A

PROJECT REPORT

ON

"A STUDY ON THIRD PARTY LOGISTICS AT JBM AUTO

LIMITED”
SUBMITTED BY

MISS. PRATIKSHA DATTATRAY RAUT

UNDER THE GUIDANCE OF: -

Prof. KSHITIJA MORE

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

In partial Fulfillment of their requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2023-2024)

THROUGH

JSPM's
JAYAWANT INSTITUTE OFMANAGEMENT STUDIES
TATHAWADE, PUNE

1
JSPM’s

JAYAWANT INSTITUTE OF MANAGEMENT STUDIES

(Approved by AICTE, New Delhi, Recognized by Gov, of Maharashtra
& Affiliated to Pune University)
S. No. 80/2, Pune-Mumbai Bypass Highway, Tathawade, Pune – 411033.
Phone: +91-20-64731454/55 Telefax: +91-20-22933424.
E-mail: [email protected] Website: www.jspm.edu.in
AISHE Code: C-60096
Accredited by NAAC with "A" Grade

Dr. Prof. T. J. Sawant Dr. Bipin Bankar

B.E. (Elec.), PGDM, Ph.D. B.Com, MBA, Ph. D.
Founder- Secretary Director

Ref. No. Date:

CERTIFICATE

This is to certify that the project report titled “A study on third party logistics ” is
a bonafied work carried out by Miss.Pratiksha Dattatray Raut of MBA – II yr.
of JSPM’S Jayawant Institute of Management Studies , Pune, 411033 as a
partial fulfillment of Master of Business Administration , degree of Savitribai
Phule Pune university.

She has worked under our guidance and satisfactorily completed her summer
internship project work for period of two months.

Prof.Kshitija More Dr. Sudarshan Pawar Dr. Bipin Bankar

Project Guide HOD, MBA Director, JIMS

2
3
 ACKNOWLEDGEMENT

This project report, I have made an honest and dedicated attempt to make the
research material as authentic as it could. And I earnestly hope that it provides
useful and workable information and knowledge to any person reading it.

During this small time frame of two months in which the project reached its
completion, there were a few people whom I would like to mention and without
their help the project would have never seen the light of day.

Firstly I would like to thank my external guide MR. AVDHOOT DESAI (HR
MANAGER OF JBM AUTO LIMITED) who gave me a free hand as far as
going about the project work. Also thanks to RAM SHARMA (MANAGER OF
JBM AUTO LIMITED) who were extremely kind and who at times went out of the
way to help me. Without their co-operation it would have perhaps not been possible
to research a few places, which I did, within the stipulated time frame.

I would also thank my internal guide Respected Prof. KSHITIJA MORE (Project
guide, operations) for her valuable guidance & our college's Director Dr. BIPIN
BANKAR (JIMS) who gave me time to time advices and proper direction towards
a best project preparation.

(Signature of the Student)

Miss.Pratiksha Raut.

4
 DECLARATION

I undersigned, hereby declare that project report entitled “A STUDY ON

THIRD PARTY LOGISTICS AT JBM AUTO LIMITED” written and
submitted by me to the Savitribai Phule Pune University, in partial fulfillment of
the requirement for the award of degree of Master of Business Administration
under the guidance of Prof. Kshitija More is my original work and the
conclusion drawn there in are based on the material collected by myself.

Place : Pune (Signature of the Student)

Date: Miss. PRATIKSHA RAUT

5
 EXECUTIVE SUMMARY

This project report covers all the aspects of the third party logistics in
company and interpreted according to standards. This project was done at JBM
AUTO LIMITED. This is well known company of logistics. The corporate office
is located at Gurgaon, Delhi.

The project given to researcher for research was to do study on 3PL for the
company using various inventory management tools and techniques. The main
intention was to group or regroup the various figures to draw fruitful conclusion.

Researcher found that by establishing strategy relationship between the component

of the inventories and logistics data and operative data it unveils the meaning and
the various items embodied in the company document and other component.

