INTRODUCTION

Established in 1985 the year when it all began at Gurgaon (Haryana) in India.
Indorub Industries has come a long way since it?s inception when for the first
time it started manufacturing hoses. Initially we were manufacturing low and
medium Pressure Hoses (Textile Braided) for Industrial applications and this
was our main product line for many years. In the late 94?s, we entered into
manufacturing of High pressure hoses (Wire Braided) for the first time and
have started exporting more than 70% its production globally to South
America, Europe, Middle East & the Asian countries. Since then Indorub
Industries has never looked behind. Indorub Industries is committed to the
design, manufacture and distribution of reinforced rubber hoses has embarked
on a voyage of innovation and discovery continuously upgrading its products
to keep pace with the international standards and specifications, to DIN, EN,
SAE, IS & BS specifications for conveying fluids in hydraulic systems at low,
medium and high pressure for the fluid power industry. These hoses are used
in high-pressure hydraulic circuits in industries such as earthmoving,
construction, mining, marine, Railways, Agriculture, transportation and
injection moulding. Indorub Industries quality management system is ISO
9001-2000 certified by DNV, gives further evidence of the company?s
commitment to quality. We have started one more hose manufacturing plant
at our new location at Gurgaon to fulfill increased export demand as well as
to cater Indian market. At this location, we commenced manufacture of long
length hoses on Flexible Nylon Mandrels to increase our capacity. Our new
High-Speed Extrusion line is a completely automated line, which has a
3.1/2?Cold Feed Extruder with Four Zone Temperature Control System. The
Laser Control System carries out the dimensional control of the rubber
extrusion. This line also has the appropriate Let Off, Caterpillars, Cooling
Trough as well as Haul On Systems. The wire bobbin winders (Magnatech
BW ?5 & BW ?7) are for the winding of multiple ends of wire simultaneously
on to a single bobbin. The braiding of the hose is done by Magnatech RB ?2
Braiders imported from USA & Wardwell Braiders imported from Germany
and these are the most modern machines of its kind anywhere in the world.
Our new facility also includes a High Speed Concentric Wrap & Unwrap
Machine, which is capable of wrapping Nylon Tape over the hose at
extremely high tensions thus producing an extremely well consolidated hose
with excellent bonding. Beside this, our plant is also equipped with latest
High Pressure Eject & Test Systems. With all these equipments in place, we
would like to assure you that you would get a hose that is comparable with the
best in the world and far superior to any other hose being manufactured in this
part of the world. We also have fully equipped Laboratory (R&D), which has
most of the required machines including Rheometer to test the quality of each
batch of Rubber manufactured by us. We are confident that you will find the
hoses that are being manufactured by us are far superior in performance when
compared to the hoses supplied by almost all other suppliers. This is because
of the fact that we have in place and in operation equipments, process,
systems that are amongst the finest in this part of the world. We are confident
that you will agree that having all of these are vital components, essential
towards the production of a world-class product.
 INDUSTRIAL HOSES

We manufacture a supreme quality range of Industrial Hoses, which are used

in different industrial applications such as suction, petrol pump, steam,
cement grouting, water delivery, breweries, oil suction and discharge and
chemicals. These products are manufactured using superb quality raw
materials and are available in different specifications. Range of our industrial
hoses includes Rubber Multipurpose Chemical Hose, Rubber Oil Suction/
Discharge Road/ Rail Oil Decanting Hose, Rubber Cement Grounting Hose,
Rubber Steam Hose, Rubber Heat Resistant Carbon Free/ Cable Coolant
Hose/ Asbestos Covered Furnace Coolant Hose and many more.
 Rubber Oil Suction/ Discharge Road/ Rail Oil Decanting Hose

Product Description:
We are engaged in manufacturing a fine quality range of rubber oil suction/
discharge road/ rail oil decanting hose, which are used with the petroleum and
blended products. These products are manufactured using high grade raw
materials and are used in different industries such as steel, construction and
glass work. Our products are widely appreciated for their resistant to oil and
are available in compact designs. These products are available with various
quality features that are:
Different sizes
High performance
Dimensional accuracy
 Rubber Multipurpose Chemical Hose

Product Description:
With rich industrial experience, we manufacture a wide range of rubber
multipurpose chemical hoses, which are manufactured using synthetic or
natural rubber and are available in black and white colors. These products are
widely known for their chemical resistance and we offer these products in
different sizes and shapes. Our products are seamless and are available in
custom made designs and we offer all these products at industry leading
prices. Thus, these products are having various technical specifications that
are:
Reinforcement:
Textile reinforcement impregnated with rubber in suitable number or plies
synthetic fibre
Cover:
Rubber Cover resistant to chemicals
Temperature Range:
-40f. to +250f
Length:
New Wrap finish flexible mendral built rayon braided hoses in long up to 38
mm Size (Chemicals resistant guide attached with this catalogue).
 RUBBER CEMENT GROUNTING HOSE

Our clients can avail from us a premium quality range of rubber cement
grounting hoses, which are used for delivery of different kinds mixtures and
concrete during the manufacturing process. These products are manufactured
according to the international quality standards and are available with
customized solutions. Our products are checked by using different quality
control systems and are available at most competitive prices. We offer all
these products in various technical specifications that are:

Features:
Long Lasting
Reliability
Efficiency
 RUBBER STEAM HOSE

We manufacture a vast range of rubber steam hoses, which are used in

different industries such as refineries, shipping, food plants and lumber. These
products are basically used to transfer the hot water in a safe and secure
manner and are also used for industrial cleaning. Our products are
manufactured using excellent quality rubber and these products are the
pressure of these hoses is four times and higher than the working pressure.
Further, we offer these products in a cost effective manner to our valuable
clients.

Features:
Heat Resistance
Excellent performance
Highly durable
ASBESTOS COVERED FURNACE COOLANT HOSE

Rubber heat resistant carbon free/ cable / coolant hose/ asbestos covered
furnace coolant hose Backed by in depth expertise, we manufacture a huge
range of rubber heat resistant carbon free/ cable coolant hose/ asbestos
covered furnace coolant hoses, which are available in standard as well as
customized designs. These products are highly suitable for heat equipments
and are used in various applications such as power cables, electrical furnaces
and in glass works. We offer our products for various steel industries and
these are fabricated using latest technologies.

Features:
Smooth
Non-conductive
Weather Resistance
Abrasion Resistance
 RUBBER WELDING HOSE

We are specialized in manufacturing a large assortment of rubber welding

hoses, which are used in various industries that include engineering, steel,
power and construction industries. These products are also used for ship yards
and are manufactured using high class rubber using advanced technologies.
Our products are used with the gas cutting as well as welding and are also
available in different working pressure and proof pressure. Thus, we offer all
these products according to the clients desired demand.

