Final_project_fun_spec_shabnam Final0369122.docx

FINAL PROJECT REPORT MARKETING SPECIALIZATION

“A STUDY ON SALES PROCESS OF GLOBAL LOGISTICS SOLUTION PVT. LTD. MUMBAI”

Submitted By Ms. SHABNAM HASAN Marketing Specialization Roll No. 18 ACADEMIC YEAR: 2017-19

Under the Guidance of Prof.

PRADNYA GIRHE

Mr./Ms.XXXXXX

Faculty Guide

Designation, Company

UNIVERSITY OF MUMBAI NCRD’s Sterling Institute of Management Studies, Plot No 93/93A, Sector 19, Near SeawoodsDarave Railway Station, Nerul (E), Navi Mumbai-40070

NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES Plot No. 93/93 A, Sector – 19, Nerul (East), Navi Mumbai – 400 706

Institute Certificate

This is to certify that Ms. SHABNAM HASAN MMS SEM IV Roll No. 18 in Marketing Specialization, studying in this institute has completed the Final Project(MARKETING SPECIALIZATION ) titled “A STUDY ON SALES PROCESS OF GLOBAL LOGISTICS SOLUTION PVT. LTD. MUMBAI”. ’Under our guidance.

Prof. Pradnya Girhe Faculty Guide

Place: Nerul, Navi Mumbai Date:

Dr. Prashant Gundawar Director

ACKNOWLEDGEMENT

It is matter of great pleasure by getting the opportunity of highlighting a fraction of knowledge, I acquired during my summer internship through this assignments. Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you too, can become great. We take this opportunity to express my sincere thanks and deep gratitude to all those people who extended their wholehearted co-operation and have helped me in completing this project successfully. First of all, I would like to express my sincere gratitude to DR. PRASHANT GUNDAWAR (Director) and MR. RAJIV WAD (HOD) for providing this wonderful opportunity and their valuable support for the successful completion of this endeavor. Special thanks to PROF. PRADNYAGIRHE (Faculty Guide) for all the help and guidance extended to me by him in every stage during my training. Her inspiring suggestions and timely guidance enabled me to perceive the various aspects of the project in a new light

NCRD’s Sterling Institute of Management Studies, Plot No 93/93A, Sector 19, Near Seawoods Darave Railway Station, Nerul (E), Navi Mumbai-400706

DECLARATION

I, SHABNAM HASAN hereby declare that the project work entitled “A STUDY ON SALES

PROCESS OF GLOBAL LOGISTICS SOLUTION PVT. LTD. MUMBAI” Is the original work done by me under the guidance of Mr/Ms.XXXXX, Assistant Manager, of Global logistics Solution Pvt Ltd., and Prof. PROF. PRADNYA GIRHE Faculty Member, NCRD’s Sterling Institute of Management Studies.

Signature SHABNAM HASAN Roll No: 18 MARKETING Batch 2017-2019

\

EXECUTIVE SUMMARY

Increasing globalization, there has also been an increase in the trade volumes between nations. Developed countries have and will continue to form trading blocks, which might jeopardize the developing and emerging economies, because of their lack of infrastructure, Poor policy and regulatory environment, technology, skills and manpower. Even though Asia is said to become the trading hub in the near future, the question remains if India will play a major trading hub in Asia. To sustain and drive economic growth, the movement of goods associated with a mature economy will require a vastly superior service sector as well as physical logistics infrastructure. The transformation of India‘s logistics landscape needs a clear, long-term and sustainable vision encompassing initiatives that are proactive rather than reactive to leverage India‘s economic potential in the future. This study proves that a country‘s ability to trade globally depends on its traders ‘access to global freight and logistics networks. And the efficiency of a country‘s supply chain (in cost, time and reliability) depends on specific features of its domestic economy (logistics Performance). Better over-all logistics performance and trade facilitation are strongly associated with trade expansion, export diversification, attractiveness to foreign direct investment and economic growth. This study analyzed the current trade and logistics scenario of India. In the trade analysis, India is compared with the other BRIC nations, Germany and Poland, with respect to cost and quality of trade. With the help of the Logistics Performance Index, these countries are graphically ranked. In the logistics analysis, we study the industry characteristics, infrastructure status, various private partnership models and other policy and regulatory concerns. Towards the end of the study, various recommendations are provided. 1. The increasing pace of global integration, there is a need for India to compete in terms of its ability to link with global and regional markets - competitively and effectively. 2. This study focuses on the sales import process of global logistics solution in logistic industry and the various facets of improvement required in its trade logistics. 3. Improving the quality of logistics and transport systems and simultaneously reducing costs improves international market access, and leads directly to increased gross profit of firm and increasing GDP share in Indian Economy via international trade and commerce

Sr no.

1.

INDEX

A. INTRODUCTION OF INDUSTRY B. COMPANY INTRODUCTION

2.

REVIEW OF LITERATURE

3. SEA IMPORT & AIR IMPORT OPERATION PROCESS

4.

SWOT ANALYSIS

5

4.

SCOPE AND OBJECTIVE OF THE STUDY

5.

OBSERVATION AND FINDING

6.

SUGGESTIONS

7.

CONCLUSION

Page No.

