[DC Software]

CHAPTER -1 INTRODUCTION

PAGE NO

1.1 OBJECTIVE OF THE STUDY

1.2 RESEARCH METHODOLOGY

9-10

CHAPTER - 2 INDUSTRY PROFILE

2.1 LOGISTICS INDUSTRY

11-12

2.2 LOGISTICS MANAGEMENT & LOGISTICS MANAGEMENT

SOFTWARE
CHAPTER- 3

12- 13

COMPANY PROFILE

3.1 VISION & MISSION

14-16

3.2 DC SOFTWARE FREIGHT & LOGISTGICS SERVICE

17

3.3 CONTINUOUS IMPROVEMENT IN THE ORGANIZATION

17-18

3.4 ORGANIZATION FUNCTIONS

18-25

3.5 ORGANIZATION STRUCTURE

26

3.6 BUSINESS DRIVERS

27

3.7 DATA ANALYSIS & INTERPRETATION

CHAPTER- 4

28-45

FINDINGS & SUGGESTIONS

4.1 FINDINGS & SUGGESTIONS

46-49

4.2 CONCLUSION

50

4.3 BIBLIOGRAPHY

51

ANNEXURE & QUESTIONS

52-57

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1.1

PROJECT

Effectiveness of
Logistics
Management

REPORT
2014
Submitted in Partial
Fulfilment of the
requirements for
the award of the
degree of MBA

[PROJECT
REPORT-2014]

Effectiveness of Logistics
Management
UNIVERSI
TY OF
MADRAS

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in

DC Software Service India

Pvt.Ltd.,

[DC Software]

DC Software
service pvt.ltd
Draft Cargoways India Private Limited
(Fairmacs Group company)

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APPENDIX-A
EFFECTIVENESS
OF
LOGISTICS MANAGEMENT

PROJECT REPORT
2014
Submitted in partial fulfillment
of the
requirements for the award of the
Degree of
MASTER OF BUSINESS
ADMINISTRATION
2014
NAME

: R.INBARASAAN

ENROLMENT NO : C13101PBL6112
Under the Supervision of

INSTITUTE OF
DISTANCE EDUCATION
UNIVERSITY OF MADRAS

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APPENDIX-B

BONAFIDE

CERTIFICATE

INSTITUTE OF DISTANCE

EDUCATION

UNIVERSITY OF

MADRAS

Certifited that this is the bonafide Project

Work done by
.with

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Enrolment Number C13101PBL6112

Of final year M.B.A, Degree course in the Institute of Distance
Education, University of Madras, Chennai-600005 during the Year
2014.
Date:

Supervisor
(Signature with

seal)
Examiner 1.

Examiner 2.

APPENDIX-C
ATTENDANCE CERTIFICATE

Certified that Mr. R.INBARASAN with Enrolment Number

C13101PBL6112

a student of M.B.A Degree course in the Institute of

Distance Education, University of Madras has undergone the Project work in

the DC SOFTWARE SERVICES PVT LTD (FAIRMACS GROUP)
From 26.11.2014

to 26.12.1014 7During the period of study and

observation in our organization his/her conduct was good.

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Date:
Signature
1. Name of the Head

2. Name of the Industrial Unit/

Business Organization
3. Place

Office Seal with date

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:
:

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[CHAPTER 1]
1. INTRODUCTION
Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective forward and reverse flow and storage of goods, services and information
between the point of origin and the point of consumption in order to meet customers'
requirements. A professional working in the field of logistics management is called a logistician.
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one's business with materials and shipping out products in an
increasingly globalized supply chain, calling for experts in the field who are called Supply Chain
Logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and it is the science of process having its presence in all sectors
of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply
chains and resultant efficiencies.
The term "logistics" originates from the ancient Greek to ("logos""ratio, word, calculation,
reason, speech, oration"). Logistics is considered to have originated in the military's need to
supply themselves with arms, ammunition and rations as they moved from their base to a
forward position. In ancient Greek, Roman and Byzantine empires, there were military officers
with the title Logistics who were responsible for financial and distribution of supplies.
The Oxford English dictionary defines logistics as: The branch of military science having to do
with procuring, maintaining and transporting material, personnel and facilities. Another
dictionary definition is: "The time related positioning of resources." As such, logistics is

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commonly seen as a branch of engineering which creates "people systems" rather than "machine
systems"....

1.1 OBJECTIVE OF THE STUDY

The objectives of the Project are:

To know about Logistics Industries

To compare the effectiveness of logistics management at DC Software and to benchmark

the organization with respect to the industry.

To have a thorough understanding of how logistics and freight industries work.

To know whether the customers are satisfied with the existing range of service pattern.

1.2 RESEARCH METHODOLOGY

Research design is descriptive in network; both data are used in the study. Primary and secondary
character to it. The primary data was collected through questionnaire method. The secondary
data were composed through the reference of books, websites, and interviews with various
executives in different organizations of the sample. The procured data was analyzed by a simple
percentage method and the results are supported with graphs and charts.

Method of Data Collection:

Primary Data: The major tool used was interview with managers and staff of the branch office,
questionnaire was developed focusing various aspect.

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Secondary Data: Books of Logistics Management for literature reference, Internet Web Portals,
Websites of each firm, Company Brochures.

Sample Selection:
Convenience sampling is used for study, as the researcher am interested here in getting an
inexpensive approximation of the truth. Operations of DC Software Freight & Logistics are
mainly concentrated at large scale AL-Hamriya Port, Dubai and having its branch office in
USA,Houston,Australia,Chennai,Bangalore,Tuticorin,cochin,Coimbatore,Visakhapatnam,Mumb
ai,Pune,Kolkata, Delhi, The total numbers of logistics organizations in and around this port are
6000 in number, which constitutes the population. Similar, 100 organizations having major
operations in the Freight and Logistics have been selected as sample for the survey. The selection
was based on the sampling said above.