Inventory data are valuable as they depict how the logistics data of an enterprise fit
in fabric of logistic management system. It is an instantaneous photograph of
inventory handling and also the logistics management of the company at the
particular time. All and all it was a good experience working in there and working
in that environment will be of great help in future.

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 INDEX

SR.NO TOPIC PAGE NO

1 INTRODUCTION 8 - 11

2 COMPANY PROFILE 12- 15

3 OBJECTIVES AND SCOPE 16 – 18

4 REVIEW OF LITERATURE 19 - 24

5 RESEARCH METHODOLOGY 25 – 27

6 DATA INTERPRETATION 28 – 44

7 OBSERVATIONS AND FINDINGS 45 – 46

8 CONCLUSION 47 – 48

9 BIBLIOGRAPHY 49 -50

10 QUESTIONNAIRES 51 - 57

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 CHAPTER 1

INTRODUCTION

8
The project assigned to the researcher is “A Study on Third Party Logistics at JBM AUTO
LIMITED” as a part of three months internship.

The Indian Economy is the second largest growing economy of the world and the Logistic
Sector. Worldwide, interest in logistics management has increased steadily since the 1980s when
the companies began to see the benefits of collaborative relationships. The Logistics concept is
still nascent in India.

However, the need for the same is more than ever before because of the challenges unleashed on
the competitiveness of the Indian industry by deregulation and globalization.

A number of technologies and managerial attention has gone into improving logistics
performance. The increasingly environment calls for speedy, cost efficient, accurate and reliable
logistics. Logistics management is no longer a matter of operational and functional areas of the
firm .Today; it is a strategic issue demanding top level management attention.

The third party logistics (3PL) has been recently increases because of getting high speed in
operation, effective and efficient output, easily accessible legal documents, etc.

This project aims to understanding the whole operations of the third party logistics (3PL)
industry and developing the logistics company for the future competition. It comprise structured
activities occurred in warehouse. It includes

1. Supply chain activities in warehouse of JBM AUTO LIMITED

2. Adaptation of innovative methods and techniques and their importance.

3. SAP importance

4. SWOT analysis of existing work activates

5. Inventory flow and control

9
The objectives of warehouse management is reducing the lead time of each and every existing
activities, achieving cost reduction, improvement in material handling system rather than satisfy
the customers in the form of providing the right materials at the right place at the right
time .Finally, the projects analyze to determine the level of customer services and satisfaction,
also reduce the cost associated with the inefficiency and duplication.

The third- party logistic industry has come a long way in relatively short history, a maturity
curve that has been documented in the seventeen years of this study. Early on, shipper cautiously
entrusted 3Ls with a relatively limited number of core services, such as managing warehousing
and transportation, then steadily asked 3PLs to do more. 3PLs honed their craft in delivery of
these services, while gaining shippers’ trust and building towards more collaborative, integrated
relationships with their

3PL continue to rank their relationship with shippers a bit higher than shippers do, but the vast
majority (88% of shippers and 94% of 3PLs) view their relationship as successful. Openness,
Transparency, and good communication as well as agility and flexibility contribute to this
success. Interestingly, figures from this year’s study suggest decrease in the use of gain sharing
and collaboration.

10
 Third Party Logistic Services

A third- party logistics provider (abbreviated 3PL or sometimes TPL) is a

firm that provides services to its customers of outsourced (or “Third
Party”) logistics services for part, or all of their supply chain management
function. Third party logistics providers typically specialize in integrated
operation, warehousing and transportation services that can be scaled and
customized to customers’ needs based on market conditions, such as the
demands and delivery service requirements for their products and
material. Often, these services go beyond logistics and include value-
added services related to the production or procurement of goods, i.e.,
services that integrate parts of the supply chain.

When this integration occurs, the provider is then called a Third-party

supply chain management provider (3PSCM) or supply management
service provider (SCMSP). 3PL targets a particular function in supply
management.