Features:
Cloth mark finishes
Resistant to the fuel gases and oxygen
Available in red and blue color
RUBBER WATER SUCTION HOSE(LIGHT DUTY)

Being a quality oriented organization; we manufacture a superior quality

range of rubber water suction hose (light duty), which are used in extremely
low pressure. These products are basically used in the suction of water and
find applications in irrigation, agriculture, watering operation and dam
projects. We offer all these products in customized specifications and length
as per the clients specific need. Our products are also used in the fuel oil and
high pressure fuel lines.

Features:
Light Weighted
Crush proof
Extremely Flexible
 RUBBER DOUBLE ARMOURED WATER SUCTION &
DISHCHARGE HOSE

We manufacture a rich range of rubber double armoured water suction &

discharge hose (heavy duty), which are used to transfer the concrete,
chemicals, fly ash, cement, phosphoric acid ,oils, mud and slurry. These
products are easily available with as well as without end connection and we
manufacture our products using state of art technologies. Our products are
available in various sizes and shapes and we offer these products as per the
industrial standards. These are also used for heavy duty applications.

Features:
Heavy Duty
Less Maintenance
Easy to use
 RUBBER BREWERY AND FOOD GRADE HOSE

Our skilled professionals, we manufacture a qualitative range of rubber

brewery and food grade hoses, which are used in various industries. These
products are manufactured using high quality rubber according to the global
quality norms and we offer these products in various specifications in terms
of shapes, sizes and models. Our products are easily available in the market at
market leading prices. Further, we offer these products with various quality
characteristics that are:

Features:
High efficiency
Excellent quality
Smooth finishes
Abrasion resistance
 RUBBER MULTI WATER DELIVERY HOSE

We are involved in manufacturing a comprehensive range of rubber multi

purpose water delivery hoses, which are used for delivering the water. These
products are widely known for their weather resistance and we offer these
products in various lengths. Our products are available with customized
services and these products are also available at most competitive prices to
our esteemed clients. We manufacture these products using high class rubber
to ensure durability and these products are easily available in the market.

Features:
Long Lasting
Custom made designs
Easy to use
 RUBBER HOT WATER HOSE

As a renowned manufacturer, we offer a competitive range of rubber hot

water hoses, which are used in diverse industries. These products are steel,
power, construction and repair yards and are fabricated as per the industrial
standards. Our products are widely known for their compact designs and these
products are available in varied specifications. We offer these products at
affordable prices and these products are available with various cutting edge
features that are given below:

Features:
High flexibility
Smooth interior
Kink proof
 ROCK DRILL HOSE

We manufacture an exclusive range of rubber air, pneumatic tool, rock drill

hoses, which are widely famous for their seamless nature. These products are
manufactured using advanced technologies and are used in different industrial
applications such as irrigation dams, compressors, road construction sites and
mines. Our products are available in various different colors including red,
blue and black and we offer these products as per the clients bulk
requirements. We offer these products in various specifications in terms of
shapes, sizes and designs.

Features:
Excellent finishes
Customization
Weather resistance
 RUBBER SAND/SHOT BLAST HOSE

With the help of our dedicated professionals, we offer an excellent quality

range of rubber sand/ shot blast hoses. These products are used for the shot
and sand blasting systems and these products are widely known for their
durability. Our products are available with customized services and these
products are also used in the construction industries. We offer these products
in a reliable and cost effective manner and make enable us complete clients
satisfaction.

Features:
Durability
Abrasion resistance
Rigidness
Introduction
1. INTRODUCTION

As part of curriculum of the Graduate Degree in Foreign Trade course at Sinhagad College
of Science & Commerce, students are required to do a project in any reputed organization.
For this reason, I did my project research in Lintas Freight & Logistics LLC, Mumbai. The
project work was titled Effectiveness of Logistics Management in Mumbai and to
suggest ways and means to improve the management strategic decisions.

1.1 OBJECTIVE OF THE STUDY

The objectives of the Project are:

To know about Logistics Industries

To compare the effectiveness of logistics management at Lintas Freight and
Logistics and to benchmark the organization with respect to the industry.
To have a thorough understanding of how logistics and freight industries work.
To know whether the customers are satisfied with the existing range of service
pattern.
1.2 METHODOLOGY OF THE STUDY

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

1.3 SCOPE OF THE STUDY:

The scope of the study is confined to Dubai Ports (Al Hamriya Port) and nearby
organizations of Lintas Freight & Logistics LLC, which are into the concerned industry.
The study is done only on industries dealing with Freight and Logistics in Dubai area.

a. Introduction to Logistics Management

Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet
customers' requirements. A professional working in the field of logistics management is
called a logistician.

Logistics as a business concept evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one's business with materials and shipping out products
in an increasingly globalized supply chain, calling for experts in the field who are called
Supply Chain Logisticians. This can be defined as having the right item in the right
quantity at the right time at the right place for the right price and it is the science of process
having its presence in all sectors of the industry. The goal of logistics work is to manage
the fruition of project life cycles, supply chains and resultant efficiencies.
b. Origin and Definition of Logistics:

The term "logistics" originates from the ancient Greek "" ("logos""ratio, word,
calculation, reason, speech, oration"). Logistics is considered to have originated in the
military's need to supply themselves with arms, ammunition and rations as they moved
from their base to a forward position. In ancient Greek, Roman and Byzantine empires,
there were military officers with the title Logistikas who were responsible for financial
and distribution of supplies.

The Oxford English dictionary defines logistics as: The branch of military science having
to do with procuring, maintaining and transporting material, personnel and
facilities.Another dictionary definition is: "The time related positioning of resources." As
such, logistics is commonly seen as a branch of engineering which creates "people
systems" rather than "machine systems"....

c. Prospects of Growth in the Industry

In years gone by, the traditional warehousing and logistics facility was located by railroad
tracks, a water port, and/or freeways, usually in the least desirable parts of cities or large
towns. This stereotype then faded as gigantic, state-of-the-art facilities began to sprout in
more rural areas on the outskirts of transportation and population hubs. The World started
beginning to see such facilities showing up in even less "traditional" areas. Modern
warehouses now are being located in carefully manicured industrial parks that are
sprouting as fast as the corn and wheat once did in these open spaces-often in out-of-the-
way places. Why the emphasis on such locations for logistics companies?

