -

The paper provides practitioners with a systematic analysis needed to make this

important decision. Originality/value - The paper is based on real data and

information.

9) FRENTZEL, DAVID (2011) in their study titled ―What Can You Do About

Logistics in India?‖ have stated the ways improving logistics landscape in India

influenced by tax laws, communications, and transportation infrastructure. It is

stated that supply chain management professionals should look into developing

logistics strategies in India. It is concluded that India's economic power will

remain in the years to come.

10) Bandyopadhyay, Arindam (2006) in his study titled ―Predicting probability of

default of Indian corporate bonds: logistic and Z-score model approaches.‖ had

made a survey research that concentrates at developing an early warning signal

model for predicting corporate default in emerging market economy like India. At

the same time, it also aims to present methods for directly estimating corporate

probability of default (PD) using financial as well as non-financial variables.

Design/methodology/approach — Multiple Discriminate Analysis (MAD) is used

for developing Z-score models for predicting corporate bond default in India.

Logistic regression model is employed to directly estimate the probability of

default. Findings — The new Z-score model developed in this paper depicted not

only a high classification power on the estimated sample, but also exhibited a high


54

predictive power in terms of its ability to detect bad firms in the holdout sample.

The model clearly outperforms the other two contesting models comprising of

Altman's original and emerging market set of ratios respectively in the Indian

context. In the logit analysis, the empirical results reveal that inclusion of

financial and non-financial parameters would be useful in more accurately

describing default risk. Originality/value — Using the new Z-score model of this

paper, banks, as well as investors in emerging market like India can get early

warning signals about the firm's solvency status and might reassess the magnitude

of the default premium they require on low-grade securities. The default

probability estimate (PD) from the logistic analysis would help banks for

estimation of credit risk capital (CRC) and setting corporate pricing on a risk

adjusted return basis.

11) Srinivas, Kolluru and Krishna, Kolluru(2009) in his study titled ―Technological

Innovations in the Indian Logistics Industry: The Case of Freight Handling‖ had

made a survey research that tries to present a brief insight into the various cost

saving technologies that were adopted by the Indian logistics industry (road,

railways, ports and aviation) for improving the services. The paper gives a brief

picture of the logistics industry in India. It also gives a brief literature survey on

the topic. The paper also describes the recently used technologies and some of the

innovations that have taken place in all the major transportation chains (road, rail,

marine and aviation) and their benefits.


55

CHAPTER - III

RESEARCH METHODOLOGY

The type of Research for this study is descriptive in nature.

Primary Data

The Primary Data was collected with the help of Structural Questionnaire using 4 point

scale from the customers with different industrial background of Marks Cargo Private

Limited, Pondicherry

Secondary Data

Secondary data was collected from company records, website, specimen of appraisal

form and other internal documents in which the project work has been done. In addition,

a number of reference books, journals and reports were also used to formulate the

theoretical model for the study. And some information was also drawn from the websites.

Tools used for analysis

Simple Percentage analysis.

Pie Charts and Bar diagram.

Mean and Standard Deviation.

Period of study

The study covers the period from March to April 2015 in Marks Cargo Private Limited.


56

CHAPTER - IV

DATA ANALYSIS AND INTERPRETATION

The collected data were consolidated and analyzed to understand the organization‘s

current services

Table: 4.1

INDUSTRY WISE CLASSIFICATION OF THE CUSTOMERS

Industry No. of Customers %

Agriculture 8 15

Chemical 8 15

Cosmetics 5 9

Cottage 13 24

Electronic 6 11

Grocery 5 9

Textile 9 17

Total 54 100

Chart no.: 4.1

Industry Wise Classification of the Customers

Agriculture15%

Chemical15%

Cosmetics9%

Cottage24%

Electronic11%

Grocery9%

Textile17%


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Interpretation:

It is clear from the information given in the above pie chart that most of the

customers surveyed fall under Cottage Industry (24%), followed by the Textile Industry

(17%), Agriculture (15%), Chemical (15%) and Electronic (11%) Sector has taken the

survey. However Cosmetics and Grocery (9%), we can conclude that Marks Cargo deals

with variety of products and most of the sectors during their service.