CHAPTER 1 INTRODUCTION TO INDUSTRY AND COMPANY

INTRODUCTION TO INDUSTRY

1.1 Introduction to Logistics Industry Economists have known that international trade is one of the most important way in which societies can increase their standard of living, since the time of Adam Smith and David Ricardo, with their work on specialization and comparative advantage. The connection between international trade and economic growth is supported by evidence from every period of human history. The Roman Empire was rich in part because it was able to trade over long distances. The spice trade between Europe and Asia was the first example of how trade between these two continents could enrich both places. The 19th century saw an unprecedented rise in trade, with a big reduction in piracy and huge improvements in the quality and speed of shipping. Nineteenth century ―clipper ships‖ established that there really was a market for premium priced speedy logistics, and that such a market was large. This was also the period in which modern economic growth first became established. Between the wars, in contrast, the rise of protectionism and the collapse of world trade exacerbated and extended the Great Depression, bringing and extending economic misery to millions of people. The past world war saw trade increase dramatically, bringing with it new found and unprecedented prosperity. International trade increased the standard of living, both for those in developed and for those in developing countries. The modern world trades like never before. In simple weight terms, more than seven times as many goods are traded now as fifty years ago. Even more impressively, after stripping out the effects of inflation, the value of goods traded internationally has increased by more than 16-fold in the last half century. The increasing value of goods shipped means that, now more than ever, time matters. No longer is trade simply concerned with low value bulk goods that can be stored on arrival until needed. Trade today is increasingly dominated by high value, time critical goods, both as part of global supply chains and for the final customer. Moreover, the direction of global trade is set to change as a mega agreements like the Transpacific Partnership (TPP) and TransAtlantic Trade and Investment Partnership (TTIP) come into force.

The TPP includes 12 of the Pacific Rim countries including the US and Australia, whereas TTIP is between the US and European Union. Respectively they represent around 39% and 60% of the world GDP. They have the potential to adversely affect excluded countries such as India by diverting trade and investment away from them and weakening their positions in global value chains. As a result of TPP and TTIP, India‘s nominal GDP is expected to be reduced by more than one per cent and the resultant negative multiplier effects on revenue ad employment generation will be substantial. Much of this impact will not be on account of reduction in tariffs in TPP and TTIP countries (as they are already low), but as a result of removal and/or harmonization of nontariff measures, particularly in respect to process and product standards, the application of intellectual property rights and other behind-the-border trade facilitation measures. As a result, some of the TPP and TTIP countries are expected to enhance their internal supply potential which can further shrink their existing export markets that India enjoys with them. Which is why, now more than ever, India needs to improve its trade scenario. And not just with the exports and imports, but it is important to improve the countries logistics infrastructure, regulations and policies surrounding the tariffs and non-tariff measures in order to put India on the mark.

1.2 Role of Logistics in International Trade International trade does not happen by itself. Companies make conscious decisions as to where to produce their goods, where to sell them, and how to move them from one to the other. There are many aspects to that decision, but one important aspect is the quality and cost of logistics. It is of no use having very low production costs in a particular place if the finished product cannot be moved easily, cheaply and reliably to the customer. There are two principle aspects to good logistics. The first is cost: lower costs are self-evidently attractive to firms. The second is quality: logistic reliability is paramount for many companies. There are clear interactions between cost and quality, but these are not straightforward. At one level it is always possible to pay more for better quality. But it does not follow that higher costs in a country necessarily

imply higher quality logistics. Some countries have higher wage rates, or greater restrictions and regulations that increase cost without increasing quality.

Other countries have regulations and restrictions that make logistics unreliable, or poor quality infrastructure that means that delays are common. It is therefore necessary to consider that these two aspects of logistics separately. It is also necessary to remember that individual firms will have different preferences over cost and over reliability. Producers of relatively low-costs goods will be willing to take more risks on reliability in exchange for lower costs. In contrast producers of relatively high-value goods, especially high-technology or other products with limited shelf life, will be more willing to pay higher prices for greater reliability. The last 25 years have seen a particular increase in the quantity of high-technology goods that are exported, often over very long distances. For that reason we concentrate particularly on the effects of logistics quality on trade. It is also worth noticing that it is transport and logistics cost, not tariffs that are the biggest barrier to trade while reductions in tariffs would be extremely beneficial for particular products, reductions in transport costs are more important for trade as a whole. These reductions can be achieved both by governments reducing obstacles to trade, and by private sector logistics firms becoming more efficient.

[B] INTRODUCTION OF GLOBAL LOGISTICS SOLUTION PVT LTD

1.3 Company Overview

Mr. Asif Mujawar, Mr. Jiss Mathew, and Mr. Naveen Prakash established Global Logistics Solutions in the year 2006. Global Logistics Solutions founded by this young team of professionals in their pursuit to establish an enterprise that stands for sound business ethics and practices, progress through customer satisfaction and develop people who value relationship and professionalism. The founders with their combined experience of over 40 years in various import/export, sales and managerial positions focused to provide innovative, focused customer oriented solutions to the consolidation and freight forwarding industry. The Organization today... Over the years Global Logistics has grown as one of the largest Neutral LCL consolidator and FCL freight forwarder in India and have a staff strength of more than 250 people (as on May 2016) ,have 10 own offices and 23 network offices across India. Global Logistics realizes that clients have specific requirements with regards to their shipments. We therefore spend considerable time to consult clients individually to understand their specific requirements and provide a customized solution for all our

client base. The loyal client base of GLS has helped us to grow at a rate of more than 50% year after year.

