“FLYJAC LOGISTICS PVT LTD, CHENNAI”

(Hitachi Transport System Group)

Internship report submitted for partial fulfillment of the requirement for the degree of MBA
International Transportation and Logistics Management

SCHOOL OF MARITIME MANAGEMENT

INDIAN MARITIME UNIVERSITY

CHENNAI CAMPUS

NOVEMBER 2O19

Submitted by:

ROUSHAN

Registration no. 1803305032

(MBA-ITLM)
TABLE OF CONTENTS

S. No. Chapter Page No.

ACHNOLOGEMENT
DCLEATION
COMPANY CERTIFICATE

Chapter 1
INTRODUCTION

SHIPPING INDUSTRY OVERVIEW

FUNDAMENTAL ROLES OF FREIGHT FORWERDERS

DIFFERENT TYPES OF FREIGHT FORWORDING

LOGISTICS MANAGEMENT

INDIAN LOGISTIC INDUSTRY

CHALLENGES FACED BY LOGISTICS INDUSTRY IN INDIA

ABOUT FLYJAC LOGISTICS

Chapter 2
BASIC STRUCTURE OF IMPORT AND EXPORT
DIFFERENT DEPARTMENTS IN FLYJAC LOGISTICS
NATURE OF BUSSINESS CARRIED BY FLYJAC LOGISTICS
DEPARTMENT IN FLYJAC LOGISTICS

Chapter 3
LEARNING FROM THE ORGANISATION
IMPROVE CHANCES OF SUCCESS IN THE LOGISTIC SECTOR
IN INDIA

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 UNDERSTANDING OF THE MARKET
FOCUS ON INFORMATION AND COORDINATION
TECHNOLOGY IN FLYJAC LOGISTICS
CREATE STICKNESS TO THE CUSTOMER
MULTIPLE COTATION FROM MULTIPLE CARRIERS
CURRECT PACKAGING
CHOSSE THE RIGHT INCO TERMS

Chapter 4
SWOT ANALYSIS AND CONCLUSION

ACKNOWLEDGEMENT
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I the students of Indian Maritime University, Chennai Campus have undergone internship in
FLYJAC LOGISTICS PVT LTD. We wish to acknowledge the support and helping hands
extended by the entire members of the TRAINING DEPARTMENT and all those who helped
and guided us on our visit to the various depart.

Any successful work is accompanied by the Helping and Co-operation of well-wisher. Whatever
we have tried to present in our project cum training report would remains incomplete unless and
until we extend our heartiest thanks to all the people who have spend their valuable time to help
and explain us all that we wanted to know. May words will fall short to describe their
importance to us, our gratefulness to them and also to their kind and co-operative attitude
through out the course of our training in FLYJAC LOGISTICS(Chennai).

No matter wherever we will stand in our life and career in the end, these glorious days of our
short stay with all the people connected directly or indirectly to FLYJAC(Chennai) will never
fade away from my mind.

It’s my honour to extended our gratitude and thanks toMr.Madhava Priyan M.P, Mr.
P.U..Arasu, Mr.S.Naveen Nagasubramanian , Mr.Vivek M , Mr.M.V.Padmanabhan for their
constant encouragement. We are also very grateful to our parents for their undivided
enthusiasm.

This report summarizes the huge learning experience that we had in all the sections of this
modern logistic

DATE:

PLACE: CHENNAI

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DECLARATION

I, ROUSHAN, hereby declare that the internship report titled, “FLYJAC LOGISTICS PVT
LTD, CHENNAI”, is a bonafide work submitted to the School of Maritime Management, Indian
Maritime University, Chennai Campus, under the supervision of Dr. EMIL MATHUS, assistant
professor, School of Maritime Management, Indian Maritime University, Chennai Campus. For
partial fulfillment of the requirement of award of the degree MBA (ITLM) is a report of original
work done by me and this work has not been submitted before in part or full to this or any other
university or institution for the award of any degree, diploma or any other courses.

Date: ROUSHAN

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CHAPTER – I
INTRODUCTION

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SHIPPING INDUSTRY OVERVIEW

Shipping is often the least expensive way of moving large quantities of goods over long
distances. Shipping Industry is a vital part of the global freight transportation. The industry
accounts for transporting 90% of the world trade through ships. It is the most affordable and
efficient mode of transporting goods, given the large volume of goods these vessels can carry for
long distances at a fraction of a cost.

Shipping offers global trade supply-chain, enabling transport of raw materials in bulk,
import/export of food products, finished/semi-finished goods etc.
The first shipping line was introduced in the form of steam ships, where they fire the steam and
that helps in moving the cargo vessels. The modern shipping line (i:e- container shipping), was
introduced by Mclean . The first movement of container cargo ship was moved from Newark,
New Jersey to Texas.

Shipping trade continues to expand, bringing benefits for consumers across the world through
competitive freight costs. The growing efficiency of shipping as a mode of transport and
increased economic liberalization, the prospects for the industry's further growth continue to be
strong. There are over 50,000 merchant ships trading internationally, transporting every kind of
cargo. The world fleet is registered in over 150 nations, and manned by over a million seafarers
of virtually every nationality.

