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BONAFIDE CERTIFICATE
This is to certify that ANIRUDH KASTHURI is a Bonafide Student of SRM B-School, SRM
University, Vadapalani, Chennai. He is in the I year of Masters Degree Program in
Business Administration (MBA). He has done this project under my guidance and
supervision towards part fulfillment of II year MBA course.
Project Guide
HOD
Date:
Place:
DEPARTMENT SEAL
DECLARATION
ACKNOWLEDGEMENT
Firstly, I wish to express my deep sense of gratitude and profound thanks to Dr.Kesavan,
Head of the Department of Master of Business Administration. I would like to thank Ms.
Joan Rajan, asst.manager C.H. ROBINSON WORLDWIDE FREIGHT INDIA PRIVATE LIMITED
for her support during the internship period. I also articulate my profound gratitude to
Mrs. Jaya Prabha Bose , my faculty guide for offering her unending support and
extended co-operation. Lastly I would like to thank my parents for their continued
persistence and god almighty for showering his perennial blessings on me to complete
the project.
TABLE OF CONTENTS
CHAPTER
TOPIC
INTRODUCTION
1.1
1.2
1.3
SCOPE OF STUDY
REVIEW OF LITERATURE
RESEARCH METHODOLOGY
4.1
OBJECTIVE OF STUDY
4.2
RESEARCH PROBLEM
4.3
RESEARCH METHODS
4.4
SAMPLE SELECTION
4.5
4.6
STATISTICAL TOOLS
4.7
LIMITATIONS OF STUDY
FINDINGS
6.1
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
PAGE
CHAPTER - 1
INTRODUCTION
The expanding economy and business opportunities have caused companies to export and
import products to develop their business. International shipping remains daunting for many new
or relatively inexperienced exporters, particularly small and medium-sized firms. Effective use of
transportation equipment and modes reduces shipping and logistics costs. However, export and
import planning entails all sorts of considerations, from inventory levels and manufacturing lead
times to customers' preferences and transportation options. Ocean export is generally much
cheaper than air export, but the transits from warehouse dock to consignee door are measured in
weeks instead of days.
Airfreight is suitable for perishable goods; it may also include light, high-value
commodities such as semiconductors and electronic components essential to running industry or
fulfilling an inventory shortfall and unexpected consumer demand. Ocean cargo often includes
goods such as automobiles, toys, and household appliances and items whose bulk, weight, and
steady consumer demand allow slow transportation.
A freight forwarder is an agent who arranges the transportation of goods for others. A
forwarder functions as a travel agent for cargo or a designer of logistics. Forwarding includes
booking cargo space for shippers, providing shipping documents, and sometimes arranging other
services as varied as shipment packing and cargo insurance. Many forwarding companies offer
assistance in transportation logistics, including freight consolidation, customs brokerage,
warehousing, distribution, and other value-added services. Further, they operate networks of
offices and agents for export and import. Freight forwarders are generally non-asset-based
1
providers, meaning that they do not own planes, ships, and other means of transport. When
forwarders book cargo space for customers, they have the flexibility to choose the best routes
and transit schedules.
Forwarders typically have service contracts with many air and ocean carriers to facilitate
economical shipping around the globe. To facilitate rate quoting and mode selection, exporters
should be prepared to answer a host of questions about these and related issues:
Commodity (description and use)
Destination (ports/cities)
Pieces, weight, dimensions
Terms of sale
Terms of payment
Number/frequency of shipments
Routing/transit requirements
Insurance requirements.
Further, when comparing different modes of transportation, these are some of the issues
to consider:
Speed
Frequency of shipments
Cost
Dependability
Capacity
Availability/accessibility
Additional/special services.
To know whether the customers are satisfied with the existing range of service pattern.
CHAPTER - 2
INDUSTRY PROFILE
Companies in this industry provide freight forwarding and customs brokerage services. Major
companies include CH Robinson, Expeditors International of Washington, UPS Supply Chain
Solutions, and UTi Worldwide. Freight forwarding and contract logistics continues to be a
growth industry, considering current economic circumstances. Even so, freight and logistics
companies will need to deal with numerous issues in the years ahead. For example, as trade
routes become more competitive and as freight rates fall, the industrys traditional bargaining
power with its shippersvolumewill be challenged. One important strategy to counter this
challenge is to use balance sheet strength to acquire niche players in important trade routes and
geographies, especially in emerging markets.
