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ORGANIZATION STUDY AT ST.

JOHN FRIEGHT SYSTEM

UNIVERSITYOF MYSORE

DEPARTMENT OF COMMERCE

INTERNSHIP PROJECT ON
ORGANISATION STUDY

ST JOHN FREIGHT
SYSTEMS LTD
Submitted in partial fulfillment of the requirement for
The award of Master of Finance and Accounting
During the academic year 2015-2016
Submitted by
R.RICHLINE CORERA
MBA II SEM Reg no. 15MB5313
DEPARTMENT OF COMMERCE
GIBS BUSINESS SCHOOL
BANGALORE.

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ORGANIZATION STUDY AT ST. JOHN FRIEGHT SYSTEM

DECLARATION
I hereby declare that report titled Organizational Study at ST JOHN FREIGHT SYSTEM
LTD is an independent and original record carried out by me under the guidance of Mr.
SHREE HARSHA SIR submitted to Mysore University, in the partial fulfillment of the
requirements for the award of the degree of Master of Business Administration.

Date:
Place:

GIBS B-SCHOOL BANGALORE

R RICHLINE CORERA
15MB5313

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ORGANIZATION STUDY AT ST. JOHN FRIEGHT SYSTEM

CERTIFICATE BY THE GUIDE


I certify that the internship training report titled An Organizational Study carried out at
ST JOHN REIGHT SYSTEM LTD by R.RICHLINE CORERA (Reg no. 15MB5313), has
been prepared under my guidance and supervision. The work has been satisfactory and
is also recommended for consideration towards the award of MBA course.

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ACKNOWLEDGEMENT
It gives me the great pleasure to acknowledge with thanks, my respectful and beloved
ones for helping me bring out this project report successfully.
I would like to thank with immense Gratitude to Mrs. Aparna Rao the Director and Mr.
SHREE HARSHA SIR of GIBS permitting to undertake this project work.
I have immense pleasure in expressing my deep sense of gratitude to Project guide
(MR.SHREE HARSHA SIR) GIBS Bangalore for his valuable guidance, time cooperation and support without which this training would not have been completed.
I wish to express my heartfelt gratitude for their help and able guidance for the
completion of the project successfully.
I am also indebted to my parents for their support for completing the project
successfully.
Last but not least, I would also like to thank each and everyone especially all my friends
to their cordiality & support during my project.

R.RICHLINE CORERA
15MB5313.

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TABLE OF CONTENTS
CHAPTER
S

PARTICULARS

Industry Profile

Company Profile

PAGE NO

2.b) Background and inception of the


company
2.c) Nature of the business carried
2.d) Vision, Mission and Quality Policy
2.e) Products Profile
2.f) Area of Operation
2.g) Ownership Pattern
2.h) Competitors Information
2.i) Infrastructural Facilities
2.j)Work flow model (end to end)
3

Organization Hierarchy

Functional departments

SWOT Analysis

MCKINSEYs 7S Model

Findings and Conclusion

BIBILIOGRAPHY

Recommendations

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INDUSTRYPROFILE
LOGISTICS HISTORY
Logistics can be defined as providing the right type of
products and or services at right place right price time and in the right product
condition. A quick look back at some logistics history may prove very
enlightening.
The birth of logistics can be traced back to ancient war
times of Greek and roman empires when military officers titled as logistikas were
assigned the duties of providing services related to supply and distribution of
resources.
During the second world war logistics evolved greatly. The
army logistics of United States and counterparts proved to be more than the
German army could handle the supply location of German army forces were
inflicted with serious damages and Germany were not able to wreak the same
havoc on its enemy. The United States army ensured that supplies were provided at
the right place and at the right time. It also tried to prove these services when and
were required in the most optional economic manner. The best available options to
do the task were developed. This gave birth to the several military logistics
techniques which are still in use in a more advanced form.
Logistics has now evolved itself as an art and science.
However, it cannot be termed as an exact science logistics does not follow a
defined set of tables nor is it based on skills inherited from the time of birth. A
logistics manager performs his duties and responsibilities based on his educational
experience skills inherited from birth and intuition. These skills are nourished by a
constant application of the same by him for the betterment of the organization.
The logistics manager should ensure that the company has been benefited by the
efficient and effective system of logistics management. He also need to ensure that
the products have been reached at the right place and at right time.

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Logistics has been a kind of relief for many


organizations that formerly looked upon it as a kind of burden. Understanding how
logistics is important for the overall development of the company is vital for
business leaders.
Companies now a day are hiring people with
sustainable amount of knowledge to deliver enhancements in the field of supply
chain management. As has been the case throughout most of logistics industry the
task of logistics manager involves a clear vision and a drive within to deliver
results under strict deadlines in addition to its usual responsibilities.
ROLE OF LOGISTICS
LOGISTICS play an integral part in any organization
and an effective logistics business can ensure efficient achievements of business
goals of the organization in an easy and economical manner. They help to provide
a timely delivery of the raw material semi-finished and finished goods weather
externally or internally using different modes of transportation such as sea land or
air.
Previously there was no focus on transportation of the
products as the raw materials suppliers were in proximity to the organization
premises. This approach to the logistics was indeed limited in outlook as the area
in which logistics operate now a day is surely bigger than this. In this modern work
environment logistics is not only concerned with internal movement of goods but
also extends to the logistical material movement and covers a very vast area
includes inventory control reordering of products and ensuring the supplies are
made at the right time and at right place.
LOGISTICS now a days are witnessing a rapid long term
growth that is denied by global international logistics market and continued
outsourcing in the field of manufacturing. The changes observed nowadays in the
field of sector as the result of stiff competition favorable regulatory policies and
synergies resulting from the mergers and acquisitions.

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It is as important to any organization as the core principles for the attainment of


maximization of profits and overall growth and development of the organization.
These days outsourcing and globalization being such
familiar concepts, the concept of logistics has evolved to a greater height with
ample job opportunities. Outsourcing has made shifting of businesses to locations
which are economical and efficient very easy. The cost of labor is the primary
motivator for outsourcing by organization. This trend has given birth to the third
party called 3pl logistics. They provide the company with the efficient services and
manage the pick-up and delivery of shipments on its behalf. logistics service
providers also beneficial in providing economies of scale as they tend to combine
several orders from various orders from various customers into a sole shipment.
They also provide various other services to its customers such as bar coding
inventory hubs and track and trace abilities.
PAST PRESENT AND FUTURE LOGISTICS.
INTRODUCTION
The threat that was presented to Western Europe by the
Soviet Union and Warsaw pact during the cold war forced NATO countries to
concentrate scarce recourses on providing combat service support forcing the
British army to relay on the secure lines of communication through allied countries
and prepositioning o stocks both forward and in the rear areas.
The collapse of Warsaw pact and Soviet Union has caused western armed forces to
focus on force projection expeditionary operations and maneuver welfare given
that there is no longer a direct threat to Western Europe. This necessity a move
from just in case approach with larger scale stock piling at all levels of logistics
chain to one that is nearer to just in time approach. This will mean a greater
emphasis on the ability of commanders to more accurately predict their
requirements will be dependent on the total asset visibility and guaranteed lines of
communication. In working to reduce the risk still inherit in trying to provide such
logistical support the military should remain aware of the potential contribution
that commercial organization can provide. In the past the military have
traditionally had a less than enthusiastic attitude about potential benefits to be
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gained from industry. Contracts were often characterized by a confrontational


attitude but a now moving to a far more positive stance and cooperative
relationship where both risks and benefits can be shared.
The labour government strategic defence review published by
July 1998 aimed to remodel Britains defence policy and armed forces of meet the
challenges of the next centuary. The government aim is strong modern and cost
effective defence, now and for the long term. It is very likely that there will be
continuing if not increased contribution to international peacekeeping and
humanitarian invention operations some of which may be of considerable duration
and logistically challenging the size and scope may also vary, although the review
outlined the requirement that the armed forces should be able to carry out the two
medium sized contingency operation at the same time. It is also highlighted that
the armed forces should go to the operation rather than the operation come to them.
The areas that they have to deploy to are unlikely to have the same level of
infrastructure as those of Western Europe and those forces that have to sustain the
non-war fighting operation for indefinite periods while retaining the ability to
respond to other contingencies. Those calls for rather different force projections
capabilities than we have rather needed in the past. Substantially which can be
defined as the ability of force to maintain the necessary level of combat power for
the duration period to achieve its objective has grown in importance and necessity
now that the cold war is over. The difficulties involved in achieving the right level
of sustainability should not be underestimated as setting appropriate levels of
logistics sustainability is a difficult task in an environment where there is no
apparent adversary and where there is new risk are less clearly defined than before.
With the peace divided bringing a reduction of
defense by some 23% in real terms and the British armed forces being cut back by
a third new operational imperatives have placed an increasing strain on the armed
forces particularly in their ability to sustain overseas operation.

