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WINTER INTERSHIP

SKYLINE BUSINESS SCHOOL

CUSTOMER SERVICE AND SATISFACTION

Submitted By

VISHAL GULERIA

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ACKNOWLEDGEMENT

I give my heartiest thanks to SKYLINE BUSINESS SCHOOL which provide me the opportunity
to work with BWI LOGISTICS PVT. LTD. I would like to express my regards and thanks
wholeheartedly to BWI LOGISTICS PVT. LTD. and Mr.Sandeep Rana HR Head of BWI
LOGISTICS for granting me an opportunity to do winter internship Project at their company and
simultaneously gain live industrial experience.

With a deep sense of gratitude and humble submission I would like to express my heartiest
gratefulness to Mr. V.B. Luthra (General Manager) for mentoring me and guiding me throughout
my project.

I also obliged to Mr.Sanjeev Kumar, Mr. Amit Sharma. Mr. Sukershan Chauhan, Mr.Yashpal, all
the staff members of Marketing Department of BWI logistics Pvt. Ltd.

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Thank you all.
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EXECUTIVE SUMMARY

Objectives of the Training

The primary objective of Winter Training is to gain through practical experience, a sound
appreciation and understanding of the theoretical principles learnt in two semesters of MBA.
Winter Training is oriented towards developing the skills, knowledge and attitudes needed to
make an effective start as a member of the Management profession.

• First and foremost objective is to gain knowledge about the different functions of the
Customer Service.
• Why is necessary for corporate world.

• To know about Logistics Industries

• To compare the effectiveness of logistics management at BWI and to benchmark the
organization with respect to the industry.
•

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To have a thorough understanding of how logistics and freight industries work.
• To know whether the customers are satisfied with the existing range of service pattern. 3
• To assist my mentor in day to day activities.
• Recognizing my responsibilities as a professional.
• Understanding real life situations in organizations and their related environments and
• Accelerating the learning process of how his / her knowledge could be used in a realistic
way.
• Understanding the formal and informal relationships in an organization.
• Continuous learning.
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• Understanding problems and providing unique solutions.

BWI Logistics Pvt. Ltd.Which shortly has known as BWI has been established in the year
2006, in the field of freight forwarding customs clearing to provide one time solution for cargo
handling. We have the staff of more than 15 years experience in the field.

BWI Logistics Pvt. Ltd. and Group Companies are being managed efficiently by a team of well
experienced and professionally qualified personnel in their respective fields of activity. The
management of company comprises of Directors and Managers who are having vast experience
in shipping and allied activities, cargo operations and general business management.

Group Companies

Blue World Impex

Company is having a long experience and good reputation in the field of custom clearance. The
company has been registered CHA License (GOVT. Of India). It caters to handling of Custom
clearance in all destinations in India.

BWI Logistics Pvt. Ltd

The company is handling both LCL / FCL consolidation for various worldwide destinations. It Page
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has own agency network all over the world to offer door to door service to its clients using
various hubs in Far East, Europe,
USA Middle East. The company can serve effectively efficiently to all the destinations round the
globe.
The company handles movements of domestic cargo by Air, Rail and Road throughout the
country. The company offers door to door services round the clock to all major cities like
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Mumbai, Ludhiana, Jaipur and Chandigarh Etc. The company is also engaged in Air freight
forwarding.

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TABLE OF CONTENTS

S.No Page No
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1 INTRODUCTION 6
2 OBSERVATION AND LEARNING 28
3 FINDINGS 49
4 RECOMMENDATIONS 52
5 CONCLUSION 53
6 BIBLIOGRAPHY 54
7 APPENDICES 55

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INTRODUCTION

BWI is handling both LCL / FCL consolidation for various worldwide destinations. It has own
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agency network all over the world to offer door to door service to its clients using various hubs
in Far East, Europe,
USA Middle East. The company can serve effectively efficiently to all the destinations round
the globe.
The company handles movements of domestic cargo by Air, Rail and Road throughout the
country. The company offers door to door services round the clock to all major cities like
Mumbai, Ludhiana, Jaipur and Chandigarh Etc. The company is also engaged in Air freight
forwarding.

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INTRODUCTION

I did training in BWI LOGISTICS in MARKETING DEPARTMENT.

The title of my training report is CUSTOMER SERVICE AND SATISFACTION.

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Customer service may be provided by a person (e.g., sales and service representative), or by
automated means called self-service. Examples of self service are Internet sites. However, In the
Internet era, a challenge has been to maintain and/or enhance the personal experience while
making use of the efficiencies of online commerce. "Online customers are literally invisible to
you (and you to them), so it's easy to shortchange them emotionally. But this lack of visual and
tactile presence makes it even more crucial to create a sense of personal, human-to-human
connection in the online arena.

