Marketing Project

Consolidated Shipping Line Pvt Ltd

1.1 Executive Summary

This study is about the performance analysis of Consolidated Shipping Line Pvt Ltd

with respect to other competitors in Cochin Port. This study covers the competitors in

the Ernakulum district. The total population is 40 competitors and the sample size

selected is 15 competitors.

This study the mainly covers the performance factors such as Price, Service, Speed,

Safety, Infrastructure, Customer Relation, Customization, Experience, Network and

Reputation. With the increase in global competition and rapid progress of the IT

technology, the logistics industry has become one of the most influential subjects of the

21st century. The scope and role of logistics have changed dramatically over recent

years. There are different strategies that can be used as a freight forwarding company in

order to withstand in the industrial competition. The major problem of the industry in

Cochin port was high handling charges, less amount of customers with huge volume of

competitors.

As CSL, being a new comer in the industry, the company has grown tremendously

within a few period and gained good reputation in the market. There is a wide scope in

the field of logistics in Cochin port in the coming years.

Marthoma College Of Management And Technology 1 | P a g e


1.2 Industry profile

The term logistics has its origins in the military. From that perspective, it applies to the

process of supplying a theater of war with troops, equipment, and supplies. Industries

borrowed this term and have applied it to the discipline known as “business logistics.”

The Council of Supply Chain Management Professionals (CSCMP) has defined

logistics as “…that part of Supply Chain Management that 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 second, more concise definition offered by

CSCMP is “the management of inventory, at rest or in motion.”

With the increase in global competition and rapid progress of the IT technology, the

logistics industry has become one of the most influential subjects of the 21st century.

The scope and role of logistics have changed dramatically over recent years. In the past

logistics has played a supportive role in primary functioning such as marketing and

manufacturing. Now the scope of logistics has expanded beyond its traditional coverage

of transportation and warehousing to include purchasing, distribution, inventory

management, packaging, manufacturing, and even customer service. More importantly,

logistics has dramatically evolved from a supportive role characterized as passive and

cost absorbing, to a primary role and critical factor in competitive advantage.

Companies experiencing growing pressure to reduce cost and provide better service can

improve their logistics by outsourcing to logistics firms, an option that can improve

both efficiency and effectiveness. The outsourcing institute highlighted that companies

gain a 9% cost savings and a 15% increase in capacity and quality on average, through

outsourcing.

Logistics is considered the complete process involving planning, managing, and

controlling the flow of goods and services, information, real-time data and human

resources from the point of origin to the point of destination. Hardly any manufacturing

or marketing activity can be achieved without the support of an effective logistical

department.



The logistics process consists of the process of integration of several aspects such as

material handling, warehousing, information, transportation, packaging, and inventory.

The primary duty of an effective logistics system is to ensure geographical repositioning

of unfinished goods, and it is concerned with the finished inventories of the

organization being at the required place at the lowest possible cost.

Logistics industry in India is an industry that has not achieved its much deserved

attention or recognition. It is an area that is ripe with potential and yet the resources are

far from complete utilizations. There is however, a huge demand for logistic services in

India especially with the growth of the Indian economy along with the influx of new

companies in sectors that was otherwise unknown. The purpose of logistics industry is

to enable an effective transportation or timely movement of goods from one place to

another. This could be for the purpose of industrial transportation or even private

purposes.

Different mediums of Logistics services in India

There are three mediums of logistics services in India. These can be categorized in the

following way:

Airfreight – this is a modern and the safest mode to ensure a fast delivery of

goods. A chosen one by many because of the swiftness of the system there are

many companies that are now even providing super fats deliveries by airways

even on the same day.

Land transport – this is a means of logistics support that has withstood the test

of time through the extensive network of roads in India. It has been the

popularly used method and used especially in the shipments of heavy articles

like machinery and vehicles. This is also a chosen method in case of household

packers and movers.

Railways – this is also an age-old method of shipments and transport. Though

most used in case of domestic services this is very effective in the availability of

cost effective logistics support in India.

Waterways – an essential part of this industry this is also one of the oldest

methods. Shipments and transportation of goods is done on an international



basis through this way. It is apt in case of shipments of oil, highly sensitive or

volatile articles like Uranium.

Key players of the Logistics industry in India

Among the key players of the Indian logistics industry there are certain international

names along with national companies that are not only world leaders in the field but are

also part of the Indian industry for a long time now.

DHL – a very commonly known name in the Indian logistics industry, DHL has

been part of the industry for a long time now. Established in San Francisco in

the 1969 DHL has grown across 220 countries with over 300,000 employees. It

has built a reputation over the years as a responsible logistics support air, ocean,

express freight, and overland transport, contract logistic solutions.

TNT – This international brand has been a part of the Indian market also.

Established at Netherlands, TNT is a reliable name in the arena of international

transportation and distribution business. Spread across 200 countries it has an

estimated revenue turnover of $ 3,500 billion US dollars.

AFL – this is one of well-known international players in the logistics industry of

India. The main areas of service by the company are in the area of logistics and

warehousing along with Courier Company and custom consultant.

BLUE DART – this is one of the premier companies in the field of logistics.

The company has a huge network linked with the most advanced

communication systems. Blue Dart handles large and oversized packages and

stands for an overnight delivery of such goods.

GATI – one of the pioneering companies in the field of logistics. This is one the

companies that have taken several initiatives to implement modernization in the



area of logistics. With a turnover of ` 576 crores this company believes in setting

new standards of customer service.

DTDC – this company spreads over 3700 locations within India and 240

international places. The company is a leading name in low cost shipments

along with timely delivery.

ASHOK LEYLAND – this is an established name in the manufacture of trailer

trucks and heavy vehicles in India. It has come up with a new venture in Ashley

Transport Services Ltd. in the area of information exchanges and the business of

freight contractors along with integrated logistics services.

FIRST FLIGHT – this is an Indian company that has domestic, international

and many other programs of multi tracking technologies.

AGARWAL PACKERS AND MOVERS – this is a popular name in the field

of logistics companies of India. Services like shifting, transport of cars, and all

other forms of quality packing and transportation this is a name that has over the

years become synonymous with quality and assurance.

Logistics Executives

A logistics executive is responsible for the planning and coordination of

enterprise-wide logistics management. An individual accomplishes this by creating

strategic plans for carrier contract negotiations, shipment order handling, transportation

network modeling, cargo and freight planning, transportation analysis, and order

execution and monitoring. Logistics executives also are called logistics directors, supply

chain manager, logistics manager or supply chain director. An individual in this position

reports to executive management.

Duties



Logistics executives ensure that strategies are executed in the areas of a logistical

network. They communicate company objectives and goals to line managers and key

personnel in areas, divisions, or functions under the logistical structure of a company

such as, manufacturing, contracting, procurement, and distribution. They create, direct,

and modify procedures for the operation of these processes according to the strategy of

timely distribution of goods or services to clients or consumers. They are responsible

for planning and procurement of materials to maintain optimization of inventory stock

levels of services and products to meet customer requirements.

Job Functions and Features

Supply chain management is a concept of resource management pertaining to storage of

goods, services, and information between distributors, manufacturers, and retailers to

establish an order system based on consumption points or stock levels in order to meet

customer requirements. Logistics executives are responsible for monitoring these trends

and implementing audit controls that monitor the process of an organizations supply

chain management system for maximum effectiveness. The executive must have a

broad range of management and communicative skills and be able delegate authority to

managers while creating a team-based environment.

Work Environment

A logistics executive typically has a staff of administrators, analysts, and

information managers assigned to provide administrative and technical support. The

individual is also responsible for satellite and field logistical development, as well as

overseeing the information system process of a logistical operation. The logistics

executive must also be willing to travel to meet with other executives from logistical

companies and must participate in seminars, workshops, and briefings.

The role of a freight forwarder is to help importers and exporters transport their goods.

This explains the responsibilities and services of forwarders, and how they can help

international traders.

The freight forwarders core responsibilities



Most freight forwarders are likely to specialize in particular service areas, modes of

transport or markets. Freight forwarders are often seen as the travel agents of

international trading. If you have a consignment of goods, you need to move from

country A to country B, a forwarder will identify and book the best routes, modes of

transport and specific carriers for you dependent on your requirements. Many transport

and logistics operators also offer freight-forwarding services.

Using a forwarder can cut your costs. Because they arrange for the transport of huge

numbers of consignments, they can consolidate loads going to a single destination to

keep freight charges down for individual traders. However, as with most business

transactions, you should compare prices from a range of suppliers to find the best level

of cost and service for you.

For information about deciding whether to use a freight forwarder, see the page in this

guide on how to arrange your own transport or use a freight forwarder.

Freight forwarders typically offer a wide range of secondary trade-related services as

well as their core transport ones. These include:

Customs clearance - forwarders can complete customs paperwork on your

behalf, and pay any taxes or duties owed

Other documentation issues - eg Bills of Lading, or any documents required

by banks before payment are released.

Insurance - many forwarders will be able to supply insurance services

Inventory management

Logistics and supply-chain management of value-added activities

Bear in mind that you will also be able to use your forwarder as a valuable source of

information and advice about the international trading process. This can be particularly

useful for businesses that are new to international trade.

For example, you can ask a forwarder as part of your contract to help you ensure your

goods are properly packaged and labeled for export. For information about export



packaging, see our guide to how to label and package goods being shipped out of the

UK.

The Logistics Industry

Globally, the logistics industry is valued at US$ 3.5 trillion.

The U.S., which contributes to over 25% of the global industry value, spends

close to 9% of its GDP on logistic services.

The Indian Logistics Industry is presently estimated at US$ 90 billion.

The industry has generated employment for 45 million people in the country in

comparison with the IT and ITeS sector which employs approximately 4.3

million people.