Limitations of Study:

A few organizations did not publish the exact values for each question especially in sales
turnover and other similar figures.

The study was conducted in the Chennai area only aiming at the main Dubai Centre and
confined to the freight division of the logistics management.

Certain monetary values were not being filled by organizations.

Due to organizations security reasons documents like Bills, Warehouse Bills, etc could
not be gained.

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Most of the questionnaire answers were filled over internet email facility; therefore
contact was through phone and emails.

[CHAPTER 2]
Industry Profile

2. Logistics Industry
2.1 LOGISTICS (UAE - Middle East)
Logistics is the management of the flow of goods, information and other resources, including
energy and people, between the point of origin and the point of consumption in order to meet the
requirements of consumers. Logistics involve the integration of information, transportation,
inventory, warehousing, material-handling and packaging. In terms of value, global logistics
industry has been estimated to be more than USD 235 billion and make up significant part of the
GDP with regard to India. The Middle East is currently India's top export destination for a
burgeoning consumer electronics sector. Exports reached $175 million in 2005-06, an increase of

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96 percent over the previous year, according to the Electronics and Computer Software Export
Promotion Council (ESC). The growing trade reciprocity with China, 63 percent of respondents
to a recent China supplier survey, Middle East Export / Import Opportunities, cited the Middle
East as the next "hot" import market for Chinese-manufactured goods.
UAE is now in a stage of transition from an import substitution closed economy model to an
outward oriented trade regime. The importance of logistics as an enabler of trade and economic
growth is worth mentioning. Massive improvement in infrastructure for transportation leads to
present and future development in trade, resulting in the economic growth of the nation. While
around Dh.200, billion of investments have been made during last 5 years to augment port
facilities in the country (UAE), equally massive investments have also been made in road

networks. The logistics/shipping/freight sector has received keen attention from both investors
and government.
On the positive point of view, new opportunities are opening up for the sector. Trade volumes
both overseas and inland are growing very fast. The pace of growth in the specialized sectors like
Liquid Natural Gas (LNG), Containers, Goods, Electronic Equipments etc. are comparatively
much higher. Integrated logistics and multimode transportation are opening up new business for
logistics/ shipping companies.

2.2 Logistics Management and Logistics Management Software

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Logistics management is that part of the supply chain which 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 professional working in the field of logistics management is called a logistician.
Software is used for automating logistics activities which helps the supply chain industry in
automating the work flow as well as management of the system. Very few generalized software
are only available in the new market in the said topology. This is because there is no common
rule to generalize the system as well as work flow even though the practice is more or less the
same. Most of the commercial companies do use one or the other custom solution. There are
various software that are being used within the departments of logistics mainly in Conventional
Departments and for Container Trucking.

a. Business Logistics
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one's business with materials and shipping out products in an
increasingly globalized supply chain, calling for experts in the field who are called Supply Chain
Logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and it is the science of process having its presence in all sectors
of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply
chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or external focus
(outbound logistics) covering the flow and storage of materials from point of origin to point of
consumption. The main functions of a qualified logistician include inventory management,
purchasing, transportation, warehousing, consultation and the organizing and planning of these
activities. Logisticians combine the professional knowledge of each of these functions so that
there is a coordination of resources in an organization. There are two fundamentally different
forms of logistics. One optimizes a steady flow of material through a network of transport links
and storage nodes. The other coordinates a sequence of resources to carry out some project.

b. Production Logistics

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The term is used for describing logistic processes within an industry. The purpose of production
logistics is to ensure that each machine and workstation is being fed with the right product in the
right quantity and quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the flow through the value
adding processes and eliminate non-value adding ones. Production logistics can be applied in
existing as well as new plants. Manufacturing in an existing plant is a constantly changing
process. Machines are exchanged and new ones added, which gives the opportunity to improve
the production logistics system accordingly. Production logistics provides the means to achieve
customer response and capital efficiency. Production logistics is getting more and more
important with the decreasing batch sizes. Even a single customer demand can be fulfilled in an
efficient way. Track and tracing, which is an essential part of production logistics - due to
product safety and product reliability issues - is also gaining importance especially in the
automotive and the medical industry.

[CHAPTER 3]
Company Profile
When it comes to supply chain management, the answer is:
Leadership, Innovation and Quality Solutions
What DC Software Service Pvt.Ltd does:

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Freight Movement

Cargo/ Freight Management Solutions

Full Truckload & Solution Providers

Contract Packaging & Other Services

Warehouse Operations (Outsourced) and

Management

Logistics 3PL

3 DC Software Service Pvt.Ltd Overall View:

DC Freight & Logistics: Best People, Best Process, Best Value.