Customer service is normally an integral part of a company’s customer value

preposition.”Customers have memories. They will remember you, whether you remember them
or not." Further, "customer trust can be destroyed at once by a major service problem, or it can
be undermined one day at a time, with a thousand small demonstrations of incompetence.

From the point of view of an overall sales process engineering effort, customer service plays an
important role in an organization's ability to generate income and revenue. From that
perspective, customer service should be included as part of an overall approach to systematic
improvement.

Some have argued[ that the quality and level of customer service has decreased in recent years,
and that this can be attributed to a lack of support or understanding at the executive and middle
management levels of a corporation and/or a customer service policy.

Thus a satisfy customer generates more customers in the future.

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LOGISTICS

Logistics is concerned with getting the products and services where they are needed when they
are desired. It is difficult to accomplish any marketing or manufacturing without logistical
support. It involves the integration of information, transportation, inventory, warehousing,
material handling, and packaging.
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The operating responsibility of logistics is the geographical repositioning of raw materials, work
in process, and finished inventories where required at the lowest cost possible

The formal definition of the word ‘logistics’ is: - it is the process of planning, implementing
and controlling the efficient, effective flow and storage of goods, services and related
information from the point of origin to the point of consumption for the purpose of
conforming to customer requirements.

INTEGRATED LOGISTICS

Logistics is viewed as the competency that links an enterprise with its customers and suppliers.
Information from and about customer’s flows through the enterprise in the form of sales activity,
forecasts and orders. As products and materials are procured, a value added inventory flow is
initiated that ultimately results in ownership transfer of finished products to customers. Thus the
process is viewed in terms of two inter-related efforts, inventory flow and information flow.

Inventory Flow Page

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Suppliers Physical Manufacturing Procurement

distribution support

Customers
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Information Flow

Inventory Flow

The management of logistics is concerned with the movement and storage of materials and
finished products. From the initial purchase of a material or component, the logistical process
adds value. By moving inventory when and where needed. Thus the material gains value at each
step.

For a large manufacturer, logistical operations may consist of thousands of movements, which
ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or
customer.

In order to understand logistics it is useful to divide it into three areas:

 Physical distribution

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 Manufacturing support
Thus a satisfy customer generates more customers in the future.
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BWI GROUP

BWI Logistics Pvt. Ltd.Which shortly has known

as BWI has been established in the year 2006, in the
field of freight forwarding customs clearing to provide
one time solution for cargo handling. We have the
staff of more than 15 years experience in the field.

BWI Logistics Pvt. Ltd. and Group Companies are

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being managed
11
efficiently by a
team of well
experienced
and
professionally
qualified
personnel in
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their respective fields of activity. The management of

company comprises of Directors and Managers who
are having vast experience in shipping and allied
activities, cargo operations and general business
management.

Business Activities

BWI Logistics Pvt. Ltd is in the business of Customs Clearance and in conjunction with group
companies can offer following activities:
Custom clearance of import and export shipment.
 Multi Modal Transport Operations
 Freight Forwarding
 Consolidation of sea & Air cargo (Exports/import)
 Warehousing facility for cargo
Co-ordination with various nodal agencies for expeditious movement of cargoes from ICDs
to gateway ports.
Group Companies

Blue World Impex

Company is having a long experience and good

reputation in the field of custom clearance. The
company has been registered CHA License (GOVT.
Of India). It caters to handling of Custom clearance in
all destinations in India.

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BWI Logistics Pvt. Ltd

The company is handling both LCL / FCL

consolidation for various worldwide
destinations. It has own agency network all over
the world to offer door to door service to its
clients using various hubs in Far East, Europe,
USA Middle East. The company can serve
effectively efficiently to all the destinations
round the globe.

The company handles movements of domestic

cargo by Air, Rail and Road throughout the
country. The company offers door to door
services round the clock to all major cities like
Mumbai, Ludhiana, Jaipur and Chandigarh Etc.
The company is also engaged in Air freight
forwarding.

Business Volume

BWI is handling FCLs LCLs comprising of a

range of commodities such as Garments, Brass
Artware, Handicrafts, Cotton Piece goods, Auto
parts, bicycles and parts, leather leather goods,
Footwear, Hand Tools, castings, forgings etc..

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BWI has maintained good relations with all its 13
customers by serving them in a professional
manner with an endeavor to render a high level
of quality service to them. Client retention
motto.
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Future Plans

The Group has future to open new offices in

Kolkata, Kandla and Jaipur to cater to the
needs of exporters importers at these
locations. This would assist the exporters /
importers to get cargo close to their door steps
and assist us in offering a true inter modal
service to them.