Technology We have invested heavily in having the latest technology to serve the customers and worldwide associates. The custom made software of GLS can provide up to date information on movement of cargo and all e-commerce activities can be carried out through the same. GLS is the first Shipping Company in India to offer Mobile application for their clients and agents. Network GLS is associated with regionally strong network in each continent which ensures that GLs can deliver/receive cargo to more than 2000 destinations around the world through 35 hubs. Our business associates around the world enable us to weave a global network that integrates with our promise to deliver your goods effectively on time every time.

Neutrality

GLS is committed to supporting the forwarding community and is a 100% neutral LCL consolidator.

1.5 Vision and Mission

Vision "To emerge as a market leader in providing logistics solutions and to be recognized for its values and ethical business practices by delivering professional and customized services to achieve highest levels of client satisfaction." Mission "To provide Easy, Efficient, Economical and Empowering integrated logistics solutions through innovative processes and systems implemented by a highly inspired team of professionals that adds value to the customer's supply chain needs."

Business Ethics and Values Global logistics was always been value driven. These values continue to direct the growth and business of Global Logistics. The six core GLS values where we base our business are as below. 

Ethical business practice



Agility



Innovation



Integrity



Excellence



Ownership



Agility



Innovation

The 4E approach We benchmark our services on Ease, Efficiency and Economy, Empowering. Our simplified process ensure ease in dealing. Our customer focused team ensures efficiency while executing deliveries. We leverage our relationship with carriers and business associates through global contracts to offer you competitive rates for every destination. Our solutions empower the clients to further upgrade their client base. 1.6 Services  Lcl Export Consolidation  Lcl Import Consolidation  Fcl Freight Forwarding  Project Logistics  Multicity Console Boxes  Air Freight Media Centre     

Social media Global connect magazine CSR Client Advisory Corporate Presentation

1.7 Corporate Address GLOBAL LOGISTICS SOLUTION (INDIA) PVT LTD Marwah Industrial premises co-op. society ltd, Premises No. 111, 1st floor, 4, Marwah Estate, Saki Vihar Road, Mumbai 400072, Maharashtra, India. Tel. No. : (+91-22) 6775 7000 Fax No. : (+91-22) 6775 7099 Email : [email protected] Website : www.globallogistics.co.in

DOMESTIC COMPETITOR ALL CARGO LOGISTICS LTD. All cargo Logistics is the global leader in LCL consolidation and India’s first and largest integrated logistics solutions provider, in the private sector. They create services that are innovative and adaptable towards your supply chain needs. For them, logistics is not just a service but an opportunity to create solutions that empower businesses globally. They are a dynamic organization with a strong network of 300+ offices across 160+ countries through ECU Worldwide. They are committed towards creating benchmarks of quality and consistency to cocreate value for all our stakeholders. All cargo don’t limit their challenges, instead they challenge their limits. All cargo make it happen. Know more about what makes them preferred logistics partner. Advantage all cargo All cargo realize that every business faces unique challenges which need to be addressed by designing customized solutions as there is no one-size-that-fits-all. all cargo focus on applying imagination in delivery and co-creating value enables us to achieve high levels of customer satisfaction. All cargo vision for building partnerships with their customers helps them in cultivating long term relationships. All cargo in depth understanding of the dynamic market conditions, knowledge of cultures and communications in different parts of the world and willingness to go the extra mile gives your business the competitive edge Group Companies The Group boasts of ECU Worldwide, headquartered in Antwerp, world’s largest LCL service providers. Its expertise has resulted in an unparalleled focus on LCL shipments along with innovative and technology driven solutions to move the customers' shipments anywhere across the globe

TEAMGLOBAL

Teamglobal is an integrated Logistics services provider headquartered in India. We are offering services in multiple segments of logistics Viz. Sea Freight, Airfreight, Project Cargo Transportation, Cargo Terminals and Coastal Shipping. It has 18 offices in India, Bangladesh, Kenya and Tanzania. Established in 2005, Teamglobal is an ISO 9001:2015 (QMS) & ISO 27001:2013 (ISMS) certified company with strong business ethics. Teamglobal specializes in carriage of (LCL) Less than Container load shipments and is the largest operator in India in this category. We have been accredited with the Best Consolidator of the Year – All India 7 times in a row from 2010 to 2016. Global Footprint Teamglobal is a member of leading global networks like World Wide Alliance, Air Cargo Group and GPLN for the different segments of business it operates. Teamglobal offers transport services between all major international cargo centers using combination by land, sea and air thus making us one stop logistics shop for all our customers Logistics requirements globally. Advantage A highly motivated and trained team of professionals, financial credibility and integrity are the driving forces of our service standards. Teamglobal Guarantees 

Speedy Communication



Timely Financial Settlement



Process Excellence



Strong focus on Business Development.