It is forecast to grow at a Compound Annual Growth Rate (CAGR) of

approximately 8% over the next three to five years.

Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual

growth rate (CAGR) of over 16% from 2007-10. Consequently, 3PL service

providers are expected to corner an increased share of the Indian

Logistics pie, from 6% in FY06 to 13% in FY11, at a CAGR of 25%.

The primary growth drivers of this industry are as under:

Investments in the infrastructure sector amounting to US$ 350 billion:

Increased efficiency and productivity of the transport system would result in

lower transit times.

o Streamlining of the indirect tax structure:

The introduction of Value Added Tax (VAT) and the proposed introduction of a

singular Goods and Services Tax (GST) are expected to significantly reduce the number

of warehouses manufacturers are required to maintain in different states, thereby

resulting in a substantial increase in demand for integrated logistics solutions.

o Robust trade growth

Strong economic growth and liberalization have led to considerable increase in

domestic and international trade volumes over the past five years. Consequently, the

requirement for transportation, handling and warehousing is growing at a robust pace

and is driving the demand for integrated logistics solutions.

o Globalization of manufacturing systems



Globalization of manufacturing systems coupled with advancements in technology are

increasingly compelling companies across verticals to concentrate on their core

competencies and avail the cost saving potential of outsourcing. This is expected to

contribute to an increase in the need for integrated logistic solutions, which is the niche

of every Third Party Logistics Service (“3PL Services”) provider.

The industry has been valued at US$ 125 billion in 2010. (CII)

A snapshot of the FDI regulations governing the industry is as under:

o 100% FDI under the automatic route is permitted for logistic services

except services mentioned in points ii and iii below.

o FDI up to 100% subject to FIPB approval is permitted for courier

services.

o FDI up to 49% under the automatic route is permitted for air transport

services, including air cargo services. It is pertinent to mention in this

context, that Press Note 1 (2007) that is expected to be imminently

notified by the DIPP proposes to increase the limit of FDI on air cargo

services in 74%.

The industry has been at the receiving end of increasing interest from the private

equity sector. The year 2007 witnessed just under US$ 1 billion in private

equity investments in this industry, representing approximately 7% of total

private equity investments during the year, against 3% in the previous year.

COST OF LOGISTICS

A World Bank Study conducted recently says that the Indian logistics cost is one

of the highest in the world.



Developing countries are concerned; these costs are 6 % to 8 % of the total value of

goods. In China, the cost is estimated at 10 % of total value of goods. By comparison,

the cost of logistics in India is 14 % of the total value of goods. The freight costs for rail

and road are quite high, for example:

France 5.5 cents/km

Japan 3.7 cents/km

Canada 2.0 cents/km

India 7.0 cents/km

The following three factors are primarily responsible for the high cost of logistics in

India:

Congestion cost

Congestion at ports, inland and roads have rapidly increased, thus directly

augmenting logistics cost and resulting in overall high inventory cost as delivery

time increases.

Transaction cost

Administration costs including insurance and government taxes continue to be

very high. The logistics cost could rise further due to supply and demand

factors.

Demand and supply factors

The continued rise in container traffic is leading to increased traffic congestion

in the rail and roads network, as exports and imports are growing 22 % to 25 %

annually. The high cost of terminal development along with relatively latest

innovation in finalizing strategies result in only moderate pace in the supply

chain addition. There is also lack of proper road infrastructure in the Class-B &

Class-C towns. The lack of specific logistic professionals is also hampering the

growth.

RAIL LOGISTICS

The domestic cargo container movement is still at a very initial stage in India. The road

transport is mainly in the hand of highly unorganized players. Further, rising fuel prices

and axel load reduction are making road transport uneconomical over a long haul. There



is a movement of 30percent of exim containers by rail, and the remaining is transported

by road. Until 2005, CONCOR was a sole service provider for rail transportation of

containers.

SEA LOGISTICS

Transportation by sea is less expensive than transportation by road or railways. The

secondary port development requires fewer infrastructures. Terminal development can

easily be handled by private operators.

Policy supporting sea transportation in the country has to take into account the

following issues:

a) Developing secondary gateways along with the coast; hinterland to be

encouraged to use the nearest coast; developing SEZ in the immediate vicinity

of these ports.

b) Feeder cargo should be sent to the nearest main line port. As the cargo starts

moving through the secondary ports, the volumes will increase and secondary

ports will slowly graduate to become the main line ports.

c) Size and growth rate of the Indian logistics industry is varying from USD 15

billion to USD 50 billion, with 7 % to 8 % growth per annum.

d) As regards the logistics service providers, quality infrastructure support is not

always available on time, due to the high pace of economic development. This

includes airport infrastructure, seaports, highways, and expressways.

e) Cumbersome procedures lead to a lack of focus on the part of policy makers.

The logistic costs in the Indian economy are higher than in other countries, due

to infrastructure bottlenecks.

f) The price of fuel forces the users to shift from road transport to alternative

transport modes. Only a very small and limited number of logistics service

providers are providing end-to-end logistics chain in a true sense.

A large number of fragmented service providers aspire to cover all services. However,

an integrated approach is lacking.



Throughout the history of mankind wars have been won or lost through logistics

strengths and capabilities. It has been argues that the American War of Independence

was lost by the British since they did not have proper supply lines and relied heavily on

Britain. This resulted in poorly equipped and demoralized troops. Proper supply lines

were established only in 1781 by which time it was too late to have any impact on the

war.

Whilst Generals and Field Marshalls from the earliest times understood the importance

of logistics it is only recently that organizations have come to realize the importance of

managing logistics.

The source of competitive advantage is found firstly in the ability of the organization to

differentiate in the eyes of the customer, from its competition and secondly from

operating at lower cost and hence at lower cost and greater profit.

successful companies either have a productivity advantage or they have a value

advantage or a combination of the two. The productivity advantage gives a lower cost

profile and the value advantage gives the product or offering a differential over

competitive offerings.

Productivity advantage - In any industry we will find that there is one company that is

able to achieve highest sales and thereby achieve the lowest cost per unit due to

economies of scale. There is substantial evidence to prove that in these cases that 'big is

beautiful' when it comes to cost advantage.

The experience curve has its root in the earlier concept of the learning curve. The

learning curve effect was discovered in the Second World War where is seen that as the

number of units produced increased every additional unit produced could be created

using less time and resources. Subsequently Bruce Henderson of the Boston

Consultancy Group extended this concept to state that all costs - production related or

not reduced and the volume of output increased. In fact, to be more precise, the

relationship exists between real unit costs and cumulative volume. Further, it is

recognized that cost decline exists only for value added and not for bought in supplies.



Hence, it has been accepted that one of the principle ways of improving cost advantage

is through greater production and sales. However, through logistics we will demonstrate

that there are multiple methods and means of improving cost efficiency through better

logistics management.

Value advantage - it has long been an axiom in marketing that customers do not but

products they buy benefits. Put another this means that the product is not purchased for

itself but for what it will deliver. The benefits may be intangible such as image or

reputation. Unless the product can be differentiated in some way from the competition,

it will be seen as generic and will get only commodity prices. The values of the market

can only be fully realized by segmenting the market and creating distinct value

segments. In other words different groups in different markets place different values to

benefits. Adding value through differentiation is a powerful way of achieving a

defensible advantage in the market.

Competitive advantage

Competitive advantage cannot be understood by looking at a firm as a whole. It stems

from the many discrete activities a firm performs in designing, producing, marketing,

delivering, and supporting its product. Each of these activities can contribute to a firm's

relative cost position and create a base for differentiation... the value chain

disaggregates a firm into its strategically relevant activities in order to understand the

behavior of costs and the existing and potential sources of differentiation. A firm gains

competitive advantage by performing these strategically important activities more

cheaply or better than its competitors cannot be understood by looking at a firm as a

whole. It stems from the many discrete activities a firm performs in designing,

producing, marketing, delivering, and supporting its product. Each of these activities

can contribute to a firm's relative cost position and create a base for differentiation... the

value chain disaggregates a firm into its strategically relevant activities in order to

understand the behavior of costs and the existing and potential sources of

differentiation. A firm gains competitive advantage by performing these strategically

important activities more cheaply or better than its competitors perform.



Understanding logistics management

The mission of logistics management is to plan and coordinate all activities necessary to

achieve desired levels of delivered service and quality at lowest possible cost. Logistics

must therefore be seen as the link between the market and the company. The scope of

logistics spans the organization from raw material management to delivery of the final

product.

Competitive Advantage = Product Excellence X Process Excellence

When preparing to ship a product overseas, the exporter needs to be aware of packing,

labeling, documentation, and insurance requirements. Because the goods are being

shipped by unknown carriers to distant customers, the new exporter must be sure to

follow all shipping requirements to help ensure that the merchandise is packed correctly

so that it arrives in good condition; labeled correctly to ensure that the goods are

handled properly and arrive on time and at the right place; documented correctly to

meet local and foreign government requirements as well as proper collection standards;

and insured against damage, loss, and pilferage and, in some cases, delay. Because of

the variety of considerations involved in the physical export process, most exporters,

both new and experienced, rely on an international freight forwarder to perform these

services.

Freight forwarders

The international freight forwarder acts as an agent for the exporter in moving cargo to

the overseas destination. These agents are familiar with the import rules and regulations

of foreign countries, methods of shipping, government export regulations, and the

documents connected with foreign trade.

Freight forwarders can assist with an order from the start by advising the exporter of the

freight costs, port charges, consular fees, cost of special documentation, and insurance

costs as well as their handling fees - all of which help in preparing price quotations.

Freight forwarders may also recommend the type of packing for best protecting the

merchandise in transit; they can arrange to have the merchandise packed at the port or



containerized. The cost for their services is a legitimate export cost that should be

figured into the price charged to the customer.