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COMPANY PROFILE
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A single-source-solution for freight management and transportation, BWI Logistics is ranked

amongst the leading customs house agents and freight forwarders. We are committed to provide
quality shipping & customs clearance solutions across the entire consignment life-cycle to our
customers in India and abroad. Our spectrum of BWI Logistic services includes Customs
Clearance, Transportation, Freight Forwarding, Domestic Door to Door Deliveries and other
Value Added Services. We also specialize in handling of LCL / FCL consolidations for
customers world-wide.

Our organization has achieved steady and continuous growth through hard work, commitment to
quality and customer satisfaction. Our professional work in symphony with the clients to offer
best logistic solutions for their specific needs. We have a country-wide presence with offices in
major cities like major cities like Mumbai, Ludhiana, Jaipur and Chandigarh and we handle
consignments by air, rail and road.

By simplifying logistic management, we provide door-to door-services for clients in different

parts of the globe like Far East, Europe, USA, Middle East etc. The entire work is executed with
utmost security and within stipulated time frame by our agency network. Our tailor made
services in the domain sets clients free from cumbersome administrative process, reduces costs
and minimizes the risk of loss or product damage. We adopt a flexible approach to meet the ever-
changing and growing needs of its customers and to remain at the forefront of the shipping and
customs clearance business.

BWI LOGISTICS Overall View:

3.1 Vision and Mission

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BWI Logistics: Best People. Best Processes. Best Value.
a. Vision 15
To become a leading freight, transportation, clearing and logistics company. To be the
recognized industry leader, through total commitment to customer service, by maintaining our
uncompromising integrity, in the support and development of our People, Communications and
Systems in sustained growth and profitability.

b. Mission
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To set the standard for excellence in global logistics through total commitment to quality in
people and customer service, with superior financial results. To solve reliable transportation and
logistics services to the needs of the business community. Reliable services means on-time
delivery, undamaged goods, and correct documentation in case of deviations. To perform
continuous business improvement in order to meet and exceed customer expectation, to create
sustainable business growth in order to enhance the prosperity of employee and benefit
shareholders.

Decisions can impact the success of the company as much as the performance of the supply
chain. No matter what industry or region of the world other organization do business in, the
supply chain is an integral part to the success as same as the products, the services, and the
people. In 2006, BWI was formed to build on the global distribution experience to help other
company’s lower distribution costs while improving customer service and brand loyalty.
BWI is a technology-based company providing customized solutions that transform distribution
to a source of competitive advantage. Main motive is to provide integrated solutions from
managing transportation, inventory, and distribution centers to sophisticated forecasting,
information management, and network consulting services. Today, BWI Logistics serves more
than 35 client companies, globally, in an array of different market sectors.
The organization mission is to provide best value, integrated freight and logistics solutions to
clients in time-sensitive, service-critical businesses. Organization tries to leverage and
continuously improve the capabilities. Our clients trust us and depend on our Best People and
Best Processes to help them succeed.
Today, BWI employ many professionals in their branch offices and in fields (Ports), dedicated to
helping freight, transportation, clearing, forwarding and logistics needs. Young, energetic,

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professional, and passionate: their humble beginnings, satisfying customer needs have been the
driving force behind every BWI Logistics employee. 16

BWI provide these services around globally and main focus to China and Indian markets
BWI focus on main areas they are:
a. Customer service to a higher level.
b. Partnering to seeking the right answers.
c. Finding solutions that optimize cost and service.
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d. And always asking, how can we serve you better?

e. Analyzing every opportunity, every challenge to provide a custom solution that works best for
customer.

Continuous Improvement in the Organization

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

Customers need solutions now. BWI Logistics get them on that moment.
With modern technology as the backbone of the solutions and service. Integrating systems
and providing real-time information to help reduce cost by moving the products of customers
to market as efficiently as possible. Organizations “Can Do” culture is rooted in customer

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service, flexibility and innovation. It’s been that way since the BWI Logistics organization 17
was launched over 4 years ago. Organization has got a rich tradition of redefining service for
the supply chain management, freight management and logistics industry. This commitment
to quality customer service led BWI Logistics to become the third-party logistics provider to
be certified by CHA as best system standards. Today, the Quality Management System not
only serves as the foundation of the on-going Continuous Improvement in day-to-day
procedures, it also serves as the cornerstone of the BWI Logistics. The process driven
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approach to problem-solving helps the organization exceed customers' expectations, as the

organization helps tackle service and cost issues within their supply chains.

Organization Structure

Organization is headed by Organization Head Mr. Bal raj Kumar, and all other employees report
to him. Firm comprises of 35 employees for internal works and 15 other in the team for activities
including freight forwarding, logistics, clearing and forwarding. Organization acts as a 3PL for
other firms on behalf of carry/ forward, logistics. Warehouse activities are being outsourced
based on the demand situations, as goods are being stocked in different warehouses, and is based
on the customer requirements.