FUNDAMENTAL ROLES OF FREIGHT FORWERDERS

In today's challenging competition in the international business, the manufacturers strive for their
processed products to deliver its final consignee before starting competition to the rival ones.
However, developing business volume brought along logistical challenges, so this research
attempts to identify the fundamental roles of freight forwarder and investigate how the
fundamental roles can be integrated to execute the manufacturer firms` international logistics
activities smoothly and distribution in terms of gain competitive advantage, and creating a case
study to show the real business observations and implementation.

The freight forwarder or forwarding agent is an indispensable member of the international trade
and transport community, the freight forwarder arranges for international shipment of

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merchandise. Like travel agent- but dealing with cargo rather than passengers- freight forwarder
use their knowledge of varying freight rates to offer the shipper the bet “package deal”.

The terms “freight forwarder” and “freight forwarding agent” are generic terms encompassing a
variety of specialized function, within the profession. Some forwarders offer a wide range of
these functions, whereas others restrict themselves to single specialty or particular geographical
coverage. These various functions are summarized below.

 Advice on export costs, including freight costs, port expenses, consular fees, insurance
costs and merchandise costs.
 Planning the most appropriate route for a shipment, taking into account the perishable or
dangerous nature of goods, cost, transit time and safety.
 Reservation and contracting of the necessary cargo space on a ship, aircraft, train or
truck.
 Advising and contracting insurance for transportation of the merchandise on behalf of the
client and, if applicable, assistance in the event of an accident.
 Preparation and presentation of Transport and Trade Documents required for export and
import, such as the CMR, Bill of Lading, Airway Bill, etc.
 Use of e-commerce, Internet technology and satellite system to allow real-time tracking
of the transport of the goods.
 Advice on legislation affecting international trade, political and social situations as well
as other factors that may affect the movement of the goods.

Purpose

The purpose of this dissertation is to investigate how the fundamental roles of freight forwarder
can be integrated to transport processed hazelnuts goods and illustrate freight forwarders roles as
a formal real sector approach in terms of executing international logistics activities through the
comparison with the centralized transport service.

DIFFERENT TYPES OF FREIGHT FORWORDING

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NVOCC (Non-Vessel Operating Common Carriers)

This function involves grouping or assembling diverse shipments from various customers so as
to make up full container loads, thus obtaining lower freight rates. Some consolidators offer
regular shipments on seagoing vessels that they do not own; these are referred to as NVOCCs

Multimodal (or intermodal) transport operators (MTO´S)

A multimodal transport operator offers “one-stop shopping” for traders. This enables traders to
completely outsource or sub-contract their export logistics to a single service provider.
Multimodal transport operators typically offer “door-to-door” transport, with coverage of all
related functions such as insurance, customs, warehousing, etc.

Customs brokers

These parties act as the agents of exporters and importers in order to process customs
declarations and other formalities and pay duties and taxes. Because they may be liable for very
large payments of duties or fines, customs brokers are usually bonded by banks or insurance
companies. Traders should take care to give precise directions and limits to customs brokers to
avoid incurring liability in the event that an unexpectedly high tariff or fine makes it
uneconomical to process a particular shipment.

Port (sea port, airport or cargo terminal) agent

This agent represents the shipper at the point where the goods are transferred from one transport
mode (typically, from a truck or lorry) to another (as to a seagoing vessel or airplane).

Air freight agent (air waybill agent)

These agents process shipments for airlines and may have the authority to issue air waybills.
Frequently, the air freight agent also handles custom clearance.

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Road haulage brokers

Road transport is characterized in many countries by the rapid increase in number of small
service providers. Road haulage brokers acts as intermediaries between road carriers and
shippers and are usually paid by commission.

Loading brokers

These brokers act as the agents of ship owners to obtain and process cargo shipments.
Commonly, a freight forwarder will represent the shipper while a loading broker represents the
ship owner, so that there are two intermediaries between the customer and the transport provider.

Transformation of Freight Forwarding

At inception, freight forwarding has been a tedious business task as companies have been dealing
with loads of papers used in various documentation processes. Time spent on paperwork
constituted the bulk of time devoted to making a transaction reality. These were necessary rigors
companies faced, and this led to the need for a more efficient way of getting things done.

Advancement in technology with the computer playing a dominant role brought about ease of
transaction processes. Loads of paper files stacked in filing cabinets were replaced with
computer hard drives and operations became software based. This expanded the capacity of
small forwarding companies to handle a larger workload.

A further advancement came with the rise of broadband internet connectivity. Businesses had a
wider reach and were no longer restricted to specific location. Mobile phones made it easy for
people to work -on-the-go saving resources and expanding business reach. Transactions became
App based documents are stored in the cloud, to be accessed anywhere at any time

This digitalization of freight forwarding has improved business. Rather than making endless calls
in choosing a service provider, the web has made sorting information much easier. By just filling
out your needs on dedicated platforms, quotations from various service providers’ streams in and
the best quotation that fits one’s need can be chosen. It also helps in price comparison.