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CURRENT BRITISH ARMY LOGISTICS.


Throughout history logistics had an
important part in influence on the conduct of the military operation. Indeed, many
an operation has owed its success or failure to the logistics preparation or lack of it.
Throughout the struggle it was in his logistics inability to maintain its army in the
field that the enemies latest weakness laid. Courage his force had in full measure
but courage was not enough. It must be remembered that it is not merely the
amazing of men and material that counts but also the balanced and timely
application o those resources at hand that is important. If applied correctly such as
logistics support can have force multiplier effect.
Logistics are required to sustain operations and
provide a link to those forces on active duty from the strategic resources held in the
U.K. it is a process whereby organization management and direction that transfers
human and material inputs to confer sustainability is a continuum an uninterrupted
and ordered flow. logistics has also been considered as the bridge that connect a
nation economy to its war fighting forces.
MODERN COMMERCIAL PRACTISE
Quality is synonymous with efficient low cost production
and in parallel with the quality productivity practices learnt from Deming.
TOYOTO were developing an approach to productivity under the direction of
Taiichi ohno a production engineer worker for the company. Recognizing that low
levels of inventory could improve quality control. Toyota removed assembly line
and buffer stocks completely. For manufacturing systems that were not linked with
physical assembly line, Ohno developed a system known as KANBAN, Ohno also
developed an another technique. These techniques are now commonly grouped
together and called just in time. This was underpinned by the concept of KAIZEN
which means continuous improvement system. JIT is a pull system where the
demand at the end of the logistics pipeline pulls in the direction of the market. The
flow of demand at each stage is thus governed by the same demand. Thus no
products should be modern components ordered until there is a downstream
requirement.
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In todays increasingly competitive environment many


companies had to pay greater attention to supply chain issues. As customer
becoming more demanding companies has to insist on improved service from their
suppliers. The concept of supply chain management has been developed partially
as a result of this pressure to manage the complete logistics pipe line. It is
concerned with all the linkages and processes that are involved in supply chain
management, from the start to finish. SCM seeks to break down the barriers
between the different processes and/ or organization in the supply chain to achieve
greater efficiency and cut costs.
SCM has been defined as the management of upstream
and downstream relationship between its suppliers distributors and customers in
such a way that greater customer value is achieved at a very less cost. The
increased trends to outsource the need to reduce lead times and minimize inventory
levels has made companies look at their supply chain very carefully.
Thus SCM in the present situation is orderly managed and
through this paving way for competitive logistics strategy improving information
flows which has contributed to the popularly enabler technique called as QUICK
RESPONSE LOGISTICS.
THE WAY FORWARD: FUTURE OF LOGISTICS.
The current logistics system for British army is
still based on a model developed to fight a main defensive battle in north Germany
as a part of an east-western confrontation. It is clear that with the end of the cold
war, the dissolution of the Warsaw pact and Soviet Union and they moved to
multipolar world that structure is no longer valid. The new emphasis on power
projection operation and the changing nature of the battle space will mean that the
scale and intensity for future operations will be demanding for logistics forces. A
number of factors is required for the overhaul of the current system:

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Tempo:
The success of new manoeuvrist approach to warfare requires superior
tempo at all levels. CSS function will have to reduce logistic drag and still
provide the greatest possible operational support.
Footprint:
There is clear need to reduce the logistic footprint in theatre by minimizing
stock holdings personnel and equipment to that required to achieve the
operational objectives.
Efficiency:
Over insurance from a JIC supply system and a waste of resources is that
one that cannot be afforded with shrinking defense budgets. Mass must be
replaced with speed and precision.
Expeditionary operation:
The new emphasis on rapid deployment and sustainment of resources
overseas will require a logistics infrastructure that is flexible responsive and
adaptable.
Technology:
Much of this change is dependent on harnessing of information technology
revolution and to replace inventory with information so that resources can be
tracked accurately from factory to foxhole.
Asset visibility:
In view of the reduction in the defense budget total asset visibility is needed
if those scarce resources are to be managed efficiently. This will hopefully
allow the flow of resources from the home base to the theatre of operation,
and enable scarce resources and vulnerable logistics asset to be directed
where they are needed most.
Modularity:
The proposed new army structure will include a number of ground
formulation that will be organized for specific operation with the wide range
of capabilities.

Logistic drag:
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The success of future operation will be largely depending upon the logistic
drag to a minimum in order to enhance the tempo of operation.
Directed logistics:
To combat the uncertainty created by the probable peaks and trough of
demand during an operation, a proactive directed logistics system, replacing
inventory with information will needed to be created.
Contractor logistics support:
Where major capability gaps exists in the logistics area SDR highlighted the
possibility of some of those gaps being filled through partnership with
industry. The use of contractors to support operations overseas is a logical
extension of the current use of them here in UK . The aim of this use of this
use of contractors should be to release the military personal from mundane
tasks and so reduce the overstretch felt by many logistics unit. However,
they believe that contractors should not replace military assets within the
overall force structure.
Effective logistics support can provide a competitive
advantage or organization in the commercial world. The changing
operational deployments present significant challenges that differ from old
logistics approach which was agreed to support and maintain a positional
defensive battle to one that must be flexible agile and responsive yet to be
lean and focused. the need now for logistics system is to support the range of
diverse operational roles. Technological advancement will enable many of
the commercial approaches to be utilized yet to be balance between and the
understanding of commercial practices and military requirements must be a
key element of the future of logistics. Logisticians must never forget the past
always understanding the present and operate with clear vision for the
future.

CURRENT ECONOMIC SCENARIO ACCORDING TO FICCI SURVEY:


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SUMMARY OF THE SURVEY:


On the current economic crisis in Greece Spain Ireland Portugal and now in
Italy there has been absolute unanimity in the surveyed companies that the
ongoing crisis is the manifestation off larger issues and economic ills
plaguing the European economies today.
53% of the companies have said that the ongoing crisis has already resulted
in their businesses prospectus in the region adversely impacted.
The concern point is that over 75% of the surveyed companies have quoted a
loss of 10-15%in terms of businesses generation from the European region.
To keep their balance sheets stable over 30% the Indian companies surveyed
have already begun to look beyond Europe.
To further compound the situation over 25% respondents have pointed out
that during the current economic turmoil rather than facilitating foreign
investment and business the respective European governments have made its
process more stringent in obtaining long term visas work permits and family
and dependent visas and overall ease of doing business in the region.
Thus this is the summary of the total survey made on logistics.

CONCLUSION OF THIS SURVEY:

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In short to medium term the European economic crisis is bound to impact


the business prospects and the investment plans o Indian companies doing
business in the region.
As a survey indicates despite the number of policy and regulatory
impediments, Indias outbound investment in the EU may see smaller deals
but the activity will continue.
To maximize their benefits and to alleviate their business losses in terms of
reduce demands in European markets India in manufactures are aggressively
pursuing new business plans, this includes increased imports of high-end
machinery and technology from Europe due to highly competitive prices
being offered by European exporters. This could have long term spin offs for
Indian industry in terms of added capacities and reduced capital expenditure.
INTRODUCTION OF THE COMPANY:
This organization study is based on ST. JOHN
freight system it is one of the most reputed company in the city of Tuticorin.
it has branches across the world. Logistics and shipping involves managing
the transfer of products from the place of origin to the place of
consumption.it includes activities such as material handling warehousing
packaging inventory control and supply chain management procurement and
customer service. Logistics and shipping is a part of supply chain and value
chain in most industries it is an essential component of supply chain and
value chain management. It is an Indian logistics dealing in supply chain
management and has headquarters in Tuticorin and the largest private sector
logistic operator in south India. It is considered to be the largest shipping
company and the largest container shipping company in south India by
revenue and has employees approximately 1400 people. It has offices in 18
countries across the world, it is one of the most important company dealing
in the field of supply chain management.
The groups strength its ability to provide a wide
bouquet of integrated logistics services around the world though their
network of our own offices in India and abroad.

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The group is well positioned to take advantage


of its global delivery capability through its wide spread network [proposed
to be expanded to 60 own offices across the world and 75 franchanchise
offices in 60 countries and 30 own offices in India] and its experience in
operating and handling various services across the logistics source value
chain.
With the development of Singapore has the hub
for the international logistics business and the development of a new
machine to machine needle to needle business model, St. John is poised to
achieve leadership status in the SCM and 3pl business.

COMPANY PROFILE OF ST.JOHN FREIGHT SYSTEM

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ST.JOHN has been a logistics based company from the earlier days it has been
dealing with imports and exports over the past centuries .it has well established
leader in supply chain management, 3PL services and shipping.
Over decades of rich experience in the industry having numerous accolades to its
credit .
It has ability to provide services across the globe with its own strategically well
spread international network.
It has its headquarters at TUTICORIN which is popularly called as the Pearl city.
The company has a very reputed name in the field of supply chain management
over the last few decades and has a excellent source of 3pl services.
The company has 50 offices across the 4 continents. It controls about 500000
TEUs per annum across the globe as a logistics service provider/Feeder, NVOCC,
CFS operator.
It has global workforce in excess of 1400 personal. Throughout the years the
company has established itself as the leading one in the field of supply chain
management.