When the order is ready to ship, freight forwarders should be able to review the letter of

credit, commercial invoices, packing list, and so on to ensure that everything is in order.

They can also reserve the necessary space on board an ocean vessel, if the exporter

desires.

If the cargo arrives at the port of export and the exporter has not already done so, freight

forwarders may make the necessary arrangements with customs brokers to ensure that

the goods comply with customs export documentation regulations. In addition, they

may have the goods delivered to the carrier in time for loading. They may also prepare

the bill of lading and any special required documentation. After shipment, they forward

all documents directly to the customer or to the paying bank if desired.

Packing

In packing an item for export, the shipper should be aware of the demands that

exporting puts on a package. Four problems must be kept in mind when an export

shipping crate is being designed: breakage, weight, moisture, and pilferage.

Most general cargo is carried in containers, but some is still shipped as breakbulk cargo.

Besides the normal handling encountered in domestic transportation, a break-bulk

shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling,

conveyor, chute, or other method, putting added strain on the package. In the ship's

hold, goods may be stacked on top of one another or come into violent contact with

other goods during the voyage. Overseas, handling facilities may be less sophisticated

than in your country and the cargo may be dragged, pushed, rolled, or dropped during

unloading, while moving through customs, or in transit to the final destination.

Moisture is a constant problem because cargo is subject to condensation even in the

hold of a ship equipped with air conditioning and a dehumidifier. The cargo may also be

unloaded in the rain, and some foreign ports do not have covered storage facilities. In



addition, unless the cargo is adequately protected, theft and pilferage are constant

threats.

Since proper packing is essential in exporting, often the buyer specifies packing

requirements. If the buyer does not so specify, be sure the goods are prepared with the

following considerations in mind:

Pack in strong containers, adequately sealed and filled when possible. To provide

proper bracing in the container, regardless of size, make sure the weight is evenly

distributed.

Goods should be packed in oceangoing containers, if possible, or on pallets to ensure

greater ease in handling. Packages and packing filler should be made of moisture-

resistant material.

To avoid pilferage, avoid mentioning contents or brand names on packages. In addition,

strapping, seals, and shrink-wrapping are effective means of deterring theft.

One popular method of shipment is the use of containers obtained from carriers or

private leasing concerns. These containers vary in size, material, and construction and

can accommodate most cargo, but they are best suited for standard package sizes and

shapes. Some containers are no more than semi-truck trailers lifted off their wheels and

placed on a vessel at the port of export. They are then transferred to another set of

wheels at the port of import for movement to an inland destination. Refrigerated and

liquid bulk containers are readily available.

Normally, air shipments require less heavy packing than ocean shipments, but they must

still be adequately protected, especially if highly pilferable items are packed in domestic

containers. In many instances, standard domestic packing is acceptable, especially if the

product is durable and there is no concern for display packaging. In other instances,

high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxes

are more than adequate. For both ocean and air shipments, freight forwarders, and

carriers can advise on the best packaging. Marine insurance companies are also

available for consultation. It is recommended that a professional firm be hired to

package for export if the exporter is not equipped for the task. This service is usually



provided at a moderate cost. Finally, because transportation costs are determined by

volume and weight, special reinforced and lightweight packing materials have been

devised for exporting. Care in packing goods to minimize volume and weight while

giving strength may well save money while ensuring that goods are properly packed.

Labeling

Specific marking and labeling is used on export shipping cartons and containers to meet

shipping regulations, ensure proper handling, conceal the identity of the contents, and

help receivers identify shipments. The overseas buyer usually specifies export marks

that should appear on the cargo for easy identification by receivers. Many markings

may be needed for shipment. Exporters need to put the following markings on cartons

to be shipped:

Shipper's mark.

Country of origin (exporters’ country).

Weight marking (in pounds and in kilograms).

Number of packages and size of cases (in inches and centimeters).

Handling marks (international pictorial symbols).

Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English

and in the language of the country of destination).

Port of entry.

Labels for hazardous materials (universal symbols adapted by the International

Maritime Organization).

Legibility is extremely important to prevent misunderstandings and delays in shipping.

Letters are generally stenciled onto packages and containers in waterproof ink.

Markings should appear on three faces of the container, preferably on the top and on the

two ends or the two sides. Old markings must be completely removed.

In addition to port marks, customer identification code, and indication of origin, the

marks should include the package number, gross and net weights, and dimensions. If

more than one package is being shipped, the total number of packages in the shipment

should be included in the markings. The exporter should also include any special



handling instructions on the package. It is a good idea to repeat these instructions in the

language of the country of destination. Standard international shipping and handling

symbols should also be used.

Exporters may find that customs regulations regarding freight labeling are strictly

enforced; for example, most countries require that the country of origin be clearly

labeled on each imported package. Most freight forwarders and export packing

specialists can supply necessary information regarding specific regulations.

Documentation

Exporters should seriously consider having the freight forwarder handle the formidable

amount of documentation, that exporting requires; freight forwarders are specialists in

this process. The following documents are commonly used in exporting; which of them

are actually used in each case depends on the requirements of both our government and

the government of the importing country.

Commercial invoice: As in a domestic transaction, the commercial invoice is a

bill for the goods from the buyer to the seller. A commercial invoice should

include basic information about the transaction, including a description of the

goods, the address of the shipper and seller, and the delivery and payment terms.

The buyer needs the invoice to prove ownership and to arrange payment. Some

governments use the commercial invoice to assess customs duties.

Bill of lading: Bills of lading are contracts between the owner of the goods and

the carrier (as with domestic shipments). There are two types. A straight bill of

lading is nonnegotiable. A negotiable or shipper's order bill of lading can be

bought, sold, or traded while goods are in transit and is used for letter-of-credit

transactions. The customer usually needs the original or a copy as proof of

ownership to take possession of the goods.

Consular invoice: Certain nations require a consular invoice, which is used to

control and identify goods. The invoice must be purchased from the consulate of

the country to which the goods are being shipped and usually must be prepared

in the language of that country.

Certificate of origin: Certain nations require a signed statement as to the origin

of the export item. Such certificates are usually obtained through a semiofficial



organization such as a local chamber of commerce. A certificate may be

required even though the commercial invoice contains the information.

Inspection certification: Some purchasers and countries may require a

certificate of inspection attesting to the specifications of the goods shipped,

usually performed by a third party. Inspection certificates are often obtained

from independent testing organizations.

Dock receipt and warehouse receipt: These receipts are used to transfer

accountability when the export item is moved by the domestic carrier to the port

of embarkation and left with the international carrier for export.

Destination control statement: This statement appears on the commercial

invoice, ocean or air waybill of lading, and SED to notify the carrier and all

foreign parties that the item may be exported only to certain destinations.

Insurance certificate: If the seller provides insurance, the insurance certificate

states the type and amount of coverage. This instrument is negotiable.

Export packing list: Considerably more detailed and informative than a

standard domestic packing list, an export packing list itemizes the material in

each individual package and indicates the type of package: box, crate, drum,

carton, and so on. It shows the individual net, legal, tare, and gross weights and

measurements for each package. Package markings should be shown along with

the shipper's and buyer's references. The packing list should be attached to the

outside of a package in a waterproof envelope marked "packing list enclosed."

The list is used by the shipper or forwarding agent to determine

(1) the total shipment weight and volume and

(2) whether the correct cargo is being shipped.

In addition, customs officials (both local and foreign) may use the list to check the

cargo.

Documentation must be precise. Slight discrepancies or omissions may prevent

merchandise from being exported, result in exporting firms not being paid, or even

result in the seizure of the exporter's goods by local or foreign government customs.

Collection documents are subject to precise time limits and may not be honored by a

bank if out of date. Much of the documentation is routine for freight forwarders or

customs brokers acting on the firm's behalf, but the exporter is ultimately responsible

for the accuracy of the documentation.



The number of documents the exporter must deal with varies depending on the

destination of the shipment. Because each country has different import regulations, the

exporter must be careful to provide proper documentation. If the exporter does not rely

on the services of a freight forwarder, there are several methods of obtaining

information on foreign import restrictions:

Foreign government embassies and consulates can often provide information on

import regulations.

The handling of transportation is similar for domestic orders and export orders.

The export marks should be added to the standard information shown on a

domestic bill of lading and should show the name of the exporting carrier and

the latest allowed arrival date at the port of export. The exporter should also

include instructions for the inland carrier to notify the international freight

forwarder by telephone on arrival.

International shipments are increasingly being made on a through bill of lading

under a multimodal contract. The multimodal transport operator (frequently one

of the modal carriers) takes charge of and responsibility for the entire movement

from factory to the final destination. When determining the method of

international shipping, the exporter may find it useful to consult with a freight

forwarder. Since carriers are often used for large and bulky shipments, the

exporter should reserve space on the carrier well before actual shipment date

(this reservation is called the booking contract).

The exporter should consider the cost of shipment, delivery schedule, and

accessibility to the shipped product by the foreign buyer when determining the

method of international shipping. Although air carriers are more expensive, their

cost may be offset by lower domestic shipping costs (because they may use a

local airport instead of a coastal seaport) and quicker delivery times. These

factors may give the exporter an edge over other competitors, whose service to

their accounts may be less timely.

Before shipping, the firm should be sure to check with the foreign buyer about

the destination of the goods. Buyers often wish the goods to be shipped to a free-

trade zone or a free port where goods are exempt from import duties.

Insurance



Export shipments are usually insured against loss, damage, and delay in transit by cargo

insurance. For international shipments, the carrier's liability is frequently limited by

international agreements and the coverage is substantially different from domestic

coverage. Arrangements for cargo insurance may be made by either the buyer or the

seller, depending on the terms of sale. Exporters are advised to consult with

international insurance carriers or freight forwarders for more information. Damaging

weather conditions, rough handling by carriers, and other common hazards to cargo

make marine insurance important protection for exporters. If the terms of sale make the

firm responsible for insurance, it should either obtain its own policy or insure cargo

under a freight forwarders policy for a fee. If the terms of sale make the foreign buyer

responsible, the exporter should not assume (or even take the buyer's word) that

adequate insurance has been obtained. If the buyer neglects to obtain coverage or

obtains too little, damage to the cargo may cause a major financial loss to the exporter.