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The evolution of the freight forwarding business has made the transaction in small and large
scales easy to understand and to carry out. The fundamental goal of freight forwarding which is
to help a client get goods from point A to B has not changed from inception to this day, the
means of getting it done has rapidly changed for the better.

LOGISTICS MANAGEMENT

The Council of Logistics Management defines Logistics as follows:

“Logistics is part of the supply chain process that plans, implements, and controls the efficient,
effective flow and storage of goods, services, and related information from the point of origin to
the point of consumption in order to meet customers’ requirements”.

In today’s highly competitive global marketplace, the pressure on organizations to find new ways
to create value and deliver it to their customers grows ever stronger. The increasing need for
industry to compete with its products in a global market, across cost, quality and service
dimensions, has given rise to the need to develop logistic systems that are more efficient than
those traditionally employed. Therefore, in the last two decades, logistics has moved from an
operational function to the corporate function level. There has been a growing recognition that
effective logistics management throughout the firm and supply chain can greatly assist in the
goal of cost reduction and service enhancement.

The key to success in Logistics Management (LM) requires heavy emphasis on integration of
activities, cooperation, coordination and information sharing throughout the entire supply chain,
from suppliers to customers.

INDIAN LOGISTIC INDUSTRY

The Indian logistics industry has come a long way from being a labour intensive during 60’s to
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 labour requirement in order to avoid labour
related problems. Subsequently, basic services such as transportation and warehousing were
outsourced to different service providers known as the (Second-Party Logistics) 2PL service

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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. About 89% 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.

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 45 days 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 BY LOGISTICS INDUSTRY IN INDIA

Transport Related Challenges

In India road has become predominant mode of transportation of freight cargo. Estimate of the
modal movement of cargo highlights that in India nearly 60.2% of the cargo is moved by road,
32.1% by rail, and rest by the coastal shipping, airways and inland waterways.

High turnaround times

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Data from Indian ports association shows that ports in India suffer from high turnaround times
for ships. JNPT, the premiere port in India, has more than two times the turnaround time of
Colombo and Singapore ports because of congestion on berths and slow evacuation of cargos
unloaded at berths.

Inadequate depth at ports

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 dates many ports are unable to attract very large vessels.

Rail freight tariffs are high

An Indian railway follows a policy of subsidizing passenger tariff by freight tariff. This has
resulted in sharply rising trend in railway freight rate over the years compare to little increase in
passenger tariff rate. So the freight rates are much higher.

Less flexibility in carrying different types of products

Special wagons are not easily available for carrying specialised products.

ABOUT FLYJAC LOGISTIC

They are committed towards customer satisfaction, a collective urge to remain constantly
competitive, Reduce the cost and complexity associated with logistics-related labor, Costs and
issues associated with managing typically low skill level workers and a welcoming approach to
the adoption of the latest technologies… this is how best to introduce Flyjac Logistics to us.

Since its inception in 1990, Flyjac Logistics has grown to a logistics leader with a global
footprint. Moreover, our nationwide presence at 27 corporate locations and 17 warehouse
locations in India has put us on the national logistics map with more than 5,000 customers and
counting.

The Major Milestone

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In 2010, Flyjac Logistics merged with Hitachi Transport System, a group company of the
renowned Hitachi Group of Japan. The merger has provided direct access to Hitachi's presence at
major transportation gateways around the world. Additionally, the level of customer service they
were able to deliver as a result of the merger has exceeded even their own expectations and
performance benchmarks.

The Team
Flyjac Logistics is headquartered in Chennai in southern India. It is led by a team of highly
experienced managers, supervisors and frontline workforce that is well-versed with the industry
as well as with its ever-evolving dynamic shifts. Their in-house resources are supplemented and
complemented by a reliable network of agents, partners and vendors with impeccable track
records of their own. They have come on board with them only after extensive verification and
validation procedures have been pursued.

Innovation

At Flyjac Logistics, they follow industry trends and paradigm shifts closely to cater to emerging
markets and industry best practices. For instance, they were among the first companies in India
to provide logistics solutions to the growing ecommerce industry. They were not only keeping up
with technology innovations but attempt to stay ahead. As an example, their entire suite of IT
applications is web-based either directly or indirectly and operates in the cloud.

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CHAPTER –2

Different Departments in flyjac logistic

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Basic Structure of Import and Export

CUSTOMER (INDIA)

FORWARDER/CHA (E.g.-FLYJAC)

STEAMER/SHIPPING LINE

CUSTOMS (INDIA)

CUSTOMS (OTHER COUNTRY)

CHA/FORWORDER (FLYJAC AGENT)

STEAMER/SHIPPING LINE

SHIPPER (EXPORTER)

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Department in flyjac logistics

 Sea export
 Sea import
 Air export
 Air import

Flyjac Logistics trusted Ocean Freight Services

 Reliable ocean-bound service for Full Container Loads (FCL).