11
 CHAPTER 2

COMPANY PROFILE

12
 Company Profile

Name of Organization: JBM AUTO LIMITED and SCM services

Pvt, Ltd, Pune

Sector: Logistics and import and export

Founded in 1983

India employee count 1k to 5k

Headquarters Gurgaon, Haryana, India

Nature of Business B2B, B2C

Website jbmgroup.com

JBM Group is a global conglomerate among the world’s leading manufacturers of

key auto systems, electric vehicles and buses.

JBM Group is a focused and progressive conglomerate aiming to add value to our
customers ‘business via its products, services and innovative solutions.

The Group has a diversified portfolio with presence in multiple domains such as
Automotive, Engineering & Design services, Renewable energy.

JBM Group currently has an infrastructure of 40 manufacturing plants, Engineering

& Design centers across 18 locations globally.

13
The multibillion dollar JBM Group has broadened its horizons by focusing on quality
delivery, solutions approach, product development processes, flexible manufacturing
systems and contract manufacturing.

JBM Group comprising primarily of auto component division, caters services to

esteemed clients that include Ashok Leyland, Bajaj Auto Ltd, Fiat, Ford, General
Motors Corporation, Honda, Hero, Mahindra, Maruti Suzuki, Renault, Nissan,
TATA, Toyota, TVS, Volvo- Eicher, Volkswagen and many more.

Mission

JBM AUTO LIMITED Corporation will produce superior financial returns for its
shareowners by providing high value-added logistics, transportation and related
business services through focused operating companies. Customer requirements will
be met in the highest quality manner appropriate to each market segment served.

JBM auto limited will strive to develop mutually rewarding relationships with its
employees, partners and suppliers. Safety will be the first consideration in all
operations. Corporate activities will be conducted to the highest ethical and
professional standards.

Vision:

Expanding leadership in our business by creating an agile environment that delivers

excellence and delight to stakeholders through the power of people, innovation and
technology.

14
Overview Logistics

Global Logistics Industry includes all activities of the supply chain such as
transportation, customer service, inventory management, the flow of information, and
order processing.

Other activities of the supply chain are warehousing, material handling, purchasing,
packaging, information dissemination, and maintenance

Robotics, for automation, Parts will offset low-cost manufacturing advantages.

Middle-class growth in developing markets is altering supply-demand dynamics.
Global E-Commerce will challenge traditional borders and boundaries.

DEMAND-SUPPLY GAP OF SKILLED MANPOWER IN

LOGISTICS SECTOR.

Logistics Sector e are employed in passenger roadways segment, 38% in road

fright while remaining are in passenger railways, freight forwarding, warehousing,
packaging, and other services.

As per the National Sample Survey, the distribution of employees is mainly in

Mumbai, Kolkata, Hyderabad, and Ahmedabad Districts whereas emerging clusters
include Bangalore, Surat, and Indore There has been no formal training in the country
to address the Skill l gap in the logistics sector.

Thrust on infrastructure projects such as the dedicated Freight & Industry Corridors
like DMIC, expansion of Port Terminals, and construction of Greenfield Port projects
under Sagarmala project and Bharatmala project will Create fresh employment
opportunities Increasing income levels and rapid growth in organized retail, e-
commerce, QSR, etc. will create new opportunities for the youth.

15
 CHAPTER 3
OBJECTIVE AND SCOPE

16
 Objective of the project

• To understand the importance of third party, logistics, packing and shipping.

• To critically evaluate the existing process

• To analyze the effectiveness of third party logistics services.

Scope of the Project

 This study is helpful to understand effectiveness of third party logistics services,

packing and shipping of JBM AUTO LIMITED.

 Study how Third Party Logistics is an effective way to reduce operational costs,
and allow a JBM AUTO LIMITED to focus on their core competencies.

 Study JBM AUTO LIMITED Outsourcing logistics operations to a 3PL provider

adds to the bottom line for both the customer and supplier through accurate, well-
managed inventory and supply chain solutions.

 Study third party logistics solution for assembly, packaging, warehousing, and
distribution in JBM AUTO LIMIED

17
 Limitation of the Project

1. The study focuses only on the third party logistics services provide.
2. This study has not taken into consideration towards the perspective of 3PL service
users.