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SERVICE - HIGHLIGHTS
With a vertical integration of activities and facilities, they facilitate our worldwide clients with
hassle free transportation and freight handling services. Their team of highly experienced staff
works closely with the clients and provide tailor made logistic solutions based on individual
needs. Further, they have liaison with the Customs, Port Trust, Shipping Companies, Airlines,

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Railways, Trade Bodies etc., so as to ensure quick and efficient forwarding and monitoring of
Export / Import delivery. Their spectrum of services includes the following:
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• Customs Clearance

• Road Transportation Services

• Air Freight Services

• Sea Freight Services

• Domestic Door to Door Delivery

• Special Services

Some of the highlights of our services are as follows:

• Round the clock pick up facility.

• Hassle free transportation of cargo, with complete customs clearance in hinterlands to

international air port.

• Transport of goods from port of discharge to hinterland destinations in conjunction with

their overseas partners.

OUR EXPERTISE

Leveraging on their decades of experience, they have developed core competency in customs
clearance with perfect knowledge of brokering, documentation and inland clearance. Their
professionals work in close coordination with clients to provide hassle free services within
stipulated time frame. They have built their expertise in the following areas:

• Customs clearance of import and export shipment

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• Multi Modal Transport Operations

• Freight Forwarding
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• Consolidation of sea & Air cargo (Exports/Import)

• Warehousing facility for cargo Freight

• Special Services

TEAM
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Driven by passion to excel, our experienced team executes every services with professional ease
and in a methodological and prompt manner. They are well acquainted with all the legal
formalities, documentation processes and rules & regulations of freight forwarding & customs
clearance. We also have a dedicated team of customer care, who work round the clock attending
all the queries of the clients.

INFRASTRUCTURE

We have well established infrastructure equipped with effective communication device and
experienced workforce. We utilize latest technologies to evaluate the position of vehicles and
transfer information, optimize route utilization, monitor the operation of means of transportation
and improve the overall level of safety & performance. This facility also enables us to track the
status of consignment in the process transit. In addition, these communication devices and
information system assist us in fast and smooth networking with our clients.

Apart from a well devised communication & traceability channel, we have strategically located
warehouses across locations for in-transit storage & to meet eventualities. All our warehouses
have effective WMS (warehouse management systems) that are integrated with our central office
for effective traceability and logistics management.

WIDE SPREAD NETWORK

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Our country wide network assist us in offering a true inter modal services with prompt delivery
consignment at the client's desired destination. We have our offices in all the major cities of the
country like Mumbai, Ludhiana, Jaipur, Chandigarh Kolkata, Kandla and Jaipur. The
harmonious mix of communication technology and wide spread network assures all-round
mobility and flexibility of the services.
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WHY BWI

Some of the attributes that provides us an edge over our competitors are as follows:

• CHA licensed Company

• Competitive Prices

• Timely Execution

• Wide spread network

• 24hrs & 365 Days Cargo Care

• Safe & Secure Cargo Handling

• Customer focused approach

SERVICES BWI OFFER

• Custom Clearance

• Road Transportation Services

• Air Freight Services

• Sea Freight Services

• Domestic Door to Door Delivery

• Special Services

CUSTOMS CLEARANCE

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BWI Logistic provides comprehensive customs clearance services for hassle free import and
export of consignments by sea, air and road. We also assist our clients in preparing documents
related to import and export, completion of appraisement and examination procedures and
payments. Our team of experienced professional swing into action to clear cargo the moment it
arrives, saving our customer’s time and money. After completion of all customs formalities &
documentations, we deliver the consignments at customer's desired destination.
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We as custom clearing agents in Delhi also have liaisons with regulatory agents, council to deal
with all types of cargo. Further, our customs agents have in-depth knowledge of clearance
regulations and procedures. The import customs clearance service and export customs clearance
service we offer include:

• Customs Documentation

• Carting / Receiving Goods

• Examination Of Shipment

• Handling of stuffing & de-stuffing at ports and customer warehouse

ROAD TRANSPORTATION SERVICES

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We provide effective and efficient road transport services for the delivery, dispatch & pick up of
goods. Our well maintained fleet of trucks ensures swift delivery of the consignments within the
specified time period. The loading and unloading is carefully done by trained workers with
various materials handling equipment. Our personalized approach and attention to details ensures
safe transit of the goods.

Our road transportation services comprises of the following:

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• Cargo pickup facility round the clock by our large fleet of trucks

• Transport of goods from port of discharge to hinterland destinations

• Door-to-Door delivery of cargo

• Transportation of goods from port of discharge to hinterland destinations

AIR FREIGHT SERVICES

Right from industrial goods to personal belongings, we can handle all air freight shipments in the
most professional, reliable and expeditious means possible. Our air freight services are ideally
suited for consignments requiring time-critical delivery. We providers of air freight forwarding
service and sea freight forwarding service in India, guarantee reliable air freight services with
our door-to-door service to major metropolitan areas around the globe.

