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Transcript of Marketing Project
Consolidated Shipping Line Pvt Ltd
1.1 Executive Summary
This study is about the performance analysis of Consolidated Shipping Line Pvt Ltd
with respect to other competitors in Cochin Port. This study covers the competitors in
the Ernakulum district. The total population is 40 competitors and the sample size
selected is 15 competitors.
This study the mainly covers the performance factors such as Price, Service, Speed,
Safety, Infrastructure, Customer Relation, Customization, Experience, Network and
Reputation. With the increase in global competition and rapid progress of the IT
technology, the logistics industry has become one of the most influential subjects of the
21st century. The scope and role of logistics have changed dramatically over recent
years. There are different strategies that can be used as a freight forwarding company in
order to withstand in the industrial competition. The major problem of the industry in
Cochin port was high handling charges, less amount of customers with huge volume of
competitors.
As CSL, being a new comer in the industry, the company has grown tremendously
within a few period and gained good reputation in the market. There is a wide scope in
the field of logistics in Cochin port in the coming years.
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1.2 Industry profile
The term logistics has its origins in the military. From that perspective, it applies to the
process of supplying a theater of war with troops, equipment, and supplies. Industries
borrowed this term and have applied it to the discipline known as “business logistics.”
The Council of Supply Chain Management Professionals (CSCMP) has defined
logistics as “…that part of Supply Chain Management 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 customers' requirements.” A second, more concise definition offered by
CSCMP is “the management of inventory, at rest or in motion.”
With the increase in global competition and rapid progress of the IT technology, the
logistics industry has become one of the most influential subjects of the 21st century.
The scope and role of logistics have changed dramatically over recent years. In the past
logistics has played a supportive role in primary functioning such as marketing and
manufacturing. Now the scope of logistics has expanded beyond its traditional coverage
of transportation and warehousing to include purchasing, distribution, inventory
management, packaging, manufacturing, and even customer service. More importantly,
logistics has dramatically evolved from a supportive role characterized as passive and
cost absorbing, to a primary role and critical factor in competitive advantage.
Companies experiencing growing pressure to reduce cost and provide better service can
improve their logistics by outsourcing to logistics firms, an option that can improve
both efficiency and effectiveness. The outsourcing institute highlighted that companies
gain a 9% cost savings and a 15% increase in capacity and quality on average, through
outsourcing.
Logistics is considered the complete process involving planning, managing, and
controlling the flow of goods and services, information, real-time data and human
resources from the point of origin to the point of destination. Hardly any manufacturing
or marketing activity can be achieved without the support of an effective logistical
department.
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The logistics process consists of the process of integration of several aspects such as
material handling, warehousing, information, transportation, packaging, and inventory.
The primary duty of an effective logistics system is to ensure geographical repositioning
of unfinished goods, and it is concerned with the finished inventories of the
organization being at the required place at the lowest possible cost.
Logistics industry in India is an industry that has not achieved its much deserved
attention or recognition. It is an area that is ripe with potential and yet the resources are
far from complete utilizations. There is however, a huge demand for logistic services in
India especially with the growth of the Indian economy along with the influx of new
companies in sectors that was otherwise unknown. The purpose of logistics industry is
to enable an effective transportation or timely movement of goods from one place to
another. This could be for the purpose of industrial transportation or even private
purposes.
Different mediums of Logistics services in India
There are three mediums of logistics services in India. These can be categorized in the
following way:
Airfreight – this is a modern and the safest mode to ensure a fast delivery of
goods. A chosen one by many because of the swiftness of the system there are
many companies that are now even providing super fats deliveries by airways
even on the same day.
Land transport – this is a means of logistics support that has withstood the test
of time through the extensive network of roads in India. It has been the
popularly used method and used especially in the shipments of heavy articles
like machinery and vehicles. This is also a chosen method in case of household
packers and movers.
Railways – this is also an age-old method of shipments and transport. Though
most used in case of domestic services this is very effective in the availability of
cost effective logistics support in India.
Waterways – an essential part of this industry this is also one of the oldest
methods. Shipments and transportation of goods is done on an international
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basis through this way. It is apt in case of shipments of oil, highly sensitive or
volatile articles like Uranium.
Key players of the Logistics industry in India
Among the key players of the Indian logistics industry there are certain international
names along with national companies that are not only world leaders in the field but are
also part of the Indian industry for a long time now.
DHL – a very commonly known name in the Indian logistics industry, DHL has
been part of the industry for a long time now. Established in San Francisco in
the 1969 DHL has grown across 220 countries with over 300,000 employees. It
has built a reputation over the years as a responsible logistics support air, ocean,
express freight, and overland transport, contract logistic solutions.
TNT – This international brand has been a part of the Indian market also.
Established at Netherlands, TNT is a reliable name in the arena of international
transportation and distribution business. Spread across 200 countries it has an
estimated revenue turnover of $ 3,500 billion US dollars.
AFL – this is one of well-known international players in the logistics industry of
India. The main areas of service by the company are in the area of logistics and
warehousing along with Courier Company and custom consultant.
BLUE DART – this is one of the premier companies in the field of logistics.
The company has a huge network linked with the most advanced
communication systems. Blue Dart handles large and oversized packages and
stands for an overnight delivery of such goods.
GATI – one of the pioneering companies in the field of logistics. This is one the
companies that have taken several initiatives to implement modernization in the
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area of logistics. With a turnover of ` 576 crores this company believes in setting
new standards of customer service.
DTDC – this company spreads over 3700 locations within India and 240
international places. The company is a leading name in low cost shipments
along with timely delivery.
ASHOK LEYLAND – this is an established name in the manufacture of trailer
trucks and heavy vehicles in India. It has come up with a new venture in Ashley
Transport Services Ltd. in the area of information exchanges and the business of
freight contractors along with integrated logistics services.
FIRST FLIGHT – this is an Indian company that has domestic, international
and many other programs of multi tracking technologies.
AGARWAL PACKERS AND MOVERS – this is a popular name in the field
of logistics companies of India. Services like shifting, transport of cars, and all
other forms of quality packing and transportation this is a name that has over the
years become synonymous with quality and assurance.
Logistics Executives
A logistics executive is responsible for the planning and coordination of
enterprise-wide logistics management. An individual accomplishes this by creating
strategic plans for carrier contract negotiations, shipment order handling, transportation
network modeling, cargo and freight planning, transportation analysis, and order
execution and monitoring. Logistics executives also are called logistics directors, supply
chain manager, logistics manager or supply chain director. An individual in this position
reports to executive management.
Duties
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Logistics executives ensure that strategies are executed in the areas of a logistical
network. They communicate company objectives and goals to line managers and key
personnel in areas, divisions, or functions under the logistical structure of a company
such as, manufacturing, contracting, procurement, and distribution. They create, direct,
and modify procedures for the operation of these processes according to the strategy of
timely distribution of goods or services to clients or consumers. They are responsible
for planning and procurement of materials to maintain optimization of inventory stock
levels of services and products to meet customer requirements.
Job Functions and Features
Supply chain management is a concept of resource management pertaining to storage of
goods, services, and information between distributors, manufacturers, and retailers to
establish an order system based on consumption points or stock levels in order to meet
customer requirements. Logistics executives are responsible for monitoring these trends
and implementing audit controls that monitor the process of an organizations supply
chain management system for maximum effectiveness. The executive must have a
broad range of management and communicative skills and be able delegate authority to
managers while creating a team-based environment.
Work Environment
A logistics executive typically has a staff of administrators, analysts, and
information managers assigned to provide administrative and technical support. The
individual is also responsible for satellite and field logistical development, as well as
overseeing the information system process of a logistical operation. The logistics
executive must also be willing to travel to meet with other executives from logistical
companies and must participate in seminars, workshops, and briefings.
The role of a freight forwarder is to help importers and exporters transport their goods.
This explains the responsibilities and services of forwarders, and how they can help
international traders.
The freight forwarders core responsibilities
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Most freight forwarders are likely to specialize in particular service areas, modes of
transport or markets. Freight forwarders are often seen as the travel agents of
international trading. If you have a consignment of goods, you need to move from
country A to country B, a forwarder will identify and book the best routes, modes of
transport and specific carriers for you dependent on your requirements. Many transport
and logistics operators also offer freight-forwarding services.
Using a forwarder can cut your costs. Because they arrange for the transport of huge
numbers of consignments, they can consolidate loads going to a single destination to
keep freight charges down for individual traders. However, as with most business
transactions, you should compare prices from a range of suppliers to find the best level
of cost and service for you.
For information about deciding whether to use a freight forwarder, see the page in this
guide on how to arrange your own transport or use a freight forwarder.
Freight forwarders typically offer a wide range of secondary trade-related services as
well as their core transport ones. These include:
Customs clearance - forwarders can complete customs paperwork on your
behalf, and pay any taxes or duties owed
Other documentation issues - eg Bills of Lading, or any documents required
by banks before payment are released.
Insurance - many forwarders will be able to supply insurance services
Inventory management
Logistics and supply-chain management of value-added activities
Bear in mind that you will also be able to use your forwarder as a valuable source of
information and advice about the international trading process. This can be particularly
useful for businesses that are new to international trade.
For example, you can ask a forwarder as part of your contract to help you ensure your
goods are properly packaged and labeled for export. For information about export
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packaging, see our guide to how to label and package goods being shipped out of the
UK.
The Logistics Industry
Globally, the logistics industry is valued at US$ 3.5 trillion.
The U.S., which contributes to over 25% of the global industry value, spends
close to 9% of its GDP on logistic services.
The Indian Logistics Industry is presently estimated at US$ 90 billion.
The industry has generated employment for 45 million people in the country in
comparison with the IT and ITeS sector which employs approximately 4.3
million people.
It is forecast to grow at a Compound Annual Growth Rate (CAGR) of
approximately 8% over the next three to five years.
Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual
growth rate (CAGR) of over 16% from 2007-10. Consequently, 3PL service
providers are expected to corner an increased share of the Indian
Logistics pie, from 6% in FY06 to 13% in FY11, at a CAGR of 25%.
The primary growth drivers of this industry are as under:
Investments in the infrastructure sector amounting to US$ 350 billion:
Increased efficiency and productivity of the transport system would result in
lower transit times.
o Streamlining of the indirect tax structure:
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.
o Robust trade growth
Strong economic growth and liberalization have led to considerable increase in
domestic and international trade volumes over the past five years. Consequently, the
requirement for transportation, handling and warehousing is growing at a robust pace
and is driving the demand for integrated logistics solutions.
o Globalization of manufacturing systems
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Globalization of manufacturing systems coupled with advancements in technology are
increasingly compelling companies across verticals to concentrate on their core
competencies and avail the cost saving potential of outsourcing. This is expected to
contribute to an increase in the need for integrated logistic solutions, which is the niche
of every Third Party Logistics Service (“3PL Services”) provider.
The industry has been valued at US$ 125 billion in 2010. (CII)
A snapshot of the FDI regulations governing the industry is as under:
o 100% FDI under the automatic route is permitted for logistic services
except services mentioned in points ii and iii below.
o FDI up to 100% subject to FIPB approval is permitted for courier
services.
o FDI up to 49% under the automatic route is permitted for air transport
services, including air cargo services. It is pertinent to mention in this
context, that Press Note 1 (2007) that is expected to be imminently
notified by the DIPP proposes to increase the limit of FDI on air cargo
services in 74%.
The industry has been at the receiving end of increasing interest from the private
equity sector. The year 2007 witnessed just under US$ 1 billion in private
equity investments in this industry, representing approximately 7% of total
private equity investments during the year, against 3% in the previous year.
COST OF LOGISTICS
A World Bank Study conducted recently says that the Indian logistics cost is one
of the highest in the world.
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Developing countries are concerned; these costs are 6 % to 8 % of the total value of
goods. In China, the cost is estimated at 10 % of total value of goods. By comparison,
the cost of logistics in India is 14 % of the total value of goods. The freight costs for rail
and road are quite high, for example:
France 5.5 cents/km
Japan 3.7 cents/km
Canada 2.0 cents/km
India 7.0 cents/km
The following three factors are primarily responsible for the high cost of logistics in
India:
Congestion cost
Congestion at ports, inland and roads have rapidly increased, thus directly
augmenting logistics cost and resulting in overall high inventory cost as delivery
time increases.
Transaction cost
Administration costs including insurance and government taxes continue to be
very high. The logistics cost could rise further due to supply and demand
factors.
Demand and supply factors
The continued rise in container traffic is leading to increased traffic congestion
in the rail and roads network, as exports and imports are growing 22 % to 25 %
annually. The high cost of terminal development along with relatively latest
innovation in finalizing strategies result in only moderate pace in the supply
chain addition. There is also lack of proper road infrastructure in the Class-B &
Class-C towns. The lack of specific logistic professionals is also hampering the
growth.
RAIL LOGISTICS
The domestic cargo container movement is still at a very initial stage in India. The road
transport is mainly in the hand of highly unorganized players. Further, rising fuel prices
and axel load reduction are making road transport uneconomical over a long haul. There
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is a movement of 30percent of exim containers by rail, and the remaining is transported
by road. Until 2005, CONCOR was a sole service provider for rail transportation of
containers.
SEA LOGISTICS
Transportation by sea is less expensive than transportation by road or railways. The
secondary port development requires fewer infrastructures. Terminal development can
easily be handled by private operators.
Policy supporting sea transportation in the country has to take into account the
following issues:
a) Developing secondary gateways along with the coast; hinterland to be
encouraged to use the nearest coast; developing SEZ in the immediate vicinity
of these ports.
b) Feeder cargo should be sent to the nearest main line port. As the cargo starts
moving through the secondary ports, the volumes will increase and secondary
ports will slowly graduate to become the main line ports.
c) Size and growth rate of the Indian logistics industry is varying from USD 15
billion to USD 50 billion, with 7 % to 8 % growth per annum.
d) As regards the logistics service providers, quality infrastructure support is not
always available on time, due to the high pace of economic development. This
includes airport infrastructure, seaports, highways, and expressways.
e) Cumbersome procedures lead to a lack of focus on the part of policy makers.
The logistic costs in the Indian economy are higher than in other countries, due
to infrastructure bottlenecks.
f) The price of fuel forces the users to shift from road transport to alternative
transport modes. Only a very small and limited number of logistics service
providers are providing end-to-end logistics chain in a true sense.
A large number of fragmented service providers aspire to cover all services. However,
an integrated approach is lacking.
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Throughout the history of mankind wars have been won or lost through logistics
strengths and capabilities. It has been argues that the American War of Independence
was lost by the British since they did not have proper supply lines and relied heavily on
Britain. This resulted in poorly equipped and demoralized troops. Proper supply lines
were established only in 1781 by which time it was too late to have any impact on the
war.
Whilst Generals and Field Marshalls from the earliest times understood the importance
of logistics it is only recently that organizations have come to realize the importance of
managing logistics.
The source of competitive advantage is found firstly in the ability of the organization to
differentiate in the eyes of the customer, from its competition and secondly from
operating at lower cost and hence at lower cost and greater profit.
successful companies either have a productivity advantage or they have a value
advantage or a combination of the two. The productivity advantage gives a lower cost
profile and the value advantage gives the product or offering a differential over
competitive offerings.
Productivity advantage - In any industry we will find that there is one company that is
able to achieve highest sales and thereby achieve the lowest cost per unit due to
economies of scale. There is substantial evidence to prove that in these cases that 'big is
beautiful' when it comes to cost advantage.
The experience curve has its root in the earlier concept of the learning curve. The
learning curve effect was discovered in the Second World War where is seen that as the
number of units produced increased every additional unit produced could be created
using less time and resources. Subsequently Bruce Henderson of the Boston
Consultancy Group extended this concept to state that all costs - production related or
not reduced and the volume of output increased. In fact, to be more precise, the
relationship exists between real unit costs and cumulative volume. Further, it is
recognized that cost decline exists only for value added and not for bought in supplies.
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Hence, it has been accepted that one of the principle ways of improving cost advantage
is through greater production and sales. However, through logistics we will demonstrate
that there are multiple methods and means of improving cost efficiency through better
logistics management.
Value advantage - it has long been an axiom in marketing that customers do not but
products they buy benefits. Put another this means that the product is not purchased for
itself but for what it will deliver. The benefits may be intangible such as image or
reputation. Unless the product can be differentiated in some way from the competition,
it will be seen as generic and will get only commodity prices. The values of the market
can only be fully realized by segmenting the market and creating distinct value
segments. In other words different groups in different markets place different values to
benefits. Adding value through differentiation is a powerful way of achieving a
defensible advantage in the market.
Competitive advantage
Competitive advantage cannot be understood by looking at a firm as a whole. It stems
from the many discrete activities a firm performs in designing, producing, marketing,
delivering, and supporting its product. Each of these activities can contribute to a firm's
relative cost position and create a base for differentiation... the value chain
disaggregates a firm into its strategically relevant activities in order to understand the
behavior of costs and the existing and potential sources of differentiation. A firm gains
competitive advantage by performing these strategically important activities more
cheaply or better than its competitors cannot be understood by looking at a firm as a
whole. It stems from the many discrete activities a firm performs in designing,
producing, marketing, delivering, and supporting its product. Each of these activities
can contribute to a firm's relative cost position and create a base for differentiation... the
value chain disaggregates a firm into its strategically relevant activities in order to
understand the behavior of costs and the existing and potential sources of
differentiation. A firm gains competitive advantage by performing these strategically
important activities more cheaply or better than its competitors perform.
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Understanding logistics management
The mission of logistics management is to plan and coordinate all activities necessary to
achieve desired levels of delivered service and quality at lowest possible cost. Logistics
must therefore be seen as the link between the market and the company. The scope of
logistics spans the organization from raw material management to delivery of the final
product.
Competitive Advantage = Product Excellence X Process Excellence
When preparing to ship a product overseas, the exporter needs to be aware of packing,
labeling, documentation, and insurance requirements. Because the goods are being
shipped by unknown carriers to distant customers, the new exporter must be sure to
follow all shipping requirements to help ensure that the merchandise is packed correctly
so that it arrives in good condition; labeled correctly to ensure that the goods are
handled properly and arrive on time and at the right place; documented correctly to
meet local and foreign government requirements as well as proper collection standards;
and insured against damage, loss, and pilferage and, in some cases, delay. Because of
the variety of considerations involved in the physical export process, most exporters,
both new and experienced, rely on an international freight forwarder to perform these
services.
Freight forwarders
The international freight forwarder acts as an agent for the exporter in moving cargo to
the overseas destination. These agents are familiar with the import rules and regulations
of foreign countries, methods of shipping, government export regulations, and the
documents connected with foreign trade.
Freight forwarders can assist with an order from the start by advising the exporter of the
freight costs, port charges, consular fees, cost of special documentation, and insurance
costs as well as their handling fees - all of which help in preparing price quotations.
Freight forwarders may also recommend the type of packing for best protecting the
merchandise in transit; they can arrange to have the merchandise packed at the port or
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containerized. The cost for their services is a legitimate export cost that should be
figured into the price charged to the customer.
When the order is ready to ship, freight forwarders should be able to review the letter of
credit, commercial invoices, packing list, and so on to ensure that everything is in order.
They can also reserve the necessary space on board an ocean vessel, if the exporter
desires.