Much of it is due to the great flux that the logistics industry has been undergoing in the
first three years of the 21st century. Most of these changes are being driven by a growing
trend in the manufacturing and retail sectors to form partnerships with companies to which
they can outsource non-core logistics competencies-3PL providers.
In turn, 3PL providers are continually looking to provide innovative supply chain solutions
to customers by focusing on value-added capabilities, differentiating themselves from the
competition. They focus on key objectives, such as implementing information
technologies, instituting effective management processes, integrating services and
technologies globally, and delivering comprehensive solutions that create value for 3PL
users and their supply chains. This need to partner with customers and become more
integrated into their supply chain processes has created the ancillary need to locate close to
these customers.

That isn't to say the need for easy access to transportation hubs and different modes of
transportation won't continue to be important. But the above shift in business strategy,
along with the advances in technology and enhanced communication, has opened the door
for logistics facilities to operate effortlessly in a myriad of locations.

Profit warnings, share price pressures, mergers, reorganizations, relocations, disposals,

painful layoffs and great geopolitical uncertainties can sweep away even the most
comprehensive logistics strategies and thats despite outstanding management over many
years. These are exceptionally difficult times and it has never been more important to
connect logistics and freight planning to executive board thinking than now. Its easy to
lose sight of the bigger picture in the rush to cut infrastructure cost and conserve cash.
Hopefully organization succeed in protecting the business, satisfying shareholders and
analysts, but what about capacity and flexibility, morale and momentum?

To be a logistics winner in the coming years organizations need to use the downturn to
reshape for growth, propelled by an unshakeable conviction that the mission is still
important, that more prosperous times lie ahead, and that in some way the company
infrastructure is helping to build a better kind of world.

Logistics is inevitable in the future and essentially the management policy also has a
significant role in the future of world. Generally the study is being featured with all aspects
of management in Logistics and Freight areas. (Logistics include Transportation,
Warehousing, Network Design, Crossdocking, and Value Adding)
d. General Import / Export Market

a.) Market Analysis

UAE sea freight exports rose in volume and value during recent years. UAEs largest
exporting state, Dubai, led these increases with substantial increases in volume and value
of exports. All states showed an increase in export value and many states having an
increase in export volume. Abudhabi, Rasalkhaimah, and other states showed small
decreases in export volume compared to Dubai.
Total freight import values increased 16.3% in 2006/07. China remains largest import
market. Exports to other largest sea freight export markets showed substantial growth,
namely Africa (25.8%), India (28.4%) and other Asian Markets (28.4%). Over the last 6
years, import volumes and value to China and India have consistently grown, while
imports from Japan increased following three consecutive years of decline. Most of this
increase can be attributed to a large increase in sea freight imports from China, which rose
86,629,230 tones or 218.5%. Other substantial increases in import volume were seen from
Taiwan (23.7%), India (22.2%), Italy (14.9%), New Zealand (14.9%) and Mexico (70.4%),
while noteworthy decreases in export volume were seen to Netherlands (-14.0%) and USA
(-25.2%).
2006/07 saw a mixed result for Chinese and other Asian sea freight exports. Increasing
import value was led by Base Metals (principally Copper Cathodes and Lead), despite
recording a small decrease in import volume in the group. Mineral Products (mainly
Liquid Gas and Iron products) and Prepared Foodstuffs (mainly packed FMCG products)
were the other major commodity groups showing an increase in value, also backed by
increasing commodity prices for these groups. Prepared Foodstuffs have shown a continual
increase in import value over the last 6 years. The 2006/07 increase in Mineral Products
and Base Metal Products imports follows 3 years of import value decline in these products.
(Base metals used mainly for Automobiles, Batteries etc.)
The most substantial decrease in export volume was seen in Vegetable Products
(grains and other plant products), with an associated drop in export value. Transport
Equipment also saw a large drop in export value and volume. A decrease in export value
continues 3 consecutive years of decreases in export value in these groups. The most
constant export is for dates to neighboring nations. Dates are of very less demand in
Western regions of the globe.
b.) Perishable Items- Animal Products: Meat, Dairy & Seafood
UAE import products in the Animal Products category include meat, seafood and dairy.
Chicken and lamb meat imports are UAEs largest sea freight imports in this category.
Both Chicken (110%) and Lamb (22.6%) saw increases in sea freight import value during
2006/07, with smaller increases in total volume, reflecting the increased price for these
commodities during the period. Lamb imports by air also rose in 2006/07, but imports by
air account for only 3.7% of the total chicken and lamb exports. Over the last 5 years, sea
freight lamb imports have been quite consistent and at a high level. The dramatic growth in
chicken imports during 2006/07 comes on top of steady growth since 2000/01.
The other single largest Animal product commodity is Tuna, with 2006/07 sea freight
imports totaling $65,134,998 and 5,178 tonnes. This is well below the 2002/03 peak of
$201,066,102, with decreases in export value seen during the previous years. In addition to
the sea freight imports, Tuna is also imported by airfreight. Similar decreases were seen in
both sea and airfreight imports.
Frozen Prawns, increased in volume and value (7.0%) during 2006/07. Grated Cheese
(including Cheddar) remains an important dairy import by sea with yearly exports
fluctuating between $36 and $49 million over the last 6 years. Cheese curd exports
increased substantially during 2006/07. Imports are mainly from Denmark, Switzerland.
Grain: Wheat, Rice is UAEs single largest volume import commodity. Import volume and
value dropped across most major commodities in the grain category. Actually had an
increase in import volume for Rice and Wheat for the year 2006-07.
Industry Profile

2. Logistics Industry
2.1 LOGISTICS (UAE - Middle East)

Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of consumption in
order to meet the requirements of consumers. Logistics involve the integration of
information, transportation, inventory, warehousing, material-handling and packaging. In
terms of value, global logistics industry has been estimated to be more than USD 235
billion and make up significant part of the GDP with regard to India. The Middle East is
currently India's top export destination for a burgeoning consumer electronics sector.
Exports reached $175 million in 2005-06, an increase of 96 percent over the previous year,
according to the Electronics and Computer Software Export Promotion Council (ESC).
The growing trade reciprocity with China, 63 percent of respondents to a recent China
supplier survey, Middle East Export / Import Opportunities, cited the Middle East as the
next "hot" import market for Chinese-manufactured goods.

UAE is now in a stage of transition from an import substitution closed economy model to
an outward oriented trade regime. The importance of logistics as an enabler of trade and
economic growth is worth mentioning. Massive improvement in infrastructure for
transportation leads to present and future development in trade, resulting in the economic
growth of the nation. While around Dh.200, billion of investments have been made during
last 5 years to augment port facilities in the country (UAE), equally massive investments
have also been made in road networks. The logistics/shipping/freight sector has received
keen attention from both investors and government.