Information Technology Teamglobal takes pride in its IT capabilities and we operate our business using online systems and versatile web module which facilitates quick customer interfacing. Teamglobal has launched TIVA (Teamglobal Interactive Virtual Assistant) offering customer service using latest Chabot Technology giving info pertaining to Sailing Schedules, Track & Trace, Agent details on Watts App and Mobile App. In addition to these services we offer online business transactions like eBL, e-DO, e-invoice, e-statement on our Web Portal. These systems are constantly upgraded to adapt to changing statutory and business environments. Business and Mission We are an integrated logistics service provider specializing in LCL consolidation, Air Freight, Project cargo transportation & Cargo handling infrastructure services. Mission Continuously offer innovative and reliable logistics solutions meeting our customers changing business requirements with efficiencies of cost and time. Quality Policy Our endeavor is to set new standards in providing cost effective logistics solutions with an emphasis on safe & timely deliveries thereby exceeding our customer’s expectations, while protecting Confidentiality, Integrity and Availability of information. We shall build business on principles of mutual trust, fairness and Integrity. This shall be achieved by: 

Adopting right technology



Building competencies in people



Addressing service deviations through continual process monitoring and improvement



Effective customer relationship



Establishing, implementing and maintaining the quality management system

CHAPTER 2 LITERATURE REVIEW

REVIEW OF LITERATURE

As the pace of global integration continues, developing countries will compete increasingly in terms of their ability to link with global and regional markets competitively and efficiently (Schware and Kimberly, 1995). In making trade happen, both government and private sector play roles, which may either improve or worse the conditions for trade. [1] Tim Leunig, Chris Minns and Diana Weinhold (dhl-lse white paper, 2009 - globalexpress.org) In their study – International Trade, Express Logistics and Globalization Part and parcel of the solution to current economic problems, they explained that those countries that create the best conditions will attract companies that are part of the global economy. This is particularly important for developing countries for which access to world markets is an absolutely critical part of their drive for prosperity. Although innate geographical location and hard-to-change wage and skill levels explain a great deal of world trade, our research shows that trade infrastructure, both physical and legal, matter a great deal in explaining which countries are most successful in international trade But why focus on logistics? Because reducing cost and improving the quality of logistics and transport systems improves international market access and leads directly to increased trade, ad through this to higher incomes and the scope for significant reductions in poverty.

2] Robin Carruthers, Jitendra N. Bajpai, David Hummel’s: (A Trade Policy Agenda …, 2004 World Bank Publications) In their study – Trade and Logistics An East Asian Perspective, they have noted that East Asia‘s progress on logistics has failed to keep pace with its growth in trade. Developing countries in other regions are now catching up, and so faster progress on logistics development will be crucial to sustaining East Asia‘s competitive advantages. For most countries in East Asia, including India, high logistics cost derives from poor transport infrastructure, underdeveloped transport and logistics services, and slow bureaucratic procedures for dealing with both exported and imported goods. The balance among these three varies among countries, but in each country a complementary approach to address all of them will be needed to produce a sustainable improvement in competitiveness. Recent studies have indicated the importance of efficient ports (in terms of operational and document facilitation) for trade competitiveness, but the arguments presented in this study shows that ports are only one aspect of the connection between logistics and trade growth. While understanding the total cost of getting products from producers to markets, ‗land transport to ports accounts for a higher proportion than processing within the port or the maritime voyage itself; its improvements in land access that offers the greatest scope for increasing trade competitiveness.

[3] A World Bank Study by Wilson and others ( EG Krug, JA Mercy, LL Dahlberg, AB Zwi - The lancet, 2002 – Elsevier) Shows that APEC (Asia Pacific Economic Cooperation) countries differ substantially in the quality of their logistics and trade facilitation across a broad range of measures, including port infrastructure, customs clearance, regulatory administration and e-business use. They find these differences are significantly related to differences in trade performance, and conclude that substantial growth in trade within their block could be accomplished by bringing lagging countries up to media performance levels. Logistics, organizing the movement of goods over time and space, has evolved from its 19th century military roots to today‘s international supply chain. As the backbone of international trade, logistics encompasses freight transportation,

warehousing, border clearance, payment systems, and many other functions. These functions are performed mostly by private service providers for private traders and owners of goods, but logistics is also important for the public polices of national government and regional and international organizations. The improvements in global logistics over the past two decades have been driven by innovation and a great increase in global trade, as mentioned in connecting to Compete.

[4] Trade Logistics in the Global Economy (2012), a study by World Bank. According to this study, the LPI (Logistics Performance Index) measures the on-the-ground trade logistics performance, helping national leaders, key policy makers and private sector traders understand the challenges they and their trading partners face in reducing logistical barriers to international commerce. As discussed in Deloitte‘s Knowledge paper on Intermodal and Multimodal Logistics, India has experienced fast-paced growth over the last decade. Though the growth has primarily come from the services sector, manufacturing and exports have also risen substantially. Logistics as a function is being increasingly outsourced by manufacturers. However, the Indian logistics sector I may ways still lags behind the global standards of performance. This is evident from the fact that we are ranked as low as 46th among 155 countries in the World Bank LPI. Comparatively, our neighbor China got the 26th rank. The average logistics cost in India is around 13% of GDP. Given there is a substantial need to invest in, and improve efficiencies in, intermodal and multimodal logistics sector so that the friction costs do not impede the desired shifts. Coming back to India‘s trade, in the process of globalization which is escalating India‘s position in world trade, transport volume has climbed rapidly in recent years. In the study done by DHL, Discover Logistics, it is said that a vital step in developing Indian infrastructure is expansion of road and rail networks, and also modernizing harbors and airports. However, the expansion of the logistics infrastructure has been incapable to keep up with this pace. For this reason, transport capacities have already reached their limits. The transshipment times for ships in Indian harbors are three to four times longer than the average time in the west. Logistics costs are also very high in international comparison because of the poor infrastructure. For this reason, India will have difficulties positioning itself as a global logistics hub in years ahead.