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Marquee clientele and long standing relationship with various industry associations
also add to its credit making the companys image spread overseas.
It is adequately supported by strong system and processes
The company has a rich promoter experience coupled with professional
management.
St. John has established itself as a top company dealing with all the imports and
exports in and around the country.
St. John group has branches across the country providing services and excelling in
their supply chain network.

SERVICES PROVIDED BY THE COMPANY

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The following are the services provided by the company across the world.

Ability to provide a wide bouquet of integrated logistics services because


of its experience in operating and handling various services across the
logistics value chain.
The group possess the strong global delivery capability through its wide
spread network of own offices in India and abroad so that it posses the
capacity to compete with the leading logistics companies in and across
the country.
The company has required infrastructure and network to deliver
intermodal services-SEA AIR AND ROAD
With the development of Singapore as the hub development or the
international logistics business and the development of a new machine to
machine needle to needle business model ,st. john is poised to achieve
leadership status in the SCM AND 3PL business.
The company also provide the following services in and across the globe.

Freight forwarding
Stevedoring
Ship agency /CHA
Heavy equipment vehicles
Fumigation
Container freight station
Feeder/NVOCC services

PAN INDIA NETWORK

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Currently ST.JOHN has 35 offices across the country dealing in supply chain
management

The following are the places where the company has established its branches

LUDIANA
AMRITSAR
DELHI
MORADABAD
KOLKATTA
AHMEDABAD
HALDIA
BHOPAL
INDORE
KANDLA
MUNDRA
HAZIRA
NAGPUR
PARADIP
MUMBAI
NASIK
PUNE
HYDRABAD
GUNTOOR
VISHAKAPATTINAM
KAKKINADA
BANGALORE
KRISHNAPATTINAM
CHENNAI
TRIPUR
KARUR
MADURAI
GOA

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KARAWAR
MANGALORE
COIMBATORE
KOCHI
TUTICORIN

The company also has global network in the following areas

CANADA
USA
UK
BELGIUM
NETHERLANDS
HAMBERG
RUSSIA
CHINA
HONG KONG
DUBAI
UAE
THAILAND
INDIA
VIETNAM
MALAYSIA
SINGAPORE
INDONASIA
AUSTRALIA
SRILANKHA
GUINEA
ABIDJAN
GHANA
NIGERIA
BRAZIL

CONTAINER FREIGHT STATION

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State of the art at CFS PARK, built confirming to INTERNATINAL


STANDARS at Tuticorin strategically located within 7kms from the
Tuticorin port.
Over 250000 sq feet of warehouse spacing including bonding facilitys
prowling over 70 acres including open bonding facility.
Over 200000 sq feet of container stacking yard
Handling over 800000TEUsper annum in Tuticorin.
Fully automated electronic data interchange[EDI]Facility supported by
adequate infrastructure facilities.
International standard security arrangements
First CFS in the country to get the portside ICD status to provide all export
import pre and post shipment procedures under one roof.
Inland container depot of the year 2015 by MARITIME GATEWAY.
First portside ICD /CFS facility in India to receive ISO9002 standards from
the BVQI, ISO 9001-2000 standards from DNV &IKEA-WAY certification
for systems &socio environmental standards.
ST.JOHN has one among the well-established CFS in India.

FEEDER
Started in January 2007, Tuticorin -Colombo bi weekly sailing sector32 %market share.
June 2009-Chennai weekly sailing
Combined weekly feeder capacity of the company is about 4500TEUs.

NVOCC
IN 2004 started NVOCC operations
Owns about 2000+TEUs and leases about 2000 TEUs
Operates in India Singapore Srilanka Bangladesh Malaysia and UAE

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Market leader for Tuticorin and Chennai Colombo sectors capturing about
80%of the market
STEVEDORING
Leading in handling sugar and timber cargo
Currently ,stevedoring operations are undertaken in TUTICORIN and
CHENNAI and the group plans to expand to KOCHI by 2012 and
KANDLA by 2015 ports
Will extend Tuticorin stevedoring operations to handle iron ore coal
and other bulk commodities with mechanized material handling
systems.
Holds national record of discharging over 11540 MCBM of timber
logs and more than 12000 tons of import sugar per day

THE CLIENTELE OF ST.JOHN;


AUTOMOTIVE

TAFE
TATA
MINDTRAC
ASHOK LEYLAND
BIRLA TYRES
APOLLO TYRES
MITSUBSHI MOTORS

AGROBASED

OLAM
PARRYS
CARGILL
SAKTHI SUGARS
SKM EGG PRODUCTS

TEXTILES
TEA
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COATS
METALS AND ENGINEERING

VEDANTA
SUZLON
FENNER
DUPOINT
BALCO
GRAPHITE INDIA LIMITED
SUNDARAM FERTILISERS LIMITED

CONSUMER GOODS
WHIRLPOOL
SAINT GOBIN
PARAGON
FMCG

NESTLE
UNILEVER
BHARATHI
ITC

OTHERS
GE
AIRTEL
AICATEL LUCENT
THE FIEO-MoU
This FIEO the apex body of the Indian export promotion organization was set up
jointly by the ministry of commerce, government of India and private trade
industry in the year 1965. It is thus a partner of Indiain promoting Indian exports.
This MOU is a confirmation of the groups growing presence in the ANTWERP

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and is expected to bring significant benefits in the terms of increased low in


business from the exporters and thuds would occupy a better visibility and scale of
operation. Further the company wishes to enter into a extension of operation to
USA.
CREDENTIALS
NIRAYAT SHREE award from the federation of Indian export organization [FIEO]
for excellent export performance for the years 2005- 2009
WINNER OF OUTSTANDING ENTREPRENUER AWARD from enterprise Asia
for the year 2010 for the Asia pacific entrepreneurs award. The award is received
by Mr. Samuel Jefferson on behalf of Mr. Johnson.
Recipient of the year CIAE award best sea freight forwarder in all India basis.
SAMUDRA MANTHAN AWARD2015-given by all India maritime offshore&
logistics award category-dry port of the year.
INLAND CONTAINER DEPOT OF THE YEAR AWARD 2015 by maritime
gateway.
This apart of ICD has also been nominated as An Authorized Economic Operator.

NON STOP CONFIRMITY IN STANDARDS;

ANNUAL AUDIT OF ISO 9001-2008 was conducted by BUREAU VERITAS


between 18th September 2015 and 6th October at our various branches. The
auditors re-affirmed conformity of our quality management standards, in all our
branches that are in line with ISO9001:2008 standards.
After a series of audit, the validity of the AEO certification of our St. John ICD has
been extended for a further period of two years with effect from 13th October 2015.

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These are the awards and standards received by the company and the standards
maintained by the company this is one of the reasons for the reputation of the
company. There are many other networks also contributing to the welfare of the
company they include FICCI, IGLN ,AHK ,IATA, IACC, CONQUEROR. These
networks have been a main source of link or doing business in worldwide level.
OTHER ACTIVITIES UNDERTAKEN BY THE COMPANY
COPORATE SOCIAL RESPONSIBILITY
ST.JOHN has been actively participating in the national mission SWACHH
BHARAT since December . A group of hundred staff with requisite materials and
machine involve in cleaning in Tuticorin area periodically. The management of
ST.JOHN group assists and encourage the team in all respects to carry on the
mission relentlessly.
SUPPLY OF RELIEF MATERIAL TO CHENNAI TO CUDDALORE
ST.JOHN shared a grief o people of Chennai who were severely affected by
incessant rain that devastated them in the first week of December. The
management and the staff of this group has enthusiastically contributed for the
noble cause and dispatched a lot of relief material to them to the affected people
through SATHIYAM TV.

MERIT AWARD FOR SCHOOL CHILDREN


ST.JOHN recognize and honors the commendable children of its employees who
score high marks in 10th and 12th standard every year. They were honored and
appreciated with the cash award.

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CONDUCTING VARIOUS SHOWS


ASEAN TRANSPORT AND LOGISTICS SHOW 2015
3RD MALAYSIA international transport and logistics expo and conference was
conducted in KUALA LAMPUR.
GALEX SERVICE
The vessel MV Ptrohue the first vessel Galax service a consortium of emirates
shipping lane arrived at cochin on 13th July 2015.This was the largest container
vessel berthed at Vallarpardom transshipment terminal ever since its inspection.
ST.JOHN handled the entire vessel operation.