If the cargo arrives at the port of export and the exporter has not already done so, freight
forwarders may make the necessary arrangements with customs brokers to ensure that
the goods comply with customs export documentation regulations. In addition, they
may have the goods delivered to the carrier in time for loading. They may also prepare
the bill of lading and any special required documentation. After shipment, they forward
all documents directly to the customer or to the paying bank if desired.
Packing
In packing an item for export, the shipper should be aware of the demands that
exporting puts on a package. Four problems must be kept in mind when an export
shipping crate is being designed: breakage, weight, moisture, and pilferage.
Most general cargo is carried in containers, but some is still shipped as breakbulk cargo.
Besides the normal handling encountered in domestic transportation, a break-bulk
shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling,
conveyor, chute, or other method, putting added strain on the package. In the ship's
hold, goods may be stacked on top of one another or come into violent contact with
other goods during the voyage. Overseas, handling facilities may be less sophisticated
than in your country and the cargo may be dragged, pushed, rolled, or dropped during
unloading, while moving through customs, or in transit to the final destination.
Moisture is a constant problem because cargo is subject to condensation even in the
hold of a ship equipped with air conditioning and a dehumidifier. The cargo may also be
unloaded in the rain, and some foreign ports do not have covered storage facilities. In
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addition, unless the cargo is adequately protected, theft and pilferage are constant
threats.
Since proper packing is essential in exporting, often the buyer specifies packing
requirements. If the buyer does not so specify, be sure the goods are prepared with the
following considerations in mind:
Pack in strong containers, adequately sealed and filled when possible. To provide
proper bracing in the container, regardless of size, make sure the weight is evenly
distributed.
Goods should be packed in oceangoing containers, if possible, or on pallets to ensure
greater ease in handling. Packages and packing filler should be made of moisture-
resistant material.
To avoid pilferage, avoid mentioning contents or brand names on packages. In addition,
strapping, seals, and shrink-wrapping are effective means of deterring theft.
One popular method of shipment is the use of containers obtained from carriers or
private leasing concerns. These containers vary in size, material, and construction and
can accommodate most cargo, but they are best suited for standard package sizes and
shapes. Some containers are no more than semi-truck trailers lifted off their wheels and
placed on a vessel at the port of export. They are then transferred to another set of
wheels at the port of import for movement to an inland destination. Refrigerated and
liquid bulk containers are readily available.
Normally, air shipments require less heavy packing than ocean shipments, but they must
still be adequately protected, especially if highly pilferable items are packed in domestic
containers. In many instances, standard domestic packing is acceptable, especially if the
product is durable and there is no concern for display packaging. In other instances,
high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxes
are more than adequate. For both ocean and air shipments, freight forwarders, and
carriers can advise on the best packaging. Marine insurance companies are also
available for consultation. It is recommended that a professional firm be hired to
package for export if the exporter is not equipped for the task. This service is usually
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provided at a moderate cost. Finally, because transportation costs are determined by
volume and weight, special reinforced and lightweight packing materials have been
devised for exporting. Care in packing goods to minimize volume and weight while
giving strength may well save money while ensuring that goods are properly packed.
Labeling
Specific marking and labeling is used on export shipping cartons and containers to meet
shipping regulations, ensure proper handling, conceal the identity of the contents, and
help receivers identify shipments. The overseas buyer usually specifies export marks
that should appear on the cargo for easy identification by receivers. Many markings
may be needed for shipment. Exporters need to put the following markings on cartons
to be shipped:
Shipper's mark.
Country of origin (exporters’ country).
Weight marking (in pounds and in kilograms).
Number of packages and size of cases (in inches and centimeters).
Handling marks (international pictorial symbols).
Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English
and in the language of the country of destination).
Port of entry.
Labels for hazardous materials (universal symbols adapted by the International
Maritime Organization).
Legibility is extremely important to prevent misunderstandings and delays in shipping.
Letters are generally stenciled onto packages and containers in waterproof ink.
Markings should appear on three faces of the container, preferably on the top and on the
two ends or the two sides. Old markings must be completely removed.
In addition to port marks, customer identification code, and indication of origin, the
marks should include the package number, gross and net weights, and dimensions. If
more than one package is being shipped, the total number of packages in the shipment
should be included in the markings. The exporter should also include any special
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handling instructions on the package. It is a good idea to repeat these instructions in the
language of the country of destination. Standard international shipping and handling
symbols should also be used.
Exporters may find that customs regulations regarding freight labeling are strictly
enforced; for example, most countries require that the country of origin be clearly
labeled on each imported package. Most freight forwarders and export packing
specialists can supply necessary information regarding specific regulations.
Documentation
Exporters should seriously consider having the freight forwarder handle the formidable
amount of documentation, that exporting requires; freight forwarders are specialists in
this process. The following documents are commonly used in exporting; which of them
are actually used in each case depends on the requirements of both our government and
the government of the importing country.
Commercial invoice: As in a domestic transaction, the commercial invoice is a
bill for the goods from the buyer to the seller. A commercial invoice should
include basic information about the transaction, including a description of the
goods, the address of the shipper and seller, and the delivery and payment terms.
The buyer needs the invoice to prove ownership and to arrange payment. Some
governments use the commercial invoice to assess customs duties.
Bill of lading: Bills of lading are contracts between the owner of the goods and
the carrier (as with domestic shipments). There are two types. A straight bill of
lading is nonnegotiable. A negotiable or shipper's order bill of lading can be
bought, sold, or traded while goods are in transit and is used for letter-of-credit
transactions. The customer usually needs the original or a copy as proof of
ownership to take possession of the goods.
Consular invoice: Certain nations require a consular invoice, which is used to
control and identify goods. The invoice must be purchased from the consulate of
the country to which the goods are being shipped and usually must be prepared
in the language of that country.
Certificate of origin: Certain nations require a signed statement as to the origin
of the export item. Such certificates are usually obtained through a semiofficial
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organization such as a local chamber of commerce. A certificate may be
required even though the commercial invoice contains the information.
Inspection certification: Some purchasers and countries may require a
certificate of inspection attesting to the specifications of the goods shipped,
usually performed by a third party. Inspection certificates are often obtained
from independent testing organizations.
Dock receipt and warehouse receipt: These receipts are used to transfer
accountability when the export item is moved by the domestic carrier to the port
of embarkation and left with the international carrier for export.
Destination control statement: This statement appears on the commercial
invoice, ocean or air waybill of lading, and SED to notify the carrier and all
foreign parties that the item may be exported only to certain destinations.
Insurance certificate: If the seller provides insurance, the insurance certificate
states the type and amount of coverage. This instrument is negotiable.
Export packing list: Considerably more detailed and informative than a
standard domestic packing list, an export packing list itemizes the material in
each individual package and indicates the type of package: box, crate, drum,
carton, and so on. It shows the individual net, legal, tare, and gross weights and
measurements for each package. Package markings should be shown along with
the shipper's and buyer's references. The packing list should be attached to the
outside of a package in a waterproof envelope marked "packing list enclosed."
The list is used by the shipper or forwarding agent to determine
(1) the total shipment weight and volume and
(2) whether the correct cargo is being shipped.
In addition, customs officials (both local and foreign) may use the list to check the
cargo.
Documentation must be precise. Slight discrepancies or omissions may prevent
merchandise from being exported, result in exporting firms not being paid, or even
result in the seizure of the exporter's goods by local or foreign government customs.
Collection documents are subject to precise time limits and may not be honored by a
bank if out of date. Much of the documentation is routine for freight forwarders or
customs brokers acting on the firm's behalf, but the exporter is ultimately responsible
for the accuracy of the documentation.
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The number of documents the exporter must deal with varies depending on the
destination of the shipment. Because each country has different import regulations, the
exporter must be careful to provide proper documentation. If the exporter does not rely
on the services of a freight forwarder, there are several methods of obtaining
information on foreign import restrictions:
Foreign government embassies and consulates can often provide information on
import regulations.
The handling of transportation is similar for domestic orders and export orders.
The export marks should be added to the standard information shown on a
domestic bill of lading and should show the name of the exporting carrier and
the latest allowed arrival date at the port of export. The exporter should also
include instructions for the inland carrier to notify the international freight
forwarder by telephone on arrival.
International shipments are increasingly being made on a through bill of lading
under a multimodal contract. The multimodal transport operator (frequently one
of the modal carriers) takes charge of and responsibility for the entire movement
from factory to the final destination. When determining the method of
international shipping, the exporter may find it useful to consult with a freight
forwarder. Since carriers are often used for large and bulky shipments, the
exporter should reserve space on the carrier well before actual shipment date
(this reservation is called the booking contract).
The exporter should consider the cost of shipment, delivery schedule, and
accessibility to the shipped product by the foreign buyer when determining the
method of international shipping. Although air carriers are more expensive, their
cost may be offset by lower domestic shipping costs (because they may use a
local airport instead of a coastal seaport) and quicker delivery times. These
factors may give the exporter an edge over other competitors, whose service to
their accounts may be less timely.
Before shipping, the firm should be sure to check with the foreign buyer about
the destination of the goods. Buyers often wish the goods to be shipped to a free-
trade zone or a free port where goods are exempt from import duties.
Insurance
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Export shipments are usually insured against loss, damage, and delay in transit by cargo
insurance. For international shipments, the carrier's liability is frequently limited by
international agreements and the coverage is substantially different from domestic
coverage. Arrangements for cargo insurance may be made by either the buyer or the
seller, depending on the terms of sale. Exporters are advised to consult with
international insurance carriers or freight forwarders for more information. Damaging
weather conditions, rough handling by carriers, and other common hazards to cargo
make marine insurance important protection for exporters. If the terms of sale make the
firm responsible for insurance, it should either obtain its own policy or insure cargo
under a freight forwarders policy for a fee. If the terms of sale make the foreign buyer
responsible, the exporter should not assume (or even take the buyer's word) that
adequate insurance has been obtained. If the buyer neglects to obtain coverage or
obtains too little, damage to the cargo may cause a major financial loss to the exporter.