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

2.2 Logistics Management and Logistics Management Software

Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to
meet customers' requirements. A professional working in the field of logistics management
is called a logistician.
Software is used for automating logistics activities which helps the supply chain industry
in automating the work flow as well as management of the system. Very few generalized
software are only available in the new market in the said topology. This is because there is
no common rule to generalize the system as well as work flow even though the practice is
more or less the same. Most of the commercial companies do use one or the other custom
solution. There are various software that are being used within the departments of logistics
mainly in Conventional Departments and for Container Trucking.

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

b. Production Logistics

When it comes to supply chain management, the answer is:

Leadership, Innovation and Quality Solutions

What Lintas Freight and Logistics does:

Freight Movement
Cargo/ Freight Management Solutions
Full Truckload & Solution Providers
Contract Packaging & Other Services
Warehouse Operations (Outsourced) and Management
Logistics 3PL
3. Lintas Freight & Logistics LLC Overall View:
3.1 Vision and Mission

Lintas Freight and Logistics: Best People. Best Processes. Best Value.

a. Vision

To become a leading freight, transportation, clearing and logistics company in the Middle
East. To be the recognized industry leader, through total commitment to customer service,
by maintaining our uncompromising integrity, in the support and development of our
People, Communications and Systems in sustained growth and profitability.

b. Mission

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

Decisions can impact the success of the company as much as the performance of the
supply chain. No matter what industry or region of the world other organization do
business in, the supply chain is an integral part to the success as same as the products, the
services, and the people. In 2002, Lintas Freight and Logistics Services, LLC was formed
to build on the global distribution experience to help other companies lower distribution
costs while improving customer service and brand loyalty.
Lintas Freight and Logistics is a technology-based company providing customized
solutions that transform distribution to a source of competitive advantage. Main motive is
to provide integrated solutions from managing transportation, inventory, and distribution
centers to sophisticated forecasting, information management, and network consulting
services. Today, Lintas 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.

3.2 Lintas Freight and Logistics Service

Today, Lintas employ many professionals in their branch offices and in fields (Ports),
dedicated to helping freight, transportation, clearing, forwarding and logistics needs.
Young, energetic, professional, and passionate: their humble beginnings, satisfying
customer needs has been the driving force behind every Lintas Freight & Logistics
employee.

Lintas provide these services around globally and main focus to UAE and Indian markets

Lintas Freight and Logistics, 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.

d. And always asking, how can we serve you better?

e. Analyzing every opportunity, every challenge to provide a custom solution that works
best for customer.
3.3 Continuous Improvement in the Organization

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

a. Customers need solutions now. Lintas Freight and Logistics get them on that
moment.
With world-class technology as the backbone of the solutions and service.
Integrating systems and providing real-time information to help reduce cost by
moving the products of customers to market as efficiently as possible.
Organizations Can Do culture is rooted in customer service, flexibility and
innovation. Its been that way since the Lintas Freight and Logistics organization
was launched over 5 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 Lintas Freight and
Logistics to become the third-party logistics provider to be certified by UAE as best
system standards. Today, the Quality Management System not only serves as the
foundation of the on-going Continuous Improvement in day-to-day procedures, it
also serves as the cornerstone of the Lintas Freight and Logistics. The process
driven approach to problem-solving helps the organization exceed customers'
expectations, as the organization helps tackle service and cost issues within their
supply chains.
3.4 Organization Functions:

a. Freight Forwarding

Departments typically arrange cargo movements to an international destination. This

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

Functions:

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

b. Logistics Field: Bulk Operations

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

Functions

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

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

c. Clearing and Forwarding (C & F)

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

Functions

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

ii. Arrival and clearance of vessels.
iii. Determination of value for assessment.
iv. Conversion of currency.
v. Nature and description of documents to be filed with kinds of bills of entry &
shipping bill.
vi. Procedures for assessment and payment of duties.
vii. Examination of merchandize at the customs stations.
viii. Prohibitions on imports and exports items.
ix. Re-importation and conditions for free re-entry.
x. Check offences under the act
xi. Refund procedures, appeals and revision petitions.

d. Network Design

A Logistics Network Design initiative is a strategic analysis of entire supply chain.

Some of the strategic questions are:
 To ensure enough facilities to meet future capacity requirements?
Which facilities should be closed and/or consolidated?
Is there an opportunity to make changes to the network to reduce logistics costs?

Develop the Current Financial Model:

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

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

Data Gathering & Validation:

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

Analyze Current State of Operations:

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

A warehouse is a commercial building for storage of goods. Warehouses are commonly

used by manufacturers, importers, exporters, wholesalers, transport businesses, customs,
etc. They are usually large plain buildings in industrial areas of cities and towns. They
come equipped with loading docks to load and unload trucks; or sometimes are loaded
directly from railways, airports, or seaports. They also often have cranes and forklifts for
moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

Most warehouses are completely automated, with no workers working inside. The pallets
and product are moved with a system of automated conveyors and automated storage and
retrieval machines coordinated by programmable logic controllers and computers running
logistics automation software. These systems are often installed in refrigerated warehouses
where temperatures are kept very cold to keep the product from spoiling, and also where
land is expensive, as automated storage systems can use vertical space efficiently. These
high-bay storage areas are often more than 10 meters high, with some over 20 meters high.

The direction and tracking of materials in the warehouse is coordinated by the WMS, or
Warehouse Management System, a database driven computer program. The WMS is used
by logistics personnel to improve the efficiency of the warehouse by directing putaways
and to maintain accurate inventory by recording warehouse transactions.

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

developing retail outlets in a particular region or country. This concept reduces the end
cost of the product to the consumer and thus enhance the production sale ratio.
Warehousing is an age old concept which can be used as sharp tool by original
manufacturers to reach out directly to consumers leaving aside or bypassing importers or
any other middle agencies or person.

The Warehouse are to be well guarded with safety provisions to counter pilferage, fire,
floods & other calamities. The Warehouses are in convenient locations & well connected
by roads to facilitate on time delivery to customers.

f. Crossdocking Containerization
Crossdocking is a practice of logistics of unloading materials from an incoming semi
trailer truck and loading these materials to outbound trailers or rail cars, with little or no
storage in between. This may be done to change type of conveyance, or to sort materials
intended for different destinations or to combine material from different origin.

