A project report on marine

logistics Management

Made by :
Ambuj Roy

1|Page
2|Page
Abstract
In this competitive world the manufacturing companies often search for
new and best way to improve their process completing the customer needs
and wants on time and stay ahead with their competitors. Logistics can be
also done through land, sea and air. Logistics has been considered a
strategy to bring these things to life for the past decade or so in this project
work tries to shed some light on how the logistics done through Sea and
what bodies are involved and what process takes place.

Logistics managers have to take decision on a daily basis for the

improvement of their logistics. The project starts out by compiling the
works of Custom Broker and Freight Forwarder in the field of logistics.

3|Page
[Chapter-1]
1. Introduction :
This section of the paper gives the reader an idea of fundamental of
the project. The reader also get an idea that how the sea logistics
works and will able to understand what is the project is all about.

I did my project on D.P.LOGISTICS Private Limited. The project

was titled on Custom Broker and Freight Forwarder in Mumbai and
suggest the ways and means to improve the management and
strategic decision.

1.1] Objective :
The objective of the projects are as follows :
 To know about logistics management .
 To know the effectiveness of D.P.LOGISTICS Pvt. Ltd in
the logistics industry.
 To understand about Custom Broker and Freight
Forwarder.
 To know whether the customer are satisfied with
the existing range of service pattern.

1.2] Aim :
The aim of this project is to understand about the
logistics and its potential in various industries. It also
focuses on learning the different aspects of the logistics
and how these aspects affects in decision making by
various firm and try to get good return form it.

4|Page
1.3] Scope :
The scope of the study is confined to NHAVA SHEVA
(JNPT) and near by organization of D.P. Logistics which
are concern into this industry. This study is done only on
industries which deals in Custom Broker and Freight
Forwarder in Mumbai Region.

5|Page
[chapter-2]
2. Methodology :

The methodology is done under three parts they are as follows

 Primary
 Secondary
 Interview

2.1] Primary :
The primary methodology is done through the practical
work done in the organization and understand the steps
and flow of work in the Logistics.

2.2] Secondary :
The secondary methodology is conducted through
various means like internet, various article.

2.3] Interview :
The interview is conducted through various employees
of the organization for better understanding and also to
get a better idea of their understanding in the concept of
logistics management

6|Page
[Chapter-3]
3]. About D.P. LOGISTICS Private Limited :
DevjiPremji Pujara & Sons was incorporated as a partnership frim
by Late Shri DevjiPremji Pujara and Late Shri Vijay Devji Pujara in
the year 1972 at Mumbai as approved Custom House Agents. On 1st
April 2008, the group was renamed as D.P. Logistics Private Limited
(DPLPL), offering a wide array of service with Door to Door Logistics
to its Clients.

Our company’s primarily specialize in integrated international

transport and logistics solutions, be it Air Freight, Sea freight or
trucking . D.P. logistics Pvt. Ltd. Provides wide range of affiliate
logistics services not confined to just transport, also include pre
carriage from vendor at the place of loading , exports/imports
consolidation and competent assistance in exports/imports custom
clearance.

Our profound experience with logistics chains and setup of

various types and complexity enables our clients to enjoy full control
over their financial and time cost, to ensure on time delivery of cargo
up to their own warehouse and further down the supply chain, to
their client’s premises.

D.P. Logistics Private Limited welcomes any client, however we

are especially proud of our tie-ins with importers/exporters of
Readymade Garments , Textiles & leather goods. We are also geared
to manage general purpose cargo of any dimension of any nature.

Our main asset is our professional team and we are quite proud
of that. Unlike our competitors, we are highly respected for prompt
responses- both on the phone and e-mail meticulous logistics
planning fine-tuned according to the client’s specific requirement,
detailed cost / expenses planning , including all service associated
with and on the way of cargo delivery and wide array of readily
available solutions combined with competitive pricing. Our clients

7|Page
always enjoy the most up-to-date and precise information on their
cargo whereabouts.