The logistics department is entrusted with the responsibilities of ensuring that the entire

process of logistics is maintained and developed in accordance with the goals of the

business at an economical cost. The tasks of the logistics department involve storage,

distribution, warehousing, movement of goods from one place to another (internally or

externally), tracking and delivery of goods. It includes a complete process of planning,

managing, controlling, and coordination to make sure that the goods reach the right

place, at the right time, for the right cost and in a right condition.

The various tasks performed by the department may be summarized as follows:

1. Ensuring all the requirements of the customers are met on time in an efficient

and safe manner.

2. To coordinate with third party logistics (3PLs).

3. To ensure that there is a safe and timely dispatch of goods.

4. To draft plans, policies and procedures for successful implementation of

logistics system.

5. To ensure that the business goals of the organization are in synchronization with

logistics system.

6. To create and maintain customer support.

7. To maintain coordination with vendors, service providers and transport carriers.

8. To ensure that no fraud is committed.



9. To ensure timely supply and payment of goods and reduce inventories.

Besides the performance of the above tasks, the department also performs numerous

other tasks, namely:

The department ensures that the goods are reached on time, in a safe condition and at

the right place. It also serves as an intermediary between organization, vendors, and

carriers for tracking down the geographical location of the goods and thereby provides

customer support.

Procurement process Strategic plans are developed by the department to support

development of fresh product and manufacturing flow management. This helps in

bringing raw materials or semi-finished goods to the premises of the organization in a

safe and proper condition at an economical cost. This also involves interactions with

3PLs. The department is also responsible for coordination with suppliers with regard to

scheduling, hedging, and timely delivery.

Physical distribution, this process is concerned with the movement of finished goods to

reach the point of destination. The department is responsible for the selection of the best

mode of transportation while delivering the goods to the place of destination.

Thus, it can be rightly concluded that the logistics department does play an important

role in ensuring the delivery of goods and is therefore rightly considered as an integral

part of a modern-day organization



1.3 Company profile

Summary

Name : Consolidated Shipping Line

Address : Consolidated Shipping Line (I) Pvt. Ltd

Nethaji Nagar, Ernakulum

Kochi – 682020

Web site : www. cslindia.net

E-mail : [email protected]

Head of the firm : Mr. Ajai Joseph

No. of employees : 130

Category : Medium

Section : Private

Branches : Mumbai, New Delhi, Kolkata, Coimbatore,

Chennai, Bangalore, Kochi, Tirupur & Tuticorin.

Company Profile - History

Anchorage Shipping, Cochin, was established in the year 1997 and has been one of the

reputed Licensed Custom House Agencies in Cochin Port, Offering CHA services to

various Governmental and other private business houses in Kerala. Mr. Ajai Joseph and

Mrs. Shiney Blossom Joseph are the two partners of the company and Mr. B. Hariharan

is the General Manager. Since then, Anchorage Shipping made a big stride in other

areas of transportation business, viz. NVOCC, Sea freight consolidation, Sea-Air

freight, Project Freight, Chartering and Multimodal operations. Anchorage Shipping



opened up its offices at Tirupur and Tuticorin in order to provide a better service to its

clientele located in these regions.

In August 2002, the management unfurled the banner of Consolidated Shipping Line

India Private Limited and Anchorage Shipping continues to function as a Licensed

Custom House Agent (CHA) along with the airfreight activity under its IATA license.

The Company

More than a decade in existence, CSL is one of the leading operators in India, owing

nine offices in the major ports of India- Mumbai, New Delhi, Kolkata, Chennai,

Bangalore, Cochin, Tirupur, Tuticorin and Coimbatore employing more than 200

people. The whole of India is represented through our local network covering ICDs and

small towns, offering global coverage through complete logistics solutions locally and

internationally. CSL has the following membership and accreditations:

IATA (International Air Transport Association)

FIATA (International Federation of Freight Forwarders Association)

FFFAI (Federation of Freight Forwarders Association in India)

CHA License (Customs House Agent)

FMC (Registered Bill of Lading)

ITPO (Indian Trade Promotion Organization)

CSL-India is proudly rated as one among the leading NVOCC’s in India offering

Integrated Freight Forwarding & Logistics Solutions to an impressive clientele.

Qualified with a specialized team of professionals having vast experience in shipping

and other related services CSL-India, is notably termed to be a fast growing

multinational, boasting an enviable network spread across the globe.

Today, possessing a fine blend of human talent and technology, CSL-India provides

distinguished logistics services to leading multinationals and Indian Corporates. Sailing

consistently on a steady stretch and looking ahead to explore global frontiers, all along

with the sole aim of attaining the highest degree in customer satisfaction

ANCHORAGE



CSL has got another division known as ANCHORAGE, which has been licensed

Custom House Agencies (CHA). ANCHORAGE has been one of the reputed Licensed

Customs House Agencies in India, Offering CHA services to an extended clientele of

exporters and importers spread across the country.

ANCHORAGE also provides airfreight activity under IATA license. Hi-tech

infrastructure, fully integrated IT solutions, innovative logistics services, providing top

class services to its clientele; make up the Anchorage formula for continued excellence

in serving customers business.

ANCHORAGE provides clients with hassle-free and quick service for all their

consignments from collection of document to their respective buyers. The company’s

outlook is to run the business on a strong corporate image with utmost transparency in

their dealings and it offers fully committed to what they say.

Objectives of the company

Mission

To offer practical, cost effective and innovative freight management solutions through

our ambitious team that comprises of our staff, management and network partners.

Vision

To be recognized as a quality operator in the global logistics arena by offering total

logistics solutions to meet our customer demands and work towards improving industry

standards, customer satisfaction, stable growth and profitability.

The world is getting smaller day by day because people are travelling more often and

bringing home various culture, practice, material, cuisine etc and what is made in

Cologne is found in Beijing easily. Logistics has a big role in the technical advancement

and bringing the world closer. As a freight forwarder CSL is aware of the fact that more

and more customers are looking for a multi-dimensional service provider who could



provide everything under one roof and it is essential to be highly competitive to

succeed and work on innovative ideas, invest in systems, technology and equipments as

an ongoing process.CSL burn their passion for ambitious goal and take pride in all the

achievements.

Sometimes not knowing your inability can work towards your advantage. Just like the

humming birds, due to their nonexistent aerodynamic build they cannot fly technically.

However, these birds fly because they do not know physics. You try things harder only

if you believe you can. CSL tries hard with a creative mind to maximize benefits for

their customers and partners.

India has a reputation for its rich culture, tradition, hospitality, character and a huge

potential as a market. Operating from India CSL offers all this and more. CSL

considers staff and their customers as our biggest assets and a good interaction between

them will lead to success. Every employee of CSL is aware of the set goals and the

perfect blend of youth and experience combined will position them as modern service

provider. CSL has a portfolio of exciting services in stock for you.

More than a decade in existence, CSL is one of the leading operators in India, owning

eight offices in the major port cities of India – Mumbai, New Delhi, Chennai, Kolkata,

Kochi, Tirupur, Tuticorin and Coimbatore employing more than 100 people. The whole

of India is represented through their local network covering ICDs and small cities.

Offering global coverage through an extensive network of agents and alliances CSL

provides complete logistics solutions locally and internationally.

CSL Values

Attitude: CSL value enthusiasm, warmth and positive attitude which are

essential components to be successful in a service industry.

Integrity: CSL believe in conducting the business with the highest level of

integrity during interactions and dealings with people, customers and business

partners.



Leadership: CSL strongly believe that the strength of their company is in the

quality of their people, as such, their management style is effective leadership

practiced by example.

Ownership: CSL support the sense of ownership and leadership in people by

accepting the responsibility and accountability through decision making and

creativity processes without compromising on their values.

Partnership: CSL starts relationship with their customers, suppliers and people

based on winning a long term partnership and they put sincere efforts to

maintain the relationship that goes on and on.

Team Spirit: CSL strives to create and sustain a conducive working

environment for their staff and across the board through listening, debating,

helping, sharing and participating as one team.

CSL Networks

The reputation is determined by the quality and efficiency of operations. Mission can be

accomplished only through local and international agency partners. CSL has an ongoing

philosophy to develop strategic alliances and strengthening its network by carefully

choosing reputable organizations through a detailed screening process to ensure that

they share their drive, ethics and vision to succeed.

Today, CSL have excellent resources in all the key areas of their business so as to

provide with the ideal logistics services. Having secured the right partnerships in the

major trade areas like Europe, South Asia, Middle East and Africa, we continue to work

towards building more relationships, thus making CSL a truly global operator.

Company Structure

The company is spearheaded by the Chairman, Mr. Ajai Joseph, who brings with him a

wealth of quality industry experience and exposure within the trade locally and

internationally. Operating in India the biggest challenge is to bring people with different



cultural background, language and mindset under one umbrella to work on a common

goal. At CSL with regular training program and close interaction with the employees

and the management it's done effectively and every employee is aware of the common

goal, mission and vision. CSL believe in people's strengths and we invest in them in

many forms to enhance their skills and knowledge. With qualified experts from root to

branch, the companies’ organizational structure boasts of a longstanding experience in

freight management, market awareness, customer handling and finance management,

with a strong team handpicked to provide the best to the customers and associates.