3. The view of the 3PL service user could affect the result of the success factor for
the 3PL service provide.

4. This study is limited to only organize 3PL service provider.

5. The research can be improved by taking consideration of the unorganized 3PL

service provider.

6. Is not possible to collect secondary data in details. To collect such that it’s needed
to look in to the particular old register in every area of company and that was not
possible because of some reasons.

18
 CHAPTER 4

REVIEW OF LITERATURE

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 LITERATURE REVIEW

Research paper Name: The Third Party Logistics Selection: A Review

Literature
Author: Aicha Aguezzoul
Year: 2007

Abstract:
The outsourcing of logistics activities to third-party logistics service providers (3PL)
has become a common practice by many companies. The majority of research in this
field is of exploratory type and is mainly focused on reasons, benefits, and risks to
work with the 3PL as well as the role of those in supply chain management. This
paper presents a literature analysis on 3PL selection and evaluation. This selection is a
very complex process that depends on several factors. The selection criteria evolved a
lot these past years and the 3PL have currently diversified by offering various services
and by ensuring various activities. As for the methods of 3PL evaluation, they range
from simple analytical techniques to multi-criteria methods. A comparison of these
methods in terms of advantages and disadvantages is also presented in this paper.
Keywords

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Third-party logistics, performance, criteria and methods

Research paper Name: Third-party logistics: A literature review

Author: Alessandra Marasco
Year: 2007

Abstract
Third-party logistics (TPL) has attracted considerable research attention in the recent
past. Despite the growing body of Literature on this topic, precious little effort has
been devoted to synthesizing the overall state of art of research on TPL. In This
paper, an attempt is made to review the status of literature on TPL. A literature review
scheme is presented.

A total of 152 articles published between 1989 and 2006 in 33 reputable international
journals are reviewed and classified into Content- and methodology-related issues.
Based on the review, suggestions for future research are likewise provided.

21
Research paper Name: third party logistics: a literature review
Author: Salim khan
Year: 2017

ABSTRACT: This paper offers a theoretical and empirical framework, for the third
party logistics. It begins with an examination, of the various definitions of the third
party logistics. These concepts lay the foundation, for the scope of the research and
also establish a vision of, how third party logistics is viewed, in relation to a
company’s other operations. Logistics outsourcing is a focus in this literature review.
The literature identified the trend in doing logistics outsourcing, together with its
reasons and pitfalls in the theoretical background as a consideration, in making a
decision to outsource the logistics functions. Furthermore, current practices and the
experience of implementation of the logistics outsourcing, as well as an insight as to
what the future trends are likely to be in some countries, are given. This paper states
the theories and recent researches, related to the formulated questions.

22
 Research paper Name: A Literature Review on Global Challenges for Third
Party Logistics
Author: D. J. Hiram Gabriel and M. Parthian
Year: 2020

Abstract: Initially all manufacturing industries had a separate logistics department of

their own for the movement of their produced goods and services. This added to the
complexity and cost to the industries since they had to maintain a huge workforce for
the process. Thus, companies started hiring third parties for logistics purposes, these
third parties are known as Third Party Logistics (TPL) or 3PLs. nowadays every
company employs TPLs for service to carry out shipments thus focusing on their core
area of development than logistics. These 3PL firms face certain challenges globally
in delivering services to their customers. The paper aims to have a systematic review
of the challenges faced globally by 3PLs. The paper gathers information from many
pieces of literature on three important challenges namely minimizing the lead time,
adapting to the Industrial Dynamics, and adapting to the advancement in technologies.
The review will be helpful for future scholars in listing the challenges faced by these
industries globally.

23
 Research paper Name: Building Logistics Capabilities through Third-party
Logistics Relationships Using COPRAS Method
Author: Jasvinder Kaur, M. Ramachandran, Sathiyaraj Chinnasamy, Prabakaran
Nanjundan
Year: 2023

Abstract:
The 3PL logistics service is primarily for all modes of transportation and storage for
automobiles, Tesla Energy, batteries and/or related components to factories, service
centers and other components integral to the successful operation of other Tesla
companies.