3.1] Business Values and Ethics :

D.P. Logistics Private Limited has cultivated a unique
company culture that sets us apart in our industry. We
recognize that our people are our best assets. Our
workplace is comfortable and aesthetically pleasing. The
staff works in a team based environment brining high
level of energy and enthusiastic performance. Developing
successful relationship with our vendors is a vital
components of our culture. Effective partnership creates
value added solutions and innovation. Therefore, we
choose partners who mirror or own philosophy.

3.2] Door to Door service of DPLPL Encompass :

 End to End logistics.
 Sea Freight Forwarding.
 Air Freight Forwarding.
 Trucking / Transportation.
 Customs Clearance.
 Packing.
 Storage / Warehousing Management.
 LCL Consolidation/De-Stuffing.
 GOH (Garment on Hangers) Container Stuffing.

8|Page
3.3] Service Summary Of Our Core Expertise :
 Air Freight :
Air freight is not just another means of transporting
goods from point to point as quickly as possible. As
freight forwarding and logistics professional, we
advice our customer on various service available
transit time, transportation options and pricing . By
carefully arranging carriers, we help our clients to
avoid potential conflicts during transit. At D.P.
Logistics Pvt. Ltd. We first evaluate product and
service requirements, only then do we propose a
carrier and service level to our customers.

 Sea Freight :
We offer regular service for full container loads as
well as consolidated (LCL) to and form any major
port in the world . our international network allows
us to handle shipments directly from terminal to
terminal or even door-to-door. We will find
alternative transport solutions such as conventional
ships, barges and lighters for goods that cannot be
transported by container. As is true for all of our
international products , we offer full door-to-door
service combined with smooth customs clearance.

 Custom Clearance :
D.P. Logistics Private Limited experience customs
division provides a full range of services like :

 Preparation of Imports and Exports entries.

 Refund Claims/Duty drawback.
 Import and Export permit application.
 Project handling and turnkey projects.

9|Page
It is very difficult for new investors to understand
Indian law and the customs regulations. The lack of
professional Custom House Agents adds to the
investors confusion. This situation often results in
overpayment of customs duties. Customs clearance
processing delays could prove to be very costly,
resulting in heavy demurrage charges. We can help
avoid costly delays , especially for goods that are
required for exhibitions , factory openings and
promotions.

Our legal advisors and our established professional

relationship with the customs department ensure
that we stay abreast of new legal and procedural
development in customs clearance. Our diligent
and knowledgeable team of customs professional
ensure rapid and trouble-free clearance of our
client’s cargo.

We organize and co-ordinate any special

equipment which may be required, including heavy
duty cranes, heavy lift ships, hydraulic trailers, as
well as rigging and jacking equipment’s. We
conduct feasibility study well before project
execution to ensure a timely and efficient
implementation. There’s no limit to what we can
move.

We are closely co-ordinate with shipping lines and

obtain the schedules and cut-off dates on a regular
basis and are update with any change in the
schedule by liner.

10 | P a g e
 3.4] Our Esteemed Clients in India :

S.no Clients Location

1. Gokaldas Exports Ltd. Bangalore
2. Orient Craft Ltd. Gurgaon
3. Greatway Ltd. Ludhiana
4. Diamond Exports New Delhi
5. Arvind Ltd. Bangalore
6. Raymonds Uco Bangalore
7. Shahi Exports Pvt. Ltd. Faridabad/Bangalore
8. Gokaldas Images Pvt. Ltd. Bangalore
9. Eveline International Ludhiana
10. Textport Garment Bangalore/Mumbai
11. Silver Sparks Raymonds Bangalore
12. Orient Fashion Exports Delhi

3.5] Our Overseas Clients :

S.no Buyer Location in USA

1. Club Z Inc. New York
2. United Team Inc. New York
3. Jeetish Imports Inc. New York
4. Argee America Inc. New York
5. Sellers Inc. New York
6. Mantra Inc. New York
7. Japna Inc. New York

11 | P a g e
[Chapter-4]
4]. Introduction – LOGISTICS MANAGEMENT :
Logistics management is a part of supply chain which plans,
implements and control the efficient forward and backward
(reverse) flow and storage of goods , services and information
between the point of origin and the point of consumption in order to
meet customer’s requirements rather to the customer’s delight. A
professional working in the field of logistics management is called a
logistician.