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We select most appropriate carrier for the shipment taking into account the variations in
timetables and size & weight restrictions. This helps our customers to avoid unnecessary costs 24
and delays in shipping.
The highlights of our air freight services include the following:

• Door to door delivery to most worldwide locations

• Worldwide consolidation

• Option of carriers based on your cargo needs

• Project Works
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SEA FREIGHT SERVICES

We are known for freight forwarding in India, providing full array of streamlined sea freight
service, sea freight forwarding services including booking of cargo, arranging for pickup and
delivery, and managing the shipping documentation. With years of experience, we facilitate the
entire forwarding process according to the requirements of the import and export countries.

We can efficiently handle almost any size shipment, from less-than-container loads to full
container loads, special equipment and over sized cargo. We ensure efficient handling of the
cargoes by providing appropriate vessels and handling the related formalities. Our flexible
freight forwarding services are tailor made as per the timing, cargo size and equipment needs of
the clients.

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DOMESTIC DOOR TO DOOR DELIVERY

We offer domestic door-to-door delivery services for customers, who want to simplify logistics
management, reduce costs and minimize the risk of loss or product damage. Leveraging on our
extensive global network, we provide consolidation of international freight, air, ocean and
ground transportation, customs clearance and direct delivery at the desired destination within the
country.

The highlights of our Domestic Door-to-Door Delivery Services include:

• Domestic door to door delivery movement (by Rail/Air).

• Cargo Pick up & delivery round the clock

• Time bond guaranteed door delivery

• Warehousing and Distribution of cargo

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SPECIAL SERVICES

We offer a broad portfolio of specialized services to meet the various transportation and freight
needs of our clients. Being a professional logistic service provides, all our services are tailor
made to meet the specific requirements of the global customers. Our range of special services
includes the following:
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• SGS inspections

• Cargo insurance

• Carting & packaging

• Project handling

• Consultancy

• Warehousing

OFFICIAL WEBSITE

➢ www.bwilogistics.net
➢ www.bwilogistics.com

CLIENTS OF BWI LOGISTICS

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➢ IBM Gurgaon.
➢ IBM Delhi.
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➢ Delta Energy Systems.
➢ Jitender Sports (Toys).
➢ Creative Group.
➢ Sara International Group.
➢ Systemaire Group.
➢ Swan Alumnus.
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➢ Arihant Aluminum.
➢ SH exports Pvt. Ltd.
➢ DIC International.

➢ TGC Group.

TRAINING CERTIFICATE AND APPRAISAL CERTIFICATE

The training certificate and appraisal certificate is attached thereby with this report as a proof of
training.

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Objective of the Study:

• To compare the effectiveness of logistics management at BWI Logistics and to bench
mark the organization with respect to the industry.
• To have a thorough understanding of how logistics and freight industries work.
• To identify the drivers behind Logistics and Freight.
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Research Problem:
The need for the study was to assess the effectiveness of Logistics Management in the BWI
Logistics compared with other organization in the same industry. The organization also needs
relevant data as to how it can improve its management policies in order to gain future market
share.

Research Methodology:
The type of research is analytical.
Data regarding the division of logistics management such as Freight, Warehousing, Cross
docking, Network Design etc. in which BWI Logistics are at present in business were collected
from other similar firms in the industry. The indicators selected are ease of service, client
handling, customer service, website information, employee efficiency in general. Other
indicators for the freight and warehouse divisions are lead-time, inventory management, product
availability; time elapsed in transit, operating cost and customer satisfaction. The collected data
was analyzed and performance of BWI Logistics was 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.

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Sample Selection:

Convenience sampling is used for study

As I’ am interested here in getting an inexpensive approximation of the truth. Operations of
BWI Logistics LLC are mainly concentrated at large scale TUGLKABAD Port, DADRI Port,
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FARIDABAAD Port, PADPERGANJ Port, and LANI Port DELHI having its branch office in
ASHRAM.
POPULATION
The total numbers of logistics organizations in and around this port are 600 in number, which
constitutes the population.
SAMPLE
Similar, 100 organizations having major operations in the Freight and Logistics have been
selected as sample for the survey.
The selection was based on the sampling said above.

Method of Data Collection:

Primary Data: The major tool used was interview with managers and staff of the branch office,
questionnaire was developed focusing various aspect.
Secondary Data: Books of Logistics Management for literature reference, Internet Web Portals,
Websites of each firm, Company Brochures.