DC Fright &
Logistics
Best People

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Best Processes

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Best Value

3.1 Vision & Mission:

a. Vision
To become a leading freight, transportation, clearing and logistics company in the Middle
East. To be the recognized industry leader, through total commitment to customer service, by
maintaining our uncompromising integrity, in the support and development of our People,
Communications and Systems in sustained growth and profitability, The vision - to build an
integrated world of services that provides absolute customer satisfaction

b. Mission
To set the standard for excellence in global logistics through total commitment to quality in
people and customer service, with superior financial results. To solve reliable transportation and
logistics services to the needs of the business community. Reliable services means on-time
delivery, undamaged goods, and correct documentation in case of deviations. To perform
continuous business improvement in order to meet and exceed customer expectation, To create
sustainable business growth in order to enhance the prosperity of employee and benefit
shareholders.
Decisions can impact the success of the company as much as the performance of the supply
chain. No matter what industry or region of the world other organization do business in, the
supply chain is an integral part to the success as same as the products, the services, and the

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people. The Fairmacs Group of Companies was founded in 1956. DC Software Service Pvt.Ltd
was formed to build on the global distribution experience to help other companies lower
distribution costs while improving customer service and brand loyalty.
DC Software- Freight and Logistics is a technology-based company providing customized
solutions that transform distribution to a source of competitive advantage. Main motive is to
provide integrated solutions from managing transportation, inventory, and distribution centers to
sophisticated forecasting, information management, and network consulting services. Today,
DC Software Logistics serves more than 35 client companies, globally, in an array of different
market sectors.
The organization mission is to provide best value, integrated freight forwarding and logistics
solutions to clients in time-sensitive, service-critical businesses. Organization tries to leverage
and continuously improve the capabilities. Our clients trust us and depend on our Best People
and Best Processes to help them succeed.

3.2 DC Software- Freight Forwarding and Logistics Service :

Today, DC employ many professionals in their branch offices and in fields (Ports), dedicated to
helping freight, transportation, clearing, forwarding and logistics needs. Young, energetic,
professional, and passionate: their humble beginnings, satisfying customer needs has been the
driving force behind every DC Software employee. DC provide these services around globally
and main focus to UAE and Indian markets
DC Freight and Logistics, focus on main areas they are:
a. Customer service to a higher level.
b. Partnering to seeking the right answers.

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c. Finding solutions that optimize cost and service.

d. And always asking, how can we serve you better?
e. Analyzing every opportunity, every challenge to provide a custom solution that works best for
customer.

3.3 Continuous Improvement in the Organization

DC Logistics employees and other contracting people and other exceptional people are the
cornerstone of organizations service, they are experts in their fields. Energetic, always looking
for ways to drive cost out of the supply chain and all the while working to improve the service.
Initially from the beginning, organization has hired only the best and brightest. The most
committed. Every member of the team is empowered to create and implement client-centered
solutions. Deploying the management team regionally means decision-making and is kept local,
on-the-scene. The team structure means good ideas can come from anywhere within the
company.

a. Customers need solutions now. DC Freight and Logistics get them on

that moment.

With world-class technology as the backbone of the solutions and service. Integrating
systems and providing real-time information to help reduce cost by moving the products
of customers to market as efficiently as possible. Organizations Can Do culture is
rooted in customer service, flexibility and innovation. Its been that way since the DC
Freight and Logistics organization was launched over 5 years ago. Organization has got a

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rich tradition of redefining service for the supply chain management, freight management
and logistics industry. This commitment to quality customer service led DC Freight and
Logistics to become the third-party logistics provider to be certified by UAE as best
system standards. Today, the Quality Management System not only serves as the
foundation of the on-going Continuous Improvement in day-to-day procedures, it also
serves as the cornerstone of the DC Freight and Logistics. The process driven approach to
problem-solving helps the organization exceed customers' expectations, as the
organization helps tackle service and cost issues within their supply chains.

3.4 Organization Functions:

a. Freight Forwarding
Departments typically arrange cargo movements to an international destination. This department
has the expertise that allows them to prepare and process the documentation and perform related
activities pertaining to international shipments. A freight forwarder organizes the safe efficient
movement of goods on behalf of an exporter, importer or another company or person, sometimes
including dealing with packing and storage. Taking into account the type of goods and the
customers delivery requirements, freight forwarder array, the best means of transport, using the
services of shipping lines, airlines or road and rail freight (Indian Markets) operators.

Functions:
i. Researching and planning the most appropriate route for a shipment. Taking account of
the perishable or hazardous nature of the goods, cost transit time and security.
ii. Arranging appropriate packing. Taking account of climate, climate, terrain, weight,
nature of goods and cost, delivery or warehousing of goods at their final destination.

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iii. Obtaining, checking and preparing documentation to meet customs, excise and insurance
requirements, packing specifications and compliance with overseas countries regulations
and fiscal regimes.
iv. Offering consolidation services by air, sea, and road.
o Ensuring cost effective and secure solutions to small shippers with sufficient cargo to
utilize their own dedicated units.
o Liaising with third parties to move goods by road, air or sea in accordance with
customer requirements.
o Arranging insurance and assisting the client in the event of a claim.
o Arranging payment of freight and other charges or collection of payment on behalf of
the client.
o Transmitting data by internet and satellite systems, enabling real time tracking and
tracing of goods.
o Arranging charters for large volumes out of gauge or project movements by air and
sea.
o Acting as broker in customs negotiations worldwide to guide the freight efficiently
through complex procedures
o Arranging courier and specialist hand carry services
o Maintaining visibility and control through all phases of the journey, including the
production of management reports and statistical and unit cost analysis
o Acting as consultant in customs
o Maintaining current knowledge of relevant legislation, political situations and other
factors that could affect the movement of freight
o At more senior level, the role may also involve managing staff and overseeing
activities within a department or specializing in a particular area, such as sea freight
or air freight.

b. Logistics Field: Bulk Operations:

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The main function in this department includes identifying the customers and collecting
information about the amount of material to be exported, the product, place of exports. The
department also undertakes cargo booking, provides information on the rates, the schedules, the
arrival, departure time, name of the ship, transshipment details and does the follow up.