A 3PL (Third Party Logistics) Provider Outsourced Provides done logistics

services, including one or more purchases, and Involves managing fulfilment
activities. In business, 3PL means warehousing or shipping and refers to any service
agreement that includes goods. The Complex Proportional Rating (COPRAS)
Increase index values a reduction method is used the effect of increasing and
decreasing the indices of the attributes is considered separately in the result
assessment.
Alternative: Operational efficiency, customer operations Integration, vertical or
horizontal integration, supply chain management and Integration. Evaluation option:
% of personnel in gen. management and business development, % of services is
value-added, Expected annual growth rate 1995-1998 in %, Competencies, Skills
lacking. The result it is seen that % of services is value-added is got the first rank
where as is the Competencies is having the lowest rank. The value of the dataset for
Third-party logistics in COPRAS method shows that it results in % of services is
value-added Decision and top ranking

24
 CHAPTER 5

RESEARCH METHODOLOGY

25
RESEARCH METHODOLOGY
Research is used to establish or confirm facts, reaffirm the results of previous work,
solve new or existing problems, support theorems, or develop new theories. A
research project may also be an expansion on past work in the field. To test the
validity of instruments, procedures, or experiments, research may replicate elements
of prior projects, for the project as a whole. The primary purposes of basic research as
opened to applied research are documentation, discovery, interpretation, or the
research and development of methods and systems for the advancement of human
knowledge. Approach to research depends on epistemologies, which vary
considerably both with within and between humanities and sciences.

Research has been defined in a number of different ways.

Abroad definition of research is given by Martyn Shuttle worth – “In the broadest
sense of the word, the definition of research includes any gathering of data,
information and facts for the advancement of knowledge.”

Limited, for the purpose of my study on employee satisfaction and its various factors
by using the following methods.

TYPE OF RESEARCH:
Descriptive research
Descriptive research or statistical research provides data about the population or
universe being studied. But it can only describe the “who, what, when, where and
how” of a situation, not what caused it. Therefore, descriptive research is used when
the objective is to provide a systematic description that is as factual and accurate as
possible. It provides the number of times something occurs, or frequency, lends itself
to statistical calculations such as determining the average number of occurrences or
central tendencies. One of its major limitations is that it cannot help determine what
cause a specific behavior motivation or occurrence. In other words, it cannot
establish a causal research relationship between variables

The two most commonly types of descriptive research design are

1. Observation and
2. Survey

26
SAMPLING

 Sampling Universe
 Sample Frame
Traders, retailer, Wholesaler, Service.
 Sample Size

Out of total population the sample amongst taken the customer was 200.

o Sample Unit Business per form

o Sampling technique
o Random Sampling

DATA COLLECTION:

The information necessary for this survey is collected by primary and secondary
sources.

Primary Data:
 Questionnaire
 Personal Interaction

Secondary Data:
 Previous report on customer potential
 Related information from internet
 Books a publication

MEASURING TOOL
A tool is and with which necessary and relevant can be fetched systematically to the
subject matter.
The interview method was the tool of data collection. The schedule contains several
Questions resulting to different aspect of the problems under analysis. Open and
closed – ended questions were used for interview

27
 CHAPTER 6

DATA ANALYSIS AND

INTERPRETATION

28
Data Interpretation:

This point presents analysis and findings of the study as set out in the research
methodology. The results were presented on the effectiveness of Logistics services,
packing, and shipping.

1) How important is logistics quality for a company?

a) Least important

b) Less important

c) Important

d) Most important

Table No1

Least important 11
Less important 14
Important 54
Most important 21
Graph No 1

Least

important,1

Mostimportan
t Less

important
,14
Important,5

Interpretation:

From the graph we get able to know that most of voters say logistics is important
quality for company.