An increasing popular method of shipment is containerization. A container is a large box

made of durable material such as steel, aluminum, plywood and reinforced plastics. A
container varies in size material and construction. Its dimension is typically 8 foot high and
8 foot wide lengths usually varying. A container can accommodate most cargo but is most
suitable to packages of standard size and shape. Containers can take case of most of 4 main
packing problems. Because of container construction, a product does not have to have
heavy packaging, it gives protection against:

i. Breakage
ii. Moisture
iii. Temperature controlled
iv. Pilferage and Theft
There are mainly 2 types of containers

v. Dry Containers
vi. Special Purpose Containers
Types / Size
20 Foot Dry
40 Foot Dry
45 Foot Dry
vii. Open top containers
viii. Flat rack for over sized cargo
ix. 40 foot refrigerated containers/ reefers
x. High cube containers (40 foot, 45 foot & Reefers)
3.5 Organization Structure

Organization is headed by Organization Head, and all other employees report to him. Firm
comprises of 12 employees for internal works and other team for activities including
freight forwarding, logistics, clearing and forwarding. Organization acts as a 3PL for other
firms on behalf of carry/ forward, logistics. Warehouse activities are being outsourced
based on the demand situations, as goods are being stocked in different warehouses, and is
based on the customer requirements.
3.6 Business Drivers
The following are the business drivers in logistical operation:
a) Cost Drivers: The average materials moved by manufacturers to export market is
low, but where as to import market is high in figure. The high technology portion
reaches to 60% to 72% of imports. Number of labour hours is a factor, tonnage of
imports; size of inventory, number of suppliers, number of batches, number of
employees etc. are all major concern in cost. Lintas Freight and Logistics keep a
major favourable concern on the above, as from the basic get-together of
employees during the off peak hours in work. I was able to figure out, employees
were not happy with their present situations in office and in the working hours. The
situation has a major impact in operational stability. The situation leads to
lengthening/of delivery bills and other major invoice forms. As to
b. Achieving Competitiveness in Logistics, Freight, Supply Chain

Reduced lead time, inventories, lower operating costs, product availability and customer
satisfaction are the benefits which grow out of effective logistics and supply chain
management. The decisions usually carried on by Lintas Freight and Logistics (3PL),
cover both the long term and short term. Strategic decisions deal with the corporate
policies, and look at overall design and logistic chain structure. Tactical, Operational
decisions are those dealing with everyday activities and problems of the organization.
Change is the inevitable factor for each and every day situation within and outside the
organization. The decisions must take into account the strategic decisions already in place.
Therefore organization must structure the logistics ideas through long term analysis and at
the same time focus on every time situations. Furthermore, market demands, customer
needs, transport considerations and pricing constraints are the factors in order to structure
the logistics, freight. Lintas Freight and Logistics realized the fact and are prepared to face
any unexpected situations like inflation/ deflation in the economy, price factors, climatic
problems etc.

c. Operational Fleet Routing & Loading

The organization derives routes in transportation are mainly long-haul (Optimization). For
short haul deliveries, there are ready solutions that are tightly integrated to warehouse
management systems (outsourced facility), to efficiently route fleets of vehicles and
vessels and plan picking and loading. Stipulated time windows for pick-ups and deliveries
and vehicular weight and spatial capacities would be used, as will constraints such as
delivery within specified period minutes upon pickup (useful for perishable goods). Time
required at various stops - in terms of fixed time to park and variable time dependent on
amount to be loaded or off-loaded - can be specified. Travel speeds along various
types/zones of roads can be stipulated by traffic information services. The organization
schedules arrival and departure times for each stop can thus be worked out quite
accurately. Routes can be generated dynamically and ad hoc backhaul or other
opportunities can also be assigned to the most suitable vehicle. The benefits of operational
fleet routing include considerable reduction in fleet operating cost and improved customer
service with better estimated arrival time.

d. Vendor Managed Inventory

Vendor managed inventory, coordinated by an integrated logistics system, allows
inventory to be optimized together with transportation. Lintas Freight and Logistics try to
know the product value as well as storage capacity (mainly warehouse how much to
outsource). As a routine job the company collects information on consumption rate, current
inventory levels, forecasted demand and status of shipments. Thus the system can optimize
the right quantities of replenishments to be sent at the right time to ensure that service
levels are maintained while minimizing cost of inventory and transportation.
e. Mode of Transportation
Transportation generally is movement of product, goods, raw materials to different stages
in supply chain. Essentially in supply chain logistics plays a major role, the manner in
which product is moved from one location to another is through road, rail, truck, air, sea.
Lintas Freight and Logistics essentially uses only 2 modes for their operation they are air
and sea. The goods being delivered to end customer is brought to port or to the place
through containers or other methods like wagons, or cold enclosures like frozen storage.
As in UAE rail transport does not exist, so it has got a relevant drawback for the company,
as company has to stick on road for short routes and even routes between states of UAE
and which is very much expensive and increases the operational cost. Lintas Freight and
Logistics strategically manage the procurement, movement, and storage of materials, parts
and finished inventory through the organization and its marketing channels. Essentially
from companies angle, there are two categories, initially inbound logistics, i.e., handling
goods that are brought into the company, through road transport and storing and making
them available. Another main phase is the outbound logistics, taking the cargo or the goods
through channels, and is being done with considerable effort to various parts of the world
as per the customer requirements.
i. Intermodal Transportation System Used
This is the use of one or more than one mode of transport to move a
shipment to its destination. Lintas F&L use this in an efficient way. Variety
used is road and sea in the case of organization. Referring to Global trade,
this is the only option as factories and markets may not be next to ports. It
helps reduce cost in operation. Helps reduce cost that cannot be matched by
single mode. Essentially it is very convenient for shippers as well as
consignee.
ii. Attributes: The price charged is reasonable with regard to the consignee, as
organization has got a long term relation with all the customers. Usually
goods being transported are electronics and frozen stocks from warehouse.
The relevant focus is on warehouse, transportations services offered.
 Service is another aspect which focuses the advanced need of the customer,
initially with proper timing maintenance, order management. As the
consignee is offered service by 3PL like Lintas F&L with favorable order
management, and ease of doing business is attained by logistics
organization like Lintas Freight and Logistics.
f. The Challenge Faced by Organizations
In todays world, competence is taking on new dimensions. The ability to compete is being
determined by the degree of responsiveness to customers and key issues handling. How
fast you deliver the goods/ products, what the price paid by customers and what value
customer is getting throughout the service is considered in a schematic and ordered way.
Markets are quick demanding and customization of each logistics activities is essential for
each customer, and has become the essential factor in logistics management.
Lintas Freight and Logistics faces lot of ups and downs in each operation and improves
operation on each situation while dealing with each customer. Lintas freight and Logistics
dominant improvement methods used are:
i. What are the customer expectations?
ii. How are your competitors performing in each aspect of operations?
iii. Determining the gaps in each phase and try to fill it.

g. Economic Ordering Quantity (EOQ)

Efficient order quantities consider the Purchase Order Cost (POC), the Annual Demand
rate (AD), the Inventory Carrying Rate (ICR), and Unit Inventory Volume (UIV). Large
Order Quantities yield high inventory levels and high inventory carrying costs but fewer
orders and lower ordering costs. High ordering costs and demand rates suggest large order
quantities. High ICRs and high unit inventory values suggest small order quantities.