Another key to growth and profitability will be the ability to analyze customers needs
and then respond quickly with differentiated and advanced logistics solutions. That will require
better IT tools to improve internal process efficiency and to generate analyses that result in
deeper understanding of customers industries and business processes.
As customers enter new markets, especially in emerging economies, they are
demanding much more than traditional transportation and warehousing services from their
freight forwarding and contract logistics providers. The ability to offer new, value-added
services such as warranty processing, returns management and light manufacturing is now a
differentiator, as is providing services such as customs and insurance brokerage, and trade and
transportation management. In other words, the ability to become a one-stop-shop provider is
emerging as a way to achieve differentiation and capitalize on cross-segment opportunities.
Demand is rising for advanced logistics capabilities and industry-focused solutions,
especially in emerging markets. The increasing number of assembly plants in these markets
including Turkey, Mexico and Thailandhas positively affected the dynamics of the logistics
industry.
Companies are also responding to market and economic pressure by restructuring their
logistics organizationsconsolidating service providers and functions, sharing logistics
facilities and centralizing management.
A controlling presence in key growth markets and the flexibility to respond swiftly and
innovatively to customers evolving needs distinguish the high performers in freight
forwarding and contract logistics. In the future, deep expertise in customers industries and in
the discipline of cost control will be more critical than ever. High performers will differentiate
themselves further by offering supply chain management as a shared service to customers. To
drive the continuous innovation of customer-facing applications, industry leaders will leverage
IT-driven process management collaboratively with those customers.
COMPANY PROFILE
C.H.ROBINSON
Founded in 1905, C.H. Robinson is one of the world's largest third party logistics (3PL)
providers, with 2014 gross revenues of $13.5 billion. They provide freight transportation and
logistics, outsource solutions, produce sourcing, and information services to over 46,000
customers through a network of offices in North America, South America, Europe, and Asia.
To meet the freight needs of customers, they provide access to over 66,000 transportation
providers worldwide, including contract motor carriers, railroads, air freight carriers, and ocean
carriers. With the service and dedication of more than 11,500 employees, performance-driven
culture and proven track record of success, theyve built a strong reputation as an industry
leader.
While the tradition of leadership began with produce and truckload services, they've
evolved into an industry-leading 3PL with a comprehensive portfolio of sourcing,
5
transportation, and logistics services. The ongoing challenges of the supply chain industry
inspire the company to innovate and search for new ideas that challenge limits and extend
Beyond Brokerage. Their customers, contract carriers, and suppliers are the beneficiaries of
this forward-thinking approach, because they believe they deserve nothing but the best from
their 3PL. The company is not content to simply meet their expectationsthey are committed
to exceeding them every single day.
Mission Statement: Our people, processes, and technology improve the world's
transportation and supply chains, delivering exceptional value to our customers and suppliers.
ORGANISATIONAL 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 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
weight and nature of goods and cost, delivery or warehousing of goods at their
final destination.
iii.
iv.
v.
Ensuring cost effective and secure solutions to small shippers with sufficient
cargo to utilize their own dedicated units.
vi.
Liaising with third parties to move goods by road, air or sea in accordance with
customer requirements.
vii.
viii.
ix.
Transmitting data by internet and satellite systems, enabling real time tracking
and tracing of goods.
x.
Arranging charters for large volumes out of gauge or project movements by air
and sea.
Acting as broker in customs negotiations worldwide to guide the freight
xi.
xiii.
Maintaining visibility and control through all phases of the journey, including
the production of management reports and statistical and unit cost analysis
xiv.
xv.
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.
8
vi.
Analyzing the rate the shipper expects from his cargo movement.
vii.
viii.
ix.
ii.
iii.
iv.
Conversion of currency.
v.
Nature and description of documents to be filed with kinds of bills of entry &
shipping bill.
vi.
vii.
viii.
ix.
x.
xi.
d) Network Design
A Logistics Network Design initiative is a strategic analysis of entire supply chain.
Some of the strategic questions are:
9
10
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 pathways and
to maintain accurate inventory by recording warehouse transactions.
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 enhances the production sale ratio. Warehousing is
an age old concept which can be used as sharp tool by original manufacturers to reach out
11
directly to consumers leaving aside or bypassing importers or any other middle agencies or
person.