Organizational Chart



1.4 Product Profile

The Services

CSL tries doing tomorrow’s job just like CSL have delivered shipment in Australia

tomorrow. All the staffs are well trained and committed to doing things now and that is

the essence of the success in building satisfied customers beyond their expectation. CSL

combine product Knowledge and market experience to bring service efficiency and cost

effective freight solution through various activities.

Customer Service

CSL offers tailor-made solution to suit every customer’s requirement. Trained and

qualified customer service teams are willing to answer to the queries, and provide with

the product and service expertise relevant to the customers business.

Groupage NVOCC

An NVOCC is a common carrier that holds itself out to the public to provide

ocean transportation, issues its own house bills of lading or equivalent

document, but does not operate the vessels by which ocean transportation is

provided. Companies may obtain both licenses and may act in both capacities

even on the same shipment.

Projects and procurement

CSL India undertakes a Hydropower project from Shanghai to Siurikhola in

Nepal.

Supply Chain Management

Supply chain management (SCM) is the management of a network of

interconnected businesses involved in the ultimate provision of

product and service packages required by end customers

Air Freight and Sea Freight

Cargo airlines (or airfreight carriers, and derivatives of these names)

are airlines dedicated to the transport of cargo.

Larger cargo airlines tend to use new or recently built aircraft to carry their

freight, but many use older aircraft, like the Boeing 707, Boeing 727, Douglas

DC-8, DC-10, MD-11, Boeing 747, and the Ilyushin Il-76.


http://en.wikipedia.org/wiki/Ilyushin_Il-76


Sea freight: Cargo (or freight) is goods or produce transported, generally

for commercial gain, by ship

Warehousing and Distribution

Cross Trade

Sea-Air multimodal Operation

Customs Clearance (CHA): Customs clearance is a profession that involves the

'clearing' of goods through customs barriers for importers and exporters (usually

businesses). This involves the preparation of documents and/or electronic

submissions, the calculation, (and usually the payment) on behalf of the client

of taxes, duties and excises, and facilitating communication between the

importer/exporter and governmental authorities.

Land Transportation

Local & International Removals

Value –Added Services

Quick and courteous multilingual staff, handling every customer under the same

benchmark and commitment.

Free consultancy and survey for all shipping needs.

Booking, Rate request and industry news on CSL website.

Facilitation for understanding international freight norms.

In house customs clearance(CHA)

Central accounting system enabling the partners to reconcile accounts through

one window.

State of the art Shipping and Logistics software which operates on a stable and

accounting functions that generates various reports including consignment

tracking and tracing.

1.5 DEPARTMENTS



Finance Department

The Finance & Accounts Division is headed by Mr. Varghese – a veteran in his field.

He has succeeded in streamlining and improving the efficiency of this department.

The accounts personnel control and monitor the all accounts dealings at branch level to

ensure smooth and error free handling of transactions.

Mr. Varghese is also credited with the achievement of the Company's ISO certification.

There are four accountants in the cooperate office and for each department there is an

accountant to look after the daily transactions and accounts. The funding system is

centralized. Accounts are decentralized but the finance is centralized. The main role of

the finance department,

Fund transfer

Monthly auditing

Consolidation of audit yearly

Maintaining the books of records (double entry).

The company mainly prepares two types of budgets, sales budget, and financial

budget. The profit and loss accounts and balance sheet shows that the company

is able to meet the target.

Fig 1.1- Turnover for the last three year

Human Resource Department



The Personnel Department is known as the “backbone” of an organization. The

other name of Personnel Department is Human Resource Department.

The efficiency of an industry or an organization depends upon the potential of

the workers. To get the most potential worker inside the organization, the Personnel

Department has to strive hard, because, they are assigned to do the task of employing

the right person at right time for the right job.

The HR Department at Corporate is a single point contact for all employee

related queries/issues/records. The department ensures that all of policies, laws, rules

are implemented in a uniform manner at every branch. The division is headed by Ms.

Annie Jacob, who is well qualified and experienced in the all the nuances of employee

relations. She runs the department with efficiency, authority & is talented at organizing

various functions for the company. Ms. Sruthi assists her by in her duties.

There are so many key functions of the Personnel Department. They are as

follows, with respect to this organization.

MANPOWER PLANNING: -

This is the most valuable duty that that has been assigned to the HR

Department or the Personnel Department. The Personnel Manager is a

man who should fill with the tactic of filling the gaps. The HR Manager

should supply an adequate amount of employees to all level of

Departments inside in an organization.

RECRUITING THE POTENTIAL ASSETS TO THE FIRM

This means the main duty of HR manager is to recruit people who have

the right content with them in all sense. If they will not do it, the whole

organization has to suffer a lot. This process has great significance

therefore.

Recruitment Process



Chart 1.2- Recruitment Process

Advertisement

Advertisements in CSL is mainly done in Shipping Times or else getting the

information’s from career ID



Recruitment

Here in CSL the first procedure for recruitment is to shortlist the CV received. As the

HR department is located at the corporate office, interview for the other branches are

done through telephone.

For different departments the department does the main interview and for the final

placement the recommended candidates are send to the HR department.

Training & Induction

The company gives the fresh employee two weeks of induction program with various

other departments to have a home feel in the origination. The company is flexible with

people intending to change the department.

Salary and Benefits

CSL provides all the staffs with a good salary package and other monetary and non-

monetary benefits. The benefits other than the salary includes,

Mobile bills

Fuel reimbursement

P.F arrangement

Leave encashment who have completed one year

Mediclaim for the whole family

Accident compensation

Gratuity policy for staffs



Festival advance for all employees

Employee wedding gift

All leaves are calculated for a calendar year starting January to December. The leave

entitled to a confirmed employee of CSL-India is as follows,

Casual Leave

Sick Leave

Privilege Leave

Maternity Leave

In addition to leaves mentioned above, the company will observe 15 National and

Festival Holidays in a calendar year.

Performance Appraisal

Every company at the end of the financial year goes through a review of how the

business has fared in the past year and thus assesses and plan the following year

accordingly. The employee Performance Appraisal System aims at achieving a similar

goal as far as man power is concerned. It is intended to give a fair chance for both the

appraiser and the appraised to bring their views together, sort out any clarifications, and

plan the year ahead for better result. CSL India holds employee appraisals in the month

of March every year. It assess the performance of every employee, plans and sets

objective for the coming year and recognizes and reward performers and help others to

set goals to achieve the same

SALES DEPARTMENT

The sales of department of Kochi branch is been handled by Mrs. Rina Chandran. There

are two other staffs to support the overall performance of sales department. The sales

department has the most important role in the logistics department. The existence of the

company entirely depends upon the sales department. A logistics executive is



responsible for the planning and coordination of enterprise-wide logistics management.

An individual accomplishes this by creating strategic plans for carrier contract

negotiations, shipment order handling, transportation network modeling, cargo and

freight planning, transportation analysis, and order execution and monitoring. Logistics

executives also are called logistics directors, supply chain manager, logistics manager

or supply chain director. An individual in this position reports to executive

management.

Logistics executives ensure that strategies are executed in the areas of a logistical

network. They communicate company objectives and goals to line managers and key

personnel in areas, divisions or functions under the logistical structure of a company

such as, manufacturing, contracting, procurement and distribution. They create, direct

and modify procedures for the operation of these processes according to the strategy of

timely distribution of goods or services to clients or consumers. They are responsible

for planning and procurement of materials to maintain optimization of inventory stock

levels of services and products to meet customer requirements. Supply chain

management is a concept of resource management pertaining to storage of goods,

services, and information between distributors, manufacturers, and retailers to establish

an order system based on consumption points or stock levels in order to meet customer

requirements.

DEPARTMENTAL CHART OF SALES



Chart 1.3- Sales departmental chart

Logistics executives are responsible for monitoring these trends and implementing audit

controls that monitor the process of an organizations supply chain management system

for maximum effectiveness. The executive must have a broad range of

management and communicative skills and be able delegate authority to managers

while creating a team-based environment.

BPO

CSL's BPO division is equipped with well-trained and committed staff who provide

high quality and regular service. The consistent support from European counterparts

over the years is a befitting testimonial of steady and swift service. Right now, the

company is outsourcing an Italian based company work. The BPO department consists

of four well-experienced staffs.

IT

The IT division is the backbone of CSL. The department administers and maintains all

IT activity ensuring cost effectiveness and standardization. They tackle all IT issues

promptly and professionally. The IT department of CSL cooperate office maintains and

operates the other CSL branches around India. The IT department consists of highly

qualified and well-experienced IT professionals having work experience over 10 years

in the same field. The IT department contains one IT manager and two other staffs as

network administrator and the other as IT executive.

The company has its own logistics software known as VISION. The software supports

the operational department and other departments to do their job with much ease and

effectiveness. Oracle 11-i version is used as its back end.

For other uses such as accounting and finance commonly used software Tally is used.

IT department has its own huge roles and responsibilities. The main responsibility of IT

department is trouble shooting the remote desktops of different CSL branches and



anything related to IT. For remote branches, CSL has given annual maintenance

contracts to different companies in case of hardware problem.

Regarding the backups, VISION is centralized in it’s cooperate office. The tally dump

files are loaded to the corporate, daily basis. Data backups are stored once in three

month.

DEPARTMENTAL CHART OF IT

Chart 1.4- IT departmental Chart

Highlights of New Software

Completely centralized Data centre.

Centralized web based software "Vision" which

can be accessed from anywhere at any time.

24 / 7 Power backup facility.

High speed leased Line connectivity to the central server.

DOCUMENTATION AND OPERATIONS DEPARTMENT



When preparing to ship a product overseas, the exporter needs to be aware of packing,

labeling, documentation, and insurance requirements. Because the goods are being

shipped by unknown carriers to distant customers, the new exporter must be sure to

follow all shipping requirements to help ensure that the merchandise is

o packed correctly so that it arrives in good condition;

o labeled correctly to ensure that the goods are handled properly and

arrive on time and at the right place;

o documented correctly to meet local and foreign government

requirements as well as proper collection standards; and

o insured against damage, loss, and pilferage and, in some cases, delay.