The logistics department is entrusted with the responsibilities of ensuring that the entire
process of logistics is maintained and developed in accordance with the goals of the
business at an economical cost. The tasks of the logistics department involve storage,
distribution, warehousing, movement of goods from one place to another (internally or
externally), tracking and delivery of goods. It includes a complete process of planning,
managing, controlling, and coordination to make sure that the goods reach the right
place, at the right time, for the right cost and in a right condition.
The various tasks performed by the department may be summarized as follows:
1. Ensuring all the requirements of the customers are met on time in an efficient
and safe manner.
2. To coordinate with third party logistics (3PLs).
3. To ensure that there is a safe and timely dispatch of goods.
4. To draft plans, policies and procedures for successful implementation of
logistics system.
5. To ensure that the business goals of the organization are in synchronization with
logistics system.
6. To create and maintain customer support.
7. To maintain coordination with vendors, service providers and transport carriers.
8. To ensure that no fraud is committed.
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9. To ensure timely supply and payment of goods and reduce inventories.
Besides the performance of the above tasks, the department also performs numerous
other tasks, namely:
The department ensures that the goods are reached on time, in a safe condition and at
the right place. It also serves as an intermediary between organization, vendors, and
carriers for tracking down the geographical location of the goods and thereby provides
customer support.
Procurement process Strategic plans are developed by the department to support
development of fresh product and manufacturing flow management. This helps in
bringing raw materials or semi-finished goods to the premises of the organization in a
safe and proper condition at an economical cost. This also involves interactions with
3PLs. The department is also responsible for coordination with suppliers with regard to
scheduling, hedging, and timely delivery.
Physical distribution, this process is concerned with the movement of finished goods to
reach the point of destination. The department is responsible for the selection of the best
mode of transportation while delivering the goods to the place of destination.
Thus, it can be rightly concluded that the logistics department does play an important
role in ensuring the delivery of goods and is therefore rightly considered as an integral
part of a modern-day organization
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1.3 Company profile
Summary
Name : Consolidated Shipping Line
Address : Consolidated Shipping Line (I) Pvt. Ltd
Nethaji Nagar, Ernakulum
Kochi – 682020
Web site : www. cslindia.net
E-mail : [email protected]
Head of the firm : Mr. Ajai Joseph
No. of employees : 130
Category : Medium
Section : Private
Branches : Mumbai, New Delhi, Kolkata, Coimbatore,
Chennai, Bangalore, Kochi, Tirupur & Tuticorin.
Company Profile - History
Anchorage Shipping, Cochin, was established in the year 1997 and has been one of the
reputed Licensed Custom House Agencies in Cochin Port, Offering CHA services to
various Governmental and other private business houses in Kerala. Mr. Ajai Joseph and
Mrs. Shiney Blossom Joseph are the two partners of the company and Mr. B. Hariharan
is the General Manager. Since then, Anchorage Shipping made a big stride in other
areas of transportation business, viz. NVOCC, Sea freight consolidation, Sea-Air
freight, Project Freight, Chartering and Multimodal operations. Anchorage Shipping
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opened up its offices at Tirupur and Tuticorin in order to provide a better service to its
clientele located in these regions.
In August 2002, the management unfurled the banner of Consolidated Shipping Line
India Private Limited and Anchorage Shipping continues to function as a Licensed
Custom House Agent (CHA) along with the airfreight activity under its IATA license.
The Company
More than a decade in existence, CSL is one of the leading operators in India, owing
nine offices in the major ports of India- Mumbai, New Delhi, Kolkata, Chennai,
Bangalore, Cochin, Tirupur, Tuticorin and Coimbatore employing more than 200
people. The whole of India is represented through our local network covering ICDs and
small towns, offering global coverage through complete logistics solutions locally and
internationally. CSL has the following membership and accreditations:
IATA (International Air Transport Association)
FIATA (International Federation of Freight Forwarders Association)
FFFAI (Federation of Freight Forwarders Association in India)
CHA License (Customs House Agent)
FMC (Registered Bill of Lading)
ITPO (Indian Trade Promotion Organization)
CSL-India is proudly rated as one among the leading NVOCC’s in India offering
Integrated Freight Forwarding & Logistics Solutions to an impressive clientele.
Qualified with a specialized team of professionals having vast experience in shipping
and other related services CSL-India, is notably termed to be a fast growing
multinational, boasting an enviable network spread across the globe.
Today, possessing a fine blend of human talent and technology, CSL-India provides
distinguished logistics services to leading multinationals and Indian Corporates. Sailing
consistently on a steady stretch and looking ahead to explore global frontiers, all along
with the sole aim of attaining the highest degree in customer satisfaction
ANCHORAGE
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CSL has got another division known as ANCHORAGE, which has been licensed
Custom House Agencies (CHA). ANCHORAGE has been one of the reputed Licensed
Customs House Agencies in India, Offering CHA services to an extended clientele of
exporters and importers spread across the country.
ANCHORAGE also provides airfreight activity under IATA license. Hi-tech
infrastructure, fully integrated IT solutions, innovative logistics services, providing top
class services to its clientele; make up the Anchorage formula for continued excellence
in serving customers business.
ANCHORAGE provides clients with hassle-free and quick service for all their
consignments from collection of document to their respective buyers. The company’s
outlook is to run the business on a strong corporate image with utmost transparency in
their dealings and it offers fully committed to what they say.
Objectives of the company
Mission
To offer practical, cost effective and innovative freight management solutions through
our ambitious team that comprises of our staff, management and network partners.
Vision
To be recognized as a quality operator in the global logistics arena by offering total
logistics solutions to meet our customer demands and work towards improving industry
standards, customer satisfaction, stable growth and profitability.
The world is getting smaller day by day because people are travelling more often and
bringing home various culture, practice, material, cuisine etc and what is made in
Cologne is found in Beijing easily. Logistics has a big role in the technical advancement
and bringing the world closer. As a freight forwarder CSL is aware of the fact that more
and more customers are looking for a multi-dimensional service provider who could
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provide everything under one roof and it is essential to be highly competitive to
succeed and work on innovative ideas, invest in systems, technology and equipments as
an ongoing process.CSL burn their passion for ambitious goal and take pride in all the
achievements.
Sometimes not knowing your inability can work towards your advantage. Just like the
humming birds, due to their nonexistent aerodynamic build they cannot fly technically.
However, these birds fly because they do not know physics. You try things harder only
if you believe you can. CSL tries hard with a creative mind to maximize benefits for
their customers and partners.
India has a reputation for its rich culture, tradition, hospitality, character and a huge
potential as a market. Operating from India CSL offers all this and more. CSL
considers staff and their customers as our biggest assets and a good interaction between
them will lead to success. Every employee of CSL is aware of the set goals and the
perfect blend of youth and experience combined will position them as modern service
provider. CSL has a portfolio of exciting services in stock for you.
More than a decade in existence, CSL is one of the leading operators in India, owning
eight offices in the major port cities of India – Mumbai, New Delhi, Chennai, Kolkata,
Kochi, Tirupur, Tuticorin and Coimbatore employing more than 100 people. The whole
of India is represented through their local network covering ICDs and small cities.
Offering global coverage through an extensive network of agents and alliances CSL
provides complete logistics solutions locally and internationally.
CSL Values
Attitude: CSL value enthusiasm, warmth and positive attitude which are
essential components to be successful in a service industry.
Integrity: CSL believe in conducting the business with the highest level of
integrity during interactions and dealings with people, customers and business
partners.
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Leadership: CSL strongly believe that the strength of their company is in the
quality of their people, as such, their management style is effective leadership
practiced by example.
Ownership: CSL support the sense of ownership and leadership in people by
accepting the responsibility and accountability through decision making and
creativity processes without compromising on their values.
Partnership: CSL starts relationship with their customers, suppliers and people
based on winning a long term partnership and they put sincere efforts to
maintain the relationship that goes on and on.
Team Spirit: CSL strives to create and sustain a conducive working
environment for their staff and across the board through listening, debating,
helping, sharing and participating as one team.
CSL Networks
The reputation is determined by the quality and efficiency of operations. Mission can be
accomplished only through local and international agency partners. CSL has an ongoing
philosophy to develop strategic alliances and strengthening its network by carefully
choosing reputable organizations through a detailed screening process to ensure that
they share their drive, ethics and vision to succeed.
Today, CSL have excellent resources in all the key areas of their business so as to
provide with the ideal logistics services. Having secured the right partnerships in the
major trade areas like Europe, South Asia, Middle East and Africa, we continue to work
towards building more relationships, thus making CSL a truly global operator.
Company Structure
The company is spearheaded by the Chairman, Mr. Ajai Joseph, who brings with him a
wealth of quality industry experience and exposure within the trade locally and
internationally. Operating in India the biggest challenge is to bring people with different
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cultural background, language and mindset under one umbrella to work on a common
goal. At CSL with regular training program and close interaction with the employees
and the management it's done effectively and every employee is aware of the common
goal, mission and vision. CSL believe in people's strengths and we invest in them in
many forms to enhance their skills and knowledge. With qualified experts from root to
branch, the companies’ organizational structure boasts of a longstanding experience in
freight management, market awareness, customer handling and finance management,
with a strong team handpicked to provide the best to the customers and associates.
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Organizational Chart
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1.4 Product Profile
The Services
CSL tries doing tomorrow’s job just like CSL have delivered shipment in Australia
tomorrow. All the staffs are well trained and committed to doing things now and that is
the essence of the success in building satisfied customers beyond their expectation. CSL
combine product Knowledge and market experience to bring service efficiency and cost
effective freight solution through various activities.