BACKGROUND AND INSPECTION OF THE COMPANY


BACKGROUND OF THE COMPANY
ST. JOHN freight systems ltd is a multiple services provider in the logistics and
shipping industry established in 1979 the company has its presence in 15 countries
with 50 own offices and 1400+ employees working across the globe .
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SERVICES OFFERED BY ST. JOHN

3PL/end to end logistics services


Freight forwarding [air and ocean]
Custom broking[CHA]
NVOCC
Feeder operator
Container freight station
Stevedoring and terminal operation
Vessel agency
Ship brokering/chattering
Fumigation
Heavy equipment/trucking
Warehouse management/warehousing and distribution
ST JOHN handles over 500 thousand +TEUs per annum and 2500 +metric
tons of air cargo across the globe we continuously win awards from various
ports and industry chambers. ithas also been awarded the CIAE Service
excellence award for the best sea freight forwarder in India for the year
1999-2000 and NIRYAT SHREE award from the government of India
through the federation of Indian export organization[FIEO] for excellent
export performance in the category of business services during the year
2002-2003.
ST JOHN chairman and managing director received the
outstanding ENTERPRENUIERAL AWARD FOR ASIA PACIFIC for the
year 2010.

NETWORK
GROUP CORPORATE OFFICE: Tuticorin
LOGISTICS HEAD OFFICE: Chennai
INTERNATIONAL HEAD OFFICE: Singapore
INDIAN BRANCH OFFICES [25 branches /35 offices]
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Ahmadabad , Bangalore,Chennai,Coimbatore, Goa, Guntur, Haldia, Hyderabad,


Indore, Kakinada, Kandla, Kochi, Kolkata, Krishnapatinam, Madurai, Mangalore,
Mumbai, Mundra, New Delhi, Paradip, Pune, Tirupur, and Vishakhapatnam.
OVERSEAS BRANCH OFFICES:
Belgium, Canada, China, Dubai, UK, Hong Kong, Ivory Coast, Malaysia,
Netherlands, Nigeria, Singapore, Sri Lanka, Thailand and USA.

INSPECTION OF THE COMPANY


MANAGEMENT PHILOSOPHY AND MISSION
At ST JOHN,we approach service as a wholesome operation, an ideal
combination of providing comprehensive services with utmost importance to
technical and commercial aspects resulting in cost benefit, time saving and prudent
handling of cargo for our esteemed customers.
ST JOHN management is flexible and dynamic in its approach, adapting
itself to the ever-changing environment within the framework of an organized
structure.
ST JOHN philosophy is To provide total logistics solution with one
stop service and single point contract, across the globe, aided by total
commitment and quality to ensure Total customer satisfaction
In this short span of a little over 30 years, the small step ST JOHN first
took have transformed into long strides and now ST JOHN is a household name in
the logistics and shipping lines and has carved out a NICHE for itself.
NATURE OF BUISNESS CARRIED
ST JOHN FRIEGHT SYSTEM has a well-diversified presence in the logistics
industry. ST JOHN network is closely integrated with the global partners networks
and together ensure the optimal supply chain solution for our customers across the
world. Whether you are wondering how to launch your product in a new market or

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an established logistics service user wanting better efficiencies from your existing
supply chain we can service your needs cost effectively.
SUPPLY CHAIN MANAGEMENT
ST JOHN is one of the leading providers of integrated logistics
solution. The company manage and improve the orchestration of our customers
supply chain from the time of planning and procurement through the arrival and
delivery of the products at their final destination.
FRIEGHT FORWARDING
-OCEAN FREIGHT STATION
OCEAN LOGISTICS has been our core area of operation.
Our philosophy of cultivating long term relationship with the carriers has earned
respect among them. The company is well equipped to handle any volume of
cargo. The company has contact rates globally across all our offices especially to
Europe and USA.
The company philosophy is very simple. It assumes the cargo
shipped is the companys and provide the same service we would expect if we
were customer.

VISION OF THE COMPANY


The main vision of the company is to be a service provider of innovative end to
end logistics solution.
The second vision is to be among the top20 global logistics and shipping
companies by 2025.

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The vision statement of ST.JOHN has been differentiated from year to year. The
following were the vision statement from the year 2010-2025.
In the year 2010 the vision statement was
[END TO END LOGISTICS SOLUTIONS].
In the year 2015 the vision statement is
[CONSOLIDATE LEADERSHIP POSITION IN SOUTH EAST ASIA].
In the year 2020 the vision statement is
[BECOME A LEADER IN INTERGRATED LOGISTICS AND SHIPPING
BUISNESS IN ASIA AND MENA REGION].
By the year 2025 the vision statement is
[BECOME A GLOBAL LEADER IN INTERGRATED LOGISTICS AND
SHIPPING BUISNESS ACROSS THE WORLD]
Thereby the company wishes to improvise its service and service providers in
order to attain its vision statement by the end of the year 2025, establishing itself as
the global leader in the field of supply chain management.
The company also is working toward its fullest to cope up with the vision
statement that is established year after year by just indulging itself in serious
logistics activities and services
VALUE AND QUALITY POLICY OF ST JOHN FREIGHT SYSTEM

ST JOHN FREIGHT SYSTEM are committed to provide consistent cost effective


comprehensive logistics solution by imparting professional skills to all employees
of the organization and continuously improve our service to achieve customer

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delight.

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PRODUCT PROFILE
AIR FREIGHT DIVISION
ST JOHN is an IATA- approved, FIATA approved Air freight
service provider offering services from all major Indian metro cities as well as
minor airports.
A commitment and efficient team of professionals at ST JOHN has
developed a worldwide network of associates and an effective system to cater to
challenging customer.
OTHER FEATURES

DOOR TO DOOR SERVICES


NATIONWIDE SAME DAY OR OVERNIGHT PICKUPS
EXPRESS SERVICES
INSURANCE
TRACKING AND TRACING
END TO END SUPPLY CHAIN SOLUTIONS
WAREHOUSE AND DISTRIBUTION
AIR CHATTERING
SEA/AIR SERVICE

CONSOLIDATION/LCL SERVICE
LCL is today the main line of focus in freight forwarding
business, as mass markets move towards niche market of customized
fragmentation
NVOCC
NVOCC division is one of the fastest growth in the business.
Launched in 2008,the division acts in true NVOCC tradition like a carrier but
without operating the vessels ourselves.

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FEEDER OPERATOR
STJOHN has charted feeder vessels operating bi-weekly
sailings between Tuticorin and Columbo from January 2007. And weekly
sailing between Chennai and Columbo from 2009. In short period of operations
so far, ST JOHN is already a major market share player in both these sectors,
reflecting its long standing customer and liner relationships which have rubbed
of positively on its performance.

CHATERING AND AGENCY DIVISION


CHATERING AND AGENCY DIVISION is professionally managed by skilled
efficient and experienced personal controlling day to day activities from
corporate office.
CHA [CUSTOM HANDLING AGENTS]
A well dedicated strong team richly experienced is available
for handling all commodities. Wherever you are clearing the cargo from export
or import you will be hard pressed to find someone who can do it.
GENERAL WAREHOUSING
ST JOHN owns a general warehouse of its own. Whether
you need packaging all are made available through the general warehousing in
the company.

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PRODUCT PROFILE
LOGISTICS has been the core product of the ST JOHN
freight system. It has been dealing in logistics over the last few decades. In the
beginning ST JOHN first started its carrier from CNF which is otherwise called as
clearing and forwarding agent. Now it has been one of the largest company in the
supply chain management.
The product profile of ST JOHN consists of the following
AFD [AIR FREIGHT DIVISION]
It is a type of logistics done through air all the consignments
here are sent through air. There are an IATA air cargo agency and give you access
to the best deals in air freight shipments. Our qualified air cargo executives at all
the companies branches put the most viable airlines to carry your cargo at your
disposal. A sophisticated on line computerization network that is linked to every
major airline worldwide. The head of air freight division comes with vast
experience in the field to mastermind critical take offs and landing in this crucial
business. We offer door to door services both for inbound and outbound air
shipments, through our network of agents worldwide.
It has been divided into two types
IMPORT
EXPORT
SFD [SEA FREIGHT DIVISION]
It is a type of logistics done through sea, here all the
consignments are sent through sea. [VESSEL]. The SFD undertakes multi country
consolidation freight forwarding services in association with the well-established
and well reputed forwarders across the world. Rest assured that any transaction that
has to take place between the continents across the globe is just a phone call away.
The close monitoring of the container movements is possible through a
comprehensive and fully computerized network of offices in India and abroad that
work throughout together in close tandem for optimum efficiency.
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It has been further divided into two types


FCL [FULL CARGO LOAD]
LCL [LESS CARGO LOAD]
FCL [FULL CARGO LOAD]
It is also divided into two types
IMPORT
EXPORT
LCL [LESS CARGO LOAD]
It is also divided into two types
IMPORT
EXPORT
CNF [CLEARING AND FORWARDING AGENT]
ST JOHN first started its business with the clearing and
forwarding agent and then spread its business throughout.
WAREHOUSE HANDLING
The company has its own general warehouse at every place
where it has its branches. The company uses its own general warehouse for storing
its products.
BREAK BULK CARGO
The company is dealing with bulk products and it also deals with the break bulk
cargo.