The Warehouse is 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.
a. Types / Size
b. 20 Foot Dry
c. 40 Foot Dry
d. 45 Foot Dry
3. Open top containers
4. Flat rack for over sized cargo
5. 40 foot refrigerated containers/ reefers
6. High cube containers (40 foot, 45 foot & Reefers)
BUSINESS STRATEGY
a. Demand Chain Management
Understanding demand requires a comprehensive knowledge of your customers, you
should know what products / services are demanded by your customers; how do they make
their purchases, how often they order and what constraints they face on the purchasing
process. Very few companies have mastered this concept. C.H.ROBINSON was able to
know all the above concepts through considerable focus into customer needs and grievances.
13
suitable vehicle. The benefits of operational fleet routing include considerable reduction in
fleet operating cost and improved customer service with better estimated arrival time.
e. Mode of Transportation
Transportation generally is movement of product, goods, raw materials to different
stages in supply chain. Essentially in supply chain logistics plays a major role, the manner in
which product is moved from one location to another is through road, rail, truck, air, sea.
C.H.ROBINSON essentially uses only 2 modes for their operation they are air and
sea. The goods being delivered to end customer is brought to port or to the place through
containers or other methods like wagons, or cold enclosures like frozen storage.
C.H.ROBINSON strategically manages the procurement, movement, and storage of materials,
parts and finished inventory through the organization and its marketing channels. Essentially
from companies angle, there are two categories, initially inbound logistics, i.e., handling
goods that are brought into the company, through road transport and storing and making
them available. Another main phase is the outbound logistics, taking the cargo or the goods
through channels, and is being done with considerable effort to various parts of the world as
per the customer requirements.
15
i.
Intermodal Transportation System: This is the use of one or more than one mode
of transport to move a shipment to its destination. C.H.ROBINSON uses this in an
efficient way. Variety used is road and sea in the case of organization. Referring
to Global trade, this is the only option as factories and markets may not be next to
ports. It helps reduce cost in operation. Helps reduce cost that cannot be matched
by single mode. Essentially it is very convenient for shippers as well as consignee.
ii.
ii.
iii.
than delivery delay, and also to ease the effect of imperfections in the manufacturing
process that lower production efficiencies if production capacity stands idle for lack
of materials.
There are three basic reasons for keeping an inventory:
a)
Time - The time lags present in the supply chain, from supplier to user at
every stage, requires that you maintain certain amount of inventory to use
in this "lead time"
b)
c)
2. Back Order
A company having to back order an item that is out of stock will incur
expenses for special order processing and transportation. The extra order processing
traces the back orders movement, in addition to the normal processing for regular
replenishments. The customer usually incurs extra transportation charges because a
back order is typically a smaller shipment and often incurs higher rates. The seller
may need to ship the back ordered item a longer distance. The seller may need to ship
the back order by a faster and more expensive means of transportation. We could
estimate the back order cost by analyzing the additional order processing and
additional transportation expense. If customers always back ordered out of stock
items, the seller could use this analysis to estimate the cost of stock outs. The seller
could then compare this cost with the cost of carrying excess inventory.
18
3. Lost Sales
Most companies have competitors who produce substitute products, and when
one source does not have an item available, the customer will order from another
source. In such cases the stock out has caused a lost sale. The sellers direct loss is the
loss of profit on the item that was unavailable when the customer wanted it. Thus, a
seller can determine the direct loss by calculating profit on one item and multiplying
it by the number the customer ordered.
E.g.: If the order was 100 units and the profit is 10$, the loss is 1000$. If the
effort is made by a sales man and if the effort is wasted and in that sense it is an
opportunity loss. Whether including such a cost is valid would depend upon whether
the company uses sales people in its marketing effort.
Another aspect is determining the amount of a lost sale may be different and
difficult in certain circumstances. Numerous companies customarily take orders by
telephone. A customer may initially just enquire about items availability without
specifying how much is desired. If an item is out of stock, the customer may never
indicate a quantity and the seller will not know the amount of the loss.
4. Stock out
Cost incurred to a firm when current inventory is exhausted for one or more
items. Lost sales revenue costs are incurred when the firm is unable to meet current
orders because of a stock out condition.
5. Packaging and Packaging Materials
Mainly this is a main division in warehouses. Packaging interacts with the
logistics system in number of different and important ways. The size of and
protection afforded by the package affect the type of materials handling equipment
used and the level of product damage incurred. The package has an impact on the
stacking height of the product in the warehouse and thereby on the utilization and cost
19
of the warehouse. Packaging is quite important for effective damage protection, not
only in the warehouse but also during transportation. Packaging may contribute
nothing to a products value but its influence on logistics costs is considerable.