58

Table: 4.2

SERVICES PROVIDED BY THE MARKS CARGO PVT LTD

Services Services

No. of Customers %

Custom Clearance 8 72

Transport 8 45

Warehouse & Distribution 5 42

Sea Freight 13 36

Air Freight 6 15

Road Freight 5 60

Chart no.: 4.2

Services provided by the Marks Cargo Pvt. Ltd

Interpretation:

From the above table it is found that Marks Cargo provides various services to their

clients. Most of them to avail custom‘s clearance and Road Freight facilities followed by

transport (45%) and for warehousing. Only few are avail Air Freight services.


59

Table: 4.3

OTHER COMPANIES FOR SAME SERVICES

Other Services Response

Yes 17

No 37

Total 54

Chart no.: 4.3

Other Companies for same services

Interpretation:

The above chart provides the information that most of the customer (69%) does

not use other companies for the similar services whereas 31% of the customers have said

that they use the other companies also for the same services. This shows the customers

outsourcing the logistics services from Marks and others service providers also.


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Table: 4.4

WORKING EXPERIENCE WITH MARKS CARGO

No. of Years Worked No. of Customers %

< 1 year 11 20

1 - 3 years 28 52

3 - 5 years 10 19

5 - 8 years 5 9

8 < years 0 0

Total 54 100

Chart no.: 4.4

Number of Years Working with Marks Cargo

Interpretation:

From the above table it is found that maximum number of the customers has been

working with Marks Cargo for past 3 years. Around 20% of them were dealing with

Marks Cargo for the past 5 years. Only less than 10% for the past 8years.


61

Table: 4.5

TIMETAKEN FOR RESOLVING PROBLEM

Time Period Response %

Immediately 0 0%

Less than 24 hours

31 57%

1 - 2 Days 9 17%

More than 2 days

14 26%

Total 54 100%

Chart no.: 4.5

Time taken for Resolving Problem

Interpretation:

We can understand from the above diagram, that none of the problem or issues

arising in logistics were not solved immediately due the complexity involved. Most of

the customers (57%) said that their problems are resolved within 24 hours. About 17% of

the customers have conveyed that their problems take 1-2 days to get resolved whereas

26% of the customers stated that for them it took more than 2 days.


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Table: 4.6

FREQUENCY OF PROBLEM ARISED

Frequency Response %

Frequently 0 0%

Sometimes 18 33%

Rarely 36 67%

Total 54 100%

Chart no.: 4.6

Frequency of Problem Arised

Interpretation:

In reference to the above data it is interpreted that majority of the customers

(67%) have experienced problems rarely. The positive information is that there are no

customers who had problems frequently. The remaining 33% said that sometimes they

have certain problems in their dealing with Marks Cargo.

Frequently

Sometimes

Rarely


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Table: 4.7

CUSTOMER’S EXPERIENCE ON VARIOUS SERVICE PROVIDED BY MARKS

CUSTOMERS EXPERIENCE STRONGLY

AGREE AGREE DISAGREE STRONGLY DISAGREE

Consistently live up to our expectations. 11 34 9 0

Established a good working relationship 14 28 7 0

Invoices are provided timely with relevant supporting documents. 7 36 11 0

Quick to acknowledge errors and take responsibility to rectify it. 2 27 23 2

Chart no.: 4.7

Customer’s Experience on Various Service Provided by Marks

0

5

10

15

20

25

30

35

40

Consistently live up to

Expectations.

Good Working Relationship

Invoices provided in

Timely Manner

Acknowledge it & Take

Responsibility

STRONGLY AGREE

DISAGREE

AGREE

STRONGLY DISAGREE


64

Interpretation:

From the table and graph it is understood that Marks Cargo Private Limited has

established a good working relationship with its customer base (42) except a mere

number of them (9). The positive feedback is that 84% of the customers have stated that

Marks Caro Private Limited has never failed to meet their expectations in other hand

some of the customers (11) are unhappy about the delayed dispatch of invoices and other

related documents. Regarding mistakes and errors Marks Cargo (50% said) rectify it

immediately.