VESSEL CHARTERING AND AGENCY DIVISION.

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The company also deals with vessel chartering it means


modifying the vessel according to the cargo requirements. All shipments are
controlled from booking stage until delivery stage by a single operations manager,
giving the customer a single point contact directly accountable for the success of
the job. Your transit time cost requirements and commodity will dictate the most
suitable methods.

Ability to ix vessels to and from world port destination


Complete synergy with associates shippers charterers owners and brokers
Dedicated single point contact for every customer
Control from centralized operation facility
Relay precise accurate shipment feedback.

ORGANISATION CLEARING AGENTS


The company also deals with the custom clearing agents.
HEAVY MACHINERY AND TRANSPORT DIVISION;
The company also offers a wide range of technical
expertise a bank of skilled manpower and a wealth of accumulated expertise and
experience.
The company is currently holding 45 TRAILERS with
prime movers, 18 CRANES, 13 FORK LIFT, 2 TOP LIFTERS AND 1 LOG
LOADER. The company has the following facilities which makes the company to
function in a efficient manner.

Thus these are the products the company is dealing with, these are the important
reasons behind the development of the company. The company is in the state of

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improvement in various fields rather than the current product it is dealing with.

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AREA OF OPERATION:
Currently ST.JOHN has 35 offices across the country dealing in supply chain
management

The following are the places where the company has established its branches

LUDIANA
AMRITSAR
DELHI
MORADABAD
KOLKATTA
AHMEDABAD
HALDIA
BHOPAL
INDORE
KANDLA
MUNDRA
HAZIRA
NAGPUR
PARADIP
MUMBAI
NASIK
PUNE
HYDRABAD
GUNTOOR
VISHAKAPATTINAM
KAKKINADA
BANGALORE

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KRISHNAPATTINAM
CHENNAI
TRIPUR
KARUR
MADURAI
GOA
KARAWAR
MANGALORE
COIMBATORE
KOCHI
TUTICORIN
These are the area of operation of the company which has led to
the increase in the popularity of the company in the upcoming years. The
company is still thinking to enhance its branches across the world for the
purpose of profit maximization and optimal use of available resources. The
company has maintained a good level of reputation in the branches
established so far.
The main vision of the company is to make its business flourish
all over the world and making it a leading company in the freight forwarder
business and establish a strong link in the field of supply chain management.
The company is working hard to make its vision come true and also
concentrating on giving its employees full satisfaction regarding the
company.
The company has its main headquarters situated on two main cities
which contributes a huge level of revenue in the field of logistics that is
TUTICORIN AND CHENNAI.
The company has established its business almost in all parts of
INDIA it has also spreaded its branches towards the important areas across
the globe it has vision to further improve its business across the various parts
of the globe in order to be listed as the top company in the field of supply
chain management and freight forwarding business across the world.

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WORK FLOW MODEL

THE WORK FLOW MODEL OF ST JOHN FREIGHT SYSTEM has been


described below,
The company has been working efficiently and effectively over the
last few decades it consists of the TEAM HEAD or the DISTRICT MANAGER
MR. CHAKRAPAANI he is in charge of the overall functions of the organization.
He deals with the sea freight division and the air freight division
Under the district manager comes the AIR FREIGHT MANAGER MR.SURESH
BABU. He is in charge of the total air freight division.
Under the AFD manager comes the operation departments. The
operation department head is MR.JOESEPH GANDHI. there is one more person in
charge of the operation department MR.RAJU these two persons are responsible
for the overall operation of the company.
The overall operation of the company has been handled by the 3
OPERATION MANAGERS of the company they are MR.SHANTHAKUMAR
MR.THOMAS MOAR AND MR.GANESAN.
These head operation managers are responsible for the
EXECUTIVE OPERATION AND EXECUTIVE DOCUMENTATION which is
controlled by MR.ASHKAR ALI AND MR.ARUN RAJA.
There is also another department called the documentation
department which is handled by MR.RAJESH AND MRS.DIWAKARI.
All these department finally are bounded to the ACCOUNTS
department.
This is the work flow model of ST.JOHN freight system. This flow model is an
important thing in the functioning of the organization.

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INFRASTRUCTURE FACILITIES;
ST john freight system the flag ship company has grown from a clearing and
forwarding agent into freight forwarder with much wider scope of responsibility
and range of services. It can today boast of being the leader in Total freight
management. It is committed to be providing excellence in freight forwarding and
value added services such as professionalized customer service multi model
operation, group page etc.
It has the following infrastructural facilities they are listed below;
CFS PARK of its own;
The company has CFS park is the first CFS in India to be certified to ISO 9002
Standards by BVQI ensuring continuity of quality. Our acres is 50 acres private
container freight station is one of the strengths as the company prepare for the next
phase of growth.
The company has a container parking area 135000 sq feet. Rapid
response engineering support is available.

FUMIGATION DIVISION;
As a part of diversification and with the view to provide all required
services for the vale added customer under one umbrella. The company under its
fold fumigation activities in 1988.Plant protection Quarantine and Storage
department.
Ministry of agriculture Government of India has approved the
company to be the PEST CONTROL OPERATOR to carry out fumigation of
import and export.

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The company has Godowns/ warehouses/ silos/flour mills/ empty ship


loads
It has stuffed and empty containers of export or import at port inland
container /container freight stations and at house stuffing points.
It has in transit fumigation commodities onboard barges etc
Termite control treatment during pre and post construction stage as per ISI
standards with guarantee
Rodent control and de rating of ships
Dis infestation of warehouse food plants and residual premises
General pest control services
Members of Australian environment pest managers association, National
pest management association
It is a member of all India biotech association and Indian pest control
Association.
HEAVY MACHINERY AND TRANSPORT DIVISION
The company is also holding the following under the heavy
machinery and transport division.

45 TRILERS WITH PRIME MOVERS


18 CRANES
13 FORK LIFTS TRUCKS
2 TOP LIFTERS
I LOG LOADER

AIR FREIGHT DIVISION;


The company is specialized in air import consolidation and
domestic movement. The company has the key to success in our activities is LEAN
MANAGEMENT. The company has a well sophisticated online computerized
network that is linked to every major airline worldwide.
SEA FRIEGHT DIVISION

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The company has a well-equipped sea freight division. the


company is continuing to review the terminal and inland partners emphasing on the
on time performance from its vendors. The company has well established and
reputed freight forwarders across the world.

A SEPARATE PROJECT DIVISION


The company has a spate project division at
1. JAN DE NUL Project, TUTICORIN
2. STERLITE PROJECT, TUTICORIN
3. ST.GOBIN IMPORT PROJECT, CHENNAI,INDIA

CONVIENIENT WORK CULTURE


The company has a convenient work culture which enables
the employees work in a most convenient manner. ST JOHN has been the leading
company in providing all types of infrastructural facilities to its employees
enabling them to work in a most efficient and effective manner.
A WELL ESTABLISHED AGENCY DIVISION
The company shipments are controlled from booking stage until
delivery by a single operation manager giving the customer a single point contact
delivery accountable for the success of the job. the transit time cost requirement
and commodity will dictate the most suitable methods.
These are the infrastructural facilities provided by the company
this in turn has made ST JOHN as the one of the most important company in
freight forwarding and shipping companies across the globe.

COMPETITORS INFORMATION

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ST JOHN has been the leading company in the FRIEGHT


FORWARDING business. The company has a much wider scope of responsibility
and range of services. It is one among the leading company in the TOTAL
FREIGHT MANAGEMENT. It is committed to provide excellence in freight
forwarding and value added services.
The company has associates all over the world. The goals of the
company are clearly defined. It has an impressive track record of over two decades
in the business. It has received the ISO 9001-2000 certification. It has an excellent
communication facilities aided by a fair degree of automation.
The reputation of the company has gained many competitors across the
globe the following are the competitors for the company they include;

ALL CARGO LOGISTICS


SHENKAR India
GLOBE LINK
TEAM GLOBAL
SYNERGY
EXPO FREIGHT
KHUENENAGAL
PANNEL PINA
GEODI LOGISTICS
These are the leading MNC s which is competing with the company
as the company has been improving in its business day by day. Out of all
these competitions still ST john has managed to stand as the leading
company in the FREIGHT FORWARDING, TIMBER HANDLING, CFS,
BREAK BULK CARGO HANDLING AND VESSEL CHATTERING.
These competitors are giving a tough competition for the company by
giving good offers for their services provided but still ST JOHN manage
itself in keeping itself as the best company in the field of supply chain
management and keeping up its reputation from the starting till now.