Generally during research the analysis shows, few organizations believe EOQ analysis is
outdated and quite few with enhanced focus on it. There is relevant need for EOQ in this
era. EOQ analysis should be completed as a part of any inventory strategy. The analysis
suggests appropriate reordering intervals for all items each organization is handling.
Competitors focus on reducing the costs of placing purchase orders. The lower the
purchase order cost, the more economical it becomes to order in small increments and the
less inventory will be there in the system. The purchase order costs is typically dominated
by the labour and paperwork costs of planning, negotiating, executing and tracking
purchase orders. Large number of organization extent to which these functions can be
automated via automated purchase order planning, e-procurement, online catalogs, online
bidding and online exchanges, is the extent to which inventory levels and lost sales costs
may be reduced in the supply chain and there to the efficiency of logistic operations. Lintas
Freight and Logistics has a considerable drawback in this scenario comparing to the other
firms. Cost is high in this situation for ordering costs to the firm.

4.2 Studies on Inventory, Back Order, Lost Sales, Stock Outs, Packaging and
Packaging Materials, Documentation from Lintas Freight & Logistics

a. Inventory
Inventory is a list for goods and materials, or those goods and materials themselves, held
available in stock by a business. Inventory are held in order to manage and hide from the
customer the fact that manufacture/supply delay is longer than delivery delay, and also to
ease the effect of imperfections in the manufacturing process that lower production
efficiencies if production capacity stands idle for lack of materials.
There are three basic reasons for keeping an inventory:
i. Time - The time lags present in the supply chain, from supplier to user at every
stage, requires that you maintain certain amount of inventory to use in this "lead
time"
ii. Uncertainty - Inventories are maintained as buffers to meet uncertainties in
demand, supply and movements of goods.
iii. Economies of scale - Ideal condition of "one unit at a time at a place where user
needs it, when he needs it" principle tends to incur lots of costs in terms of
logistics. So Bulk buying, movement and storing brings in economies of scale, thus
inventory.
[The Management of Business Logistics, Coyle, Bardi,
Langley]
b. Back Order
A company having to back order an item that is out of stock will incur expenses for special
order processing and transportation. The extra order processing traces the back orders
movement, in addition to the normal processing for regular replenishments. The customer
usually incurs extra transportation charges because a back order is typically a smaller
shipment and often incurs higher rates. The seller may need to ship the back ordered item a
longer distance. The seller may need to ship the back order by a faster and more expensive
means of transportation. We could estimate the back order cost by analyzing the additional
order processing and additional transportation expense. If customers always back ordered
out of stock items, the seller could use this analysis to estimate the cost of stockouts. The
seller could then compare this cost with the cost of carrying excess inventory.
[The Management of Business Logistics, Coyle, Bardi,
Langley]

c. Lost Sales
Most companies have competitors who produce substitute products, and when one source
does not have an item available, the customer will order from another source. In such cases
the stock out has caused a lost sale. The sellers direct loss is the loss of profit on the item
that was unavailable when the customer wanted it. Thus, a seller can determine the direct
loss by calculating profit on one item and multiplying it by the number the customer
ordered.
E.g.: If the order was 100 units and the profit is 10$, the loss is 1000$.
If the effort is made by a sales man and if the effort is wasted and in that sense it is an
opportunity loss. Whether including such a cost is valid would depend upon whether the
company uses sales people in its marketing effort.
Another aspect is determining the amount of a lost sale may be different and difficult in
certain circumstances. Numerous companies customarily take orders by telephone. A
customer may initially just enquire about items availability without specifying how much
is desired. If an item is out of stock, the customer may never indicate a quantity and the
seller will not know the amount of the loss.
d. Stockout
Cost incurred to a firm when current inventory is exhausted for one or more items. Lost
sales revenue costs are incurred when the firm is unable to meet current orders because of a
stockout condition.

e. Packaging and Packaging Materials

Mainly this is a main division in warehouses. Packaging interacts with the logistics system
in number of different and important ways. The size of and protection afforded by the
package affect the type of materials handling equipment used and the level of product
damage incurred. The package has an impact on the stacking height of the product in the
warehouse and thereby on the utilization and cost of the warehouse. Packaging is quite
important for effective damage protection, not only in the warehouse but also during
transportation. Packaging may contribute nothing to a products value but its influence on
logistics costs is considerable.
Packaging size may affect a companys ability to use pallets or shelving or different types
of materials handling equipment. Many companies design packages that are too wide or
too high for efficient use of either a warehouse or transportation carrier. So, coordinating
packaging with warehousing and with transportation is quite important. We need to note,
poor packaging can contribute to higher handling charges and result in lower future sales if
the goods arrived damaged.
Two types of packing exist: consumer packaging and industrial packaging. Consumer
packaging provides information important in selling the product. i.e. giving the product
most visibility when it comes with others on the retail shelf. On the other hand industrial
packaging is of primary concern to the logistics. The packaging protects goods that a
company will move to store in the warehouse and also permits the company the effective
use of transportation vehicle space.
Research Methodology
Materials generally used in previous years was wood and other harder materials for no
breakage, but it added considerable shipping weight to the transport and it further increased
transportation cost. Generally new era has come up with efficient packaging materials,
organization nowadays use most cost effective packaging with focus on security and
minimizing cost. Cushioning materials protect the product from shock, vibration, and
surface damage during handling. Cushioning materials include shrink wrap, air bubble
cushioning, cellulose wadding, and plastics. Companies often use shrink wrap for
consumer packaged goods. Packaging also helped reduce pilferage and product tampering
in warehouse and during transport. Air bubble cushioning is made of plastic sheets that
contain air pockets. There are other factors while considering packaging they are
environmental protection. They are considered in situations of perishable items like food
and drugs.

5.1 Objective of the Study:

To compare the effectiveness of logistics management at Lintas Freight and
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.

5.2 Research Problem:

The need for the study was to assess the effectiveness of Logistics Management in the
Lintas Freight & Logistics LLC, 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.

5.3 Research Methodology:

The type of research is analytical. Data regarding the division of logistics management
such as Freight, Warehousing, Crossdocking, Network Design etc. in which Lintas Freight
and 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 Lintas Freight & Logistics LLC 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.