65

Table: 4.8

CUSTOMERS RATING ON SERVICES

SERVICES HIGHLY

SATISFIED SATISFIED DISSATISFIED HIGHLY

DISSATISFIED

Professionalism 10 32 8 4

Technical competence 6 26 19 3

Responsiveness 7 22 21 4

Customer Satisfaction 5 35 13 1

Our Commitment 10 32 8 4

Effectiveness of Service Support

11 28 13 2

Resolving problems /issues 6 30 15 3


66

Chart no.: 4.8

Customers Rating on Services


67

Interpretation:

It‘s clear from the information given in this bar chart that the most of the

customers taking this survey are satisfied with the professionalism (42), approach to total

quality management (40), effectiveness of service support (39) and on time delivery of

cargoes (42) are satisfactory. 25 survey part-takers say that responsive time to be

improved and 18 conveyed that speed of delivery has to be noticed.

Table: 4.9

OPINION ON THE EFFECTIVE MEDIUM OF COMMUNICATION

Medium Highly

Satisified Satisified Dissatisfied

Higly Dissatisfied

E Mail 6 19 22 7

Telephonic Calls

18 20 13 3

Documentation 12 28 11 3

Chart no.: 4.9

Opinion on the Effective Medium of Communication

Interpretation:

The above present data provides the information that the 53% of the customers

are not pleased with the E-mail to interchanges with Marks Cargo Private Ltd. At the

same time 75% of the customers have a positive opinion about telephone calls at the

document exchanges.


68

Table: 4.10

CONDITION OF THE CARGOES AT THE DESTINATION

Highly

Satisfied Satisfied Dissatisfied

Highly Dissatisfied

Packaging 13 25 16 0

Goods 5 31 15 3

Quality 7 24 18 5

Chart no.: 4.10

Condition of the Cargoes at the Destination

Interpretation:

With regards to the above table and chart it is clear that nearly 71% of the

customers given positive response towards the packaging facilities provided by Marks

Cargo Private Ltd in line with the condition of the goods after reaching its specified

destination. In-spite of 54% of the respondents is not happy with the quality of the

cargoes, 67% of them have conveyed optimistic reaction towards the goods at its

respective destination.


69

Table: 4.11

PROVIDING ADEQUATE INFORMATION

Fields Highly


Highly Dissatisfied

Market Rate

18 25 10 1

New Rules 3 16 25 9

Regulations 2 21 20 10

Chart no.: 4.11

Providing Adequate Information

Interpretation:

With respective to the above data obtained from the study, it is interpreted that

most of them said Marks Cargo provides adequate information about the market rate, but

they need to be according to the new rules. 50% of them said that they don‘t provide

adequate information on new regulations properly.


70

Table: 4.12

QUERY/ISSUE RESOLVING PROCESS

Question Highly


Highly Dissatisfied

Addressing 21 22 9 2

Handling 9 29 14 2

Solution Providing

6 27 16 5

Chart no.: 4.12

Query/Issue resolving process

Interpretation:

From the above descriptive analysis we can understand that the 80 % of the

customers were satisfied with Marks Cargo Private Limited when addressing the query /

issue only 40% of them were happy about their solution to the query / issue.


71

Table: 4.13

COMPARISON WITH OTHER COMPANIES

Level Response %

Far Better 4 7%

Better 13 24%

Same 28 52%

Below 9 17%

Total 54 100%

Chart no.: 4.13

Comparison with Other Companies

Interpretation:

We can conclude from the above data that out of 54 respondents of the survey 28

of them felt that Marks Cargo provides similar services like other companies. 50% of

them felt Marks services are better than the competitors. Only less than 10% were not

satisfied with the services and they say other are better.


72

Table: 4.14

AREAS TO BE IMPROVED

Areas Response %

Cost 41 76%

Packaging 28 52%

Warehousing 26 48%

Customer Service

31 57%

Documentation 30 56%

Chart no.: 4.14

Areas to be improved

Interpretation:

From the above table it is found that most (76%) of them felt the cost of services

should be taken care primarily. They said Marks should try to take care of documentation

and packaging little more the warehousing facilities also.


73

CUSTOMERS FEEDBACK

Provide information about the special benefits.

Regarding documentation try to educate the Farmers with poor educational

background.

Improve the packaging and warehousing to Chemical Products like Cold Storage

Try to inform about the subsidies provided by the government periodically.