ACHIEVEMENTS AND AWARDS

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ST JOHN is a member of various associations and


network and registered with key organization that facilitate our service to
customers. Principle among these are;
IATA
International air transport association. The company is also
linked with the various international networks.
FIATA
Federation international des association de transitaires et
assimiles or international federation o freight forwarders association.
WCA
World cargo alliance. The company is also dealing with the
break bulk cargo and vessel chattering which is linked with the world
cargo associations.
IGLN
Inter global logistics network. The company has branches
across the globe as it has been dealing in business worldwide so it is
also dealing in inter global logistics network.
SCN
Security cargo network. The company has been dealing with
security cargo network
ACAAI
Air cargo agents association of India. The company has a separate air
freight division which is responsible for the consignments sent
through the air.
CONQUEROR
Conqueror freight network. The company is also linked
with the conqueror freight network.
CSCMP
Council of supply chain management professionals.
DNV

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Our quality management network has been certified by Det


norske veritas[DNV] or ISO 9001:2008 covering the services o
stuffing and de stuffing services for maritime freight containers,
fumigation services clearing and forwarding [custom broking] of air
and sea and bulk cargo.
CFS/ICD
The container freight station/ inland container depot at
TUTICORIN has been complimented by IKEA or implementing the
IKEA Way requirements.
FMC
The company is registered with the FMC the federal
maritime commission USA
MTO
The company has been registered as a MULTIMODEL
TRANSPORT OPERATOR with the government of India under the
Multimodal transportation of goods act.
CII
The company is also a member of various business organization
like confederation of Indian industry.

FICCI
The company is also the member of FEDERATION OF
INDIAN CHAMBERS OF COMMERCE AND INDUSTRY.
IACC
The company is also the member of INDO AUSTRALIAN
CHAMBER OF COMMERCE.

OWNERSHIP PATTERN;
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ST JOHN being proving itself as the best among the freight forwarders vessel
chattering break bulk cargo and many other divisions. The company has been
showering in the business of freight forwarding. The ownership pattern means the
pattern and distribution of ownership and use of land greatly affects the ability to
sustain natural resources. Management options resource demand and ecological
process are affected by how the land is managed fragmented and patterned.
Successful sustainable management depends upon the degree of functional
connectivity across ownerships boundaries and landscapes.
The ownership pattern of ST JOHN started as sole
proprietorship business it is also known as sole trader or sole proprietorship is an
incorporated business with a single owner who pays personal income tax on profits
earned from the business. With the little government regulation, the business is the
simplest of all business to set up or take apart making this business popular among
individual self-contractors consultants or small business owners.
Many sole proprietors do business under their own names
because creating a separate business or trade name isnt necessary. That is the
reason the company ST JOHN got its name from its CEO AND FOUNDER of the
company that is MR.JOHNSON.
The company has grown to be the leading company in the field
of logistics and has been the leading company in the field of supply chain
management. It is all because of the efforts taken by the owner of the company.
Thus the ownership pattern has been discussed above which
briefly explains how the ownership pattern affect the growth and improvement of
the company.

ORAGANISATIONAL HIERARCHY

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The organizational hierarchy chart of ST JOHN REIGHT SYSTEMS


LTD is categorized as follows;
The top of the organizational hierarchy chart comesthe MANAGING
DIRECTOR / BOARD OF DIRECTOR. He is responsible for the overall
functioning of the organization.
Under him there are two divisions that is the PRESIDENT LOGISTICS AND
PRESIDENT FINANCE. These two heads are responsible for the functioning of
their respective divisions.
Under the PRESIDENT LOGISTICS comes the DIVISIONAL HEAD. He is
responsible for the functioning of the various divisions.
Below the DIVISIONAL HEAD comes the REGIONAL HEAD. He is responsible
for the sales and other major operations of the organization.
Below the REGIONAL HEAD comes the BRANCH MANAGER. He is
responsible for the functioning of the particular branch.
And below all these heads comes the employees of the firm they are all responsible
for the smooth functioning of the organization
Under the PRESIDENT FINANCE comes the VICE PRESIDENT OF
FINANCE. He assists the main head in the finance activities.
Under him comes the DIVISIONAL GENERAL MANAGER [DGM]. He assists
the vice president in the finance activities.
Below him comes the MANAGERS OF FINANCE They are responsible for the
functioning of finance.
Below him comes the BRANCH INCHARGE /ACCOUNTANT. He is responsible
for the overall smooth functioning of the organization and the smooth flow of
money in the organization.
This the organization hierarchy carried on in all the branches of the organization of
ST JOHN FREIGHT SYSTEM LTD.

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ORGANISATION HIERARCHY OF BANGALORE BRANCH.


The overall operations have been carried by the DISTRICT
MANAGER and BRANCH MANAGER MR.CHAKRAPAANI.
Under him there are FOUR divisions

AIR FREIGHT DIVISION[AFD]


ASSISTANT MANAGER OF FINANCE
OPERATION DEPARTMENT
DOCUMENTATION DEPARTMENT

Under the AFDcomes the following incharge:


OPERATION MANAGER
DEPUTY MANAGER
SENIOR EXECUTIVE OPERATIONS.

Under the ASSISTANT MANAGER OF FINANCE comes the EXECUTIVE


OPERATION HEAD.

Under the DOCUMENTATION HEAD comes the SENIOR EXECUTIVE.

Thus these are the operation hierarchy at the branch of Bangalore of


ST JOHN company.

FUTURE GROWTH AND PROSPECTUS OF THE COMPANY

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The company has been one of the leading company


in the freight forwarding business and supply chain management. The company
aims to develop its business worldwide. Currently the company has some 35
branches across INDIA It also has global network across the world also dealing in
logistics business.
The sole aim of the company is to earn employee
satisfaction. The company works hard for the maintenance of its image among the
employees. The company aims to develop its business by 2025. The vision and
mission of the company will clearly explain about the future aim of the company
that it wanted its business to flourish all over the world.
The company mainly wants to develop its internal and
external environment to compete with its competitors within the country and global
network the company strives very hard for the success in the future period and in
the present condition. The company maintains its standards and its image and its
strive hard to maintain its image.
Therefore I conclude that the future of the company
mainly depend on increasing its resources and maintaining a good level of
reputation as it has maintained in the present situation giving its employees full
satisfaction and making them dedicated towards the work they perform. This
thereby increase the revenue of the company and make it as one among the top 10
companies in the upcoming years, thus this is the future growth and prospectus of
the company.

FUNCTIONAL DEPARTMENTS

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3.1: HUMAN RESOURCE DEPARTMENT

Generic Manager is responsible to maintain and enhances the organizations


human resources by planning, implementing, and evaluating employee relations

and human resources policies, programs, and practices.


He maintains the work structure by updating job requirements and job

descriptions for all positions.


Maintains organization staff by establishing a recruiting, testing, and

interviewing program.
Prepares employees for assignments by establishing and conducting orientation

and training programs.


Maintains a pay plan by conducting periodic pay surveys; scheduling and
conducting job evaluations; preparing pay budgets; monitoring and scheduling
individual pay actions; recommending, planning, and implementing pay

structure revisions.
Ensures planning, monitoring, and appraisal of employee work results by
training managers to coach and discipline employees, scheduling management
conferences with employees; hearing and resolving employee grievances;

counselling employees and supervisors.


Maintains employee benefits programs and informs employees of benefits by
studying and assessing benefit needs and trends; recommending benefit

programs to management, directing the processing of benefit claims.


Maintains management guidelines by preparing, updating, and recommending

human resource policies and procedures.


Maintains historical human resource records by designing a filing and retrieval

system; keeping past and current records.


Completes human resource operational requirements by scheduling and

assigning employees; following up on work results.


Maintains human resource staff by recruiting, selecting, orienting and training

employees.
Maintain human resource staff job results by counselling and disciplining

employees; planning, monitoring and appraising job results.


Contributes to team effort by accomplishing related results as needed.

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Develops human resource solutions by collecting and analysing information.


Improves manager and employee performance by identifying and clarifying
problems; evaluating potential solutions; implementing selected solution;
coaching and counselling managers and employees.

Workflow model of Human resources department

Recruitment

Selection

Placement

Induction

Maintenance

3.2: SALES DEPARTMENT


The main function of sales department is to effect
sales, to engage in a variety of activities with the objective to promote the client

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engagement of a service. The sales department of the firm is given a target every
month to be achieved, that means they are responsible to get clients for the firm.
A sales manager plays a key role in the success
and failure of an organization. He is the one who plays a pivotal role in achieving the
sales targets and eventually generates revenue for the organization.

The sales division takes the lead in setting strategies and decides what

marketing communications it needs to supports its efforts.


As sales managers spend much of their time talking directly to customers, they

guide the development of services.


They recommend modifying or dropping services or adding new ones to the

companys mix, based on what customers want.