Functions:

i. Identifying the customers by the marketing person of this department.

ii. Convincing the shipper of the services that company provides to be better than the other
shipping service providers.
iii. Enquire about the place or commonly referred to as the destination port to which the
shipper would like to export the cargo.
iv. Enquire about the type and quantity of the cargo, that he would like to export.
v. The type of container and the number of containers that the shipper would like to take.
vi. Analyzing the rate the shipper expects from his cargo movement .
vii. Informing the shipper the rate and negotiating with him.
viii.Scheduling the arrival and department time of the vessel
ix. Listing out the transshipment details and do the follow up.

c. Clearing and Forwarding (C & F)

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The main function of C&F department is to undertake the customs formalities on behalf of the
exporters or importers. The documentation process and clearing activities are done by this
department.

Functions:

i.

Preparation of various kinds of bill of entry and shipping bill.

ii.

Arrival and clearance of vessels.

iii. Determination of value for assessment.

iv. Conversion of currency.
v.

Nature and description of documents to be filed with kinds of bills of

entry & shipping bill.

vi. Procedures for assessment and payment of duties.

vii. Examination of merchandize at the customs stations.
viii. Prohibitions on imports and exports items.
ix. Re-importation and conditions for free re-entry.
x.

Check offences under the act

xi. Refund procedures, appeals and revision petitions.

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d. Network Design
A Logistics Network Design initiative is a strategic analysis of entire supply chain.
Some of the strategic questions are:

To ensure enough facilities to meet future capacity requirements?

Which facilities should be closed and/or consolidated?

Is there an opportunity to make changes to the network to reduce logistics costs?

Develop the Current Financial Model:

Before making sensible decisions on what changes to make the network, a base case financial
model needs to be developed. It should include the costs of all logistical activities such as
Warehouse costs, Transportation costs, Inventory costs and Order Processing costs.

Software Selection:
Due to the complexity of this analysis, a network optimization software package is in order. The
software selection phase may be completed concurrently with the financial model-building phase
above. One person on the project team should be responsible for sourcing the right software to
meet the projects modeling needs.

Data Gathering & Validation:

This is one of the key drivers to a successful project. It is imperative that the data from your
current data warehouse (transactional data) be accurate. For example, when an item is received
into the warehouse, are the correct product characteristics captured accurately? Some
characteristics of interest would be cube, weight, carton dimension, hazardous materials, etc.
One of the activities further into the project will be to create a summary of the product flows.
This is accomplished by creating family groupings of products. If the data is not clean the flows
will be misrepresented and this will affect the accuracy of the model.

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Analyze Current State of Operations:

A throughput and capacity analysis should be completed for the existing operations. This will
help determine if there is additional capacity in the existing facilities or if there is excess capacity
available. This will help develop the scenarios later on. The impact to the other logistical
operations may then be identified.

e. Warehousing
A warehouse is a commercial building for storage of goods. Warehouses are commonly used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial areas of cities and towns. They come equipped with
loading docks to load and unload trucks; or sometimes are loaded directly from railways,
airports, or seaports. They also often have cranes and forklifts for moving goods, which are
usually placed on ISO standard pallets loaded into pallet racks.
Most warehouses are completely automated, with no workers working inside. The pallets and
product are moved with a system of automated conveyors and automated storage and retrieval
machines coordinated by programmable logic controllers and computers running logistics
automation software. These systems are often installed in refrigerated warehouses where
temperatures are kept very cold to keep the product from spoiling, and also where land is
expensive, as automated storage systems can use vertical space efficiently. These high-bay
storage areas are often more than 10 meters high, with some over 20 meters high.
The direction and tracking of materials in the warehouse is coordinated by the WMS, or
Warehouse Management System, a database driven computer program. The WMS is used by
logistics personnel to improve the efficiency of the warehouse by directing putaways and to
maintain accurate inventory by recording warehouse transactions.

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Modern warehouses are also used at large by exporters/manufacturers as a point of developing

retail outlets in a particular region or country. This concept reduces the end cost of the product to
the consumer and thus enhance the production sale ratio. Warehousing is an age old concept
which can be used as sharp tool by original manufacturers to reach out directly to consumers
leaving aside or bypassing importers or any other middle agencies or person.
The Warehouse are to be well guarded with safety provisions to counter pilferage, fire, floods &
other calamities. The Warehouses are in convenient locations & well connected by roads to
facilitate on time delivery to customers.

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f. Crossdocking Containerization
Crossdocking is a practice of logistics of unloading materials from an incoming semi trailer truck
and loading these materials to outbound trailers or rail cars, with little or no storage in between.
This may be done to change type of conveyance, or to sort materials intended for different
destinations or to combine material from different origin.
An increasing popular method of shipment is containerization. A container is a large box made of
durable material such as steel, aluminum, plywood and reinforced plastics. A container varies in
size material and construction. Its dimension is typically 8 foot high and 8 foot wide lengths
usually varying. A container can accommodate most cargo but is most suitable to packages of
standard size and shape. Containers can take case of most of 4 main packing problems. Because
of container construction, a product does not have to have heavy packaging, it gives protection
against:
i. Breakage
ii. Moisture
iii. Temperature controlled
iv. Pilferage and Theft
There are mainly 2 types of containers
v. Dry Containers
vi. Special Purpose Containers

Types / Size

20 Foot Dry

40 Foot Dry

45 Foot Dry

vii. Open top containers

viii. Flat rack for over sized cargo
ix. 40 foot refrigerated containers/ reefers

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x. High cube containers (40 foot, 45 foot & Reefers)

3.5 Organization Structure

Organization is headed by Organization Head, and all other employees report to him. Firm
comprises of 12 employees for internal works and other team for activities including freight
forwarding, logistics, clearing and forwarding. Organization acts as a 3PL for other firms on
behalf of carry/ forward, logistics. Warehouse activities are being outsourced based on the
demand situations, as goods are being stocked in different warehouses, and is based on the
customer requirements.