Customer Service
CSL offers tailor-made solution to suit every customer’s requirement. Trained and
qualified customer service teams are willing to answer to the queries, and provide with
the product and service expertise relevant to the customers business.
Groupage NVOCC
An NVOCC is a common carrier that holds itself out to the public to provide
ocean transportation, issues its own house bills of lading or equivalent
document, but does not operate the vessels by which ocean transportation is
provided. Companies may obtain both licenses and may act in both capacities
even on the same shipment.
Projects and procurement
CSL India undertakes a Hydropower project from Shanghai to Siurikhola in
Nepal.
Supply Chain Management
Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of
product and service packages required by end customers
Air Freight and Sea Freight
Cargo airlines (or airfreight carriers, and derivatives of these names)
are airlines dedicated to the transport of cargo.
Larger cargo airlines tend to use new or recently built aircraft to carry their
freight, but many use older aircraft, like the Boeing 707, Boeing 727, Douglas
DC-8, DC-10, MD-11, Boeing 747, and the Ilyushin Il-76.
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Sea freight: Cargo (or freight) is goods or produce transported, generally
for commercial gain, by ship
Warehousing and Distribution
Cross Trade
Sea-Air multimodal Operation
Customs Clearance (CHA): Customs clearance is a profession that involves the
'clearing' of goods through customs barriers for importers and exporters (usually
businesses). This involves the preparation of documents and/or electronic
submissions, the calculation, (and usually the payment) on behalf of the client
of taxes, duties and excises, and facilitating communication between the
importer/exporter and governmental authorities.
Land Transportation
Local & International Removals
Value –Added Services
Quick and courteous multilingual staff, handling every customer under the same
benchmark and commitment.
Free consultancy and survey for all shipping needs.
Booking, Rate request and industry news on CSL website.
Facilitation for understanding international freight norms.
In house customs clearance(CHA)
Central accounting system enabling the partners to reconcile accounts through
one window.
State of the art Shipping and Logistics software which operates on a stable and
accounting functions that generates various reports including consignment
tracking and tracing.
1.5 DEPARTMENTS
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Finance Department
The Finance & Accounts Division is headed by Mr. Varghese – a veteran in his field.
He has succeeded in streamlining and improving the efficiency of this department.
The accounts personnel control and monitor the all accounts dealings at branch level to
ensure smooth and error free handling of transactions.
Mr. Varghese is also credited with the achievement of the Company's ISO certification.
There are four accountants in the cooperate office and for each department there is an
accountant to look after the daily transactions and accounts. The funding system is
centralized. Accounts are decentralized but the finance is centralized. The main role of
the finance department,
Fund transfer
Monthly auditing
Consolidation of audit yearly
Maintaining the books of records (double entry).
The company mainly prepares two types of budgets, sales budget, and financial
budget. The profit and loss accounts and balance sheet shows that the company
is able to meet the target.
Fig 1.1- Turnover for the last three year
Human Resource Department
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The Personnel Department is known as the “backbone” of an organization. The
other name of Personnel Department is Human Resource Department.
The efficiency of an industry or an organization depends upon the potential of
the workers. To get the most potential worker inside the organization, the Personnel
Department has to strive hard, because, they are assigned to do the task of employing
the right person at right time for the right job.
The HR Department at Corporate is a single point contact for all employee
related queries/issues/records. The department ensures that all of policies, laws, rules
are implemented in a uniform manner at every branch. The division is headed by Ms.
Annie Jacob, who is well qualified and experienced in the all the nuances of employee
relations. She runs the department with efficiency, authority & is talented at organizing
various functions for the company. Ms. Sruthi assists her by in her duties.
There are so many key functions of the Personnel Department. They are as
follows, with respect to this organization.
MANPOWER PLANNING: -
This is the most valuable duty that that has been assigned to the HR
Department or the Personnel Department. The Personnel Manager is a
man who should fill with the tactic of filling the gaps. The HR Manager
should supply an adequate amount of employees to all level of
Departments inside in an organization.
RECRUITING THE POTENTIAL ASSETS TO THE FIRM
This means the main duty of HR manager is to recruit people who have
the right content with them in all sense. If they will not do it, the whole
organization has to suffer a lot. This process has great significance
therefore.
Recruitment Process
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Chart 1.2- Recruitment Process
Advertisement
Advertisements in CSL is mainly done in Shipping Times or else getting the
information’s from career ID
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Recruitment
Here in CSL the first procedure for recruitment is to shortlist the CV received. As the
HR department is located at the corporate office, interview for the other branches are
done through telephone.
For different departments the department does the main interview and for the final
placement the recommended candidates are send to the HR department.
Training & Induction
The company gives the fresh employee two weeks of induction program with various
other departments to have a home feel in the origination. The company is flexible with
people intending to change the department.
Salary and Benefits
CSL provides all the staffs with a good salary package and other monetary and non-
monetary benefits. The benefits other than the salary includes,
Mobile bills
Fuel reimbursement
P.F arrangement
Leave encashment who have completed one year
Mediclaim for the whole family
Accident compensation
Gratuity policy for staffs
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Festival advance for all employees
Employee wedding gift
All leaves are calculated for a calendar year starting January to December. The leave
entitled to a confirmed employee of CSL-India is as follows,
Casual Leave
Sick Leave
Privilege Leave
Maternity Leave
In addition to leaves mentioned above, the company will observe 15 National and
Festival Holidays in a calendar year.
Performance Appraisal
Every company at the end of the financial year goes through a review of how the
business has fared in the past year and thus assesses and plan the following year
accordingly. The employee Performance Appraisal System aims at achieving a similar
goal as far as man power is concerned. It is intended to give a fair chance for both the
appraiser and the appraised to bring their views together, sort out any clarifications, and
plan the year ahead for better result. CSL India holds employee appraisals in the month
of March every year. It assess the performance of every employee, plans and sets
objective for the coming year and recognizes and reward performers and help others to
set goals to achieve the same
SALES DEPARTMENT
The sales of department of Kochi branch is been handled by Mrs. Rina Chandran. There
are two other staffs to support the overall performance of sales department. The sales
department has the most important role in the logistics department. The existence of the
company entirely depends upon the sales department. A logistics executive is
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responsible for the planning and coordination of enterprise-wide logistics management.
An individual accomplishes this by creating strategic plans for carrier contract
negotiations, shipment order handling, transportation network modeling, cargo and
freight planning, transportation analysis, and order execution and monitoring. Logistics
executives also are called logistics directors, supply chain manager, logistics manager
or supply chain director. An individual in this position reports to executive
management.
Logistics executives ensure that strategies are executed in the areas of a logistical
network. They communicate company objectives and goals to line managers and key
personnel in areas, divisions or functions under the logistical structure of a company
such as, manufacturing, contracting, procurement and distribution. They create, direct
and modify procedures for the operation of these processes according to the strategy of
timely distribution of goods or services to clients or consumers. They are responsible
for planning and procurement of materials to maintain optimization of inventory stock
levels of services and products to meet customer requirements. Supply chain
management is a concept of resource management pertaining to storage of goods,
services, and information between distributors, manufacturers, and retailers to establish
an order system based on consumption points or stock levels in order to meet customer
requirements.
DEPARTMENTAL CHART OF SALES
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Chart 1.3- Sales departmental chart
Logistics executives are responsible for monitoring these trends and implementing audit
controls that monitor the process of an organizations supply chain management system
for maximum effectiveness. The executive must have a broad range of
management and communicative skills and be able delegate authority to managers
while creating a team-based environment.
BPO
CSL's BPO division is equipped with well-trained and committed staff who provide
high quality and regular service. The consistent support from European counterparts
over the years is a befitting testimonial of steady and swift service. Right now, the
company is outsourcing an Italian based company work. The BPO department consists
of four well-experienced staffs.
IT
The IT division is the backbone of CSL. The department administers and maintains all
IT activity ensuring cost effectiveness and standardization. They tackle all IT issues
promptly and professionally. The IT department of CSL cooperate office maintains and
operates the other CSL branches around India. The IT department consists of highly
qualified and well-experienced IT professionals having work experience over 10 years
in the same field. The IT department contains one IT manager and two other staffs as
network administrator and the other as IT executive.
The company has its own logistics software known as VISION. The software supports
the operational department and other departments to do their job with much ease and
effectiveness. Oracle 11-i version is used as its back end.
For other uses such as accounting and finance commonly used software Tally is used.
IT department has its own huge roles and responsibilities. The main responsibility of IT
department is trouble shooting the remote desktops of different CSL branches and
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anything related to IT. For remote branches, CSL has given annual maintenance
contracts to different companies in case of hardware problem.
Regarding the backups, VISION is centralized in it’s cooperate office. The tally dump
files are loaded to the corporate, daily basis. Data backups are stored once in three
month.
DEPARTMENTAL CHART OF IT
Chart 1.4- IT departmental Chart
Highlights of New Software
Completely centralized Data centre.
Centralized web based software "Vision" which
can be accessed from anywhere at any time.
24 / 7 Power backup facility.
High speed leased Line connectivity to the central server.
DOCUMENTATION AND OPERATIONS DEPARTMENT
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When preparing to ship a product overseas, the exporter needs to be aware of packing,
labeling, documentation, and insurance requirements. Because the goods are being
shipped by unknown carriers to distant customers, the new exporter must be sure to
follow all shipping requirements to help ensure that the merchandise is
o packed correctly so that it arrives in good condition;
o labeled correctly to ensure that the goods are handled properly and
arrive on time and at the right place;
o documented correctly to meet local and foreign government
requirements as well as proper collection standards; and
o insured against damage, loss, and pilferage and, in some cases, delay.
Because of the variety of considerations involved in the physical export process, most
exporters, both new and experienced, rely on an international freight forwarder to
perform these services.