29
2) Should logistics be part of the company’s strategy?

a) Yes

b) No

Table No2

Yes 70
No 30

Graph No 2

Logistics be part of the company ‘strategy

Series1

70
30

Yes No

Interpretation:

70 among the 100 say that logistic should be part of company and 30 say should not.

3) Is your company taking steps to improve the logistics?

a) Yes

b) No

30
Table no.3

Yes 63
No 37

Graph No 3

120

100

80

60 No

Yes
40

20

Interpretation:

63 companies are going to improve logistics in their company from 100.

31
4) How often is logistics reviewed critically at your company?

a. Daily
b. Weekly
c. Monthly
d. Quarter

Table No 4

Daily 27
Weekly 35
Monthly 22
Quarter 16

Graph No 4

35

30

Series1
15

10

Daily Weekly Monthly Quarter

Interpretation:

27 companies review criticality daily, 35 weekly, and 22 monthly and 16 queerly.

32
5) What does your company use for quality matrices in logistics?

a) Cost saving

b) Error free

c) Reliability

d) All of above

Table No 5

Cost saving 35
Error free 21
Reliability 40
All of above 4

GRAPH NO 5

All of above , 4

Cost saving , 35

Reliability , 40

Error Free,21

Interpretation:

40 companies use Reliability, 21 use Error Free, 35 use cost saving and 4 use all for
matrices in logistics.

33
6) Will you implement 3PL (third party logistics) for solving your
logistic problem?

a) Definitely

b) Never

c) Future plans

d) Implementing different logistics

Table No 6

Definitely 39
Never 8
Future plans 11
Implementingdifferent 42

Graph No 6

Implement 3pl for solving logistic problem

Definitely

39% Never
42%
Future plans

Implementing different
11% 8%

Interpretation:

39 Definitely want to change implementation to 3PL for solving logistic

problem.

34
7) According to you what effects can 3PL have on your logistics plan?

(can select more than one)

a) Major improvement in efficiency

b) Saving time

c) Cost saving

d) Competitive edge

Table No 7

Major improvement in efficiency 45

Saving time 37
Cost saving 17
Competitive edge 29

Graph No 7

45

40

35

30

25 Series1

20

35
8) Will you implement 3pl if it cost more than your current logistics

approach?

a) Definitely

b) Never

c) May be in future

d) Implementing different logistic plan

Table No 8

Definitely 7
Never 56
May be in future 32
Implementing different logistic11

Graph No 8

Implement 3PL if it cost more than current logistics

Approach

Implementing different logistic

plant 11

May be in future 32

Never 56

Definitely 7

Interpretation:

More than 50% companies not going to change current logistics approach
is 3PL coast is more than existing.

36
9) What should be the main logistic activity that a 3PL should
improve?

a) Inventory management

b) Transportation and delivery

c) Quality of product

d) Overall logistic process

Table No 9

Inventory management 39
Transportation and delivery 37
Quality of product 15
Overall logistic process 9

Graph No 9

Improvement 3PL
45

40 39
37
35

30
Series1
25 15

20 9

15
Inventory Transportation Quality of Overall logistic

management and delivery product process

Interpretation: Inventory management need more improvement than

the Transportation and delivery. Were quality of product need least
improvement

37
THE FOLLOWING QUESTIONS ARE STRICTLY
CONFIDENTIAL AND FOR RESEARCH PURPOSES ONLY

1) SALES- During your last measurement period were SALES

generally up or down? Your best guess as to how much?

a) +20% e) 0

b) +15% f) -5

c) +10% g) +10% or more

d) +5%

Table No 10

20% 10
15% 22
10% 13
5% 25
0 2
-5% 17
-10% 11
Graph No 10

25

20

15
Series1
10

0
20% 15% 10% 5% 0 -5% -10%

38
2) PROFITS- During your last measurement period were profit up
or down? Your best guess as to how much?