 Direct and Multi country Consolidation to optimize your LCL Import and Export.
 Expertise in handling Temperature controlled and Perishables cargo.
 Specialists in handling project cargo- ODC and Heavy Lift.
 RO, Break Bulk, Part and Full Charter services.
 Combined Air and Ocean freight services.
 Presence in all seaports and ICD's of India.
 Competitive pricing.

Flyjac Logistics endeavour to provide a highly flexible service in a timely and cost-effective
manner in partnership with leading carriers. These relationships guarantee them the edge in space
capacity and enable them to meet the growing sea freight requirements

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Sea export flow

Rate enquiry

Buying rate Update in rate Selling rate

Document for shipper

LCL Customer’s declaration FCL

Nominated

Approved from agent

Vessel scheduled Booking with liner

Cargo movement
(LCL) (FCL)

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 Customs clearance Vessel planning

Container movement

Stuffing

Form 13

Stuffing report
Container offloaded at
port

Bill of lading Document submitted to

process liner

Post shipment
documents

Sea import flow

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 Removal of cargo from manufacturer
(Door of consignor)

Survey
(By CHA and Port Authority

Destination Port

Import General Manifest (IGM)

(Filed at destination Port by steamer agent or shipper)

Pay off duty and submit bill of exchange

(CHA does)

Unloading at destination Port

(Appointed by Steamer Agent)

Survey
(At destination port by CHA)

DPD- (Direct Port Delivery)

Or Warehousing at CFS

Air Freight

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Air Freight Shipments is handled by Flyjac Logistics carefully and selected strategic air partners
to provide worldwide coverage for shipments that need to meet tight deadlines focusing on
speed, flexibility, creativity and sensitivity to ensure that their customer priority shipments.
Flyjac Logistics has established and sustained its industry leadership position in air freight
logistics. This is made possible due to the dedicated infrastructure, committed workforce, and
nationwide logistics network. A regular shipment or small or critical air freight challenge, their
presence at every major gateway and airport in India enables Flyjac Logistics to move air freight
cargo both efficiently and professionally. They connect all the major global markets with focus
on transit efficiency and limiting costs. Air freight shipments are scheduled by determining the
most effective and efficient routing, which ensures service delivery both on time and cost.

Flyjac Logistics trusted Air Freight Services

 Presence in major airports.

 Door-to-door and airport-to-airport pick-up and delivery.
 Prompt customs clearance throughput and error-free document processing.
 Full as well as partial air freight charters.
 Best-in-class air carriers providing seamless connectivity to 60 countries.
 IATA/FIATA certification and end-to-end industry compliance.
 Service delivery through strategically chosen air partners and highly experienced in
house personnel on all populated continents.
 Consolidation of imports and exports.
 Specialist in handling temperature-controlled pharma and perishable cargo.
 Specialist in handling automobile transport projects.

Air import flow

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 Receipt of invoice from

Consignee Agent

Check for the approval with the

consignee

Check for the agent for the cargo Confir

Yes No
status matio
n

Cargo ready Cargo not

ready

Organize for pick up Check readiness date & inform

consignee

Inform consignee
Cargo arrival at the agent

Track the schedule Check flight detail with Inform consignee

& monitor agent

Receipt pre alert documents Check the pre alert

from agent document
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 Send pre alert to consignee Any discrepancy,
and CHA recheck with agent

Offloading
Departure from origin
of cargo

Inform
consignee

Transshipment point Offloading

of cargo

Arrival at destination

Check for part/short

shipment

Inform consignee
No Yes

Update arrival & IGM Check for arrival

details to consignee/CHA status of part/short

Update arrival & IGM details of

part/short shipment to consignee/CHA

Air export flow

Removal of cargo from manufacturer

(Door of consignor)
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 Export General Manifest (EGM)
(Filed at destination Port by steamer agent or shipper)

Survey at
(By CHA and Port Authority)

Destination Port

Pay off duty and submit bill of exchange

(CHA does)

Unloading at destination Port

(Appointed by Steamer Agent)

Survey
(At destination port by CHA)

DPD- (Direct Port Delivery)

Or Warehousing at CFS

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Chapter 3

Learning from the organization

Learning from the organization

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The primary objective of the internship was to acquire better understanding of the different
departments of the company, all four departments of export and import as mentioned.

 Sea export
 Sea import
 Air export
 Air import

Nature of the business carried by flyjac logistics

Flyjac Logistics delivers a wide array of integrated logistics solutions to enterprises both large
and small in key areas such as freight transportation, warehousing, distribution, 3PL, reverse
logistics and end-to-end supply chain management only to name a few.

Flyjac Logistics provides coverage for all forwarding services

Their team of highly specialized industry professionals works to design and execute the best
possible solutions for their customer needs with their process-oriented approach and strong
customer focus.

Ocean Freight

Flyjac Logistics provides time definite, innovative Sea freight services for both Full Container
Loads (FCL) and Less Than Container Loads (LCL) shipments.