Exporters should seriously consider having the freight forwarder handle the formidable
amount of documentation, that exporting requires; freight forwarders are specialists in
this process. The following documents are commonly used in exporting; which of them
are actually used in each case depends on the requirements of both our government and
the government of the importing country.
Commercial invoice. As in a domestic transaction, the commercial invoice is a bill for
the goods from the buyer to the seller. A commercial invoice should include basic
information about the transaction, including a description of the goods, the address of
the shipper and seller, and the delivery and payment terms. The buyer needs the invoice
to prove ownership and to arrange payment. Some governments use the commercial
invoice to assess customs duties.
Bill of lading. Bills of lading are contracts between the owner of the goods and the
carrier (as with domestic shipments). There are two types. A straight bill of lading is
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nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or
traded while goods are in transit and is used for letter-of-credit transactions. The
customer usually needs the original or a copy as proof of ownership to take possession
of the goods.
Consular invoice. Certain nations require a consular invoice, which is used to control
and identify goods. The invoice must be purchased from the consulate of the country to
which the goods are being shipped and usually must be prepared in the language of that
country.
Certificate of origin. Certain nations require a signed statement as to the origin of the
export item. Such certificates are usually obtained through a semiofficial organization
such as a local chamber of commerce. A certificate may be required even though the
commercial invoice contains the information.
Inspection certification. Some purchasers and countries may require a certificate of
inspection attesting to the specifications of the goods shipped, usually performed by a
third party. Inspection certificates are often obtained from independent testing
organizations.
Dock receipt and warehouse receipt. These receipts are used to transfer accountability
when the export item is moved by the domestic carrier to the port of embarkation and
left with the international carrier for export.
Destination control statement. This statement appears on the commercial invoice,
ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that
the item may be exported only to certain destinations.
Insurance certificate. If the seller provides insurance, the insurance certificate states
the type and amount of coverage. This instrument is negotiable.
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Export packing list. Considerably more detailed and informative than a standard
domestic packing list, an export packing list itemizes the material in each individual
package and indicates the type of package: box, crate, drum, carton, and so on. It shows
the individual net, legal, tare, and gross weights and measurements for each package.
Package markings should be shown along with the shipper's and buyer's references. The
packing list should be attached to the outside of a package in a waterproof envelope
marked "packing list enclosed."
The list is used by the shipper or forwarding agent to determine
(1) The total shipment weight and volume and
(2) Whether the correct cargo is being shipped. In addition, customs officials (both local
and foreign) may use the list to check the cargo.
Documentation must be precise. Slight discrepancies or omissions may prevent
merchandise from being exported, result in exporting firms not getting paid, or even
result in the seizure of the exporter's goods by local or foreign government customs.
Collection documents are subject to precise time limits and may not be honored by a
bank if out of date. Much of the documentation is routine for freight forwarders or
customs brokers acting on the firm's behalf, but the exporter is ultimately responsible
for the accuracy of the documentation.
The number of documents the exporter must deal with varies depending on the
destination of the shipment. Because each country has different import regulations, the
exporter must be careful to provide proper documentation. If the exporter does not rely
on the services of a freight forwarder, there are several methods of obtaining
information on foreign import restrictions
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2.1 TOPIC OF THE STUDY
Performance analysis of CSL in respect with the competitors
Performance analysis involves gathering formal and informal data to help company
define and achieve their goals. Performance analysis uncovers several perspectives on a
problem or opportunity, determining any and all drivers towards or barriers to
successful performance, and proposing a solution system based on what is discovered.
The topic covers the performance of the company with comparing to other competitors.
The logistics industry is a vast area with huge number of competitors with different
strategies and ideas. The new comers in the field may lack infrastructure, experience,
and reputation. The performance analysis helps the company to identify the positive and
negatives or strength or weakness.
Performance analysis reveals certain strategies and ideas, which can be adopted in the
company to move to the heights of success.
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2.2 REVIEW OF LITERATURE
Performance analysis involves gathering formal and informal data to help customers
and sponsors define and achieve their goals. Performance analysis uncovers several
perspectives on a problem or opportunity, determining any and all drivers towards or
barriers to successful performance, and proposing a solution system based on what is
discovered.
Definition
Performance analysis is the front end of the front end. It is what we do to figure out
what to do. Some synonyms are planning, scoping, auditing, and diagnostics.
As a part of performance analysis, the analyst may do the following works,
Interviewing a sponsor
Reading the annual report
Chatting at lunch with a group of customer service representatives or
competitors
Reading the organization's policy on customer service, focusing particularly on
the recognition and incentive aspects
Listening to audiotapes associates with customer service complaints
Leading a focus group with supervisors
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Interviewing some randomly drawn representatives
Reading an article in a professional journal on the subject of customer service
performance improvement
Chatting at the supermarket with somebody who is a competitor or customer,
who wants to tell you about her experience with customer service
We distinguish three basic steps in the performance analysis process:
Data collection, data transformation, and data visualization. Data collection is the
process by which data about program performance are obtained from an executing
program. Data are normally collected in a file, either during or after execution,
although in some situations it may be presented to the user in real time. Three basic
data collection techniques can be distinguished:
Profiles, record the amount of time spent in different parts of a program. This
information, though minimal, is often invaluable for highlighting performance
problems. Profiles typically are gathered automatically.
Counters, record either frequencies of events or cumulative times. The
insertion of counters may require some programmer intervention.
Event traces, record each occurrence of various specified events, thus typically
producing a large amount of data. Traces can be produced either automatically
or with programmer intervention.
The raw data produced by profiles, counters, or traces are rarely in the form required to
answer performance questions. Hence, data transformations are applied, often with the
goal of reducing total data volume. Transformations can be used to determine mean
values or other higher-order statistics or to extract profile and counter data from traces.
For example, a profile recording the time spent in each subroutine on each processor
might be transformed to determine the mean time spent in each subroutine on each
processor, and the standard deviation from this mean. Similarly, a trace can be
processed to produce a histogram giving the distribution of message sizes. Each of the
various performance tools described in subsequent sections incorporates some set of
built-in transformations; more specialized transformation can also be coded by the
programmer.
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Parallel performance data are inherently multidimensional, consisting of execution
times, communication costs, and so on, for multiple program components, on different
processors, and for different problem sizes. Although data reduction techniques can be
used in some situations to compress performance data to scalar values, it is often
necessary to be able to explore the raw multidimensional data. As is well known in
computational science and engineering, this process can benefit enormously from the
use of data visualization techniques. Both conventional and more specialized display
techniques can be applied to performance data.
As we shall see, a wide variety of data collection, transformation, and visualization
tools are available. When selecting a tool for a particular task, the following issues
should be considered:
1. Accuracy: In general, performance data obtained using sampling techniques
are less accurate than data obtained by using counters or timers. In the case of
timers, the accuracy of the clock must be taken into account.
2. Simplicity: The best tools in many circumstances are those that collect data
automatically, with little or no programmer intervention, and that provide
convenient analysis capabilities.
3. Flexibility: A flexible tool can be extended easily to collect additional
performance data or to provide different views of the same data. Flexibility
and simplicity are often opposing requirements.
4. Intrusiveness: Unless a computer provides hardware support, performance
data collection inevitably introduces some overhead. We need to be aware of
this overhead and account for it when analyzing data.
5. Abstraction: A good performance tool allows data to be examined at a level
of abstraction appropriate for the programming model of the parallel program.
For example, when analyzing an execution trace from a message-passing
program, we probably wish to see individual messages, particularly if they can
be related to send and receive statements in the source program. However, this
presentation is probably not appropriate when studying a data-parallel
program, even if compilation generates a message-passing program. Instead,
we would like to see communication costs related to data-parallel program
statements.
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2.2 NEED FOR THE STUDY
The study is mainly on the performance analysis of Consolidated Shipping Line with
respect to competitors. It helps to know the current position of the company in the
market with respect to few of its competitors. The study mainly helps to know the
resent trends and opportunity in the logistics industry as well as to find out certain
innovative strategies, which can be adopted in the logistics for better improvement and
development of the company. The study gives the opportunity to know the main areas
of business done by the competitors as well as the area, which the company can work
upon.
2.3 SCOPE OF THE STUDY
The study was done during the 62 days starting December 1st at Consolidated Shipping
Line India Pvt Ltd Cochin. The study covered the Ernakulum district. The study gives
an idea about the strength weakness opportunities, threat, and help to understand the
areas to be developed and concentrated. The study is useful to the extent that the
company can try to increase the sales by better pricing strategies and regular follow up
with the existing customers.
2.4 Objective of the study
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The objective of the study was to analyze the performance of CSL with respect to the
competitors.
Primary objective
To analyze the performance of CSL with respect to the competitors.
Secondary objective
To recommend certain suggestion to improve in the industry.
To find out the opportunities in different fields.
To find out the areas to be developed.
2.5 Limitations of the study
The study is limited to the Ernakulum districts.
Although there are large number of competitors, it was difficult to get the data from
each and every competitors .Among 40 companies approached it was only possible to
interview 15 Competitors in the time allotted for the study.
Busy schedules of the competitors were another limitation for getting relevant
information’s.
The method of data collection as well as sampling has its inherent limitations, which
may also be present in the study.
The errors due to respondent bias exist in the study.
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Research Methodology
The project was conducted to analyze the performance of CSL with respect to the
competitors. The methodology adopted in this study is as follows.
SOURCES OF DATA
The study required the collection of both primary and secondary data.
PRIMARY DATA
Primary data was collected by using a structured questionnaire from the competitors in
Willington Island, Ernakulum districts. Discussions with the external guide also served
as a useful source for obtaining data for planning the study.
SECONDARY DATA
Secondary data was collected from brochures, catalogues, leaflets and other material
published by the company. Magazines and the internet also provided lots of information
TARGET AUDIENCE:
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The primary data was collected from the competitors of Consolidated Shipping Line.