a. +20%
b. +15%
c. +10%
d. +5%
e. 0
f. -5%
g. +10% or more

Table No 11

20% 13
15% 10
10% 25
5% 22
0 3
-5% 11
-10% 16

Graph No 11

25

20

15
Series1
10

0
20% 15% 10% 5% 0 -5% -10%

39
3) CUSTOMERS- During your last measurement period did your
customer base grow or shrink? Your best guess as to how much?

a. +20%
b. +15%
c. +10%
d. +5%
e. 0
f. -5%
g. +10% or more

Table No 12
20% 17
15% 25
10% 22
5% 10
0 1
-5% 43
-10% 11

Graph No 12

45

40

35

30 Series1

25

20

15 20% 15% 10% 5% 0 -5% -

40
1.Features of Indian logistics industry

4%
6%

39%
24%

27%

 A number of small –integrated players.

 Transportation costs account for nearly 40% of production costs.
 Logistics costs around 135 of GDP compared to 8% in US.
 Growth in Indian economy is the major driving factor for the demand in
logistics industry.
 Chemicals, metals, FMCG cement and textiles have been identified as the top
5 contribution to logistics revenues.

41
 Indian road network

 India is having second largest road network in the world ( 3.83)

 Road network carry nearly 65% of freight and 85% of passenger traffic.
 Average speed on Indian highways is 30km per hour,
 is three times lower than the average speed on highways in developed countries.
 Roads in India are divided into following 5 categories

1. National highway (NH)

2. State highway (SH)

3. Major district roads (MDR)

4. Other district roads (ODR)

Category of road Length in km

Total road network 3.34 million

National highways 65,569

State highways 1,30,000

Major dist. , road , rural road and urban road 3.14 million

5. Village roads (VR)

National highways form only 2% of total roads by length and carry about 40% of the
traffic.

 Out of the total length of national highways

1. 27%- single lane /intermediate lane

2. 59%-double lane standard

3. 14% -four lane /six-lane /eight lane standard

42
2. India’s sea logistics

Indian Feet
9

4 Series1

1
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

India now has the largest merchant shipping fleet among the developing countries

 India ranks 17th in the world in shipping tonnage

 Indian share of maritime transport services is 1 % of world market
 The container traffic has registered an impressive growth of 15 percent over
the
 Last five years.

43
3.Third party logistics survey in India

Diverting capital investment 24.5

Access/Expansion to unfamiliar market 35.9

Access to emerging technology 45.3

Imbibe more flexibility 46.1

Productivity Improvement 56.5

To increase inventory tum 60.6

Improve return on assets 66.2

Improved customer services 71.3

Focus on core companies 76

Logistics Cost Reduction 80.5

0 20 40 60 80 100

Series1

A survey by the transport corporation of India (TCI) and the management

development institute (MDI) shows less than 55% of Indian companies subscribe to
3PL, compared to more than 75% globally.

 About 57% of the companies plan to outsource reverse logistics within the
next 5 years.
 54% plan to outsource inventory management.

44
  53% order processing.
 More than 50% of the companies have out sourced activities like
transportation, warehousing& customs clearing /forwarding.

OBSERVATIONS AND FINDINGS

45
Observations & suggestions

1. From the analysis it is understood that more numbers of companies are

logistics user. Hence logistics services can be more successful when
concentrate on the current market move.
2. Less number of companies’ purchases logistics to improve this and attract the
companies to purchase the 3PLmust gives attractive services.
3. The company should improve the existing operation system.
4. The organization should Improve and adapt different operational strategy.
5. Company should enhance the administration.
6. Should provide adequate number of employees for each activity.
7. The company may determine the employee’s satisfaction and try to
8. Solve their problem.
9. The company should try to maintain good efficiency of SAP system.
10. Company should improve the warehouse infrastructure as early as possible

Findings

1. Use modern techniques an equipment’s are done which is very important to

manage the productivity and time.
2. Material can be received only if the permit of purchase order
3. Manufacturing boom-for exports as well as for domestic market.
4. Expected rise in international trade from India.
5. Government’s thrust on infrastructure –US$17 billion to upgrade highway
networks.
6. Implementation of VAT will lead to growth in warehousing business.