FCL

Flyjac Logistics allows their customers for leveraging their experience and presence to get the
best solution. Flyjac Logistics gives attractive rates, transit time, security and service worldwide.

LCL
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Flyjac Logistics provides regular, reliable, fast and cost-effective solution for less than container
loads as well. This is the result of their experience in handling such cargos.

Air fright

With air freight, same day delivery is possible anywhere if needed. The package will get picked
up immediately upon booking and put on the next flight to the destination. Air cargo can be
shipped via express, standard, or deferred service. The urgency of shipment will likely determine
which air service will be chosen.

Express Air Service

If cargo is shipping via express air service, it will be put on a direct flight to its destination.
Express is the most expensive air service.

Standard Air Service

If cargo is shipping via a standard air service, the cargo will likely make stops at one or two
airports, where the cargo either switches planes or other cargo is on/off-loaded. Standard is the
most common air service.

Deferred Air Service

If your cargo is shipping via deferred air service, the cargo will make multiple stops along the
route to its final destination. Deferred air service is cheaper than express air service, but still
more expensive than shipping LCL (less than container load) and FCL (full container load).

Improve chances of success in the logistics sector in India

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And also came to know if someone is profiling India logistics industry, one has to keep in mind
that the industry is less developed and is a relatively unexplored area as compared to the
countries like America and Europe. However, with the increasing competitive pressure and with
the rapid trend of logistics players changing their identities and expanding their service
portfolios, there is increasing need for the industry service providers to gain supply chain
advantage and improve their service offerings. Among the strategies recommended to players to
improve chances of success in the logistics sector in India are as follows:

Understanding of the market

Most important and basic thing a freight forwarder needs to do in order to reach success with
their business:

Analyze and understand about the market. Only by doing that, one will be able to update with the
trends in the logistics field, what competitors are doing and what strategy to come up with in
order to make more leads notice. In the logistics business, having an effective communication is
the step number one to make people engage with company. Therefore, one should have a team
with wide experience in freight forwarding and that understands what target audience is looking
for.

Think local, service global

As India’s logistics industry is in the early stage, setting up a nationwide distribution capabilities
at the start-up stage would be difficult. Instead logistics players should consider comprehensive
coverage of one part of India or one vertical before spreading out to the rest. This is because a
successful business just in one part of the country can easily become attractive to both ends of
supply and demand. On the other hand, the quality standards and service levels currently offered
by Indian logistics players could be below expectations. With the emerging globalization and
integration of Indian market with the global market, Indian companies are increasingly
demanding services on equal or equivalent with global standards.

Information and coordination

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It is not wise to have hard assets in transportation, warehousing and logistics sector (which may
not be considered high quality of international standards) be controlled by Indian companies.
Instead, these assets should be utilized more effectively and in a networked fashion to achieve
higher coordination, backed by the ability to provide logistics solutions that add value to their
customers. Thus it is more optimizing for the service provider to create and sell solutions based
on agreements that bind and control their assets, rather than fully owning them. E.g. JIT (Just in
time).

Be industry specific and provide customized solution

The logistics service need, expectation and specification of each industry and even companies
within the same industry may differ, and in India it is a common sight that service providers are
not able to design, develop, provide and manage their customer-specific requirements. Therefore
a critical success factor for the players is to reach an enhanced customer-centric market and to
retain in a long term relationship is to offer the right service in the right quantity and right
condition to the right customer at the right time and right cost.

Pursue alliances aggressively

Form alliances with the multinational players. It gives a competitive advantage in terms of
meeting the demand for a one-stop; provide technical, engineering and supply chain solutions,
and often cost effective alternative for extending existing service offerings and geographical
coverage. At the same time, through alliance local players can provide world-class services in
India and remain competitive in the domestic market. For the global players, forming strategic
alliance with local market partners will help to gain access to local clients, high degree of
penetration and better understanding of India’s domestic logistics needs and expectations.

Technology

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Communication today is very vital and the time framed. Everyone needs information at the right
place at the right time. So to stay in race one needs to have advanced technology. In today's
world customer is a very important entity and value added services needs to be given round the
clock and information to the customer needs to be updated on a regular basis. So Flyjac is having
a real time integrated ERP Application, which provides end-to-end complete solutions to
customers and agents.

Real time ERP Application

 Single Integrated application (Operation, Accounting, payroll, Tracking)

 Elimination of data processing at multiple points and system in the chain
 Integration of transportation and Logistics to create the supply chain
 E-Commerce with customers/vendors
 Visibility of point level information across supply chain to customers
 As a result of above significant reduction of cost

Use innovation to differentiate from the competition

In today’s digital world, new technology becomes very important for the all organisations.
Freight forwarding companies have an opportunity to rise above the competition by staying
abreast of innovation that enables a better service experience for customers. Whether it is
artificial intelligence or machine learning to predict and plan for potential shipping delays, the
possibilities are endless and always changing. The foremost focus for freight forwarding success
is to think creatively, with the ultimate goal of creating faster, more efficient logistics solutions
for customers. As freight services become a commodity, only the agencies that stay agile and
innovative will rise to the top of the competitive landscape

Efficient networking

As it is mentioned above, communication is the key to success in the freight forwarding

business. Agents constantly need to be in contact with other agents around the world, in order to

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make freight happen efficiently and meet international demands. Technology has made it easier
for these connections to be made through the concept of networking. These online platforms
allow interaction between agents all over the world and facilitate freight forwarding on a global
scale. The most successful freight forwarding businesses are members of logistics networks.