CHAPTER 3 SEA IMPORT & AIR IMPORT OPERATION PROCESS

3.1 STEPS OF IMPORT SALES PROCESS

It’s completely link among the Import sales department, Import CS department, & Import documentation and Operation department.

The sales executives makes 20 or than 20 calls per day to find out the consignee who makes order for import. The results are shows as they receive enquiries from the consignee.

1. Enduring Enquiry from customers 2. Send Quotation 3. Negotiation 4. Finale Offer/ Business 5. Place Booking 6. Vessel Details 7. On Board Confirmation 8. B/L Preparation (B.L. Draft) 9. IGM 10. Import ETA 11. Delivery Order to consignee 12. Invoice to consignee 13. Received Payment

STEPS OF IMPORT SALES PROCESS

1. Enduring Enquiry From Customers : After giving presentation to the consignee/ shipper or freight forwarders about our company, services & products, sectors for import and exports, FCL Boxes, consolidation, Air Freight Forwarding, the sales executive are able to getting enough daily enquiries from the consignee / shipper. These consignee /shipper or forwarder may be our potential customers for future. In enquiries we need some compulsory information which is POL, POD, INCO TERM, WEIGHT OF CARGO, DIMENSION OF CARGO, from our consignee’s end. Example of Enquiry: 

LCL

Kindly quote for Sea Import POL:- Shanghai POD:-Nvhashiva Weight:- 10 Tons Dimension:- 20 CBM Inco term:- Ex-works



FCL

Kindly quote for Sea Import POL:- Geneva POD:-Nvhashiva Weight:- 10 Tons SIZE:-1*20’ or 1*40’ Inco term:- FOB Commodity:- fabric

2. Send Quotation This is 2nd step in import sales process. After receiving the enquiries from consignee we are sending our rates in terms of quotation. In quotation we are charging for the following things. o Ocean freight o Terminal Handling Charges o CFS charges o Delivery Order Charges For eg. Please refer the below quotation for this shipment:POL:-Kaohsinug POD:-Nhava sheva

Term:-FOB (LCL) O/F:-USD 6/per cbm Destination Charges:THC:-INR 925/per cbm or INR 1325/per ton (Whichever is the highest) DO:-INR 2000/- Per B/L.

3. Negotiation

Consignee sometimes does the negotiation for the quotation which we make for the shipments. It’s nothing but the bargaining process in terms of ocean freight & cfs charges. Consignee wants to make some less charges for ocean freight and cfs charges. After decreasing little bit charges consignee agrees to give the cargo for handling .

4. Finale Offer/ Business On the basis rates matching; consignee ensure to give booking to us. We start getting business from our cold calls, follow up calls. Usually Business is depends our relationship, Rates & Services. In this stage Consignee gives confirmation to us for placing booking to us.

5. Place Booking On the behalf of confirmation from consignee & shipper we place booking in our system. For booking we must need KYC .Shipper name and address with pin code number. For KYC we required Company Pan Card , GST number.

6. Vessel Schedule Details Once we confirm the booking we send all the vessel schedule to the shipper & consignee. In vessel details we inform them about       

Cut off day Sailing Day Transportation Details Transit Time Lines Info Carriers Details Service Details

7. On Board Confirmation After sending vessel schedule we get container first at shippers overseas cfs then there will they do stuffing of the cargo and put CFS SEAL to the container. Takes photographs of stuffing for the proof. After this container move to the port the already mention CUTOFF time and that container will load on the vessel. This process is called as ON BOARD CONFIRMATION.

8. B/L Preparation (B.L. Draft) After sailing of vessel we start preparing BL DRAFT. Before finale MBL we must send BL Draft to shipper and Overseas Agent…. If there is necessary changes requires so we can make it now. Is there changes we can make and again send it to overseas agent and shipper Then they send confirmation to make finale MBL & HBL. On the behalf of MBL overseas agent issue the same HBL to the shipper and shipper send that HBl to us for taking delivery of cargo.

9. (IGM) IMPORT GENERAL MANIFEST Before 48 hours arrival of vessel we must submit IGM to the custom. If we are not able to submit IGM then we have to pay lots of penalty charges to the customs. In IGM we fave to fill the data and information which is already describe in the MBL & HBL. We can fill it on the basis of Manifest which we can get along with mbl & hbl. 10. Import (ESTIMATED TIME OF ARRIVAL) After IGM filling to the customs; vessel arrive at the port on estimated time of arrival. At this time we have to release 3 JOB ORDERS. 1st for port; to release container from line. 2nd for CFS DRT to place our container at drt. 3rd for our operation team to cut the container seal. 11. Delivery Order to consignee This stage we RELEASE D.O to the consignee for taking their cargo’s delivery from our CFS DRT. Usually it issues against payment receive or may be on Credit basis also. We must take care of things which are describe in the DO should be correct and specified.

12. Invoice to consignee On the basis on Payment Modes and Credit terms and LC involvement we make our invoice to the consignee. In this we charge them for  Import service  DO charges  THC charges  CFS charges  Transportation charges  Custom Clearance Charges  Insurance Charges  Stamp Duty Charges  GST

13. Received Payment Usually we received payment via CHEQUES & NEFT mode or else sometimes Cash mode. Once we received the payments against IMPORT shipments it means we conduct complete sales process with the profit margin of 10% to 20% for our organization. By providing our delightful services and carrying proper responsibilities of cargo we are pleased to do future shipments and carrying that customer for long term business. NOW HERE IMPORT SALES PROCESS IS CLOSED.