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3.6 Business Drivers

The following are the business drivers in logistical operation:

a) Cost Drivers:
The average materials moved by manufacturers to export market is low, but where as to
import market is high in figure. The high technology portion reaches to 60% to 72% of
imports. Number of labour hours is a factor, tonnage of imports; size of inventory,
number of suppliers, number of batches, number of employees etc. are all major concern
in cost. DC Freight and Logistics keep a major favourable concern on the above, as from
the basic get-together of employees during the off peak hours in work. I was able to
figure out, employees were not happy with their present situations in office and in the
working hours. The situation has a major impact in operational stability. The situation
leads to lengthening/of delivery bills and other major invoice forms. As to managers
words, it is deciphered that situations are improving day by day. By using Activity Based
Costing (ABC) method of costing the organization can identify unprofitable warehouse
practices, other cost measures in logistics. If DC Freight and Logistics implement cost
based on ABC, the firm can improve and eliminate unprofitable situations, improve and
implement new facilities with much broader focus on future. To any organization cost
reduction is the ultimate method to get a much wider profit. As with the help of
questionnaires and through formal interviews with officials not many organizations have
this generally. All organizations will be implementing the cost method within the near
future.

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3.7 Data Analysis and Interpretation:

The data collected through the questionnaire are analyzed to know about the respondents
opinions about various particulars asked in the questionnaire. The data collected from the
questionnaire was entered into spread sheet and the data has been interpreted. The questionnaire
comprises of fourteen questions with subparts for each.

The topics covered are with decisions of each operational area, employee numbers of each firm,
profitable area in operation, catering location, service offering, organizational effectiveness,
inventory, location, product availability and customer satisfaction.

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a) Which are the logistics services organizations offers?

Table -1 Service Offer

Sl. No.

Service

Freight

100

Warehousing

89

Crossdocking

88

Network Design

66

Value Adding Services

98

Chart-1 Service Offer

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The pie chart above shows the service offer of each organization. The chart shows that 100
Numbers of the respondents provide freight service and almost 90 Numbers provide
Warehousing and Crossdocking. Only 66 Numbers were providing service of Network
Design. Other service includes value adding, which represents 98 Numbers of the sample. It
includes packaging, labeling etc.

b) Operating with other logistical providers and reasons for decisions.

Table -2 Operate With Logistical Providers

Sr. No.
1
2
3
4

Decisions
Operational Stability
Cost Effectiveness
Customer Needs
Other

Percentage
11
10
36
96

Chart-2 Operate With Logistical Providers

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The pie chart above shows the operational decisions and reasons for operations with other
logistical providers. The chart shows that 96% of the respondents operate with other service
providers for different reasons like coordination, clearance, bulk operations etc. Almost 36%
have operations with other providers as per customer needs. Only 11% and 10 % were providing
service along with other providers for the purpose of operational stability and cost effectiveness
respectively. It is stated that 96% of organizations operate with other logistical providers and
remaining 4% as standalone.

c) What is the mode of decisions regarding the operations?

Table-3 Mode of Decision

Sl.

Operational Decision

Percentage

No.
1 Strategic
2 Tactical
3 Operational

37
88
63

Chart-3 Mode of Decision

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The pie chart above shows the mode of decisions regarding the operations. The pie chart shows
88% of organizations take tactical decisions followed by 63% with operational decisions and
37% strategic decisions. Most of the organizations have a mixture of all the decisions in their day
to day as well as in long and short term plans.

d) Which is the area of the activity, that organizations feel best in their service?

Table-4 Best Activity

Sl. No.
1
2
3
4
5

Service
Freight
Warehousing
Crossdocking
Network Design
Value Adding

Chart -4 Best Activity

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Percentage
98
86
87
4
97

[DC Software]

The pie chart above shows the best activity which organization feels in their operations. The pie
chart shows 98% of organizations have freight in the predominant area, followed by 86% of
warehousing. Another significant area is Crossdocking with 87% as best activity. There is only a
minor activity based on network design with 4% in pie graph. Most of the organizations have a
mixture of all the activities in their day to day and 97% of organization says other activities bring
in more revenue and the best of their activities, which includes packaging, labeling etc.

e) Number of employees in each type of the service rendered of the organizations

Table-5i Employees
Sl.
No.
1
2
3
4
5
6

Departments In Organizations
Top Management
Operations
Accounts / Finance
Marketing
Human Resource
Documentation /Others

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Number of

Percentage

People in Each
452
468
451
517
371
1847

11
11
11
13
09
45

[DC Software]

Table-5iEmployees % of both.