Create stickiness with customers

Best-in-class freight forwarding companies understand that it costs up to 5 times more to acquire
a new customer than to keep an existing customer. The preservation of customer relationships is
crucial to continues growth. A united sales and support culture is the ultimate weapon in
customer retention. Create stickiness with customers, work starts after the sales cycle is finished.
Customers demand fast issue resolution, a single point of contact when issues arise, and a simple
way to add new services quickly when needed. The sales and marketing teams should operate as
one to identifying solutions to customer problems before they even know. They must be
accountable for and proactive in recommending new services and strategies to help customers
become more profitable.

Price services competitively

Cheaper is not always better. Companies who sign contracts with freight forwarding agencies are
well aware of this. However, if all other factors are equal, the agencies with the most competitive
pricing will naturally catch the customers’ attention. It’s therefore crucial to build partnerships
with as many carriers as possible, negotiating better rates that can then passed on to customers.
Above all else, freight forwarding agencies must provide excellent customer service. When faced
with two companies that are similar in price and service offerings, reputation for outstanding
customer service will almost serve as the deal-breaker.

Multiple quotations from multiple carriers

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It’s always advisable to spread out the risks. In this instance, you could just as well go by, this
algorithm (risk spreading) by contacting numerous carriers. They are responsible for the overall
shipping procedure till your desired destination.

Carriers will evaluate cargo depending on:

 Container levies
 Packaging mode
 Terminal management fees
 Broker’s charge or fee
These are only the main factors. Other factors may exist depending on the carrier. Primarily,
these fees would help you in forecasting the costs for shipping consignment.

Depending on destination, one can choose from several carriers operating. If there is a substantial
volume, encouraging competition among the shipping lines will most likely give a competitive
cost to consider.

Use the correct packaging

Packaging is vital due to the following reasons:

 It saves the consignment from the unnecessary pressure that may lead to cargo damage.
 It presents an initial impression on the customers.
 It’s a mode of advertising and creating publicity for the shipping carrier.

There is a wide range of packaging options that may be used by carrier. They may include:

 Utility oriented packaging

 Branded packaging
 Standard packaging

In the case of courier shipments, carrier will supply with their choice of packaging options
depending on goods and their services.

The most common standard packaging are:

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  Bulk cargo boxes
 Corrugated pads
 Insulated shipping boxes
 Wooden Crates
 Multi-depth boxes
 Easy fold covers
 Side loaders etc

Normally, every carrier carefully selects a packaging since it’s core in affecting their profit
margin. Most of them wouldn’t supply with unfavourable packaging, which may significantly
attract unnecessary costs.

But in the case of LCL or FCL container shipments, it is needed to ensure that the packaging
follows the recommendations of the CTU Code.

Make sure goods are insured

Cargo insurance is crucial for goods. This would give a sense of security in case of any
unforeseen circumstances such as loss or damage to the products.
Acquiring a competitive cover for the whole consignment would allow to have a free mind
knowing that goods are safe.

Numerous third-party companies offer insurance cover for the shipments. Whether a buyer or
seller, it is the cargo owners’ responsibility to ensure that the goods are insured.

It’s advisable to sufficiently cover the full worth of the shipment so that in the event of
occurrence of emergency, to get the total value of goods back.

Choose the right Inco terms rules – it helps to handle risks, liability & cost easily

Selecting the right Inco terms rules is essential in providing the best freight forwarding solutions.
International commercial terms are widely used in the global freight network. It comprises of a
set of rules that clearly define and stipulate the responsibilities of the consignor and consignee.

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The Inco terms specify the risks borne by both the importers and exporters in the shipping
procedure. Expert freight forwarders have got vast knowledge and understanding of the proper
Inco terms for the clients.

Inco terms can be applied to all modes of transport – air, sea, road or rail. Simply choosing the
right Inco terms since they will help you to:

 It help to understand the obligations of buyer and seller like who organizes carriage or
insurance of the goods or who obtains shipping documents and export or import licenses.
 It also help to understand where the risk passes from the seller to the buyer and
Understand which party is responsible for which costs.

There are 11 Inco terms rules from in the latest Inco terms 2020 version.

EXW (Ex Works)

The goods and invoice are at the importer’s disposal, at the exporter’s premises. All expenses
and any losses or damages after delivery of the goods, including shipping of the goods overseas,
are the responsibility of the importer. When requested, exporter must provide assistance to the
importer in obtaining documents necessary for shipping the goods. This modality may be used
for any mode of transportation.