IMPORT PROCESS: 

A foreign partner sends the pre –alert of shipment details along with copies of the bills of lading.



Check if contents of master b/l as per specimen and house bill of lading tally .in case of discrepancy inform foreign partners and ask them to correct the same.



Check with liner agent on eta of vessel and inform the consignee / customhouse agent.



Submit master and house b/l to the shipping line for filing the manifest.



Within 48 hours before the arrival of the vessel



Obtain import general manifest no. (igm) and line no, from the shipping line and pass on the same to the custom, house agent



Within 24 hours upon receipt of the same from the shipping line.



Issue cargo arrival notice cum freight invoice to the consignee/ cha.



Within 48 hrs before the arrival of the veeesl



Inform shipping line to move the containers to the designated off dock cfs after checking with the cha, if required.



Collect freight and other local charges wherever applicable and hand over the same to accounts departments for remittance.



To issue release order to custom house agent after collection of duly discharged original house bill of lading with all relevant endorsements such as bank, if bank is involved consignee and custom house agent after collection of relevant charges.

5.2 VISUAL GLANCE OF SALES IMPORT PROCESS

3.4 IMPORT DOCUMENTATION

Document Receive at office (at Global Logistics Solutions) 1. MBL(Master Bill of lading) 2. HBL(House Bill of lading) 3. Manifest 4. Agent invoice Document Required at CFS DRT 1. Job order to DRT 2. EIR Copy (equipment interchange receipt) 3. Job order by DRTs 4. D/O Document required for custom clearance 1. Commercial Invoice 2. Bill Of Lading 3. Import License Shipper. 4. Insurance Certificate 5. Purchase Order or Letter Of Credit 6. Technical Write up

To be Provide by

INTERNATIONAL COMMERCIAL TERMS



EX-Works: Pick up charges Custom clearance Air Freight

Consignee/Buyer will pay all charges

OR Ocean freight 

FOB

:-

Freight on Board (port of lading to port of delivery)



CIF

:-

Cost Insurance Freight



CPT

:-

Cost paid to



DDP

:-

Duty Delivery paid



DDU

:-

Duty Delivery unpaid



ENS

:-

Entry summary Declaration (applies only at European sector)



ACD

:-

Advance cargo Declaration (applies only at American sector)



DDC

:-

Destination Delivery Charges

SUPPLY CHAIN MANAGEMENT Supply chain management (scm) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. it is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). as a solution for successful supply chain management, sophisticated software systems with web interfaces are competing with web-based Application service providers (asp) who promise to provide part or all of the scm service for companies who rent their service. Supply Chain Management Flows Can Be Divided Into Three Main Flows: 

THE PRODUCT FLOW



THE INFORMATION FLOW



THE FINANCES FLOW

THE PRODUCT FLOW The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. There are two main types of SCM software: Planning applications Execution applications PLANNING APPLICATIONS use advanced algorithms to determine the best way to fill an order. EXECUTION APPLICATIONS track the physical status of GOODS.

The management of materials, and financial information involving all parties.

[B] AIR OPERATION IMPORT Under the air operation of the company the mode of transportation is Air. The cargo having high value and low volume is mostly transfer by air or in case of emergency. Two types of flight are available a) Passenger Flight b) Cargo Flight

3.5 AIR FREIGHT OPERATION PROCESS

Shipment conform by the consignee

Per-alert receive from agent

Import general manifest (IGM) filing

Cargo Tracking of Shipment

Follow-up: - IGM file is done and check - flight arrival

Once flight arrive airline DO and docs collect from airline Issue debt note

Release D.O. (Deliver order) to CHA or consignee.

AIR IMPORT PROCESS FLOW

Agent (CHA / IATA)

Consignee

Shipper / Consignor

Customs Department

Agent (CHA / IATA)

Airport Authority

Customs Department

Airlines

Airport Authority

From the above diagrams it is clear that apart from different national and international government authorities four different bodies are necessary for completion of an import/export process between a consigner and a consignee. They are namely: 

FREIGHT FORWARDER AND IATA AGENT



CUSTOMS AUTHORITY



AIRLINES



AIRPORT AUTHORITY

2. FREIGHT FORWARDERS AND IATA AGENTS

There is no doubt that the air transportation of cargo gives speedier transportation and it is comparatively costlier than the other modes of transportation. Apart from cost, however, there are other minus points such as non-availability of door-to- door service. The airlines being basically a carrier, in the initial stages, the individual or industry making use of the airlines had to bring their cargo to the air terminal going through the booking formalities including customs clearance, payment of duties etc. At the destination end similar procedural wrangle had to be faced before the party could take delivery and get the material at the work site. The passing of waybills from forwarder to destination used to pose another big hurdle which involved delays and consequent payment of demurrages.

MAIN ACTIVITIES OF AGENTS 

AIR IMPORTS CONSOLIDATION



AIR EXPORTS



AIR FREIGHT OF DOMESTIC GOODS / AIR CHARTERS



BOOKING OF SHIPPING SPACE



CUSTOMS CLEARANCE



DOCUMENTATION



PACKAGING



WAREHOUSING



PAYMENT OF FREIGHT, DUTIES, TAXES ETC. ON BEHALF OF THE CONSIGNOR / CONSIGNEE



INSURANCE OF CARGO



PROCUREMENT OF TRANSPORT, ROUTING OF GOODS



TRADE-CONSUMER NEEDS NEW MARKETS, COMPETITIVE

MARKETS, TERMS TRADE, DOCUMENTARY AUDIT ETC.