There are about more than 40 competitors throughout Ernakulum districts, which
constitute the sampling unit.
SAMPLE SIZE AND AREAS COVERED
Out of total population of competitors of consolidated shipping line, a sample size of 15
competitors was chosen for the study. The competitor survey was done within
Ernakulum districts mainly from Willington Island.
SAMPLING METHOD
The list of all the competitors were obtained by the help of the company as well as from
the internet. The sampling method adopted was convenience sampling
ANALYSIS OF DATA
The data collected were classified and tabulated based on various factors. To analyze
the tabulated data the researcher used percentage analysis. Tables and charts have been
used for presenting the findings.
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1) Size of the company
How do you rate the size of your company?
Sl.No Size No:s
1 very small 0
2 Small 0
3 Medium 9
4 large 6
Table 4.1- Size of Company
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Chart 4.1- Size of Company
Interpretation
Size of the company is one of the important factors to determine the performance. From
the data, collected 60 % of the company rated them as medium and 40% rated them as
Large Company. It was noticed that a long year of experience and networks around the
world has a major part to do with the growth of the company. At present there are
companies which has a more than 150 years of experience in the field of logistics, such
as maersk , Kinship, Kuehne+Nagel, Albatross etc.
2) Do you own or operate any of the following,
Sl.No Particulars Yes No
1 Containers 5 10
2 Trailers 3 12
3 Trucks/Vans 3 12
4 Rail wagons 2 13
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5 Tractor units 1 14
6 Fork Lifts 3 12
7 Cranes 1 14
8 Vessels 2 13
9 Warehouse 7 8
Table 4.2- Do you own or operate any of the following infrastructures.
The question gives us a clear picture that how many percentage of the company own or
operate the following such as trucks, trailers, containers ect.
Chart 4.2- Infrastructure
Interpretation
Most of the companies do not operate the above mentioned facilities. Only MNC such
as Mearsk, Kuehne+Nagel and few of them have the facilities of container, trailers,
vessels ect, but some of the other has warehouse facility. Warehousing is an important
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factor in Logistics. The above graph shows that among all the facilities warehousing is
an important factor
3) Do you agree with these statement regarding your sales department,
)a You always push for the most competitive prices.
Pricing
Pricing represents one of the most critical and complex issues in global marketing due
to economic financial and mathematical implications. Price is the only one marketing
mix element that generates revenue.
To be a loyal customer pricing plays a major role in logistics industry. To survive in the
competitive industry the companies have to push for the most competitive pricing.
Pushing for most competitive prices
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Sl.No. Particulars No:s
1 Strongly agree 11
2 Agree 3
3 Neutral 0
4 Disagree 1
5 Strongly Disagree 0
Consolidated Shipping Line Pvt Ltd
Table 4.3- Pushing for most competitive prices
Chart 4.3-Competitive prices
Interpretation
It is very important to push for most competitive price. The profit of a company always
depends upon the sales that have made and to get a customer it is very important to be
flexible with the pricing. About 73% of the companies have stated that it is important to
adopt the competitive pricing strategy. CSL also strongly agrees with the statement of
the sales department that CSL always push for the most competitive prices.
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)b You offer several alternatives for your shipments.
Several alternatives for shipment
To get a customer in the competitive industry is very tough and losing an customer is
very easy. Therefore, it is very important to pay attention towards the alternatives of
shipment. Reliability is one of the major factors in the logistics field. You lose
customers if the cargo is not reached at the proper destination within the same and exact
time and date of delivery. Even though rarely the case of shipment alternatives may take
place, companies should be very conscious regarding the departure and arrival of cargo.
Sl.No. Particulars No:s
1 Strongly agree 3
2 Agree 11
3 Neutral 0
4 Disagree 1
5 Strongly Disagree 0
Table 4.4- Alternatives for shipment
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Chart 4.4- Alternatives for shipment
Interpretation
Most of the companies have stated that they have to be conscious about providing
alternative solution for the shipment of cargo. 73% has agreed on the statement that the
company offers several alternatives for the customer’s shipment. CSL also agrees the
statement of the shipment. Only 20% have strong agreement and & 7% do not agree
with the statement. So it can be interpreted that there should be several alternatives for
your shipment.
)c Your quotations are clear and easy to calculate.
Clarity in the Quotation
The clarity in the dealing and calculations is also another important factor to be
considered in the freight forwarding.
Sl.No. Particulars No:s
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1 Strongly agree 8
2 Agree 7
3 Neutral 0
4 Disagree 0
5 Strongly Disagree 0
Table 4.5- Clarity in the Quotation
As every business is concerned the quotations should be easy to understand and
calculate.
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Chart 4.5- Clarity in the Quotation
Interpretation
Almost every company has agreed to the statement regarding the clarity in the
quotation. 53% of the company has strongly agreed and 47% of the company has agreed
to the statement. CSL also agrees to the statement that the quotation of CSL is clear and
easy to understand. So it can be interpreted that the clarity in the quotation is very
essential in dealings.
)d You always keep your customers informed about unexpected charges.
Unexpected Charges
Logistics is an area, which deals with foreign exchange and foreign relations with
clients, customers, and agents. It is not always same in case of exchange rates and other
political policies. There are chances of change in prices so it is important that the
customers should be updated with the changes and fluctuations in the charges.
You always keep your customers informed about unexpected charges
Sl.No. Particulars No:s
1 Strongly agree 7
2 Agree 7
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3 Neutral 0
4 Disagree 1
5 Strongly Disagree 0
Table 4.6-Unexpected charges
The table shows that it is important to inform the customers regarding the unexpected
charges.
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Chart 4.6 -Unexpected charges
Interpretation
Loyalty of the customers also depends upon the pricing. So an company should be
updated with the recent changes in the charges and the exchange rate fluctuations. 47%
have agreed and 46% has strongly agreed to the statement of unexpected charge only
7% has not agreed to the statement. CSL also agrees with the statement that the
customers should be informed about the unexpected charges.
4) Type(s) of goods handled
Logistics covers almost every type of products. There are classifications of products
based on the nature some are categorized into hazardous product which are taken much
more seriousness in handling. Some of the freight forwarders only concentrate on a few
products such as choir, and tea. The question what type of products do you generally
handled, the competitors have their own different answers.
What industry type(s) of goods do you generally handle?
Sl.No Particulars No:s
1 Automotive 2
2 Forest paper and Pulp 5
3 Industrial Machinery & equipment 9
4 Chemical 6
5 Computer hardware & software 2
6 Perishable 5
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7 Construction 3
8 Drugs/Pharmaceutical 2
9 Electronic related Products 6
10 Energy & utilities 3
11 Agricultural Products 10
12 Foodstuffs 12
13 Minerals & fertilizers 5
14 Textile 10
Table 4.7 (a)-Types of goods handled
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Chart 4.7 (a)- Industry type(s) of goods do you generally handle by competitors
Interpretation
During the survey, it was found that foodstuffs, textile, and agricultural products have a
huge demand in the export as 15%, 13% and 13% respectively, and then comes the
industrial machinery and equipment as 11%. The lowest movement takes place in the
area of automotive and drugs/Pharmaceutics’.
Industrial goods that CSL handles,
Sl.No
Partic
ulars Percentage
1 Automotive 10
2 Forest paper and Pulp 20
3 Industrial Machinery & equipment 30
4 Chemical 0
5 Computer hardware & software 0
6 Perishable 0
7 Construction 9
8 Drugs/Pharmaceutical 0
9 Electronic related Products 8
10 Energy & utilities 0
11 Agricultural Products 0
12 Foodstuffs 10
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13 Minerals & fertilizers 0
14 Textile 8
15 Other 5
Table 4.7 (b)- Industrial goods that CSL handles
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Chart 4.7(b)- Industrial goods that CSL handles
Interpretation
CSL generally handles goods as mentioned above, such as automotive, Forest paper and
pulp, Industrial machinery and equipments, computer hardware & software and
perishables. As from the above mentioned chat4.7 (a) we can predict that there is a huge
opportunity in goods such as food stuffs and agricultural products. It would be good if
CSL gives and focuses on those kinds of goods which the local market is good for.
Kerala is famous for the agricultural products such as Choir, rubber, coconut etc. so
there is a good scope in such kind of field.
5) In what all aspects do you feel that you are far better than your competitors,
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Important Aspects in logistics,
Each and every company has got their own strategies and ideas. It is very important to
be in first in each and every aspect. There are different types of aspects, which a
company should be aware of. Among them pricing, service and network are some of the
important aspects. The question to the competitors was, in what all aspects do you feel
that you are far from your competitors, and the options where pricing, service, network,
reputation, customer relation, customization, experience, infrastructure, speed, and
safety.
The main and important question to identify the competitive advantage of the other
company was this question. Some of the companies were good at pricing and some
others at networks. Experience and other aspects also have their own importance.
Most of the company gave first priority to the pricing, service, and customer relation.
Chart4.8 (a)- Important aspect in logistics (first priority)
a) First priority that most of the company feel they are better with respect to other
competitors,
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Among the 15 companies, nine companies said that they are better at pricing as
compared to their competitors; five said that they are good at their service and one
company gave priority to the customer relation.
Chart 4.8(b)- Important aspect in logistics (second priority)
b) Second priority that most of the company feel they are better with respect to
other competitors,
Among the 15 companies, three companies emphasized on pricing, customer relation,
and network and six companies gave importance to the service to the service. From the
two priorities first and second, it is clear that pricing, services and customer relation are
the major area, which a company has to be focused upon.
c) What all aspects the competitors feel that they are far better than their other
competitors,
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Sl.No Particulars No:s
1 Safety 5
2 Services 15
3 Pricing 13
4 Customer relation 11
5 Networks 12
6 Speed 7
7 Experience 8
8 Reputation 7
9 Infrastructure 6
10 Customization 2
Table 4.8- Aspects that company feels far better than the competitors do.