5.4 Sample Selection:

Convenience sampling is used for study, as I am interested here in getting an inexpensive
approximation of the truth. Operations of Lintas Freight & Logistics LLC are mainly
concentrated at large scale AL-Hamriya Port, Dubai and having its branch office in
Mumbai. The total numbers of logistics organizations in and around this port are 6000 in
number, which constitutes the population. Similar, 100 organizations having major
operations in the Freight and Logistics have been selected as sample for the survey. The
selection was based on the sampling said above.

5.5 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.

5.6 Statistical Tools:

Percentage Analysis
Bar Diagrams
Pie Charts
5.7 Limitations of Study:
A few organizations did not publish the exact values for each question especially in
sales turnover and other similar figures.
The study was conducted in the Mumbai area only aiming at the main Dubai Centre
and confined to the freight division of the logistics management.
Certain monetary values were not being filled by organizations.
Due to organizations security reasons documents like Bills, Warehouse Bills, etc
could not be gained.
Most of the questionnaire answers were filled over internet email facility; therefore
contact was through phone and emails.

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.
a) Which are the logistics services organizations offers?
Table -1 Service Offer
Sl. No. Service Percentage
1 Freight 100
2 Warehousing 89
3 Crossdocking 88
4 Network Design 66
5 Value Adding 98

Chart-1 Service Offer

Valuse Adding,
98 Freight, 100 Freight
Warehousing
Crossdocking
Network Design
Valuse Adding

Network Warehousing,
Design, 66 89
Crossdocking,
88

The pie chart above shows the service offer of each organization. The chart shows that
100% of the respondents provide freight service and almost 90% provide Warehousing
and Crossdocking. 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

Chart-2 Operate With Logistical Providers

11 10
Operational Stability
36
Cost Effectiveness
96
Customer Needs
Other

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

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

63 37
Strategic
Tactical
88
Operational

The pie chart above shows the mode of decisions regarding the operations. The pie chart
shows 88% of organizations take tactical decisions followed by 63% with operational
decisions and 37% strategic decisions. Most of the organizations have a mixture of all the
decisions in their day to day as well as in long and short term plans.
 d) Which is the area of the activity, that organizations feel best in their service?

Table-4 Best Activity

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

Chart -4 Best Activity

97 98
Freight
Warehousing
4
Crossdocking
Network Design
86 Other
87

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

Table-5i Employees
Sl. Departments In Organizations Number of Percentage
No. People in Each
1 Top Management 452 11
2 Operations 468 11
3 Accounts / Finance 451 11
4 Marketing 517 13
5 Human Resource 371 09
6 Documentation /Others 1847 45

Table- 5ii Employees in Lintas F&L

Sl. Lintas F&L : Departments Number of Percentage
No. People
1 Top Management 3 14
2 Operations 4 18
3 Accounts / Finance 4 18
4 Marketing 3 14
5 Human Resource 0 0
6 Documentation /Others 8 36
 Table-5iii Employees % of both.
Docu
Top
Operatio Acc./Financ menta
Managem Marketing HR
ns e tion/O
ent
thers
Lintas F&L
Employees
Percentage 14 18 18 14 0 36
Other
Organization
Employees % 11 11 11 13 9 45

Chart-5i Employees

50 45
45
40 36
35
30
25 18 18
20 14 14 13 Lintas F&L Employees
15 11 11 11 9 Percentage
10
5 0 Other Organization
0 Employees %

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

Table- 6i Catering Locations

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 Europe USA Australia Africa Russia ME Other
Lintas Freight 100 0 100 100 0 100 100 100
Other
Organizations 100 6 89 86 71 98 98 90

Chart- 6i Catering Locations

0.9 1 Asia
0.06
0.98 Europe

0.89 USA
Autralia
Africa
Russia
0.86 ME
0.98
Other
0.71

Chart 6ii Catering Locations

 1
0.8
0.6
0.4
Lintas Freight
0.2
Other Organizations
0
Asia
Europe
USA

Lintas Freight
Autralia
Africa
Russia
ME
Other

The pie chart above shows each organizations catering location in the world. The chart
shows 100% of organizations cater to Asian region followed by 6% to Europe and 89 % to
USA. Each organization has tremendous catering locations with 86% to Australia, 71% to
Africa, 98% to Russia, 98% to Middle East, and 90 % to other locations. Locations
mentioned as other is company catering frequently with repeat orders of customers. Chart
6ii shows Lintas Freight and Logistics can enter European markets and other favourable
market is Africa. This can be looked into very seriously in future business.
g) Which division of logistical activity earns the maximum rate of profit for each
organization on a scale of 1-10 and overall profit of each organization?

Table-7i -Maximum Rate of Profit (Lintas F&L Compared with Industry Average)
Profit Scale (1 - 10) Freight Wareho Crossdocki Network Othe
using ng Design r
Lintas F&L Profit Scale 9 4 5 0 6
Industrial Profit Average 7 6.41 5 5 6

Chart-7i - Maximum Rate of Profit

9
10
7
8 6 6 6
5 5 5
6 4
4
Lintas F&L Profit Scale
2 0
Industrial Profit Average
0
 Table-7ii Profit of Organization (All Services Combined)
Lintas F&L Industry Standards
Profit Level in Percentage 13 15.39

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

Profit Level
15.39
16 13
14 Profit Level
12
10
Lintas F&L Industry Standards

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 Lintas F&L has ample amount of profit in Freight area followed by
Crossdocking and other value adding activities with 9 and 6 in scale. The chart 7i shows
industry average value is 7 for freight followed by 6.41 for warehousing. It is inferred that
freight is giving ample amount of profit and Cross-Docking, Other including labeling and
packaging has industry standards. The chart 7ii shows profit percentages said by each
organization. We can infer that overall profit percentage for Lintas F&L has 2.39
percentages lesser compared to industry average. The organization should implement more
strategies to reach industry mark.
 h) Comparison of service offered by Lintas F& L 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
Service Handling Service Efficiency
Lintas F&L 3 4 4 2 3
Industry Average 3.84 3.76 3.82 3.29 3.83

Chart-8 Service Comparison

4 4
3.84 3.76 3.82 3.83
4
3.29
3.5
3 3
3
2.5
2
2 Lintas F&L

1.5 Industry Average

1
0.5
0
Ease of Client Customer Website Employee
Service Handling Service Efficiency

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

Table 9ii Lead Time in Days

Freight Warehou Crossdoc Network Other
LEAD TIME IN DAYS(LT)
LT sing LT king LT Design LT LT
Lintas F&L 21 20 30 0 21
Industry Average 23 22 24 10 24

Chart 9ii Lead Time in Days

30
30 23 24
24
25 21 22 21
20
20
15 10
10 Lintas F&L
5 0 Industry Average
0

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. Organizations lead-time is excellent except for
Crossdocking. Focus should be to reduce lead-time and increase more service.
 j) Average elapsed time between order receiving and delivery of the service
(Inventory).
Table-11 Elapsed Time
Lintas F&L Industry Standards
Elapsed Time 3 6.9

Chart- 11 Elapsed Time

Elapsed Time
6.9

7
6
5
3
4 Elapsed Time
3
2
1
0
Lintas F&L Industry Standards

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. Lintas elapsed time is remarkable compared to industry standards.
 k) Were there any shortage/ excess of stocks noted, in the last verification done?