Statistical Tools:
➢ Percentage Analysis
➢ Bar Diagrams
➢ Pie Charts

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

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• The study was conducted in the DELHI area only aiming at the main NCR Centers and
confined to the freight division of the logistics management. 30
• Certain monetary values were not being filled by organizations.
• Due to organizations security reasons documents like Bills, Warehouse Bills, etc could
not be gained.
• Most of the questionnaire answers were filled over internet email facility; therefore
contact was through phone and emails.
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6. Data Analysis and Interpretation

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

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

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a) Which are the logistics services organizations offers?

Table -1 Service Offer
Sl. No. Service Percentage
1 Freight 100
2 Warehousing 89
3 Cross docking 88
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4 Network Design 66
5 Value Adding 98

Chart-1 Service Offer

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.

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

Table -2 Operate With Logistical Providers

Sr. No. Decisions Percentage

1 Operational Stability 11
2 Cost Effectiveness 10
3 Customer Needs 36
4 Other 96

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Chart-2 Operate With Logistical Providers
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The pie chart above shows the operational decisions and reasons for operations with other
logistical providers. The chart shows that 96% of the respondents operate with other service
providers for different reasons like coordination, clearance, bulk operations etc. Almost 36%
have operations with other providers as per customer needs. Only 11% and 10 % were
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providing service along with other providers for the purpose of operational stability and cost
effectiveness respectively. It is stated that 96% of organizations operate with other logistical
providers and remaining 4% as standalone.

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

Table-3 Mode of Decision

Sl. Operational Decision Percentage

No.
1 Strategic 37
2 Tactical 88
3 Operational 63

Chart-3 Mode of Decision

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.

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

Table-4 Best Activity

Sl. No. Service Percentage
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1 Freight 98
2 Warehousing 86
3 Cross docking 87
4 Network Design 4
5 Value Adding 97

Chart -4 Best Activity

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.

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

Table-5i Employees
Sl. Departments In Organizations Number of Percentage
No. People in Each
1 Top Management 452 11

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2 Operations 468 11
3 Accounts / Finance 451 11 34
4 Marketing 517 13
5 Human Resource 371 09
6 Documentation /Others 1847 45

Table- 5ii Employees in BWI

Sl. BWI DEPARTMENTS Number of Percentage
No. People
1 Top Management 3 14
2 Operations 4 18
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3 Accounts / Finance 4 18
4 Marketing 3 14
5 Human Resource 0 0
6 Documentation /Others 8 36

Table-5iii Employees % of both.

Doc
Top ume
Operati Acc./Fin Marketi
Manag HR ntati
ons ance ng
ement on/O
ther
BWI
Employees
Percentage 14 18 18 14 0 36
Other
Organization
Employees % 11 11 11 13 9 45

Page
The line charts above shows the comparison of employees in each functional division of 35
organization with BWI Logistics. The line chart shows around 14 percentages of people belong
to top management and industry standards has 11 percent, followed by 18% for operations and
industry standards has 11%. Human Resource has to be enhanced and need to be further
improved or need to start in the organization. Documentation also needs to be further
strengthened. Marketing comprises of 14% working in the said area. Most of the organizations
have a mixture of top management with marketing in their activities and functional area. Human
Resource comprises of 371 people and other main area is documentation and workers in the
 36

areas of loading, operational area. This comprises of only 36% and industry standards are of
45%.

f) What are the locations to which the company caters to?

Table- 6i Catering Locations

Sl. No. Catering Locations Percentage
1 Asia 100
2 Europe 6
3 USA 89
4 Australia 86
5 Africa 71
6 Russia 98
7 Middle East 98
8 Other 90

Table – 6ii Catering Locations

Asia Europ USA Australi Africa Russia ME Othe
e a r
BWI 100 0 100 100 0 100 100 100
Other

Page
Organization
s 100 6 89 86 71 98 98 90 36

Chart- 6i Catering Locations

 37

Chart – 6ii Catering Locations

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37
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 BWI Freight and
 38

Logistics can enter European markets and other favorable market is Africa. This can be looked
into very seriously in future business.

Which division of logistical activity earns the maximum rate of profit for each organization
on a scale of 1-10 and overall profit of each organization?

Table-7i -Maximum Rate of Profit (BWI Compared with Industry Average)

Profit Scale (1 - 10) Freight Wareho Cross Network Othe
using docking Design r
BWI Profit Scale 9 4 5 0 6
Industrial Profit Average 7 6.41 5 5 6

Chart-7i - Maximum Rate of Profit

Page
38

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

BWI Industry Standards
Profit Level in Percentage 13 15.39
 39

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

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 BWI has ample amount of profit in Freight area followed by Cross docking and other
value adding activities with 9 and 6 in scale. The chart 7i shows industry average value is 7 for
freight followed by 6.41 for warehousing. It is inferred that freight is giving ample amount of
profit and Cross-Docking, Other including labeling and packaging has industry standards. The
chart 7ii shows profit percentages said by each organization. We can infer that overall profit
percentage for BWI has 2.39 percentages lesser compared to industry average. The organization
should implement more strategies to reach industry mark.

g) Comparison of service offered BWI and rating of other organization in the industry
on a scale of 0- 4.