Chart-5i Employees

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[DC Software]

DC Freight &
Logistics F&L
Employees
Percentage
Other Organization
Employees %

Top
Operati
Managem
ons
ent
14
11

Acc./Fina
nce

Marketi H
ng
R

Docume
ntation/
Others

18

18

14

36

11

11

13

45

The line charts above shows the comparison of employees in each functional division of
organization with DC Freight and Logistics. The line chart shows around 14 percentages of
people belong to top management and industry standards has 11 percent, followed by 18% for
operations and industry standards has 11%. Human Resource has to be enhanced and need to be
further improved or need to start in the organization. Documentation also needs to be further
strengthened. Marketing comprises of 14% working in the said area. Most of the organizations
have a mixture of top management with marketing in their activities and functional area. Human
Resource comprises of 371 people and other main area is documentation and workers in the
areas of loading, operational area. This comprises of only 36% and industry standards are of
45%.
f) What are the locations to which the company caters to?
Table- 6i Catering Locations

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[DC Software]

Sl. No.
1
2
3
4
5
6
7
8

Catering Locations

Percentage
100
6
89
86
71
98
98
90

Asia
Europe
USA
Australia
Africa
Russia
Middle East
Other

Chart- 6i Catering Locations

Table 6ii Catering Locations

Asia
Lintas
Freight
Other

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100
100

Europ
e
0
6

USA
100
89

Austra
lia

Africa

100
86

0
71

Russi
a
100
98

ME
100
98

Othe
r
100
90

[DC Software]

Organizati
ons

Chart 6ii Catering Locations

The pie chart above shows each organizations catering location in the world. The chart shows
100% of organizations cater to Asian region followed by 6% to Europe and 89 % to USA. Each
organization has tremendous catering locations with 86% to Australia, 71% to Africa, 98% to
Russia, 98% to Middle East, and 90 % to other locations. Locations mentioned as other is
company catering frequently with repeat orders of customers. Chart 6ii shows Lintas Freight and

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[DC Software]

Logistics can enter European markets and other favourable market is Africa. This can be looked
into very seriously in future business.
g) Which division of logistical activity earns the maximum rate of profit for each
organization on a scale of 1-10 and overall profit of each organization?

Table-7i -Maximum Rate of Profit

(DC Freight & Logistics F&L Compared with Industry Average)

Profit Scale (1 - 10)

Freight

Warehou
sing

Crossdocki
ng

Network
Design

Other

DC Freight & Logistics

F&L Profit Scale

Industrial Profit Average

6.41

Chart-7i - Maximum Rate of Industrial Profit Average

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[DC Software]

Table-7ii Profit of Organization (All Services Combined)

Profit Level in
Percentage

DC F&L

Industry
Standards

13

15.39

Chart - 7ii Profit of Organization (All Services Combined)

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[DC Software]

The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10,
where 1 denotes least profit and 10 denotes the service that fetches excellent profit. The chart
shows DC F&L has ample amount of profit in Freight area followed by Crossdocking and other
value adding activities with 9 and 6 in scale. The chart 7i shows industry average value is 7 for
freight followed by 6.41 for warehousing. It is inferred that freight is giving ample amount of
profit and Cross-Docking, Other including labeling and packaging has industry standards. The
chart 7ii shows profit percentages said by each organization. We can infer that overall profit
percentage for DC F&L has 2.39 percentages lesser compared to industry average. The
organization should implement more strategies to reach industry mark.

h) Comparison of service offered by DC F&L and rating of other organization in the

industry on a scale of 0- 4.
Table-8 Service Comparison (Scale 0-4)

DC F&L
Industry Average

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Ease of
Service

Client
Handling

Customer
Service

Website

Employee
Efficiency

3.84

3.76

3.82

3.29

3.83

[DC Software]

Chart-8 Service Comparison

The chart shows Ease of Service is not up to the mark, it shows only 3 for DC F&L and the
industry standards is 3.84. So organization can increase their Ease of Service. Client handling
is satisfactory compared with industry standards. Customer service also has remarkable value
compared with industry. Major area to look into is Website easiness, Employee Efficiency. It
can be brought up with a considerable effort by proper handling of human activities by
Human Resource Department.

i) What is the significant lead-time for each service rendered with previous years data
of each organization?
Table 9ii Lead Time in Days
LEAD TIME IN
DAYS(LT)

DC F&L
Industry Average

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Freight LT

Warehou
sing LT

Crossdoc
king LT

Network
Design LT

Other
LT

21
23

20
22

30
24

0
10

21
24

[DC Software]

Chart 9ii Lead Time in Days

The above chart shows the service executed last year in logistics area and the significant leadtime of each area. The chart shows 4122 numbers of freight service jobs has been executed with
average lead-time of 21 days. Similarly warehousing jobs with 224 and lead-time of 22 days.
While comparing with industry standards Freight is dominating and similarly the main lucrative
area is other (Packaging, Labeling etc.), which has 833 in number and 21 days lead-time.
Organizations lead-time is excellent except for Crossdocking. Focus should be to reduce leadtime and increase more service.

j) Average elapsed time between order receiving and delivery of the service
(Inventory).
Table-11 Elapsed Time

Elapsed Time

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DC F&L

Industry Standards

6.9

[DC Software]

Chart- 11 Elapsed Time

The above chart shows the physical verification check and average elapsed time between order
receiving and delivery of the service. The chart shows 89% of organizations have physical
verification. Average elapsed time between order receiving and delivery of service has an
average of 6.9 days. The total value of elapsed time is 613 days for 89 organizations, hence the
average days are 6.9 as explained in the figure for Industry average. DC elapsed time is
remarkable compared to industry standards.

k) Were there any shortage/ excess of stocks noted, in the last verification done?
Table -12i Inventory Shortage

Inventory
Short

DC F&L

Industry

12

19.8

Chart-12i Inventory Shortage

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Table- 12ii Inventory Excess

Inventory
Excess

DC F&L

Industry

4.8

Chart-12i Inventory Excess

The above charts show the Inventory Excess and Shortage faced by organization during
verification. It is evident that shortage faced by DC F&L is less compared to industry standards;
there is a difference of 8. Another aspect is regarding the excess of inventory; in this scenario,
DC F&L has a remarkable lead with comparison to industry.
l) Average number of customer complaints generated and industry average.