SPECIAL BENEFITS – THE FREIGHT FORWARDERS GIVE

 Consolidation - The most prominent benefit the freight forwarders give is the benefit of cargo consolidation. By consolidating different consignee’s packages in one container they can enjoy the advantage of economies of scale – “greater the weight”, when booking the space in aircraft of any airlines. It becomes cheaper to one consignee, when shared by all consignees involved in a particular shipment. So the freight forwarders can offer a freight charge which is much less than the normal IATA rate and can be termed as “consolidated cargo rate”.

 Demurrage Free Clearance – Freight forwarding agencies offer a demurrage free clearance of cargo for any shipment. Necessary documents for clearance of cargo are sent along with the packages by the help of freight forwarder’s foreign counterpart. Consignee gets delivery order with supportive documents just after the arrival of the cargo. By filling the bill of entry the consignee can clear the goods without any demurrage.

CLEARANCE OF IMPORT CARGO – FLOW CHART

The provisions of Bill of Entry right from its filing with Customs Department till actual receiving of goods are shown below: Manifest Clearance from W/H for Home Consumption Transshipment Cargo

Transit Cargo

-Fresh determination of duty

Clearance under Bond into Warehouse -B/E (W/H)

Clearance for Home Consumption

Submission of B/E

Provisional Assessment -Docs when not furnished

Noting of B/E

-Enquiry going on -Test Report

Assessment -Classification -Valuation -Prohibition / Restriction (1st

Assessment -Payment of duty/interest -Physical verification and appraisement pass out order (2nd appraisement)

DOCUMENTS GENERALLY REQUIRED FOR IMPORT PROCEDURES



DELIVERY ORDER



BILL OF ENTRY



AIRWAY BILL



HOUSE AIRWAY BILL



INVOICE



PACKING LIST



IMPORT LICENCE



CATALOGUE AND OTHER RELEVANT DOCUMENTS IF ANY

Bill of Entry is filed with customs and Delivery Order is given by the airlines.

SWOT ANALYSIS OF AIR AND SEA IMPORT PROCESS

STRENGTH



Movement of cargo through air takes much less time than movement via other mediums of transportation. This lowers the total logistics cycle time required for a single transaction.



The main idea of logistics lies with Just in Time (JIT) concept. This means availability of the cargo at the right place and on right time. So it is very clear that JIT can be achieved only through air transportation as this is the fastest medium of transportation. There by resulting in lesser inventory control and warehousing expenses.



As the freight part of the air cargo is more, shippers try to provide less packaging to reduce the weight of the cargo. But less packaging do not reduce the safety of the commodity as there is lesser number of handling, loading, unloading and reloading compared to other mediums of transportation. So cost of packaging drastically decreases in this type of transition.



Greater satisfaction can be provided to the customers by air transportation, as it takes less time and provides more safety to the cargo.

WEAKNESS



The freight for air cargo transportation is very high so it is not always possible for the shippers to bear the cost. Even if the shippers are able to bear the freight they do not use this medium to remain in competition with its competitors, who uses a cheaper medium and provides a lower rate.

. 

Compatibility between the different cargos is a very big problem for the airlines. For example, tea is not compatible with incense stick. So if there is some place vacant in a flight loaded with a type of cargo there is a possibility of place another type of cargo in that vacant place. But if the second commodity is not compatible with former one the flight has to go vacant.



Direct shipments get preference over transshipment. It results in transshipment delay and increases lead time. The decision regarding the transshipment cargo being loaded in the aircraft can even be taken by the pilot. Therefore sometimes for pilot’s preference transshipment delay occurs.



A big problem in this trade is the collection pattern prevailing in the market. This results in huge outstanding which makes the freight forwarders hesitant in accepting new account.

OPPORTUNITY



Effective infrastructural development and good marketing strategies can also increase international trade considerably.



If international trade of the country flourishes, a huge amount of employment can be generated in all the related sectors of this trade.



Freight forwarders should look for more cargo consolidations even if it amounts to sharing profits with its foreign counter parts, thereby increasing normal profit margin.



Freight forwarders can take advantage of the global/national arrangement with prime carriers in offering better rates to their clients.



Freight forwarders

should

try

to

procure more

business

from

multinationals, corporate houses and export houses to eliminate the outstanding realization problem. They should also allow more discounts to shippers for ensuring faster realization.

THREAT



With the improvement of ocean service day by day and lower freight charges of sea transportation, substantial quantity of air cargo, which originally moved on air in the past, is moving by sea.



The choice of the route for the movement of a cargo can be chosen either by the shipper or by the consignee. There is a choice called “Free Choice” which lies with the freight forwarding agents. In this choice the agents try to send the cargo by its preferred carrier, taking the advantage of lower rate given by the airlines. But in most of the cases the agents are not allowed to use this choice, so they cannot reduce the freight of the cargo. This means lower profitability of the shipper and the agent.



Shippers choose a cheaper medium of transportation to cut the cost and provide a competitive rate for their own products in the market.



Emergence of multinational freight forwarders with their package of better rates coupled with undue credit and discounts is posing a threat to existing freight forwarders.