A sales department has the responsibility for deciding where the company

should sell and what its prices should be.


To maintain its customer base, sales takes responsibility for making sure buyers

are happy, as well as trying to upsell them.


The division is proactive in contacting customers with services and is reactive in
attempting to solve any problems that might cause the company to lose

customers.
Listening to customer requirements and presenting appropriately to make a

sale.
Maintaining and developing relationships with existing customers in person and

via telephone calls and emails;


Cold calling to arrange meetings with potential customers to prospect for new

business
Responding to incoming email and phone enquiries.
Negotiating the terms of an agreement and closing sales.
Gathering market and client information.

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Workflow model of the sales department:

Sales order

Availability
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Decision making i.e.


Production

Invoicing (E-Sugam) records

Packing

Dispatch

L.R through SMS and mail

Delivery status
3.3: OPERATION DEPARTMENT
Operation management involves overseeing,
designing, controlling the process of service and redesigning business operations in
services.

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Operation management functions differ
depending upon the purpose of the organization. In a service setting would focus on
insuring that workers are adequately trained, that customer service locations are
equipped as needed and are safe for employees and the public, that services are
revised as dictated by client input or competitive forces.
Operation department must look for ways to
improve operational efficiency. Here, the department is responsible for all the matters of
the manpower outsourced.

Responsible to provide a good service to the clients.


Responsible to manage the human resources.
Responsible to deal with their day to day activities.
Responsible to solve their grievances.

Workflow model of Operation Department

Designing

Process flow chart


(Component wise)
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Jobcard
Executive workers
In-process
inspection
Executive workers

Assembly

Final inspection

Godown

3.4: FINANCE DEPARTMENT


The activities from a finance department cover a wide range from basic bookkeeping to
providing information to assisting managers in making strategic decisions.

Finance department will be responsible for all the day to day transitional

accounting for the business.


Responsible for management of the organizations cash flow and ensuring there
are enough funds available to meet the day to day payments.

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Responsible to prepare forecast on a regular basis to systematically calculate

the ongoing cash needs.


Controlling expenditures and obligations.
Receipting and depositing all revenues.
Managing the investments.
Internal and external reporting.
Informing the clients about the payment.

Workflow model of the finance department

Accounts

Purchase order

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Taxation

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Supplier/ Job worker

Goods received note

Outstanding (C-form)

Payment reminder
(SMS)

Incoming inspection
report

Sales tax filing

C-form issue/
collection

Receipt

C-form supplier
invoice

Processing

Payment

SMS
3.5: SUPPLY CHAIN MANAGEMENT
The end goal of any company is a satisfied customer. The process of locating, obtaining
and transporting the inputs needed to do this is the core function of supply chain
management.
Service firms typically have little need for physical inputs other than office supplies, and
often work with a much smaller group of suppliers.

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Here the supply chain management is responsible to maintain a stock of the materials
required in the service i.e uniform etc.

Defining business boundaries and relationships

The most important of these business boundaries relates to the decisions on


outsourcing. Refer to the roles played by supplier and buyers in each others business
decision and operational activities.

Managing demand and supply

Demand management is managing the demand for services along the supply chain.
The basic demand is the demand for the ultimate service from the end user. To meet
this demand of end user, different links in the supply service to the following link in the
chain.

Logistics

Logistics refer to all the processes involved in storing, moving, transporting or in any
other way handling material.

Purchasing

It acts as a link between the vendors and the company to get involvement and help of
vendors in matters like purchased material specification, matching of lot sizes.

MCKINSEY 7S MODEL
The McKinsey 7S Framework is a management model developed by well-known
business consultants Robert H. Waterman, Jr. and Tom Peters. The 7-S framework of
McKinsey is a Value Based Management (VBM) model that describes how one can
holistically and effectively organize a company. Together these factors determine the
way in which a corporation operates.

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The 7S model can be used in a wide variety of situations where an alignment
perspective is useful, for example to help you:
1

Improve the performance of a company.

Examine the likely effects of future changes within a company.

Align departments and processes during a merger or acquisition.

Determine how best to implement a proposed strategy.

The Seven Elements:


The McKinsey 7S model involves seven interdependent factors which are categorized
as either "hard" or "soft" elements:

Hard Elements

Soft Elements

Strategy

Shared Values

Structure

Skills

Systems

Style
Staff

"Hard" elements are easier to define or identify and management can directly influence
them. These are strategy statements; organization charts and reporting lines; and
formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less
tangible and more influenced by culture. However, these soft elements are as important
as the hard elements if the organization is going to be successful.
The way the model is presented below depicts the interdependency of the elements and
indicates how a change in one affects all the others.

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Figure 8

S1: STRUCTURE
Business needs to be organized in a specific form of shape that is generally referred to
as organizational structure. Organizations are structured in a variety of ways, dependent
on their objectives and culture. The structure of the company often dictates the way it
operates and performs. Traditionally, the businesses have been structured in a
hierarchical way with several divisions and departments, each responsible for a specific
task such as human resources management, production or marketing. Many layers of

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management controlled the operations, with each answerable to the upper layer
of management. Although this is still the most widely used organizational structure, the
recent trend is increasingly towards a flat structure where the work is done in teams of
specialists rather than fixed departments. The idea is to make the organization more
flexible and devolve the power by empowering the employees and eliminate the middle
management layers.
Being a reputed company; ST JOHN submits a yearly report of its activities to the head
of the company. It enjoys functional autonomy and its management is through a
Chairman and Managing Director (CMD) who works under a Board of Directors. The
Board is re-constituted every two years by the head of the company. The Board of
Directors is the highest governing body of ST JOHN. Chairman cum Managing Director
(CMD) is the Chief executive of the corporation.
The corporation has its headquarter in TUTICORIN. TUTICORIN headquarter has a big
establishment with well-defined divisions and departments. All the policy matters are
decided at the headquarter level and executed through field and branch offices. The
field stations and branch offices are spread in a large number of cities in India and
abroad. Under the Managing Director there are the Deputy Managing Director and a
host of Directors looking after various functions and departments. The company
maintained the reputation only due to this fact.

S2: STRATEGY
Strategy is the plan of action an organization prepares in response to, or anticipation of,
changes in its external environment. Strategy is differentiated by tactics or operational
actions by its nature of being premeditated, well thought through and often practically
rehearsed. It deals with essentially three question.
1) Where the organization is at this moment in time,
2) Where the organization wants to be in a particular length of time and
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3) How to get there.
Thus, strategy is designed to transform the firm from the present position to the new
position described by objectives, subject to constraints of the capabilities or the
potential.

WHERE ARE WE
NOW?

HOW DO WE GET
THERE?

WHERE DO WE
WANT TO BE?

Business Strategy of ST JOHN


A Multi-pronged approach
Capacity & Network Expansion to increase market share & garner competitive
strength
1

Achieve dominance in core markets (USA/UK/Gulf/SEA)

Increase market access through strategic alliances

Product Upgradation:
1

Deploy modern vessel and increase the revenue.

Operate customer friendly schedules with increased network connectivity

Operations Improvement to reduce unit costs through


1

Increased asset (vessel& manpower) productivity

Out-sourcing/hiring-off of non-core activities to subsidiaries

Technology upgradation

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4

Benchmarking & adoption of Best Practices

S3: SYSTEMS
Every organization has some systems or internal processes to support and implement
the strategy and run day-to-day affairs. For example, a company may follow a particular
process for recruitment. These processes are normally strictly followed and are
designed to achieve maximum effectiveness.
ST JOHN has been following a bureaucratic-style process model where most decisions
are taken at the higher management level and there are various and sometimes
unnecessary requirements for a specific decision to be taken.
1

TOP LEVEL MANAGEMENT: CMD

SENIOR LEVEL MANAGEMENT: Directors

MIDDLE LEVEL MANAGEMENT: Executive directors

LOW LEVEL MANAGEMENT: Managers

S4: STYLE
It includes the dominant values, beliefs and norms which develop over time and become
relatively enduring features of the organizational life. It also entails the way managers
interact with the employees and the way they spend their time. Culture remains an
important consideration in the implementation of any strategy in the organization.

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In ST JOHN decision making involves discussions among cross section of departments
and/or formal decisions by the Competent Authority on office notes in accordance with
the Instrument of delegation of Financial and Administrative powers.
In respect of decision making on day to day basis at the company, all the Duty
Officers/Station Managers take spot decisions in accordance with the Instrument of
delegation of Financial and Administrative powers and the established practices.

S5: SKILLS
Skills refer to the capabilities of the staff within the organization as a whole. The
employees of ST JOHN FREIGHT SYSTEM possess different skills which are relevant
for their work. They use both on the job and off the job training methods.
On the job training:
This kind of training is provided to specific employees like operators, engineers,
technicians, security personnel, commercial etc. The period of training depends upon
the nature of job.
Off the job training:
Under this method, employees are trained through lectures, written material etc. So the
employees can place their entire concentration in learning rather than spending time in
performing job.