FCA (Free Carrier)

Here the exporter delivers the goods, cleared for export, into custody of the transporter, at a
location indicated by the importer, whereupon all responsibilities of the exporter cease. This may
apply to any type of transportation, including multimodal.

FAS (Free Along Ship)

Here, obligations of the exporter cease upon loading of the goods, cleared for export, on the
dock, free, alongside the ship. As of this moment, the importer assumes all risks, and bears all

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expenses relating to loading of the goods on board the ship. The term is used for sea and inland
waterway transportation.

FOB (Free on Board)

The exporter must deliver the goods, cleared for export, on board the ship indicated by the
importer, at the port of embarkation. This modality is used for sea and inland waterway
transportation. All expenses, up until the loading of the goods on the transport vehicle, are born
by of the exporter. The importer is responsible for expenses and risks of loss or damage to the
goods, once delivered on board the ship.

CFR (Cost and Freight)

The exporter must deliver the goods at the port of destination selected by the importer. Transport
expenses are thus the responsibility of the exporter. The importer bears the expenses of insurance
and unloading of the goods. Utilization of this term obliges the exporter to offload the goods for
export, and to use only sea and inland waterway transportation.

CIF (Cost, Insurance and Freight)

Modality equivalent to CFR, except that the insurance costs are born by the exporter. The
exporter must deliver the goods aboard ship, at the port of embarkation, with freight and
insurance paid. The responsibility of the exporter ceases when the product is offloaded from the
ship at the port of destination. This modality may only be used for sea and inland waterway
transportation.

CPT (Carriage Paid to...)

Similarly to CFR, this condition stipulates that the exporter must pay expenses relating to the
shipment of the goods and international freight to the designated destination. Thus, the risk of
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loss or damage to the goods, and any increase in costs, are transferred to the exporter by the
importer, when the goods are delivered into custody of the transporter. This Inco term may be
used for any mode of transportation.

CIP (Carriage and Insurance Paid to...)

Adopts a principle similar to CPT. The exporter, aside from bearing expenses for shipment of the
goods and freight to the destination, must also bear expenses of insurance for transport of the
goods to the destination indicated. CIP may be used for any mode of transportation, including
multimodal.

DAP (Delivered at Place)

Seller pays for carriage to the named place, except for costs related to import clearance, and
assumes all risks prior to the point that the goods are ready for unloading by the buyer.
Import clearance = import duty and VAT and not the Import Customs Clearance.

DAT (Delivered at Terminal)

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes
all risks up to the point that the goods are unloaded at the terminal.

DDP (Delivered Duty Paid)

Seller is responsible for delivering the goods to the named place in the country of the buyer, and
pays all costs in bringing the goods to the destination including import duties and taxes. The
seller is not responsible for unloading. This term is often used in place of the non-Inco term
"Free in Store (FIS)". This term places the maximum obligations on the seller and minimum
obligations on the buyer.

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Inco terms

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CHAPTER 4

SWOT Analysis and Conclusions

SWOT Analysis

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SWOT analysis is a strategic tool that can help companies analyze their situation and conditions
they are faced with, summarize for their past and make a developing strategy and plan for future
life and evaluate. “S” stands for strengths, “W” stands for weaknesses, “O” stands for
opportunities, ”T” stands for threats. Strengths and weaknesses belong to internal factors and
opportunities and threats are external factors. It was firstly introduced by Learned and other
famous experts in 1965 and widely used in strategic management field.

Internal factors and considerable questions before analysis

Internal factors analyze the company functions and activities and include strengths and
weaknesses. When we analyze them, we can think about such questions as a start. Internal
strengths and weaknesses usually mean the internal factors that the organization can control. For
example, the organizational mission, financial resources, technological resources, organizational
culture, human resource, product feature and so on.

External factors and considerable questions before analysis

External factors include opportunities and threats, which indicate the factors in the business
environment that the organization usually can’t control in the business environment. For
example, it includes demand, competition, economy, politics, law, society, culture, technology,
population environment and so on. These external factors usually can’t be controlled by the
organization but have significant effects on organizational operation.

Flyjac SWOT analysis

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SWOT analysis of FLYJAC Logistics analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In FLYJAC Logistics SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like FLYJAC
Logistics to benchmark its business & performance as compared to the competitors and industry.
FLYJAC Logistics is one of the leading brands in the fright forwarding sector.

Strengths

Below are the Strengths, Weaknesses and Opportunities & Threats (SWOT) Analysis of
FLYJAC Logistics. Strengths are:

It has network in more than 60 countries with various Location of offices in india

FLYJAC have made contact with the various country and various organizations as per by their hard work
and dedication towards the satisfaction of the customer. FLYJAC have offices in all the significant
locations of south india including Chennai, Banglore, Kolkata, Kochi, Hyderabad, etc. This
strategic locational advantage helps them to consolidate huge quantity of cargo and a loyal
customer base.