Because of the variety of considerations involved in the physical export process, most

exporters, both new and experienced, rely on an international freight forwarder to

perform these services.

Exporters should seriously consider having the freight forwarder handle the formidable

amount of documentation, that exporting requires; freight forwarders are specialists in

this process. The following documents are commonly used in exporting; which of them

are actually used in each case depends on the requirements of both our government and

the government of the importing country.

Commercial invoice. As in a domestic transaction, the commercial invoice is a bill for

the goods from the buyer to the seller. A commercial invoice should include basic

information about the transaction, including a description of the goods, the address of

the shipper and seller, and the delivery and payment terms. The buyer needs the invoice

to prove ownership and to arrange payment. Some governments use the commercial

invoice to assess customs duties.

Bill of lading. Bills of lading are contracts between the owner of the goods and the

carrier (as with domestic shipments). There are two types. A straight bill of lading is



nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or

traded while goods are in transit and is used for letter-of-credit transactions. The

customer usually needs the original or a copy as proof of ownership to take possession

of the goods.

Consular invoice. Certain nations require a consular invoice, which is used to control

and identify goods. The invoice must be purchased from the consulate of the country to

which the goods are being shipped and usually must be prepared in the language of that

country.

Certificate of origin. Certain nations require a signed statement as to the origin of the

export item. Such certificates are usually obtained through a semiofficial organization

such as a local chamber of commerce. A certificate may be required even though the

commercial invoice contains the information.

Inspection certification. Some purchasers and countries may require a certificate of

inspection attesting to the specifications of the goods shipped, usually performed by a

third party. Inspection certificates are often obtained from independent testing

organizations.

Dock receipt and warehouse receipt. These receipts are used to transfer accountability

when the export item is moved by the domestic carrier to the port of embarkation and

left with the international carrier for export.

Destination control statement. This statement appears on the commercial invoice,

ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that

the item may be exported only to certain destinations.

Insurance certificate. If the seller provides insurance, the insurance certificate states

the type and amount of coverage. This instrument is negotiable.



Export packing list. Considerably more detailed and informative than a standard

domestic packing list, an export packing list itemizes the material in each individual

package and indicates the type of package: box, crate, drum, carton, and so on. It shows

the individual net, legal, tare, and gross weights and measurements for each package.

Package markings should be shown along with the shipper's and buyer's references. The

packing list should be attached to the outside of a package in a waterproof envelope

marked "packing list enclosed."

The list is used by the shipper or forwarding agent to determine

(1) The total shipment weight and volume and

(2) Whether the correct cargo is being shipped. In addition, customs officials (both local

and foreign) may use the list to check the cargo.

Documentation must be precise. Slight discrepancies or omissions may prevent

merchandise from being exported, result in exporting firms not getting paid, or even

result in the seizure of the exporter's goods by local or foreign government customs.

Collection documents are subject to precise time limits and may not be honored by a

bank if out of date. Much of the documentation is routine for freight forwarders or

customs brokers acting on the firm's behalf, but the exporter is ultimately responsible

for the accuracy of the documentation.

The number of documents the exporter must deal with varies depending on the

destination of the shipment. Because each country has different import regulations, the

exporter must be careful to provide proper documentation. If the exporter does not rely

on the services of a freight forwarder, there are several methods of obtaining

information on foreign import restrictions



2.1 TOPIC OF THE STUDY

Performance analysis of CSL in respect with the competitors

Performance analysis involves gathering formal and informal data to help company

define and achieve their goals. Performance analysis uncovers several perspectives on a

problem or opportunity, determining any and all drivers towards or barriers to

successful performance, and proposing a solution system based on what is discovered.

The topic covers the performance of the company with comparing to other competitors.

The logistics industry is a vast area with huge number of competitors with different

strategies and ideas. The new comers in the field may lack infrastructure, experience,

and reputation. The performance analysis helps the company to identify the positive and

negatives or strength or weakness.

Performance analysis reveals certain strategies and ideas, which can be adopted in the

company to move to the heights of success.



2.2 REVIEW OF LITERATURE

Performance analysis involves gathering formal and informal data to help customers

and sponsors define and achieve their goals. Performance analysis uncovers several

perspectives on a problem or opportunity, determining any and all drivers towards or

barriers to successful performance, and proposing a solution system based on what is

discovered.

Definition

Performance analysis is the front end of the front end. It is what we do to figure out

what to do. Some synonyms are planning, scoping, auditing, and diagnostics.

As a part of performance analysis, the analyst may do the following works,

Interviewing a sponsor

Reading the annual report

Chatting at lunch with a group of customer service representatives or

competitors

Reading the organization's policy on customer service, focusing particularly on

the recognition and incentive aspects

Listening to audiotapes associates with customer service complaints

Leading a focus group with supervisors



Interviewing some randomly drawn representatives

Reading an article in a professional journal on the subject of customer service

performance improvement

Chatting at the supermarket with somebody who is a competitor or customer,

who wants to tell you about her experience with customer service

We distinguish three basic steps in the performance analysis process:

Data collection, data transformation, and data visualization. Data collection is the

process by which data about program performance are obtained from an executing

program. Data are normally collected in a file, either during or after execution,

although in some situations it may be presented to the user in real time. Three basic

data collection techniques can be distinguished:

Profiles, record the amount of time spent in different parts of a program. This

information, though minimal, is often invaluable for highlighting performance

problems. Profiles typically are gathered automatically.

Counters, record either frequencies of events or cumulative times. The

insertion of counters may require some programmer intervention.

Event traces, record each occurrence of various specified events, thus typically

producing a large amount of data. Traces can be produced either automatically

or with programmer intervention.

The raw data produced by profiles, counters, or traces are rarely in the form required to

answer performance questions. Hence, data transformations are applied, often with the

goal of reducing total data volume. Transformations can be used to determine mean

values or other higher-order statistics or to extract profile and counter data from traces.

For example, a profile recording the time spent in each subroutine on each processor

might be transformed to determine the mean time spent in each subroutine on each

processor, and the standard deviation from this mean. Similarly, a trace can be

processed to produce a histogram giving the distribution of message sizes. Each of the

various performance tools described in subsequent sections incorporates some set of

built-in transformations; more specialized transformation can also be coded by the

programmer.



Parallel performance data are inherently multidimensional, consisting of execution

times, communication costs, and so on, for multiple program components, on different

processors, and for different problem sizes. Although data reduction techniques can be

used in some situations to compress performance data to scalar values, it is often

necessary to be able to explore the raw multidimensional data. As is well known in

computational science and engineering, this process can benefit enormously from the

use of data visualization techniques. Both conventional and more specialized display

techniques can be applied to performance data.

As we shall see, a wide variety of data collection, transformation, and visualization

tools are available. When selecting a tool for a particular task, the following issues

should be considered:

1. Accuracy: In general, performance data obtained using sampling techniques

are less accurate than data obtained by using counters or timers. In the case of

timers, the accuracy of the clock must be taken into account.

2. Simplicity: The best tools in many circumstances are those that collect data

automatically, with little or no programmer intervention, and that provide

convenient analysis capabilities.

3. Flexibility: A flexible tool can be extended easily to collect additional

performance data or to provide different views of the same data. Flexibility

and simplicity are often opposing requirements.

4. Intrusiveness: Unless a computer provides hardware support, performance

data collection inevitably introduces some overhead. We need to be aware of

this overhead and account for it when analyzing data.

5. Abstraction: A good performance tool allows data to be examined at a level

of abstraction appropriate for the programming model of the parallel program.

For example, when analyzing an execution trace from a message-passing

program, we probably wish to see individual messages, particularly if they can

be related to send and receive statements in the source program. However, this

presentation is probably not appropriate when studying a data-parallel

program, even if compilation generates a message-passing program. Instead,

we would like to see communication costs related to data-parallel program

statements.



2.2 NEED FOR THE STUDY

The study is mainly on the performance analysis of Consolidated Shipping Line with

respect to competitors. It helps to know the current position of the company in the

market with respect to few of its competitors. The study mainly helps to know the

resent trends and opportunity in the logistics industry as well as to find out certain

innovative strategies, which can be adopted in the logistics for better improvement and

development of the company. The study gives the opportunity to know the main areas

of business done by the competitors as well as the area, which the company can work

upon.

2.3 SCOPE OF THE STUDY

The study was done during the 62 days starting December 1st at Consolidated Shipping

Line India Pvt Ltd Cochin. The study covered the Ernakulum district. The study gives

an idea about the strength weakness opportunities, threat, and help to understand the

areas to be developed and concentrated. The study is useful to the extent that the

company can try to increase the sales by better pricing strategies and regular follow up

with the existing customers.

2.4 Objective of the study



The objective of the study was to analyze the performance of CSL with respect to the

competitors.

Primary objective

To analyze the performance of CSL with respect to the competitors.

Secondary objective

To recommend certain suggestion to improve in the industry.

To find out the opportunities in different fields.

To find out the areas to be developed.

2.5 Limitations of the study

The study is limited to the Ernakulum districts.

Although there are large number of competitors, it was difficult to get the data from

each and every competitors .Among 40 companies approached it was only possible to

interview 15 Competitors in the time allotted for the study.

Busy schedules of the competitors were another limitation for getting relevant

information’s.

The method of data collection as well as sampling has its inherent limitations, which

may also be present in the study.

The errors due to respondent bias exist in the study.



Research Methodology

The project was conducted to analyze the performance of CSL with respect to the

competitors. The methodology adopted in this study is as follows.

SOURCES OF DATA

The study required the collection of both primary and secondary data.