Packaging size may affect a companys ability to use pallets or shelving or
different types of materials handling equipment. Many companies design packages
that are too wide or too high for efficient use of either a warehouse or transportation
carrier. So, coordinating packaging with warehousing and with transportation is quite
important. We need to note, poor packaging can contribute to higher handling charges
and result in lower future sales if the goods arrived damaged.
Two types of packing exist: consumer packaging and industrial packaging.
Consumer packaging provides information important in selling the product. I.e.
giving the product most visibility when it comes with others on the retail shelf. On the
other hand industrial packaging is of primary concern to the logistics. The packaging
protects goods that a company will move to store in the warehouse and also permits
the company the effective use of transportation vehicle space.
Materials generally used in previous years was wood and other harder
materials for no breakage, but it added considerable shipping weight to the transport
and it further increased transportation cost. Generally new era has come up with
efficient packaging materials, organization nowadays use most cost effective
packaging with focus on security and minimizing cost. Cushioning materials protect
the product from shock, vibration, and surface damage during handling. Cushioning
materials include shrink wrap, air bubble cushioning, cellulose wadding, and plastics.
Companies often use shrink wrap for consumer packaged goods. Packaging also
helped reduce pilferage and product tampering in warehouse and during transport. Air
bubble cushioning is made of plastic sheets that contain air pockets. There are other
factors while considering packaging they are environmental protection. They are
considered in situations of perishable items like food and drugs.
20
CHAPTER - 3
REVIEW OF LITERATURE
Third party logistics (3PL) is a business dynamic of growing importance all over the
world. However, it is at a very nascent stage in India, though some domestic and multinational
companies are trying to establish themselves in this sector. This paper is an attempt to provide a
3PL perspective in India. The paper focuses on three major issues present extent of usage of
third party logistics services, reasons for outsourcing and impact of usage of third party logistics
services on business results. The paper reveals that most 3PL users are satisfied with the current
level of services provided by 3PL service providers as it has led to a positive impact on business
results. As a result, the usage of third party logistics services is likely to increase substantially
(40 percent) in the future.[B. S. Sahay and Ramneesh Mohan]
21
With the ever increasing focus on cost reduction, product leadership and customer
intimacy, the need for Supply Chain Management practices rises across many industries. Over
the last two decades Logistics Service Providers have become important players in many chains
and industries. New challenges arise due to the emergence of technologies. Data and information
can be found anywhere, however, to make the proper decisions we need to have an insight in
how decisions should be made, and what is important for the company and what not. In order to
do so we sollicited the Key Performance Indicator (KPI) literature -focussing on the areas of
general management, supply chain management, logistics service provision and warehousing. In
our earlier work we proposed a KPI framework that we here revisit and validate in the
Warehousing domain through the means of expert interviews.[Elfriede Krauth ,Hans Moonen
,Viara Popova, Martijn Schut]
22
CHAPTER - 4
RESEARCH METHODOLOGY
evaluated. As to my study I believe I have selected the right mix of techniques for the
comprehensive approach, which can be suited well for the organization.
24
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 Chennai only and confined to the freight division of the
logistics management.
Due to organizations security reasons documents like Bills, Warehouse Bills, etc could
not be gained.
25
CHAPTER - 5
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.
Service
Percentage
Freight
100
Warehousing
89
Cross docking
88
Network Design
66
Value Adding
98
26
Freight, 100
Freight
Warehousing
Crossdocking
Network Design
Valuse Adding
Warehousing,
89
Network
Design, 66
Crossdocking,
88
The pie chart above shows the service offer of each organization. The chart shows that 100%
of the respondents provide freight service and almost 90% provide Warehousing and Cross
docking. Only 66% were providing service of Network Design. Other service includes value
adding, which represents 98% of the sample. It includes packaging, labeling etc.
Decisions
Percentage
Operational Stability
11
Cost Effectiveness
10
Customer Needs
36
Other
96
27
11
10
Operational Stability
36
Cost Effectiveness
96
Customer Needs
Other
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.
Operational Decision
Percentage
No.
1
Strategic
37
Tactical
88
Operational
63
28
37
63
Strategic
Tactical
88
Operational
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.