Table- 14 Complaints (DC with Industry Average)

DC F&L

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Industry Average

[DC Software]

Complaints Generated Last

Year

290

179.71

Chart 14 Complaints (DC with Industry Average)

The above chart shows average number of complaints. The complaints for DC F&L is 290 and
whereas to industry average is around 180 in number. Hence organization should try to reduce
the complaints arising. This can be achieved by increasing new modern methods and facilities to
customers. Organization need to heavily focus onto the issue to reduce number of complaints
arising in operations, customer satisfaction and other similar areas.

m) How does the organization follow up to retain customers.

Table-15 Customer Retention
Sl. No.

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Service

Rating

[DC Software]

Customer Complaints given preference

100

Phone

100

Service Intimation

100

Gifts

Email

100

Fax

11

Other

100
Chart-15 Customer Retention

The above chart shows preference of complaints and how organization follow up to retain
customers. Its been noted that cent percent of organization follow up with customers for
customer complaints. Most of the preferable methods for contacting customers for new service
intimation and customer realtionship are telephone, email and other methods like marketing /
sales, customer office visit with 100 rating. The least preferred are gifts and fax with 3 and 11 in
rating.

n) Does the organization has proper system for handling customer handling, and does
customer know whom to contact when a problem arises, ascertain the level of
satisfaction, feedback by customer and is customer suggestion given preference in
the organization?

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Table- 16 Proper System

Sl No.

Service

Rating

Proper System

100

2
3
4
5

Customer Know
Contact Whom
Customer Feedback
Customer Suggestion

100
94
88
83

Chart-16 Proper System

The above chart shows all organization in sample has propers system for handling customer
complaints. Its been revealed that 100% from sample, customers know the sytem of handling
customer complaints in the firm. Whom to contact in case of complaints is having rating of 94.
Customer feedback and customer suggestion is having rating of 88 and 83 respectively.

[CHAPTER 4]
4.1 Findings and Suggestions:

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Findings
i)

The quality of service as rated is above average in the case of DC Freight & Logistics
compared to industry. But the organization should continuously try to improve the
quality aspect as is being done by other players in the field. This is quite a necessity
as otherwise the figures may fall down. Continuous improvement is a must so that the
customers will prefer DC Freight & Logistics as their first choice in Logistics and
Freight industry category. This can be achieved with more modern equipments and
proper guidance to employees and the rating can go high to excellent service.

ii)

Pricing of service is satisfactory, which organization can further enhance with proper
management. Present employee strength is satisfactory compared to other
organization but more focus should be made to documentation areas where the firm
has lesser employees compared to other organizations.

iii)

Network Design is an area that the organization should not start immediately due to
low rate of returns is recorded as the industrial average. Design of new warehouse
areas and proper allocation of work with more sophisticated software facility can be
done through outsourced way during implementation.

iv)

Decision making is excellent for organization with respect to other organization in the
industry.

v)

Operation with other logistical providers should be given more preference to achieve
cost effectiveness.

vi)

Rearrangement of employees may be a better solution. Down sizing of personnel in

the Finance and Accounts section and deploying them for the HR function separately
is recommended.

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vii)

The organization client handling, ease of service and customer service is having
remarkable difference from the industry standards. The main focus need to be on the
ease of website and employee efficiency. From the data we can infer that areas which
need to be improved are Website and employee efficiency. Employee efficiency can
be improved with a proper Human Resource department.

viii)

Service offer presently has good impact with other organizations service offers. The
remarkable areas are Freight, Crossdocking, and Value Adding. Company can further
enhance operations of Value Adding through proper methods.

ix)

As logistics industry is concerned Freight is the dominant service followed by

Warehousing and Cross-Docking. Another important area where organizations feels
very lucrative is Value Adding .

x)

It is observed that most of the organizations operate with other logistical providers.
96% of organizations are doing it and remaining 4% organizations stays independent.
It is inferred that for efficient logistical activity, support from other organizations is
essential.

xi)

Tactical decisions are mostly followed by organizations followed by operational and a

few strategical.

xii)

Freight and Value Adding is considered to be the best service which organizations
offer in industry. Another major observation is about Network Design, it has low
value and no organization feels it to be lucrative area in industry.

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[DC Software]

xiii)

Organization can enhance operations to European areas and another major favourable
area is Africa. From data DC can get good market share if they cater to African
regions.

xiv)

Organization profit is good compared to industry standards for freight and can further
work on warehousing. This shows a difference of 2 points from industry standards.
Whereas for Cross Docking it shows same as to industry standards.

xv)

Commenting on ease of service, website and employee efficiency, the organization

needs to further improve.

xvi)

Freight Service when compared with other industry freight service has got more
value. Warehousing has a difference of 30 and is negligible but Cross-Docking need
to be reviewed. Another favourable area as mentioned earlier is Value Adding and it
shows a difference of 447 works done compared to industry standards.

xvii)

From the observation 89 organizations have inventory verification. The lowest

observed days for elapsed time for DC Software Freight & Logistics F&L are 3 days
and industry standards with 6.9 days. Hence it is a remarkable value for DC Software
Freight & Logistics F&L.

xviii) In the sample taken only a few organizations has inventory short and excess. Values
are 119 and 29 for shortage and excess. DC Software Freight & Logistics F&L had
shortage, but no excess in inventory and while comparing with industry DC Freight &
Logistics F&L have remarkable value.

xix)

The efficient methods for retaining customers are Phone, Email, Sales Agents and
least preferred methods are Fax and Gifts.