Implement online tracking facilities in the website.

For goods like groceries need for better packaging.

24 X 7 customer helpline should be established.


74

CHAPTER - V

FINDINGS AND SUGGESTIONS

Findings of the Study

1) The total (54) surveyed customers were from various section such as Agriculture,

Chemical, Cottage, Electronic, Grocery and Textile and they are with Marks

Cargo for more than years.

2) It is found that around 70% of the customers only use Marks Cargo Private

Limited for their logistics purpose and only few use other service providers.

3) The services used by the customers are Custom Clearance, Sea Freight and Road

Freight. The Transport and Warehouse Distribution and Air Freight service is

used rarely by the customers.

4) Most of the customers said that their problems are resolved within 24 hours. And

few said it is takes more than 2 days which has to be noticed immediately.

5) Cost, Customer Service and Documentation are the areas to be concentrated the

most and given high priorities.

6) A dedicated Online Tracking Facilities will be an effective tool to track the status

of the cargoes throughout the logistics process.

7) The customers with poor and average educational background are finding it

difficult in the documentation process.

8) None of the problem or issues arising in logistics cannot be solved immediately

due the complexity involved. Most of the customers (57%) said that their

problems are resolved within 24 hours. 67% have experienced problems rarely.

The positive information is that there are no customers who faced problems

frequently.

9) The customers are not kept updated about the rules and regulations that are

framed and redefined by the government.

10) Marks Cargo Private Limited has established a good working relationship with its

customers and has never failed to meet their. When it comes to acknowledging

and rectifying their error only 50% of them have positive experience but the other

not the remaining.


75

Suggestions

Should implement newsletter facility to the customer to keep them updated about

the rules and regulations

Arrange for training to the customers who has poor and average educational

background regarding documentation.

Provide Online Tacking Facilities to know the status of the cargoes throughout

the logistics.

Take steps to improve the communication especially email exchanges and also try

to establish 24 x 7 customer support.

Improve the handling of the queries and try to provide solution according to the

customers.

Make sure the services are improved better than the other companies by changing

certain process currently adopted.

Create a database of the queries so that similar queries can be handled within 24

hours or immediately.


76

CHAPTER – VI

CONCLUSION

The study is on the topic Customer‘s Satisfaction at MARKS CARGO

PRIVATELIMITED, PONDICHERRY. The results of this study indicate that the

customers had good opinion view about the company and its services. Further it helped to

evaluate the effectiveness of current service offered and identifying the drawback in the

present process adopted by the company. The current services of the company is studied

and it is proved that the services provided process need little changes and up-gradations

to become more effective.


77

BIBLOGRAPHY

[1] http://www.logisticsmgmt.com/

[2] http://lscms.org/

[3] https://cscmp.org/

[4] Logistics and supply chain management - M Christopher, 2012

[5] https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/L

ogistics-in-India-Part-1.pdf





[8] Multimodal Logistics in India: An Assessment – European Business & Technology

Centre, 2013

[9] Surabhi. (2006) “From Kashmir To Kanyakumari, By Road,” Financial Express, 24 July.

[10] Sanjeevi, V. (2003) “Logistics in a competitive milieu,” The Hindu, 23 December.

[11] Sanyal, S (2006a) “A Guide to Global Logistics and Freight Forwarding,” Hindu Business

Line.11 December.

[12] Sanyal, S. (2006b) “Freight Hike Will Not Be Uniform On All Routes,” Hindu Business

Line. 8 June.

[13] Raghuram, G. and J. Shah (2003) “ Roadmap for Logistics Excellence: Need to Break the

Unholy Equilibrium,” paper presented at the CII Logistics Convention, Chennai, October

2003 and AIMS International Conference on Management, Bangalore, December

2003.Dobberstein, N., C-S Neumann, and M. Zils (2005) “Logistics in Emerging Markets,”

McKinsey Quarterly, 1, 15-17.

[14] Mahalakshmi, B.V. (2006) “M&As Boost Logistics Industry,” Financial Express, 9

December.

[15] Mishra, A.K., R Pratap, and S. Baxi (2006) “Climb to Top in Logistics Ladder,” Economic

Times.