S6: STAFF

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Organizations are made up of humans and it's the people who make the real difference
to the success of the organization in the increasingly knowledge-based society. The
importance of human resources has thus got the central position in the strategy of the
organization, away from the traditional model of capital and land.
ST JOHN has total staff strength of about 150000. The selection procedure includes
written test, group discussion and personal interview for non-technical jobs and
technical evaluation for technical jobs. The recruitments of job vacancies are made by
publishing advertisement in newspaper, employment newspaper, walk in etc.

S7: SHARED VALUES


All members of the organization share some common fundamental ideas or guiding
concepts around which the business is built. These values and common goals keep the
employees working towards a common destination as a coherent team and are
important to keep the team spirit alive.
1

Safety

Service

Excellence

Teamwork

Accountability

Social responsibility

FINANCE AND ACCOUNTS DEPARTMENT

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In ST JOHN the finance department basically handles the revenue which consists of
tickets, cargo and freight revenue, excess baggage etc. The basic thing that needs to
be maintained is that the sales account should be updated from time to time so that
actual revenue inflow and outflow is known. From this information funds can be diverted
from time to time.
One very important function of the finance department in john company is to arrange
finance for purchase or leasing of cargo. Apart from this department also handles
various functions of different sections like taking care of bad debts,payments of salary
andremittances of cash, transfer of funds, banking, insurance, payment of income tax
etc.

FUNCTIONS OF DEPARTMENT OF FINANCE AND ACCOUNTS


1

Billing & Realization of Revenue

Liaising with various cargo- domestic and international.

Dealing with Revenue Policies & Procedures

Cash Management including Investment of Funds

Compilation of yearly budget for Operational Revenue & Expenditure

Compilation of yearly budget for Capital Expenditure including projection of


funding through internal, budgetary and extra-budgetary resources.

Finalization of annual accounts of the airline

Servicing of loans from Domestic / Foreign sources

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SWOT ANALYSIS
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies
that will create a firm specific business model that will best align an organizations
resources and capabilities to the requirements of the environment in which the firm
operates. In other words, it is the foundation for evaluating the internal potential and
limitations and the probable/likely opportunities and threats from the external
environment. It views all positive and negative factors inside and outside the firm that
affect the success. A consistent study of the environment in which the firm operates
helps in forecasting/predicting the changing trends and also helps in including them in
the decision-making process of the organization.

STRENGHTS
What do we do well?

What unique resources


can we draw on?

WEAKNESS
What could we improve?
Where do we have fewer
resources than other?
What are the others likely to
see as weakness?

OPPORTUNITIES
What trends could we take
advantage of?
How can you turn your

THREATS
What trends could harm us?
What

threats

do

our

weaknesses expose us to?

strengths into opportunities?

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STRENGHTS
1

Strong financial Backing by the government of India.

Brand New VESSELS.

It is known for its unique and high quality advertising.

ST JOHN has its presence in many countries.

It covers approximately many destinations in India.

It has a good reputation in both international and domestic markets, quality


service and the age-old Goodwill that has still kept it alive in the interests of the
rescue operators.

WEAKNESSES
1

Labor Problems and political intervention is a cause of worry.

ST JOHN is operating across broad international and domestic markets


competing with world leading giant airlines as well as local small operators. This
lack of clarity on the strategic direction largely dilutes its capabilities and
confuses its brand within markets.

Financial crisis leading to payment issues of employees.

Underutilization of capacity and resources.

Growing Competitor base and entry of Low-Cost Carriers (LCCs).

Poor maintenance of flights.

OPPORTUNITIES
1

India shipping industry is growing faster and will continue to grow as the GDP
increases, and the trend is predicted to continue once the slowdown recedes.

Dedicated set of customers. Can leverage on brand new fleet.

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3

Expansion of routes and international destinations.

Solving internal issues regarding workforce can hugely boost image and
operations.

THREATS
1

Rising Labor Costs.

Rising Fuel Costs.

Losing Market share due to other carriers.

The other company has been established their supreme control and has been
offering special discounts to make themselves the leading companies in the field
of supply chain management.

LEARNING EXPERIENCE
I gained so much knowledge from this organization study in ST JOHN FREIGHT
SYSTEM LTD. It gave me an exposure to aviation industry. The employees and my
guide were very cooperative. They spent their valuable time in explaining and guiding
me throughout this study. This study will be very helpful in my career. During this
exposure my objectives of the study as mentioned under were successfully fulfilled.
1

I started my training under the guidance of Mr. JAI who gave me an insight of
how the organization works.

My study started with industry profile and company profile.

I studied HUMAN RESOURCE department and it helped me in understanding


the various sections under HUMMAN RESOURCE department and how it works.

The various functions and organization structure of Personnel department was


studied.

The nature and importance of all the departments in the organization was
studied.

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6

It gave me an understanding as to how organization operates.

I was given an opportunity to refer the organization records, where in I got to


know about the documentation procedures involved and gained a fair idea of the
functions in ST JOHN FREIGHT SYSTEM LTD.

Importance of different management functions such as planning, organizing and


staffing, directing and controlling was known which guide the organization in
facing stiff competition from competitors.

Importance of time management.

10

The theoretical aspects we learn in class room were implemented here like
recruitment process, training programs, human resource planning, performance
appraisal etc.

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FINDINGS
1

The financial resource is allocated properly by the company which is totally


utilized properly by the company.

There exists a good coordination and communication between different


departments and it is highly hierarchical.

Customer satisfaction is the main motto of ST JOHN limited.

ST JOHN has global presence.

ST JOHN lacks the competency in dealing with its fellow competitors; revenue of
the company has decreased to greater extent, ever since many private firms
entered the aviation industry.

The company believes in adopting latest technology.

There are multiple trade unions, now a days strikes have become very common
from the employees.

The company is under financial crisis from past 5 years.

Since the financial crisis arousesJOHN is not able to pay salaries to the
employees on time.

There is an increase in employeeturnover.

10

Since it is a government organization decision making is a very time consuming


process.

11

ST JOHN fall Par behind than its competitors in promotional and aggressive
marketing activities.

12

Promotions to the employees are based on seniority and experience, rather than
the efficiency and achievements of the employees.

13

Major Key designations are occupied by the aged personnel, so it lacks creative
ideas and thoughts to promote the organization.

14

ST JOHN is not using its resources in effective manner.

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15

There are more number of complaints regarding poor customer service and rude
staff.

16

Now a days the company is hiring lower level and middle level employees on the
contract basis.

17

There is more number of employees than required.

SUGGESTIONS

Introduce NEW VESSEL in key areas.


Induct capacities in areas that are left untapped.
To connect domestic & overseas stations.
To deploy its CONSIGNMENT more profitable on other routes.

Widen the domestic market by providing new fare scheme (competitive pricing).
IAL too separate its maintenance facilities into an independent business unit:The maintenance of ST JOHN is carried out at four major bases located at Delhi
Mumbai Calcutta & Hyderabad, however the facilities prefer by these bases are
not optimally utilized by the current Indian logistics.
It is therefore recommended that ST JOHN SYSTEM separates its maintenance
facilities into an independent business unit to take on repairs and maintenance
activities of other shipping.
This would then take in additional profit & optimum utilization of these bases. The
challenge would be to transform into a leading company in the field of supply
chain management.
To capture more international destinations ships, the grant of bilateral do continues &
subsequently bilateral to other countries would increase, thereby augmenting the
revenue generated from the profitable sectors.
Increase the frequency of consignments in a day to meet the demand. Effect should be
made to increase the current load factor through various marketing initiatives.

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Increase international consignments by developing a flow in the shipping industry:International consignments do not fall under the same regulatory constraints as
scheduled operation because typical bilateral treaties provide that consignment may be
flown between two countries without restriction by licensed authorities from each
country.ST JOHN is recommended to deploy a few additional flying hours to charter
flight services.

CONCLUSION

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ST JOHN is PRIVATE undertaking and works under the aviation industry. Its governing
body the board of directors is a fairly representative body having expert from divers
fields. It has sufficient number of ships and its operations are spread across many
countries, it does not only connect to cities but also the world. It covers all important
routes and run flights to all major destinations. Its finances have been managed fairly
successfully and have been making moderate profit.
The real contribution has been in generating revenue in the large scale in INDIA. ST
JOHN FREIGHT SYSTEM has a seperate Division to boost revenue and all efforts are
made in this regard. Due to the competitors company its shares of arrival of
consignments are affected, the performance or policies are not responsible for any kind
of decline. There is constant debate in INDIA to make this company as the leading
company in the freight forwarder business and to establish a supremacy of the company
in the field o supply chain management.

BIBLIOGRAPHY

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1
2
3

www.dgcv.gov.in
www.google.com
www.st john freight system.com

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