Logistics, as a business concept, evolved only in the 1950s. This was

mainly due to the increasing complexity of supplying one’s business
with materials, and shipping out products in an increasingly
globalized supply chain. Calling for experts in the field who are
called supply chain logisticians. This can be defined as having the
right item in the right quantity at the right time at the right place for
the right price and to the right target customers and it is the science
of process having its presence in all sectors of industry. The goal of
logistics work is to manage the function of project life cycles, supply
chains and resultant efficiencies. Logistics is concerned with getting
(or transmitting ) the products and services where they are needed
or when they are desired. It is difficult to accomplish any marketing
or manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing,
material handing, and packaging. The operating responsibility of
logistics is the geographical repositioning of raw materials, work in
process, and finished inventories where required at the lowest cost
possible.

12 | P a g e
4.1] Origin and Definition of LOGISTICS :

The term “logistics” originates form the ancient Greek

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

The Oxford English Dictionary defines logistics as: “The

branch of military science having to do with procuring,
maintaining and transporting material, personnel and
facilities.”

The American Council of Logistics Management

defines logistics as “the process of planning,
implementing and controlling the efficient and effective
flow, and storage of goods, service and related
information from the point of origin to the point of
consumption for the purpose of conforming to customer
requirements.”

4.2]. Objective of LOGISTICS MANAGEMENT :

The primary objective of logistics management is to

effectively and efficiently move the supply chain so as to
extend the desired level of customer service at the least
cost. Thus, logistics management start with ascertaining

13 | P a g e
customer’s needs till their fulfilment through product
supplies. However, there are some definite objectives to
be achieved through a proper logistics system. These can
be described as follows :

 Improving customer service :

An important objective of all marketing efforts,
including the physical distribution activities, is to
improve the customer service. An efficient
management of physical distribution can help in
improving the level of customer service by
developing an effective system of warehousing,
quick and economic transportation, and
maintaining optimum level of inventory.

 Rapid Response :
Rapid response is concerned with a firm’s ability to
satisfy customer service requirement in a timely
manner. Information technology has increased the
capability to postpone logistical operations to the
latest possible time and then accomplished rapid
delivery of required inventory.

 Reduce total distribution costs :

The cost of physical distribution consists of various
elements such as transportation warehousing and
inventory maintenance, and any reduction in the
cost of one element may result in an increasing in
the cost of the other elements. Thus, the objectives
of the firm should be to reduce the total cost of
distribution and not just the cost incurred on any
one element.

14 | P a g e
 Generating additional sales :
A firm can attract additional customers by offering
better service at lowest prices. For example, by
decentralizing its warehousing operations or by
using economic and efficient modes of
transportation, a frim can achieve larger market
share. Also by avoiding the out-of stock situation,
the loss of loyal customer can be arrested.

 Creating time and place utilities :

The products are physically moved from the place
of their origin to the place where they are required
for consumption they do not serve any purpose to
the users. Similarly, the products have to be made
available at the time they are needed for
consumption.

 Price stabilization :
It can be achieved by regulating the flow of the
products to the market through a judicious use for
available transport facilities and compatible
warehouse operations. By stocking the raw
material during the period of excess supply and
made available during the period of short supply,
the price can be stabilized.

 Quality improvement :
The long term objective of the logistical system is
to seek continuous quality improvement. Total
quality management (TQM) has become a major
commitment throughout all facets of industry. If a
product becomes defective or if service promises
are not kept, little if any value is added by the

15 | P a g e
 logistics. Logistical costs, once expended cannot be
reversed.