PRIMARY DATA

Primary data was collected by using a structured questionnaire from the competitors in

Willington Island, Ernakulum districts. Discussions with the external guide also served

as a useful source for obtaining data for planning the study.

SECONDARY DATA

Secondary data was collected from brochures, catalogues, leaflets and other material

published by the company. Magazines and the internet also provided lots of information

TARGET AUDIENCE:



The primary data was collected from the competitors of Consolidated Shipping Line.

There are about more than 40 competitors throughout Ernakulum districts, which

constitute the sampling unit.

SAMPLE SIZE AND AREAS COVERED

Out of total population of competitors of consolidated shipping line, a sample size of 15

competitors was chosen for the study. The competitor survey was done within

Ernakulum districts mainly from Willington Island.

SAMPLING METHOD

The list of all the competitors were obtained by the help of the company as well as from

the internet. The sampling method adopted was convenience sampling

ANALYSIS OF DATA

The data collected were classified and tabulated based on various factors. To analyze

the tabulated data the researcher used percentage analysis. Tables and charts have been

used for presenting the findings.



1) Size of the company

How do you rate the size of your company?

Sl.No Size No:s

1 very small 0

2 Small 0

3 Medium 9

4 large 6

Table 4.1- Size of Company



Chart 4.1- Size of Company

Interpretation

Size of the company is one of the important factors to determine the performance. From

the data, collected 60 % of the company rated them as medium and 40% rated them as

Large Company. It was noticed that a long year of experience and networks around the

world has a major part to do with the growth of the company. At present there are

companies which has a more than 150 years of experience in the field of logistics, such

as maersk , Kinship, Kuehne+Nagel, Albatross etc.

2) Do you own or operate any of the following,

Sl.No Particulars Yes No

1 Containers 5 10

2 Trailers 3 12

3 Trucks/Vans 3 12

4 Rail wagons 2 13



5 Tractor units 1 14

6 Fork Lifts 3 12

7 Cranes 1 14

8 Vessels 2 13

9 Warehouse 7 8

Table 4.2- Do you own or operate any of the following infrastructures.

The question gives us a clear picture that how many percentage of the company own or

operate the following such as trucks, trailers, containers ect.

Chart 4.2- Infrastructure

Interpretation

Most of the companies do not operate the above mentioned facilities. Only MNC such

as Mearsk, Kuehne+Nagel and few of them have the facilities of container, trailers,

vessels ect, but some of the other has warehouse facility. Warehousing is an important



factor in Logistics. The above graph shows that among all the facilities warehousing is

an important factor

3) Do you agree with these statement regarding your sales department,

)a You always push for the most competitive prices.

Pricing

Pricing represents one of the most critical and complex issues in global marketing due

to economic financial and mathematical implications. Price is the only one marketing

mix element that generates revenue.

To be a loyal customer pricing plays a major role in logistics industry. To survive in the

competitive industry the companies have to push for the most competitive pricing.

Pushing for most competitive prices


Sl.No. Particulars No:s

1 Strongly agree 11

2 Agree 3

3 Neutral 0

4 Disagree 1

5 Strongly Disagree 0


Table 4.3- Pushing for most competitive prices

Chart 4.3-Competitive prices

Interpretation

It is very important to push for most competitive price. The profit of a company always

depends upon the sales that have made and to get a customer it is very important to be

flexible with the pricing. About 73% of the companies have stated that it is important to

adopt the competitive pricing strategy. CSL also strongly agrees with the statement of

the sales department that CSL always push for the most competitive prices.



)b You offer several alternatives for your shipments.

Several alternatives for shipment

To get a customer in the competitive industry is very tough and losing an customer is

very easy. Therefore, it is very important to pay attention towards the alternatives of

shipment. Reliability is one of the major factors in the logistics field. You lose

customers if the cargo is not reached at the proper destination within the same and exact

time and date of delivery. Even though rarely the case of shipment alternatives may take

place, companies should be very conscious regarding the departure and arrival of cargo.


1 Strongly agree 3

2 Agree 11

3 Neutral 0

4 Disagree 1


Table 4.4- Alternatives for shipment



Chart 4.4- Alternatives for shipment

Interpretation

Most of the companies have stated that they have to be conscious about providing

alternative solution for the shipment of cargo. 73% has agreed on the statement that the

company offers several alternatives for the customer’s shipment. CSL also agrees the

statement of the shipment. Only 20% have strong agreement and & 7% do not agree

with the statement. So it can be interpreted that there should be several alternatives for

your shipment.

)c Your quotations are clear and easy to calculate.

Clarity in the Quotation

The clarity in the dealing and calculations is also another important factor to be

considered in the freight forwarding.




1 Strongly agree 8

2 Agree 7

3 Neutral 0

4 Disagree 0


Table 4.5- Clarity in the Quotation

As every business is concerned the quotations should be easy to understand and

calculate.



Chart 4.5- Clarity in the Quotation

Interpretation

Almost every company has agreed to the statement regarding the clarity in the

quotation. 53% of the company has strongly agreed and 47% of the company has agreed

to the statement. CSL also agrees to the statement that the quotation of CSL is clear and

easy to understand. So it can be interpreted that the clarity in the quotation is very

essential in dealings.

)d You always keep your customers informed about unexpected charges.

Unexpected Charges

Logistics is an area, which deals with foreign exchange and foreign relations with

clients, customers, and agents. It is not always same in case of exchange rates and other

political policies. There are chances of change in prices so it is important that the

customers should be updated with the changes and fluctuations in the charges.

You always keep your customers informed about unexpected charges


1 Strongly agree 7

2 Agree 7



3 Neutral 0

4 Disagree 1


Table 4.6-Unexpected charges

The table shows that it is important to inform the customers regarding the unexpected

charges.



Chart 4.6 -Unexpected charges

Interpretation

Loyalty of the customers also depends upon the pricing. So an company should be

updated with the recent changes in the charges and the exchange rate fluctuations. 47%

have agreed and 46% has strongly agreed to the statement of unexpected charge only

7% has not agreed to the statement. CSL also agrees with the statement that the

customers should be informed about the unexpected charges.

4) Type(s) of goods handled

Logistics covers almost every type of products. There are classifications of products

based on the nature some are categorized into hazardous product which are taken much

more seriousness in handling. Some of the freight forwarders only concentrate on a few

products such as choir, and tea. The question what type of products do you generally

handled, the competitors have their own different answers.

What industry type(s) of goods do you generally handle?

Sl.No Particulars No:s

1 Automotive 2

2 Forest paper and Pulp 5

3 Industrial Machinery & equipment 9

4 Chemical 6

5 Computer hardware & software 2

6 Perishable 5



7 Construction 3

8 Drugs/Pharmaceutical 2

9 Electronic related Products 6

10 Energy & utilities 3

11 Agricultural Products 10

12 Foodstuffs 12

13 Minerals & fertilizers 5

14 Textile 10

Table 4.7 (a)-Types of goods handled



Chart 4.7 (a)- Industry type(s) of goods do you generally handle by competitors

Interpretation

During the survey, it was found that foodstuffs, textile, and agricultural products have a

huge demand in the export as 15%, 13% and 13% respectively, and then comes the

industrial machinery and equipment as 11%. The lowest movement takes place in the

area of automotive and drugs/Pharmaceutics’.

Industrial goods that CSL handles,

Sl.No

Partic

ulars Percentage

1 Automotive 10

2 Forest paper and Pulp 20

3 Industrial Machinery & equipment 30

4 Chemical 0

5 Computer hardware & software 0

6 Perishable 0

7 Construction 9

8 Drugs/Pharmaceutical 0

9 Electronic related Products 8

10 Energy & utilities 0

11 Agricultural Products 0

12 Foodstuffs 10



13 Minerals & fertilizers 0

14 Textile 8

15 Other 5

Table 4.7 (b)- Industrial goods that CSL handles



Chart 4.7(b)- Industrial goods that CSL handles

Interpretation

CSL generally handles goods as mentioned above, such as automotive, Forest paper and

pulp, Industrial machinery and equipments, computer hardware & software and

perishables. As from the above mentioned chat4.7 (a) we can predict that there is a huge

opportunity in goods such as food stuffs and agricultural products. It would be good if

CSL gives and focuses on those kinds of goods which the local market is good for.

Kerala is famous for the agricultural products such as Choir, rubber, coconut etc. so

there is a good scope in such kind of field.

5) In what all aspects do you feel that you are far better than your competitors,



Important Aspects in logistics,

Each and every company has got their own strategies and ideas. It is very important to

be in first in each and every aspect. There are different types of aspects, which a

company should be aware of. Among them pricing, service and network are some of the

important aspects. The question to the competitors was, in what all aspects do you feel

that you are far from your competitors, and the options where pricing, service, network,

reputation, customer relation, customization, experience, infrastructure, speed, and

safety.

The main and important question to identify the competitive advantage of the other

company was this question. Some of the companies were good at pricing and some

others at networks. Experience and other aspects also have their own importance.

Most of the company gave first priority to the pricing, service, and customer relation.

Chart4.8 (a)- Important aspect in logistics (first priority)

a) First priority that most of the company feel they are better with respect to other

competitors,



Among the 15 companies, nine companies said that they are better at pricing as

compared to their competitors; five said that they are good at their service and one

company gave priority to the customer relation.

Chart 4.8(b)- Important aspect in logistics (second priority)

b) Second priority that most of the company feel they are better with respect to

other competitors,

Among the 15 companies, three companies emphasized on pricing, customer relation,

and network and six companies gave importance to the service to the service. From the

two priorities first and second, it is clear that pricing, services and customer relation are

the major area, which a company has to be focused upon.

c) What all aspects the competitors feel that they are far better than their other

competitors,



Sl.No Particulars No:s

1 Safety 5

2 Services 15

3 Pricing 13

4 Customer relation 11

5 Networks 12

6 Speed 7

7 Experience 8

8 Reputation 7

9 Infrastructure 6

10 Customization 2

Table 4.8- Aspects that company feels far better than the competitors do.