4) Which is the area of the activity, that organizations feel best in their service?
Table-4 Best Activity
Sl. No.
Service
Percentage
Freight
98
Warehousing
86
Cross docking
87
Network Design
Value Adding
97
29
97
98
Freight
Warehousing
Crossdocking
Network Design
Other
86
87
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 Cross docking 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.
Departments In Organizations
No.
Number of
Percentage
People in Each
Top Management
452
11
Operations
468
11
Accounts / Finance
451
11
Marketing
517
13
Human Resource
371
09
Documentation /Others
1847
45
30
CH Robinson : Departments
Number of
No.
Percentage
People
Top Management
14
Operations
18
Accounts / Finance
18
Marketing
14
Human Resource
Documentation /Others
36
Operatio
Acc./Finan Marketin
ns
ce
ment
HR
ation/
Other
s
C.H.ROBINSON
Employees
Percentage
14
18
18
14
36
11
11
11
13
45
Other
Organization
Employees %
31
CH Robinson
Other
The line charts above shows the comparison of employees in each functional division of
organization with C.H.ROBINSON. 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%.
32
Catering Locations
Percentage
Asia
100
Europe
USA
89
Australia
86
Africa
71
Russia
98
Middle East
98
Other
90
Table 6ii Catering Locations
Asia
CH Robinson
Europe USA
Australia Africa
Russia
ME
Other
100
89
100
100
79
92
82
93
100
89
86
71
98
98
90
Other
Organizations
CH Robinson
Other
20
0
33
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 C.H.ROBINSON
can enter African markets and other favorable market is the middle-east. This can be looked into
very seriously in future business.
7) 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?
Freight
Wareho
Cross
Network
Othe
using
docking
Design
CH Robinson
Industrial Average
6.41
CH Robinson
Industry Average
34
Industry Standards
17.21
15.39
Profit
17.5
17
16.5
16
15.5
Profit
15
14.5
14
CH Robinson
Industry Average
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 CH Robinson has ample amount of profit in Freight area followed by Warehousing ,
Cross docking and other value adding activities with 9 , 8 and 7 each in scale. The chart 7i shows
industry average value for all the services and it is inferred that freight is giving ample amount of
profit and all other services are well above the industry standards. The chart 7ii shows profit
percentages said by each organization. We can infer that overall profit percentage for CH
Robinson is 1.82 percentage higher compared to industry average. The organization should
sustain its strategies and operations to stay above the industry mark.
35
CH Robinson
Industry Average
Ease of
Client
Customer
Website
Employee
Service
Handling
Service
3.84
3.76
3.82
3.29
3.83
Efficiency
Industry Average
1.5
1
0.5
0
Ease of
service
Client
Customer
Handling service
Website Employee
Efficiency
The chart shows Ease of Service is not up to the mark, it shows only 3 for CH Robinson and
the industry standards is 3.84. So organization can increase their Ease of Service. Client
handling and Website ease are satisfactory compared with industry standards. Customer
service also has remarkable value compared with industry. Employee efficiency is not up to
the mark, it shows only 3 for CH Robinson and the industry standards are 3.83. It can be
brought up with a considerable effort by proper handling of human activities by Human
Resource Department.
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9) What is the significant lead-time for each service rendered with previous years
data of each organization?
Table 9 Lead Time in Days
LEAD TIME IN
DAYS(LT)
Freight
Warehou
Cross
Network
Other
LT
sing LT
docking
Design LT
LT
LT
CH Robinson
21
20
30
21
Industry Average
23
22
24
10
24
CH Robinson
Industry Average
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 Cross docking. Focus should be to reduce leadtime and increase more service.
37
10) Average elapsed time between order receiving and delivery of the service
(Inventory).
Table-10 Elapsed Time
CH Robinson
Industry Standards
6.9
Elapsed Time
Elapsed time
8
7
6
5
4
Elapsed time
3
2
1
0
CH Robinson
Industry Average
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. CH Robinson elapsed time
is remarkable compared to industry standards.
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11) Were there any shortage/ excess of stocks noted, in the last verification done?