Table-8 Service Comparison (Scale 0-4)

Ease of Client Customer Website Employee

Page
Service Handling Service Efficiency
BWI 3 4 4 2 3 39
Industry Average 3.84 3.76 3.82 3.29 3.83

Chart-8 Service Comparison

The chart shows Ease of Service is not up to the mark, it shows only 3 for BWI and the
industry standards is 3.84. So organization can increase their Ease of Service. Client handling
 40

is satisfactory compared with industry standards. Customer service also has remarkable value
compared with industry. Major area to look into is Website easiness, Employee Efficiency. It
can be brought up with a considerable effort by proper handling of human activities by
Human Resource Department.

h) What is the significant lead-time for each service rendered with previous years data
of each organization?

Table – 9ii Lead Time in Days

Freight Warehou Cross Network Other
LEAD TIME IN
LT sing LT docking Design LT LT
DAYS(LT)
LT
BWI 21 20 30 0 21
Industry Average 23 22 24 10 24

Chart – 9ii Lead Time in Days

The above chart shows the service executed last year in logistics area and the significant lead-
time 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.

Page
Organizations lead-time is excellent except for Cross docking. Focus should be to reduce lead-
time and increase more service. 40

i) Average elapsed time between order receiving and delivery of the service (Inventory).
Table-11 Elapsed Time
 41

BWI Industry Standards

Elapsed Time 3 6.9

Chart- 11 Elapsed Time

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

j) Were there any shortage/ excess of stocks noted, in the last verification done?

Table -12i Inventory Shortage

BWI Industry
Inventory Short 12 19.8

Chart-12i Inventory Shortage Page

41

Table- 12ii Inventory Excess

BWI Industry
Inventory Excess 0 4.8

Chart-12i Inventory Excess

 42

The above charts show the Inventory Excess and Shortage faced by organization during
verification. It is evident that shortage faced by BWI is less compared to industry standards;
there is a difference of 8. Another aspect is regarding the excess of inventory; in this scenario,
BWI has a remarkable lead with comparison to industry.

k) Average number of customer complaints generated and industry average.

Table- 14 Complaints (BWI with Industry Average)

BWI Industry Average

Complaints Generated Last 290 179.71
Year

Chart – 14 Complaints (BWI with Industry Average)

The above chart shows average number of complaints. The complaints for BWI is 290 and
whereas to industry average is around 180 in number. Hence organization should try to reduce

Page
the complaints arising. This can be achieved by increasing new modern methods and facilities to 42
customers. Organization need to heavily focus onto the issue to reduce number of complaints
arising in operations, customer satisfaction and other similar areas.

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

Table-15 Customer Retention
Sl. No. Service Rating
 43

1 Customer Complaints given preference 100

2 Phone 100
3 Service Intimation 100
4 Gifts 3
5 Email 100
6 Fax 11
7 Other 100

Chart-15 Customer Retention

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

m) 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- 16 Proper System

S No. Service Rating

Page
1 Proper System 100
43
2 Customer Know 100
3 Contact Whom 94
4 Customer Feedback 88
5 Customer Suggestion 83

Chart-16 Proper System

 44

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.

Findings and Suggestions

Customer feedback and customer suggestion is having rating of 88 and 83 respectively.

Findings

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

ii) Pricing of service is satisfactory, which organization can further enhance with proper

Page
management. Present employee strength is satisfactory compared to other
organization but more focus should be made to documentation areas where the firm 44
has lesser employees compared to other organizations.

iii) Network Design is an area that the organization should not start immediately due to
low rate of returns is recorded as the industrial average. Design of new warehouse
areas and proper allocation of work with more sophisticated software facility can be
done through outsourced way during implementation.
 45

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

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

vi) Rearrangement of employees may be a better solution. Downsizing of personnel in

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

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

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

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

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

x) It is observed that most of the organizations operate with other logistical providers. Page
45
96% of organizations are doing it and remaining 4% organizations stays independent.
It is inferred that for efficient logistical activity, support from other organizations is
essential.

xi) Tactical decisions are mostly followed by organizations followed by operational and
a few strategically.
 46

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

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

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

xv) Commenting on ease of service, website and employee efficiency, the organization
needs to further improve.

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

xvii) From the observation 89 organizations have inventory verification. The lowest

Page
observed days for elapsed time BWI are 3 days and industry standards with 6.9 days.
Hence it is a remarkable value for BWI. 46
xviii) In the sample taken only a few organizations has inventory short and excess. Values
are 119 and 29 for shortage and excess. BWI had shortage, but no excess in inventory
and while comparing with industry BWI have remarkable value.
 47

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

Suggestions and Recommendations

i) Organization can further strenghten the employee strength in the documentation

department. This can lead to further rapidity for operations.

ii) Organization can initiate Human Resource Department to further enhance

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

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

iv) Operations with other logistical providers need to be enhanced further for
operational effectiveness, more focus should be given to customer delight and cost
effectiveness.