Combined altogether 5 companies were for safety, all the 15 for service, 13 for pricing,

11 for customer relation, 12 for network, 7 for speed, 8 for experience, 7for reputation,

6 for infrastructure and 2 for customization.

Important Aspects (Consolidated) - Competitors



Chart4.9- Important aspects in logistics (consolidated-competitors)

The chart explains the main important aspects that the 15 companies give and feel that

they are better in. the graph covers a huge area across, service, pricing, customer

relation, and networks. The same aspects are also given the first and second priority in

the chart 4.8 (a) and 4.8 (b).



d) In what all aspects CSL feels that CSL is far better than its competitors (priority

wise) are,

Sl.No Particulars Ranks

1 Safety 10

2 Services 4

3 Pricing 7

4 Customer relation 2

5 Networks 3

6 Speed 8

7 Experience 9

8 Reputation 5

9 Infrastructure 1

10 Customization 6

Table 4.9- Aspects that CSL is far better than its competitors

CSL responded to the same question as, the company feels they have a good

infrastructure, which means a good facility in each and every branches which enhances

their workers to work well in the company, second is the customer relation, without

which a company does not survive. The company has a good customer relation. The

third importance the company gives and fells they are better in is the network. CSL

covers nine branches all around India and has got many tie ups with different logistics

company al around the world. The forth aspect CSL is better of its



competitors is the service. CSL gives a good service to its customers which makes them

customer satisfied and loyal.

Reputation in the local market and all over the nation also plays an important role in the

field of logistics fifth factor that the company is good as compared to its competitor is

the reputation. Then customization, pricing, speed, experience and safety come as

priority.

Aspects that CSL feels better than competitors do

Chart 4.10- Aspects that CSL feels better than Competitors do

A graph was drawn from the informations received from CSL, by giving points to each

ranks. Rank 1 was given 15 points rank 2 with 13.5 and so on till rank 10 with 1.5.

Interpretation

By comparing the two charts 4.9 and chart 4.10 we can see that CSL is good at all the

other three important aspects service, customer relation and network but not doing well

in the pricing strategy. The company has got a good infrastructre and reputation in the

market, so CSL should take its advantage and make changes in the prising straegy. the

company can adopt many pricing strategies to attract the customers and should be

flexible enough in its pricing.



6) Main areas of business and trading,

The study also covered the main areas of business and trade for all the 15 companies.

Sl:No Freight Forwarders Export FCL Import FCL Export LCL Import LCL Air transport1 MB 70 20 5 5 02 southern shipping services 100 0 0 0 03 sevenseas 10 80 2.5 2.5 54 john keells 40 55 5 0 05 TLPL 85 15 0 0 06 Sumi Shipping 85 7 5 3 07 Star Asia 80 20 0 0 08 Swift Freight 5 35 40 20 09 WorldWide Logistics 50 0 50 0 0

10 Kin Ship 35 50 5 10 011 Mearsk Line 50 50 0 0 012 Albatross 43 43 4 0 1013 Jeena&Company 20 10 10 10 5014 Kuehne+Nagel 40 30 5 5 2015 Total Transport System 20 0 45 15 2016 CSL 5 37 12 8 38

Table4.10- Main areas of business and trade

FCL - an abbreviation for "Full Container Load". The term used to describe ocean

freight, when the shipper has the exclusive right to use a lot of multi-modal ocean cargo

container. It is most cost-effective to charter a 40-foot container that is suitable for most

goods. FCL usually turns out to be the best choice to optimize your import or export

operations by ocean, making it more effective.

LCL - an LCL container has more than one company's goods in it, so it's more

expensive to ship because the freight company has to do more work. Many companies

will not ship things LCL--they'll wait until they've got enough orders to fill a 20-foot

container, and then fulfill them all at once.



Chart 4.11- Main areas of business

Most of the companies concentrate on export FCL and less on air transport, but CSL has

about 38% of its business and trade by air transportation.

Interpretation



CSL has majority of its business through airfreight, which has a more competitive

advantage.

7) Percentage of Traffic to/from or within the following area, USA, Middle

East, Europe, Far East, Mediterranean, and Africa.

The forwarders have the traffic mainly based on certain seasons and market demand,

continentsfreight forwarders

1 MB 10 5 60 10 0 152 Southern shipping services 25 15 50 0 0 103 sevens 5 5 5 80 0 54 john keells 0 25 25 20 0 305 TLPL 0 10 10 80 0 06 Sumi Shipping 10 10 70 5 5 07 Star Asia 0 60 0 20 20 08 Swift Freight 10 20 40 30 0 09 WorldWide Logistics 0 50 2 0 0 0

10 Kin Ship 50 10 40 0 0 011 Mearsk Line 16.6 16.6 16.6 16.6 16.6 16.612 Albatross 25 70 5 0 0 013 Jeena&Company 10 30 30 10 10 1014 Kuehne+Nagel 10 0 60 5 20 515 Total Transport System 15 20 30 20 10 5

Sl:No USA Middle East Europe Far East Mediterranean Africa

Table 4.11- Percentage of Traffic to/from or within the following continents of

competitors



Chart4.12-Traffic to/from of competitors

From the table and graph it is clear that the major traffic of goods are exported and

imported from Europe and then from Middle East, far East, USA, Africa and

Mediterranean respectively.

Traffic to/from of CSL through the continents,



The question advice the percentage of traffic to/from within the following area helps us

to identify the continent, which has a wider scope and chance to get maximum number

of regular customers.

Sl.No Continents Percentage

1 USA 7

2 Middle East 7

3 Europe 0

4 Far East 82

5 Mediterranean 0

6 Africa 4

Table4.12- Traffic to/from of CSL through the continents



Chart 4.13- Traffic to/from of CSL

Interpretation

The majority of export is done to the Far East countries. By comparing the chart 10.12,

we can see that there is a huge opportunity in the European and Middle East countries.

CSL can concentrate on the companies, which entirely depend upon the European and

Middle East products.

8) Innovative ideas that can be adopted in Logistics,



The response to the question, do you have any innovative idea, which can be

implemented in logistics for further development, was helpful to get certain

information. Most of the company suggested that,

1) Concentrated on door to door rather than port to port delivery of goods and

cargo.

2) Concentrate on local road transportation, which would indeed help the company

during recession.

3) Facilitation of good warehousing helps a freight forwarder, in their progress and

to step ahead in the industry.

4) CFS- Container Freight Station, it is space taken for lease or rent, which is under

customs.

5.1 SWOT ANALYSIS



SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It

involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieve that

objective. A SWOT analysis must first start with defining a desired end state or

objective. A SWOT analysis may be incorporated into the strategic planning model.

Strategic Planning has been the subject of much research. A SWOT analysis must first

start with defining a desired end state or objective.

Strengths: characteristics of the business or team that give it an advantage over others

in the industry.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

Opportunities: external chances to make greater sales or profits in the environment.

Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs is essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given

the SWOTs. If the objective is NOT attainable, a different objective must be selected

and the process repeated.

SWOT ANALYSIS



Strength

Qualified and well trained employees.

Good infrastructure.

Nine branches all around India.

Good reputation in the local market.

Weakness

Does not have own branches outside India.

Does not have permanent customers.

Opportunity

Cochin is a good platform for the company in the coming year as a result

of Vallarppadam project.

Amongst all major Indian ports, Cochin is the closest to the International

East West Shipping routes. This geo-strategic location of Cochin gives

it a distinct advantage.

Cochin port is connected to its hinterland enlarging to the state of

Kerala ,South Tamil Nadu and South Karnataka by National Highways

NH 47(Kanyakumari-Salem), NH49 (Cochin-Madurai) and

NH17(Cochin-Mumbai) .Indian Railway Network provides seamless

connectivity to South and Central India. The National Waterway NW3

provides connectivity to the South Kerala. The port has an international

airport in its proximity. The network of railways roads, waterways, and

airways has created good accessibility to the port.

Threat

High port handling charges

Huge number of competitors



Major Players in the field such as Mearsk line, DHL, ZIM, Kin

shipping etc.

5.2 Findings

As a new comer, CSL is doing very well in the logistics industry.

The company has got dedicated employees, working more than 10 years of

experience.

Good infrastructure facility in the company.

No branch outside India.

Huge competition in the local market, even during dull market season.

Great opportunities in exporting to Middle East and European countries.

Very few permanent customers.

Company feels that they are not much good in pricing as compared to the

competitors.

Good opportunities in industries, such as agricultural and textiles.

No much importance has been given for advertisements.

No warehouse facility.

High handling charges in port.

5.3. Suggestions:

There should be regular follow up with customers enquiring the exports or

imports.



CSL should focus to gain regular customers by providing seasonal discounts or

other attractive offers.

Branch outside India would help the company to gain sales as well as reputation.

Advertisements can be improved and should be given importance.

Some discounts can be given to the customer also during season, to attract them

and to be a regular permanent customer.

CSL can think of adopting CSF- Container Freight Station.

Importance should be given more to door to door than port-to-port.

CSL can concentrate on local market or road transportation.

5.4. Conclusion

Logistic field is an area with wide scope for growth and with high competition. As a

new comer in the field, CSL has done a great job with the help of the effective,

hardworking, and devoted team to reach the heights of success with a limited period.



As every customer stress on quality and consider all the aspects of a product and service

before accepting or rejecting it, the company should give more attention not only to

maintain it highly competitive but also to each and every aspects.

The company has a good infrastructure as its strength and almost equal to all the aspects

of its competitor. The company has to concentrate only on the pricing strategies, until

CSL feels they are quite good in the pricing strategy.