Table -11i Inventory Shortage
Inventory Short
CH Robinson
Industry
12
19.8
Inventory Shortage
25
20
15
10
Inventory Shortage
5
0
CH Robinson
Industry
Average
CH Robinson
Industry
1.7
4.8
Inventory Excess
6
5
4
3
2
1
0
Inventory Excess
CH Robinson
Industry Average
39
The above charts show the Inventory Excess and Shortage faced by organization during
verification. It is evident that shortage faced by CH Robinson is less compared to industry
standards; there is a difference of 8. Another aspect is regarding the excess of inventory; in this
scenario, CH Robinson has a satisfactory lead with comparison to industry.
12) Average number of customer complaints generated and industry average.
Table- 14 Complaints
Complaints Generated Last
CH Robinson
Industry Average
153
179
Year
Chart 14 Complaints
Complaints
185
180
175
170
165
160
Complaints
155
150
145
140
CH Robinson
Industry Average
The above chart shows average number of complaints. The complaints for CH Robinson is 153
and whereas to industry average is around 180 in number. Hence organization should try to
maintain or further reduce the complaints arising. This can be achieved by increasing new
modern methods and facilities to customers. Organizations need to heavily focus onto the issue
to reduce number of complaints arising in operations, customer satisfaction and other similar
areas.
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Service
Rating
100
Phone
100
Service Intimation
100
Gifts
100
Fax
11
Other
100
Chart-13 Customer Retention
Rating
100
100
90
80
70
60
50
40
30
20
10
0
100
100
100
100
11
Rating
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 /
41
sales, customer office visit with 100 rating. The least preferred are gifts and fax with 3 and 11 in
rating.
14) 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?
Table- 14 Proper System
No.
Service
Rating
Proper System
100
Customer Know
100
Contact Whom
94
Customer Feedback
88
Customer Suggestion
83
Rating
100
50
0
Rating
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.
42
CHAPTER - 6
FINDINGS
i)
ii)
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)
v)
43
vi)
vii)
Service offer presently has good impact with other organizations service offers.
The remarkable areas are Freight, warehousing, and Value Adding. Company can
further enhance operations of cross docking and network design through proper
methods.
viii)
ix)
x)
xi)
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.
44
xii)
Organization can enhance operations to African areas and another major favorable
area is the middle-east. From data, CH Robinson can get good market share if
they cater to African regions.
xiii)
Organization profit is above the industry standards in all areas of service. It shows
a difference of 1.82 points from industry standards.
xiv)
xv)
In the sample taken only a few organizations has inventory short and excess.
Values are 119 and 29 for shortage and excess. CH Robinson had shortage, but no
excess in inventory and while comparing with industry CH Robinson have
remarkable value.
xvi)
The efficient methods for retaining customers are Phone, Email, Sales Agents and
least preferred methods are Fax and Gifts.
6.1 SUGGESTIONS
i)
ii)
45
iii)
Decision making is quite effective and can be followed for future operations
iv)
v)
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)
CH Robinson 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.
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CHAPTER 7
CONCLUSION
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)
http://www.idsc.com.sg/images/service_logistics_img1.jpg
ii)
http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
iii)
http://www.chrobinson.com/
iv)
http://www. shipping.net/C-H-Robinson.html
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ANNEXURE
Logistics Survey
-----------------------------------------------------------------------------------------------------------Details of the Organization
Name: ___________________________________________________
Location:_________________________________________________
How long are you there in Business? _____________ Years
-----------------------------------------------------------------------------------------------------------
Warehousing
Network Design
Cross docking
S
l.
N
Divisions /
Functional area
Freight
o.
1
Top Management
Operations
Total
Wareho
Network
Cross
using
Design
docking
Other
49
Accounts/Finance
Marketing/Sales
Human Resources
Others if any
3) Which is the area of activity; you feel you are the best?
Freight
Warehousing
Cross docking
50
ii) Europe
iii) USA
iv) Australia
v) Africa
vi)Russia
Good
Fair
Poor
Very Poor
Ease of Service
Client handling
Customer Service
Website Information
Employee Efficiency
7) 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
Service
time?
Freight
Warehousing
Cross docking
51
Network Design
Value Adding
8) 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
9) Were there any shortage / excess of stocks noted, in the last verification done?
No.
Method
Phone Call
Gifts
Number
52
Fax
12) What is the total number of customer complaints received in each division last
year?
______________Number
13) 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
14) What is the number of customers you had business last year?
_________________ Numbers
15) Out of the above how many are there who availed your services repeatedly?
_________________ Numbers
16) How many of them avail same services from others (your competitors) as well
_________________ Numbers
53