End to end logistics services:

FLYJAC provides end to end logistics services through air, rail, road, and sea. Some of their
services include supply chain management, transportation, and warehousing, project logistics,
logistics for events and exhibitions and management of household goods.

Awards received by FLYJAC

As per by their hard work and dedication and experienced manpower they have received various
awards which helps to keep the moral of the organisation high.

Best Employer’ awarded in Tamilnadu.

Excellence Service Awards from M/S Harman Lifestyle.

Weaknesses
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Weakness is the areas where FLYJAC can improve upon. Strategy is about making choices and
weaknesses are the areas where an organization can improve using SWOT analysis and build on
its competitive advantage and strategic positioning. Some of the key weaknesses of FLYJAC
include.

Proper work place

FLYJAC need to improve the infrastructure of the workplace, as a better environment of

workplace help to improve the employer and employee working efficiency. This will lead
towards the better outcome for the company.

Less number of skilled employees

As in the organisation most of the no of skilled employee are less which helps them to get cheap
labour, but it won’t help the organisation, as it won’t allow getting new ideas for the new
problem for the new problems. It leads towards the reduction of development and efficiency of
the organization.

Opportunities

Following are the Opportunities in FLYJAC Logistics SWOT Analysis:

Arrival of new technologies

Failure to monitor and address advances in technology may negatively impact the position in the
market. Areas to watch include government spending on technology, big new discoveries or
products, speed of technology transfer, and changes in business processes as a result of
technology. Latest technologies in logistics are Robotics, Block chain technology and Artificial
intelligence.

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Partnership with other companies can be utilized for expansion.

Making alliance with the different company throughout the globe will help FLYJAC to gain
control over the different regions of the world and also help to understand the competition of the
market. It will help to expand FLYJAC all over the world. Strong presence in all key markets
will also allow offering comprehensive services.

Demand in the market is more

In today’s business environment, sustaining growth and profitability is never a guarantee. To

understand the demand, you must identify consumer segments that share common characteristics
and formulate strategies to meet this increasing demand.

Demand of world-class logistics and warehousing services

FLYJAC has a well network across south India thus expansion of offices all over India will help
FLYJAC to be a main player in the market.

An unfulfilled customer need

Identifying and solving important unmet needs of the customer is very important to an
organisation. The identified "need gaps" highlight opportunities for future strategy development
process. Through customer needs research, organisations can satisfy the most important unmet
needs of their target audience by enabling them to accomplish their desired outcomes more
effectively, with less effort, and with greater enjoyment.

Threats

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Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:

Customer satisfaction:

Satisfying the customer will become a huge threat for logistics companies since customers today
have very specific needs. This may call for a need for technologies like robotics to improve last
mile delivery and to also increased customisation of logistics services. This factor may shifts the
consumer tastes away from the firm's products and services.

Different laws in different countries

For an organisation it is one of the most important factor about which they should know, before
entering to a new country for the business or else it may lead towards the huge loss or even
shutdown of the business in the particular country.

Increasing fuel rates results in increasing transportation costs.

Now a day’s fuel rate is becoming the major factor to decide the price of the consignment as the
rate of fuel goes up or down it gives a direct impact over the consignment. It is becoming a
biggest threat for all the companies all over the world.

Conclusions

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FLYJAC is one of those companies where being a small company is a disadvantage amongst
shipping lines to get competitive prices and trust amongst the customers that their cargo can be
handled by them. Though the size of the company is small but the determination and the
dedication of people working in the company is their greatest strengths.

Today's Indian market has the opportunity to have easy access to many technological platforms
as well as to large customer base, offering many beneficial opportunities for the further
development of companies like FLYJAC.

Professional redesign of supply chains and the introduction of new business models will be a
core challenge for the Indian business community to take full advantage of sub-continents
growing role in the global economy. Collaboration between Indian and international logistics
experts will pave the way forward and allow India to become an example in sustainable
development for the rest of the world.

The problems faced by FLYJAC and other freight forwarders is identified from different angles
and it is very clear by the facts and figures that the occurrence of problems is because of
government regulations, liner companies, Non availability of trailers & trucks. To overcome
these problems, the freight forwarders should update themselves with the new technologies and
current standards, in order to meet the global customer’s satisfaction level.

Summary
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Freight forwarders in India have not taken extra care in retaining the customers. So, should
formulate and implement strategies to retain customers effectively.
Major problems identified by the freight forwarders in their business operation Stuffing, loading
and unloading, non-availability of trailers and trucks, Routing and scheduling. A consortium of
freight forwarders could be formed so that problems of non-availability of trucks and containers
could be minimized.
International Transportation frequently requires ocean or airfreight modes, which many
corporations only rarely use domestically. In addition, combinations such as land bridges or sea
bridges may permit the transfer of freight among various modes of transportations; resulting in
intermodal movements the international logistics manager must understand the specific
properties of the different modes to be able to use them intelligently.
Introduction of web based tracking (e-tracking) will help minimize mistakes and improve
transparency of operations.
Online payment can be introduced to ratify the default in payment implementation of EDI
strengthened by the freighter forwarders.

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