Table -12i Inventory Shortage

Lintas F&L Industry
Inventory Short 12 19.8

Chart-12i Inventory Shortage

Inventory Short
19.8
12
20
Inventory Short

0
Lintas F&L Industry

Table- 12ii Inventory Excess

Lintas F&L Industry
Inventory Excess 0 4.8

Chart-12i Inventory Excess

Inventory Excess
4.8
5
0 Inventory Excess

0
Lintas F&L Industry

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

Table- 14 Complaints (Lintas with Industry Average)

Lintas F&L Industry Average

Complaints Generated Last 290 179.71
Year

Chart 14 Complaints (Lintas with Industry Average)

Complaints Generated Last Year

350
290
300
250
179.71 Complaints Generated Last
200
Year
150
Linear (Complaints
100 Generated Last Year)
50
0
Lintas Industry Average

The above chart shows average number of complaints. The complaints for Lintas F&L is
290 and whereas to industry average is around 180 in number. Hence organization should
try to reduce the complaints arising. This can be achieved by increasing new modern
methods and facilities to customers. Organization need to heavily focus onto the issue to
reduce number of complaints arising in operations, customer satisfaction and other similar
areas.
 m) How does the organization follow up to retain customers.
Table-15 Customer Retention
Sl. No. Service Rating
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

Rating
100 100 100 100 100
100
90
80
70
60
50
40
30 11
20 3
10 Rating
0

The above chart shows preference of complaints and how organization follow up to retain
customers. Its been noted that cent percent of organization follow up with customers for
customer complaints. Most of the preferable methods for contacting customers for new
service intimation and customer realtionship are telephone, email and other methods like
marketing / sales, customer office visit with 100 rating. The least preferred are gifts and
fax with 3 and 11 in rating.
 n) Does the organization has proper system for handling customer handling, and does
customer know whom to contact when a problem arises, ascertain the level of
satisfaction, feedback by customer and is customer suggestion given preference in
the organization?

Table- 16 Proper System

Sl No. Service Rating

1 Proper System 100

2 Customer Know 100

3 Contact Whom 94
4 Customer Feedback 88
5 Customer Suggestion 83

Chart-16 Proper System

Rating
100

50
Rating
0

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

i) The quality of service as rated is above average in the case of Lintas 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 Lintas Freight & Logistics LLC as their first choice in
Logistics and Freight industry category. This can be achieved with more
modern equipments and proper guidance to employees and the rating can go
high to excellent service.

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

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

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

v) Operation with other logistical providers should be given more preference to

achieve cost effectiveness.

vi) Rearrangement of employees may be a better solution. Down sizing of

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

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

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

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

x) It is observed that most of the organizations operate with other logistical

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

xi) Tactical decisions are mostly followed by organizations followed by

operational and a few strategical.

xii) Freight and Value Adding is considered to be the best service which
organizations offer in industry. Another major observation is about Network
Design, it has low value and no organization feels it to be lucrative area in
industry.
xiii) Organization can enhance operations to European areas and another major
favourable area is Africa. From data Lintas can get good market share if they
cater to African regions.

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

xv) Commenting on ease of service, website and employee efficiency, the

organization needs to further improve.

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

xvii) From the observation 89 organizations have inventory verification. The lowest
observed days for elapsed time for Lintas F&L are 3 days and industry
standards with 6.9 days. Hence it is a remarkable value for Lintas F&L.

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

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

i) Organization can further strenghten the employee strength in the

documentation department. This can lead to further rapidity for operations.

ii) Organization can initiate Human Resource Department to further enhance

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

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

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

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

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

vii) Lintas 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) Lintas 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.

Lintas Freight& Logistics LLC has come a long way from being just a service provider.
The organization now has the value of being an ultimate service provider for Freight,
Transportation, Cross-docking and Value Adding as per customer needs. The present
scenario and the future of the organization with regard to the management are satisfactory.
The organization can increase the market share by improving with more state of art
technology. The organization can diversify into related other business areas like
Warehouses for lease to other organizations, state of art technology providers for other
organizations. More importance is to be given for HR development by having a separate
department for it. With the development of such a department, several favourable impacts
such as increase in out put per employee, increased loyalty, team spirit etc can be
generated.
As far as Lintas Freight & Logistics LLC 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 Lintas to the top most position when bench marked in the coming years.
Bibliography
Bibliography
Reference:
a) Logistical Management Tata McGraw 2000 Edition.
Written by Donald. Bowersox, and David. Closs.
b) The Management of Business Logistics 7th Edition:
Written by Edward J. Bardi, C.John Langley, and John Joseph Coyle
c) Logistics and Supply Chain Management: Creating Value - Adding Networks
Written by Martin Christopher.

Websites:
i) Source: http://www.idsc.com.sg/images/service_logistics_img1.jpg
ii) http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
iii) http://www.lintasfreight.com/
iv) http://www.uae-shipping.net/Lintas-Freight-Logistics-L.L.C..html
 Annexure

Logistics Survey
-------------------------------------------------------------------------------------------------------------
 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 Crossdocking

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 Crossdocki Other
using Design ng

1 Top Management

2 Operations

3 Accounts/Finance

4 Marketing/Sales

5 Human Resources

6 Others if any
3. Which is the area of activity; you feel you are the best?

Freight Warehousing Crossdocking

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

Crossdocking

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

___________________________________

___________________________________
 b) Please rate the service offered by your organization

Excellent Good Fair Poor Very Poor

Ease of Service

Client handling

Customer Service

Website Information

Employee Efficiency

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

i)Number of ii.) Number of transport

Service Executed orders that have been
in last year (2007) executed, such that the
delivery is on time as
Service per the agreed lead
time?

Freight

Warehousing

Crossdocking

Network Design

Value Adding
Note: Kindly mention the answers with last years data (2007) from questions 10 to 12.
10. Inventory
a) What is the average elapsed time between the time of receiving order from the
customer to your firm to release the item from the ware house and the time the
item is ready for moving from the ware house with proper documentation.
________________________ Days

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

No shortage / excess of stocks noted

Shortage of stocks noted

Excess of stocks noted

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 coloumn)

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?
______________Number

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

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