Page
v) Quality of service can be further enhanced to increase customer delight.
47
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
 48

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

viii) BWI can focus to African regions for freight handling, as from the data the potential
market is high for those regions.

Conclusion
The universe everyday is witnessing unimaginable growth in majority of the industries. The
logistics and freight industry is one such industry that is rapidly growing. Worldwide logistics
industry is distinguished by fast technological advances and is growing rapidly than most other
industries over the past years. With stiff competition around, the company is likely to reduce the
profitability but with proper management of operations and by proper customer desired services
and also effectively utilizing its alliances it can maintain and improve the performance. Joint
operational ventures for developing the customized services for its steady growth. The
organization has enormous opportunities to grow beyond the expectations.

BWI has come a long way from being just a service provider. The organization now has the

Page
value of being an ultimate service provider for Freight, Transportation, Cross-docking and Value
Adding as per customer needs. The present scenario and the future of the organization with 48
regard to the management are satisfactory. The organization can increase the market share by
improving with more state of art technology. The organization can diversify into related other
business areas like Warehouses for lease to other organizations, state of art technology providers
for other organizations. More importance is to be given for HR development by having a
separate department for it. With the development of such a department, several favorable impacts
such as increase in output per employee, increased loyalty, team spirit etc can be generated.
 49

As far as BWI is concerned it can be stated that through its excellent service and aggressive
logistics service, organization has shown a noticeable increase in the market share. However,
there are some areas where the company is not at the top-most position but it can certainly gear

up in the near future and is committed to acquire that spot. On implementation of the above
recommendations, the management can lead BWI to the top most position when bench marked in
the coming years.

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

Websites:
I. Source: http://www.idsc.com.sg/images/service_logistics_img1.jpg
a. http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
b. http://www.lintasfreight.com/
c. http://www.bwilogistics.net
d. www.wikipedia.org

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49
Annexure

LOGISTICS SURVEY
-------------------------------------------------------------------------------------------------------------
 50

Details of the Organization

Name: ___________________________________________________

Location: _________________________________________________

How long are you there in Business? _____________________Years _______________

--------------------------------------------------------------------------------------------------------------------
-

1. a) Which are the various Logistics Services you offer?

Freight Warehousing Cross docking ð

Network Design Other Value Adding Services if any

2. Number of employees in each type of the service rendered

S Divisions / Number of Employees in your various Total

l. logistics division
N Functional area
o. Freight Wareho Network Cross Other
using Design docking

1 Top Management

2 Operations

3 Accounts/Finance

4 Marketing/Sales

5 Human Resources

Page
6 Others if any 50

3. Which is the area of activity; you feel you are the best?
 51

Freight Warehousing Cross docking ð

Network Design Other Value Adding Services if any

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

RATE THEM ON SCALE OF 10

(Best 10 Average 5 Worst 0)

Freight
Warehousing
Cross docking

Network Design

Any Other
(specify)___________

5. a) What are the locations to which your company caters to?

I) Asia ii) Europe iii) USA IV) Australia v) Africa VI) Russia
vii) Within Middle East only viii) State if any other locational specialization
___________________________________
___________________________________

Page
51
b) Please rate the service offered by your organization

Excellent Good Fair Poor Very Poor

Ease of Service
 52

Client handling

Customer Service

Website Information

Employee Efficiency

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

I)Number of ii.) Number of transport

Service Executed orders that have been
in last year (2009) executed, such that the
delivery is on time as
Service per the agreed lead
time?

Freight
Warehousing
Cross docking
Network Design
Value Adding
Note: Kindly mention the answers with last year’s data (2009) from questions 10 to 12.

Page
10. Inventory
a) What is the average elapsed time between the time of receiving order from the
52
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

ii) Were there any shortage / excess of stocks noted, in the last verification
done?
 53

No shortage / excess of stocks noted

Shortage of stocks noted

Excess of stocks noted

11. Customer Satisfaction

a) Is customer complaints given preference in organization:

Yes / No

b) How your organization follow up to retain the customers

(Put Number 1 on desired column)

No. Method Number

1 Phone Call

2 New Service Intimation to Customers

3 Gifts

4 Email

5 Fax

6 Other methods if any ________________

c) What is the total number of customer complaints received in each division last year?

Page
______________Number
53
d) Do you have a proper system of handling customer complaints?
Yes / No

e) 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
 54

f) What is the number of customers you had business last year?

_________________ Numbers

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

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

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54