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Suggestions
i)

Organization can further strenghten the employee strength in the documentation

department. This can lead to further rapidity for operations.

ii)

Organization can initiate Human Resource Department to further enhance

employee motivation. This will have favourable impact for the operational as well as
total strenghtening of organization

iii)

Decision making is quite effective and can be followed for future operations

iv)

Operations with other logistical providers need to be enhanced further for

operational effectiveness, more focus should be given to customer delight and cost
effectiveness.

v)

Quality of service can be further enhanced to increase customer delight.

vi)

Client handling and service need to be followed in the same way and can be
further enhanced with more support. This can be achieved by proper guiding of
employees and other workers in the logistical area

vii)

DC Freight & Logistics can enter other markets in the Middle East especially to
Saudi Arabia where the potential of market is very high for Logistics industries and
can even diversify to other areas in logistics.

viii)

DC Freight & Logistics can focus to African regions for freight handling, as from the
data the potential market is high for those regions

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[DC Software]

4.2 Conclusion:
The universe everyday is witnessing unimaginable growth in majority of the industries. The
logistics and freight industry is one such industry that is rapidly growing. Worldwide logistics
industry is distinguished by fast technological advances and is growing rapidly than most other
industries over the past years. With stiff competition around, the company is likely to reduce the
profitability but with proper management of operations and by proper customer desired services
and also effectively utilizing its alliances it can maintain and improve the performance. Joint
operational ventures for developing the customized services for its steady growth. The
organization has enormous opportunities to grow beyond the expectations.
DC Freight & Logistics has come a long way from being just a service provider. The
organization now has the value of being an ultimate service provider for Freight, Transportation,
Cross-docking and Value Adding as per customer needs. The present scenario and the future of
the organization with regard to the management are satisfactory. The organization can increase
the market share by improving with more state of art technology. The organization can diversify
into related other business areas like Warehouses for lease to other organizations, state of art
technology providers for other organizations. More importance is to be given for HR
development by having a separate department for it. With the development of such a department,
several favourable impacts such as increase in out put per employee, increased loyalty, team
spirit etc can be generated.
As far as DC Freight & Logistics is concerned it can be stated that through its excellent
service and aggressive logistics service, organization has shown a noticeable increase in the
market share. However, there are some areas where the company is not at the top-most position
but it can certainly gear up in the near future and is committed to acquire that spot. On
implementation of the above recommendations, the management can lead DC to the top most
position when bench marked in the coming years.

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[DC Software]

4.3 Bibliography

Reference:
a) Logistical Management Tata McGraw 2000 Edition.
Written by Donald. Bowersox, and David. Closs.
b) The Management of Business Logistics 7th Edition:
Written by Edward J. Bardi, C.John Langley, and John Joseph Coyle
c) Logistics and Supply Chain Management: Creating Value - Adding Networks
Written by Martin Christopher.

Websites:
i)

Source: http://www.idsc.com.sg/images/service_logistics_img1.jpg

ii)

http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics

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[DC Software]

Annexure

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[DC Software]

LOGISTICS SURVEY
------------------------------------------------------------------------------------------------------------Details of the Organization
Name: ___________________________________________________
Location:_________________________________________________
How long are you there in Business? _____________________ Years _______________
---------------------------------------------------------------------------------------------------------------------

1.

Which are the various Logistics Services you offer?

Freight

Warehousing

Crossdocking

Network Design

Other Value Adding Services if any

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2. Which is the area of activity; you feel you are the best?
Freight
Warehousing
Crossdocking
Network Design
Other Value Adding Services if any

3. Which division of logistical activity earns the maximum rate of profit?

Rate them on Scale of 10

(Best 10 Average 5 Worst 0)

Service
Freight
Warehousing
Crossdocking

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Network Design
Any Other
(specify)___________

4. What are the locations to which your company caters to?

i)

Asia

ii)

Europe

iii)

USA

iv)

Australia

v)

Africa

vi)

Russia

vii)

Within Middle East only

viii) State if any other locational specialization

___________________________________

5. What is significant lead time in days for each consignment and Number of service
executed last year. (Kindly mention with previous years data)

i)Number of Service
Executed in last year
(2013)

Service
Freight

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ii.) Number of transport

orders that have been
executed, such that the
delivery is on time as per the
agreed lead time?

[DC Software]

Warehousing
Crossdocking
Network Design
Value Adding
.

6.

Inventory
What is the average elapsed time between the time of receiving order from the
customer to your firm to release the item from the ware house and the time the item
is ready for moving from the ware house with proper documentation.
________________________ Days

7. Were there any shortage / excess of stocks noted, in the last verification done?
No shortage / excess of stocks noted
Shortage of stocks noted

Excess of stocks noted

8. Customer Satisfaction
a) Is customer complaints given preference in organization?
Yes / No

b) How your organization follow up to retain the customers

(Put Number 1 on desired coloumn)

No.

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Method

Number

[DC Software]

Phone Call

New Service Intimation to Customers

Gifts

Email

Fax

Other methods if any ________________

9. What is the total number of customer complaints received in each division last year?
------------------ Number

a) Do you have a proper system of handling customer complaints?

Yes / No

b) Do you have a system of contacting customers after completing all the formalities of
an order, to enquire whether they have any complaint and to ascertain the level of
satisfaction the customer enjoyed?
Yes / No

10. What is the number of customers you had business last year?
_________________ Numbers

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11. Out of the above how many are there who availed your services repeatedly?
_________________ Numbers

12. How many of them avail same services from others (your competitors) as well
_________________ Numbers

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