[16] Mitra, S. (2005) “A Survey of the Third-Party Logistics (3PL) Service Providers in India,”

Working Paper- WPS NP 562, Indian Institute of Management Calcutta, India.

[17] IAEIS, Industry Analysis & Economic Intelligence Service Database, Centre for Monitoring

of Indian Economy (CMIE), Mumbai, various years.


78

ANNEXURE

A STUDY ON CUSTOMER SATISFACTION AT MARKS CARGO PRIVATE LIMITED

Dear Customer, Thank you for your willingness to participate in this survey. We value

your precious time and assure you this will not take more than 10 minutes of your time.

Your responsiveness to the questionnaire are highly valued and considered extremely

vital for this research.

1. Please mention your Industry: ___________________ (eg: Agriculture)

2. Which of Marks Cargo Services do you use?

☐ Customer Clearance ☐ Transport ☐ Warehouse &

Distribution

☐ Sea Freight ☐ Air Freight ☐ Road Freight

3. Do you use other companies for the same service?

☐ Yes ☐ No

4. Kindly select the number of years that your business has been working with Marks

Cargo?

☐ < 1 year ☐ 1-3 years ☐ 3 – 5 years

☐ 5 – 8 years ☐ 8 < years

5. Kindly suggest the areas to be improved:

☐ Cost ☐ Packaging ☐ Warehousing

☐ Customer Service ☐ Documentation

6. How long did it take to get the last problem resolved?

☐ Immediately ☐ Less than 24 hours ☐ 1 – 2 days

☐ More than 2 days

7. Frequency of Problem/Query arising.

☐ Frequently ☐ Sometimes ☐ Rarely


79

8. Marks Cargo service consistently live up to our expectations.

☐ Strongly Agree ☐ Agree ☐ Disagree ☐ Strongly Disagree

9. How do you rate Marks Cargo in comparison with other companies?

☐ Far Better ☐ Better ☐ Same ☐ Below

10. When Marks Cargo makes an error, they are quick to acknowledge it and take

responsibility to rectify the problem.


11. All communication to & fro from Marks Cargo is Satisfactory

Highly Satisfied

Satisfied Dissatisfied Highly Dissatisfied

*E-Mail ☐ ☐ ☐ ☐

*Telephonic Calls ☐ ☐ ☐ ☐

*Documentation ☐ ☐ ☐ ☐

12. Condition of Cargo when reaching its destination

Highly Satisfied


*Packaging ☐ ☐ ☐ ☐

*Goods ☐ ☐ ☐ ☐

*Quality ☐ ☐ ☐ ☐

13. Process of your Query/Issue getting resolved

Highly Satisfied


*Addressing ☐ ☐ ☐ ☐

*Handling ☐ ☐ ☐ ☐

*Solution Providing ☐ ☐ ☐ ☐


80

14. Marks Cargo provides me with adequate information

Highly Satisfied


*Market Rate ☐ ☐ ☐ ☐

*New Rules ☐ ☐ ☐ ☐

*Regulations ☐ ☐ ☐ ☐

15. Marks Cargo has established a very good working relationship.


16. Rate Us:

Highly Satisfied


*Our professionalism in dealing with you

☐ ☐ ☐ ☐

*Rate the technical competence of our professionals and their response time

☐ ☐ ☐ ☐

*Our responsiveness in dealing with you

☐ ☐ ☐ ☐

*Our approach to quality management to ensure complete customer satisfaction

☐ ☐ ☐ ☐

*Our delivery on time performance and our commitment to meet your delivery expectations

☐ ☐ ☐ ☐

17. Marks Cargo provides invoices in a timely manner with relevant supporting

documents.


18. Effectiveness of Service Support in resolving problems/issues

☐ Highly Satisfied ☐ Satisfied ☐ Dissatisfied ☐ Highly dissatisfied


81

19. Speed of Service Support representatives in resolving problems/issues.

☐ Highly Satisfied ☐ Satisfied ☐ Dissatisfied ☐ Highly dissatisfied

Your Feedback means a lot to us:

Education

A STUDY ON CUSTOMER’S SATISFACTION MARKS CARGO PRIVATE LIMITED - 2