46
CHAPTER 8

CONCLUSION

47
 3rd party logistics having good scope in India as well as in foreign
Market. It manage, support and full fill customer demand in all serviced
regions. It resulted in increasing the customer by fulfilling their demand
in short period of time. Attain a continuous and unrivalled 100%
customer satisfaction .Faster turnaround time to deliver goods to
customer satisfaction. Optimize prize setting, increase scale, and reduce
shipping cost to maximize customer satisfaction.

Information technology system is also important for success of the

business. By concentrating more on the end user. This can also improve
the speed and accuracy of the work and hence better satisfaction to the
customer. This would increase the profit and improves the brand image of
the company.

48
CHAPTER 9

Bibliography

49
Books:

1. Mr. Reijo Ismail, Logistic management, Person Education Inc.,(2013)

2. Vinod Sopel, Logistic Management- The Supply chain Imperative(2010)
3. S. Sudalaimuthu, Logistic Management for International Business. (2009)

Websites :

www.allaboutlogistcs.com

www.wikipedia.org

www.wisegeek.com

www.fedEx.com

http://www.slideshare.net

http://www.forbes.com

http://www.supplychainbrain.com

50
 APPENDIX

RESEARCH QUESTIONAIRE

51
APPENDIX: RESEARCH QUESTIONAIRE

1) On a scale of 1 to 5 how important is logistics quality for a

company?

a) Least important

b) Less important

c) Important

d) Most important

2) Should logistics be part of the company’s strategy?

a) Yes

b) No

3) Is your company taking steps to improve the logistics?

a) Yes
b) No

52
4) How often is logistics reviewed critically at your company?
a) Daily
b) Weekly
c) Monthly
d) Quarter

5) What does your company use for quality matrix in logistics?

a) Cost saving
b) Error free
c) Reliability
d) All of above

6) How will you rank the influence of following problems on

logistics?

(2- Most critical to 6 least critical)

a) Tracking
b) Cost
c) Loading and unloading times
d) Reliability

53
7) Will you implement 3pl (third party logistics) for solving your
logistic problem?
a) Definitely
b) Never
c) Future plans
d) Implementing different logistics

8) According to you what effects can 3pl have on your logistics

plan?
a) Major improvement in efficiency
b) Saving time
c) Cost saving
d) competitive edge

9) Will you implement 3pl if it cost more than your current

logistics approach?

a) Definitely
b) Never
c) May be in future
d) Implementing different logistic plan

54
10) What should be the main logistic activity that a 3pl should
improve?

a.Inventory management

b.Transportation and delivery

c. Quality of product

d. Overall logistic process

11) How do your customers pay for solutions?

a) Transactional (subscription)
b) System
c) Seat/User
d) Free (pricing is based on other variables)

12) What industries do your solutions serve?

a) Manufacturing (All kinds)

b) Retail
c) Wholesale
d) e-Business
e) Services/Government
f) Transportation (includes 3PLs, warehousing, carriers, international
trade)

55
13) Who are your solutions tailored to?

a) Small- and medium-sized companies

b) Large companies
c) Any Company Size
d) Mobile Order Management
e) Order Management
f) Strategic Sourcing
g) Other:

THE FOLLOWING QUESTIONS ARE STRICTLY

CONFIDENTIAL AND FOR RESEARCH PURPOSES ONLY

1) SALES- During your last measurement period were SALES

generally up or down? Your best guess as to how much?
a) +20%
b) +15%
c) +10%
d) +5%
e) 0
f) -5%
g) +10% or more

56
2) PROFITS- During your last measurement period were profit up or
down? Your best guess as to how much?

a) +20%
b) +15%
c) +10%
d) +5%
e) 0
f) -5%
g) +10% or more

3) CUSTOMERS

During your last measurement period did your customer base grow or
shrink? Your best guess as to how much?

a) +20%
b) +15%
c) +10%
d) +5%
e) 0
f) -5%
g) +10% or more

57