 Movement consolidation :
Consolidation one of the most significant logistical
costs is transported. Transportation cost is directly
related to the type of product, size of shipment, and
distance. Many logistical systems that feature
premium service depend on high-speed, small
shipment transportation. Premium transportation
is typically high-cost. To reduce transportation
cost. It is desirable to achieve movement
consolidation.

4.3]. LOGISTIC MANAGEMENT FUNCTION :

Logistics is the process of movement of goods across the
supply chain of the company. This process is consist of
various function, which have to be properly managed to
bring effectiveness, efficiency in the supply chain of the
organization.

 Order processing :
The starting point of physical distribution activities
is the processing of customer’s orders. In order to
provide quicker customer service, the orders
received from customer’s should be processed
within the least possible time. Order processing
includes receiving the order, recording the order,
filling the order, and assembling all such orders for
transportation, etc. the company and the
customers benefit when these steps are carried out

16 | P a g e
 quickly and accurately. The error committed at this
stage at the times can prove to be very costly.

Order processing activity consist of the following

 Order checking in any deviation in agreed

or negotiation terms.
 Prices, payment and delivery terms.
 Checking the availability in of the
material stocks.
 Production and material scheduling for
storage.
 Acknowledge the order, indicating
deviation.

 Warehousing :
Warehousing refers to the storing and assorting
products in order to create time utility. The basic
purpose of the warehousing activity is to arrange
placements of goods, provides storage facility to
store them, consolidate them with order similar
products, divide them into smaller quantities and
build up assortment of the products. Generally,
larger the number of warehouses a firm has the
lesser would be the time taken in serving
customers at different locations, but greater would
be the cost of warehousing. Thus the firm has to
strike a balance between the cost of warehousing
and the level of customer service

Major decision in warehousing is as follow :

 Location of warehousing facility.

 Number of warehousing.
 Size of warehouse.

17 | P a g e
  Design of the building.
 Ownership of the warehouse.

 Inventory management :
Linked to warehousing decisions are the inventory
decisions which hold the key to success of physical
distribution especially where the inventory costs
may be as high 15 as 30-40 percent (e.g., steel and
automobiles). No wonder therefore that the new
concept of just-in-time inventory decision is
increasingly becoming popular with a number of
companies. The decision regarding level of
inventory involves estimate of demand for the
product. A correct estimate of the demand help to
hold proper inventory level and control the
inventory costs. This is not only helps the firm in
terms of the cost of inventory and supply to
customers in time but also to maintain production
at a consistent level. Degree of accuracy of the sales
forecasts. Responsiveness of the distribution
system i.e. ability of the system to transmit
inventory needs to factory and the products in the
market. The cost inventory consists of holding cost
(such as cost of warehousing, tied up capital and
obsolescence) and replenishment cost (including
the manufacturing cost).

 Transportation :
Transportation seeks to move goods from points of
production and sale to point of consumption in the
quantities required at times needed and at a
reasonable cost. The transportation system adds
time and place utilities to the goods handled and
thus, increases their economic value. To achieve

18 | P a g e
 these goals. Transportation facilities must be
adequate, regular, dependable and equitable in
terms of costs and benefits of the facilities and
service provided.

 Information :
The physical distribution managers continuously
need up-to-date information about inventory,
transportation and warehousing. For example in
respect on inventory, information about present
stock position at each location, future commitment
and replenishment capabilities are constantly
required. Similarly before choosing a 16 carrier,
information about the availability of various modes
of transport, their costs, service and stability for a
particular product is needed. About warehousing
information, information with respect to space
utilization, work schedules, unit load performance,
etc. is required. In order to receive all the
information stated above, an efficient management
information system would be of immense use in
controlling costs, improving services and
determining the overall effectiveness of
distribution. Of course, it is difficult to correctly
assess the cost of physical distribution operations.
But if correct information is available it can be
analyzed systematically and a great deal of saving
can be ensured.