Combined altogether 5 companies were for safety, all the 15 for service, 13 for pricing,
11 for customer relation, 12 for network, 7 for speed, 8 for experience, 7for reputation,
6 for infrastructure and 2 for customization.
Important Aspects (Consolidated) - Competitors
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Chart4.9- Important aspects in logistics (consolidated-competitors)
The chart explains the main important aspects that the 15 companies give and feel that
they are better in. the graph covers a huge area across, service, pricing, customer
relation, and networks. The same aspects are also given the first and second priority in
the chart 4.8 (a) and 4.8 (b).
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d) In what all aspects CSL feels that CSL is far better than its competitors (priority
wise) are,
Sl.No Particulars Ranks
1 Safety 10
2 Services 4
3 Pricing 7
4 Customer relation 2
5 Networks 3
6 Speed 8
7 Experience 9
8 Reputation 5
9 Infrastructure 1
10 Customization 6
Table 4.9- Aspects that CSL is far better than its competitors
CSL responded to the same question as, the company feels they have a good
infrastructure, which means a good facility in each and every branches which enhances
their workers to work well in the company, second is the customer relation, without
which a company does not survive. The company has a good customer relation. The
third importance the company gives and fells they are better in is the network. CSL
covers nine branches all around India and has got many tie ups with different logistics
company al around the world. The forth aspect CSL is better of its
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competitors is the service. CSL gives a good service to its customers which makes them
customer satisfied and loyal.
Reputation in the local market and all over the nation also plays an important role in the
field of logistics fifth factor that the company is good as compared to its competitor is
the reputation. Then customization, pricing, speed, experience and safety come as
priority.
Aspects that CSL feels better than competitors do
Chart 4.10- Aspects that CSL feels better than Competitors do
A graph was drawn from the informations received from CSL, by giving points to each
ranks. Rank 1 was given 15 points rank 2 with 13.5 and so on till rank 10 with 1.5.
Interpretation
By comparing the two charts 4.9 and chart 4.10 we can see that CSL is good at all the
other three important aspects service, customer relation and network but not doing well
in the pricing strategy. The company has got a good infrastructre and reputation in the
market, so CSL should take its advantage and make changes in the prising straegy. the
company can adopt many pricing strategies to attract the customers and should be
flexible enough in its pricing.
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6) Main areas of business and trading,
The study also covered the main areas of business and trade for all the 15 companies.
Sl:No Freight Forwarders Export FCL Import FCL Export LCL Import LCL Air transport1 MB 70 20 5 5 02 southern shipping services 100 0 0 0 03 sevenseas 10 80 2.5 2.5 54 john keells 40 55 5 0 05 TLPL 85 15 0 0 06 Sumi Shipping 85 7 5 3 07 Star Asia 80 20 0 0 08 Swift Freight 5 35 40 20 09 WorldWide Logistics 50 0 50 0 0
10 Kin Ship 35 50 5 10 011 Mearsk Line 50 50 0 0 012 Albatross 43 43 4 0 1013 Jeena&Company 20 10 10 10 5014 Kuehne+Nagel 40 30 5 5 2015 Total Transport System 20 0 45 15 2016 CSL 5 37 12 8 38
Table4.10- Main areas of business and trade
FCL - an abbreviation for "Full Container Load". The term used to describe ocean
freight, when the shipper has the exclusive right to use a lot of multi-modal ocean cargo
container. It is most cost-effective to charter a 40-foot container that is suitable for most
goods. FCL usually turns out to be the best choice to optimize your import or export
operations by ocean, making it more effective.
LCL - an LCL container has more than one company's goods in it, so it's more
expensive to ship because the freight company has to do more work. Many companies
will not ship things LCL--they'll wait until they've got enough orders to fill a 20-foot
container, and then fulfill them all at once.
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Chart 4.11- Main areas of business
Most of the companies concentrate on export FCL and less on air transport, but CSL has
about 38% of its business and trade by air transportation.
Interpretation
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CSL has majority of its business through airfreight, which has a more competitive
advantage.
7) Percentage of Traffic to/from or within the following area, USA, Middle
East, Europe, Far East, Mediterranean, and Africa.
The forwarders have the traffic mainly based on certain seasons and market demand,
continentsfreight forwarders
1 MB 10 5 60 10 0 152 Southern shipping services 25 15 50 0 0 103 sevens 5 5 5 80 0 54 john keells 0 25 25 20 0 305 TLPL 0 10 10 80 0 06 Sumi Shipping 10 10 70 5 5 07 Star Asia 0 60 0 20 20 08 Swift Freight 10 20 40 30 0 09 WorldWide Logistics 0 50 2 0 0 0
10 Kin Ship 50 10 40 0 0 011 Mearsk Line 16.6 16.6 16.6 16.6 16.6 16.612 Albatross 25 70 5 0 0 013 Jeena&Company 10 30 30 10 10 1014 Kuehne+Nagel 10 0 60 5 20 515 Total Transport System 15 20 30 20 10 5
Sl:No USA Middle East Europe Far East Mediterranean Africa
Table 4.11- Percentage of Traffic to/from or within the following continents of
competitors
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Chart4.12-Traffic to/from of competitors
From the table and graph it is clear that the major traffic of goods are exported and
imported from Europe and then from Middle East, far East, USA, Africa and
Mediterranean respectively.
Traffic to/from of CSL through the continents,
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The question advice the percentage of traffic to/from within the following area helps us
to identify the continent, which has a wider scope and chance to get maximum number
of regular customers.
Sl.No Continents Percentage
1 USA 7
2 Middle East 7
3 Europe 0
4 Far East 82
5 Mediterranean 0
6 Africa 4
Table4.12- Traffic to/from of CSL through the continents
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Chart 4.13- Traffic to/from of CSL
Interpretation
The majority of export is done to the Far East countries. By comparing the chart 10.12,
we can see that there is a huge opportunity in the European and Middle East countries.
CSL can concentrate on the companies, which entirely depend upon the European and
Middle East products.
8) Innovative ideas that can be adopted in Logistics,
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The response to the question, do you have any innovative idea, which can be
implemented in logistics for further development, was helpful to get certain
information. Most of the company suggested that,
1) Concentrated on door to door rather than port to port delivery of goods and
cargo.
2) Concentrate on local road transportation, which would indeed help the company
during recession.
3) Facilitation of good warehousing helps a freight forwarder, in their progress and
to step ahead in the industry.
4) CFS- Container Freight Station, it is space taken for lease or rent, which is under
customs.
5.1 SWOT ANALYSIS
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SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that
objective. A SWOT analysis must first start with defining a desired end state or
objective. A SWOT analysis may be incorporated into the strategic planning model.
Strategic Planning has been the subject of much research. A SWOT analysis must first
start with defining a desired end state or objective.
Strengths: characteristics of the business or team that give it an advantage over others
in the industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
Opportunities: external chances to make greater sales or profits in the environment.
Threats: external elements in the environment that could cause trouble for the business.
Identification of SWOTs is essential because subsequent steps in the process of
planning for achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given
the SWOTs. If the objective is NOT attainable, a different objective must be selected
and the process repeated.
SWOT ANALYSIS
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Strength
Qualified and well trained employees.
Good infrastructure.
Nine branches all around India.
Good reputation in the local market.
Weakness
Does not have own branches outside India.
Does not have permanent customers.
Opportunity
Cochin is a good platform for the company in the coming year as a result
of Vallarppadam project.
Amongst all major Indian ports, Cochin is the closest to the International
East West Shipping routes. This geo-strategic location of Cochin gives
it a distinct advantage.
Cochin port is connected to its hinterland enlarging to the state of
Kerala ,South Tamil Nadu and South Karnataka by National Highways
NH 47(Kanyakumari-Salem), NH49 (Cochin-Madurai) and
NH17(Cochin-Mumbai) .Indian Railway Network provides seamless
connectivity to South and Central India. The National Waterway NW3
provides connectivity to the South Kerala. The port has an international
airport in its proximity. The network of railways roads, waterways, and
airways has created good accessibility to the port.
Threat
High port handling charges
Huge number of competitors
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Major Players in the field such as Mearsk line, DHL, ZIM, Kin
shipping etc.
5.2 Findings
As a new comer, CSL is doing very well in the logistics industry.
The company has got dedicated employees, working more than 10 years of
experience.
Good infrastructure facility in the company.
No branch outside India.
Huge competition in the local market, even during dull market season.
Great opportunities in exporting to Middle East and European countries.
Very few permanent customers.
Company feels that they are not much good in pricing as compared to the
competitors.
Good opportunities in industries, such as agricultural and textiles.
No much importance has been given for advertisements.
No warehouse facility.
High handling charges in port.
5.3. Suggestions:
There should be regular follow up with customers enquiring the exports or
imports.
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CSL should focus to gain regular customers by providing seasonal discounts or
other attractive offers.
Branch outside India would help the company to gain sales as well as reputation.
Advertisements can be improved and should be given importance.
Some discounts can be given to the customer also during season, to attract them
and to be a regular permanent customer.
CSL can think of adopting CSF- Container Freight Station.
Importance should be given more to door to door than port-to-port.
CSL can concentrate on local market or road transportation.
5.4. Conclusion
Logistic field is an area with wide scope for growth and with high competition. As a
new comer in the field, CSL has done a great job with the help of the effective,
hardworking, and devoted team to reach the heights of success with a limited period.
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As every customer stress on quality and consider all the aspects of a product and service
before accepting or rejecting it, the company should give more attention not only to
maintain it highly competitive but also to each and every aspects.
The company has a good infrastructure as its strength and almost equal to all the aspects
of its competitor. The company has to concentrate only on the pricing strategies, until
CSL feels they are quite good in the pricing strategy.
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