Lower rates offered by sub-agents who have practically minimum or no overhead cost is also causing problems for freight forwarders.

CHAPTER 4 SCOPE AND OBJECTIVES OF THE STUDY

SCOPE AND OBJECTIVES OF THE STUDY

 To identify the importance of freight forwarding in the Indian shipping industry.  To study the functions and work activities of freight forwarders in India.  To suggest possible solutions to the challenges being faced by the Freight Forwarders in India.  To study the impact of Logistics Industry on performance of other industries.  To study the complete sales process of import with different modes of transportation.  To study the global 3PL services in India.  To study the cost affecting factors and profit centric import sales process.  To study the essential necessary required documentation in global import process.

CHAPTER 5 OBSERVATIONS AND FINDINGS

5.1 OBSERVATIONS

1) 2) 3) 4)

We must quote the enquiries at the best price & rates. We have to ensure which medium of transportation consignee or buyer needs. We have to observe the transit time taken for delivery. We must have to take confirmation of booking from the consignee, to agent, to liners,

to transporters, and from the shipper also. 5) We must check all the necessary endorsements before issuing D.O. 6) We must observe the invoice, packing list, coo, MBL, HBL, and L.C.

Problem Statement 4. The increasing pace of global integration, there is a need for India to compete in terms of its ability to link with global and regional markets - competitively and effectively. 5. This study focuses on the sales import process of global logistics solution in logistic industry and the various facets of improvement required in its trade logistics. 6. Improving the quality of logistics and transport systems and simultaneously reducing costs improves international market access, and leads directly to increased gross profit of firm and increasing GDP share in Indian Economy via international trade and commerce. \

5.2FINDINGS

1) To start import sales we must receive the pre-alert set of documentation for further process. 2) We must receive the correct first print of HBL & MBL. 3) We must make confirmation regarding all the commercial documents. 4) We have to do two way communications with consignee’s end & shipper’s end. 5) We must do all the import sales process in a legally and ethically. 6) We able to make proportionate profit of GLS. 7) We are able to achieve our weekly sales target & monthly sales target in terms of profit, volume. 8) We are happily fulfilling the promises of delivering delighting service

CHAPTER 6 SUGGESTIONS& LIMITATIONS

6.1 SUGGESTIONS:-

1) We always have to do continuous follow up for receiving outstanding payments from 2) 3) 4) 5)

debtors. We can increase our territories for sales generation. We have to exchange the details of shippers to our overseas agents. We have to increase our customer’s suspects, prospectus data on regular basis. We have to make daily record our each and every container, vessel, shipments,

consignee, shipper, banks, Database in our system. 6) We have to receive the pre alert set of documentation from the overseas shipper. 7) We have to track the cargo. 8) We must filled IGM before 48 hours of arriving cargo in Indian Custom’s system. 9) We reduce TIME & COST through utilizing technological advancements. 10) We usually sent automatic system generated email of daily tracking of shipment.

6.2 LIMITATIONS:

This study is based on the secondary data which is published in the newspapers, books, journals of the researchers, sometimes which is data published by the researchers cannot analyses

fresh situation means old data and wrong data is

collected by inherent error. 

The time and cost plan an important role one when goes for a particular study. Due to the time and cost constraints the large sample was not taken. Hence extra pictures cannot be received and the findings cannot be generalized.

CHAPTER 7 CONCLUSIONS

CONCLUSIONS

On the basis of research work of the study of sales import process we are coming to this following conclusion.  The performance of Indian logistics Industry with other countries and costs associated with this.  The impact of Logistics Industry on performance of other industries.  The complete sales process of import with different modes of     

transportation. The global 3PL services in India. The cost affecting factors and profit centric import sales process. The current scenario of Indian logistics industry. The essential necessary required documentation in global import process.. The increasing foreign trade via logistics industry.

REFERENCES

1. https://hal.archivesouvertes.fr/file/index/docid/366527/filename/Logistics/SCM/.pdf

(1/03/2019) 2. http://globallogistics.co.in/V1/httpdocs/index.html(3/03/2019) 3. http://globallogistics.co.in/V1/httpdocs/Global Logistics Solutions. .html/aboutus

page (5/03/2019) 4. http://globallogistics.co.in/V1/httpdocs/GlobalLogisticsSolutions.

.html/services(8/03/2019) 5. https://en.wikipedia.org/wiki/Logistics(8/03/2019), 6. http://www.cs.vu.nl/~schut/pubs/Krauth/c.pdf (10/03/2019)

7.

http://www.euroasiapub.org/IJRIM/mar/2.pdf(13/03/2019)

8. http://www.dho.edu.tr/sayfalar/02_Akademik/Egitim_Programlari/De

niz_Bilimleri_Enstitusu/Dergi/04_hakantozan.pdf (15/03/2019) 9. http://dl.ifip.org/db/conf/i3e/i3e-1/ZhangZZ07.pdf (18/03/2019)

10. http://downloads.hindawi.com/journals/jie/2014/794918.pdf (20/03/2019)

Books 1. Folinas and Dimitris, Outsourcing Management for Supply Chain Operation and ice, Pages 856-992 2. Steven W. Simonson, Bruce W. Tompkins, Brain E. Upchurch Logistics and Manufacturing Outsourcing: Harness Your Core Competencies, Pages 18-25, 83-95