 Facilities :
The facilities logistics element is composed of a
variety of planning activities, all of which are
directed toward ensuring that all required
permanent or semi-permanent operating and

19 | P a g e
support facilities (for instance, training, field and
depot maintenance, storage, operational, and
testing) are available concurrently with system
fielding.
Planning must be comprehensive and include the
need for new construction as well as modification
to existing facilities. Facility construction can take
from 5 to 7 years from concept formulation to user
occupancy. It also includes studies to define and
establish impacts on life cycle cost, funding
requirements, facility locations and improvements,
space requirements, environmental impacts,
duration or frequency of use, safety and health
standards requirements, and security restrictions.
Also including are any utility requirement, for both
fixed and mobile facilities with emphasis on
limiting requirements of scarce or unique
resources.

20 | P a g e
[chapter-5]
5]. GLOBAL LOGISTIC MARKET OVERVIEW :
Global logistic market is anticipated to register a CAGR
(Compound Annual Growth Rate) of 3.4% from 2016 to 2022
to attain a market size of around $12,256 billion by 2022. The
term logistics is generally the detailed organization and
implementation of a complex operation. It refers to the
movement of goods and information between the provider and
the receiver. Moreover, the logistics is the management of the
flow of things between the point of origin and the point of
consumption in order to meet the requirements of the
customers or corporations. The resources managed in logistics
can include physical items such as food, materials, animals,
equipment, and liquids; as well as abstract items, such as time
and information.

Increasing in global trade activities of the developing economies,

rise in trade related agreements and global logistics
infrastructure and advancement in information technology and
transportation sector are the prime factors responsible for the
growth of global logistics market. However, rise in pollution
level and high inventory cost & low warehousing space are
restraining the market growth. Irrespective of the challenges,
rise in adoption of green logistics solution is creating an
opportunity to the market growth.

5.1]. Segment overview :

The logistic market is segmented on the basis of
mode of transport, end-user and geography. By mode
of transport type, the market is segmented into
railways, roadways, airways and marine-ways.
Further, by end-user, the market is segmented into

21 | P a g e
 healthcare, manufacturing, trade & transportation,
telecommunication, government & public utilities,
banking & financial service, retail, media &
entertainment, information technology and other.
Based on geography, the market is segmented into
north America, Europe, Asia-Pacific and LEMEA.

Global Logistic Market Segmentation

5.2]. Rise in Trade Related Agreement :

Another important factor which has influenced the
logistic sector is the rise in the trade related
agreements between two countries. Free trade

22 | P a g e
 agreement has enabled the reduction in duties and
taxes. Further, there has been increase in the trade
activities as exporter and importer need not to pay
taxes to the government. Countries in the trade
blocs are lifting bans and making trade more
flexible.

5.3]. Logistics Infrastructure, IT and

Technological Advancement :
Strengthening the capabilities and function of logistics
influence the logistics infrastructure to a great extent.
The logistics infrastructure is up-graded so as to meet the
need of added features in the logistics with the help of IT
for the smooth flow of information from one source to
another. Increasing use of RIFD (Radio Frequency
Identification), Bluetooth and other newly introduce
technologies such as Drone Delivery and Driverless
Vehicle are use more efficiently for the use in the logistics
service.

Some Key Benefits :

 It provides an in-depth analysis of the

global logistics market to elucidate the
prominent investment pockets .
 Current trends and future estimations
are outlined to determined the overall
attractiveness, and single out
profitable trends to gain a stronger
foothold in the market.
 It provides information regarding key
drivers, restraints and opportunity
along with their impact analyses.
 The market is analyzed based on
various regions, namely, North

23 | P a g e
 America, Europe, Asia-Pacific and
LAMEA.

Diagrammatic presentation of

LOGISTICS INFRASTRUCTURE, IT and TECHNOLOGICAL ADVANCEMENT

24 | P a g e
[chapter-6]
6]. CHALLENGES FACED BY LOGISTICS INDUSTRY :
According to a third party logistics study by Capgemini, ‘cutting
transportation costs’. Makes the top of the list as far as concerns
for the logistics industry. Some other pain-point makes the list as
well, but the most important and at the times challenging
concern is the need for greater innovations and technology
advances while remaining budget-conscious.

Here is some top challenges facing the industry.

 Fuel cost :
One of the highest costs contributing to the ‘cutting
transportation cost’ concern is fuel price. Higher
fuel prices are likely to increase transportation
costs for US shippers this year by pushing up fuel
surcharges. Rising US diesel fuel prices are
escalating surcharges added to freight rates, which
is reversing a two year trend that cut into the
revenue and earnings of trucks as fuel prices
plummeted.

 Business Process Improvement :

Not with-standing the need for the new technology,
which we discuss in number eight on this list, it has
become an increasing challenge for the logistics
industry to stay on top of new advances in business
processes. Taking advantage of these new
opportunities sounds enticing but adoption and
onboarding can be overwhelming.

25 | P a g e
 Improved Customer Service :
Customers want full transparency into where their
delivery is at all times. These days, the location of a
package is as interconnected as your social
network. In fact, as customer expectations have
increased, their willingness to pay for fast shipping
has decreased with just about 64 percent of
customer unwilling to pay anything extra for less
than two-day shipping.

 Economy :
With high fuel prices comes a greater credit crisis
and rising inflationary demands that takes a
greater toll on the US economy. This industry is
then pressured by increasing compliance
regulations, declining demand, additional capacity
with additional increases in key cost centers.

 Government Regulations :
Carriers face significant compliance regulations
imposed by federal, state and local authorities.

 Environmental Issues :
The anti-idling and other emission reduction
regulations brought about by state and local
governments has created concern that the
compliance cost could exceed benefits.

 Technology Strategy and Implementation :

While the industry understands and supports
many of the benefits of these technologies, some
question remain as to how they will pay for it and
who will help implement the improvements.
Outsourcing all or a portion of freight and business
processes can often provide the required expertise,
people, capacity and IT system needed to help
26 | P a g e
 reduce expenses, improve visibility into the supply
chain, effectively manage the supply chain and
achieve greater regulatory compliance. DDC FPO
offer the right solutions of help lighten your load.

6.1]. Some challenges Faced by INDIAN LOGISTICS

INDUSTRY :
“ INDIAN Logistic sector incorporates the entire inbound and
outbound segments of manufacturing supply chains this sector,
however is fragmented and run by a multitude of individual
player in the absence of a formal regulatory structure
governing it .

The problems engulfing the sector are manifold and can be

summed up as follows:

 Inadequate Infrastructure :
Although massive developmental work has been
undertaken on the main routes of transportation,
such as the Golden Quadrilateral, doorstep delivery
becomes a big problem due to deteriorating
conditions of roads in the interiors of the country.
This enhances the cost of wear and tear of the
vehicle which in turn increases the operating costs
for logistics .

 Conventional ways of operations :

One of the most important bottlenecks troubling
the Indian logistics scenario is the obsolete way in
which things are run. For instance, if there existed
a nation-wide broadband logistics IT network then
a trucker initiating his journey in Kerala could find
all the papers there, get all inspections done, and

27 | P a g e
 move on without any interruptions to his
destination.
“ This would also help vehicle owners and client
engage with each other, leading to elimination
of the middleman from the equation. Middleman
also charge brokerage and hence lead to an
increase in overall operational costs.”

 Economies of Scale :
The Indian transport industry is a $385 Bn
industry , yet it suffers from business trade-off
loss due to its distance from technology. For
instance , there is an immense scope in equipping
vehicles with GPS trackers as lack of transparent
network between vehicle owners an those in need
of transportation service often leads to
transporters making empty journeys. The
existence of route tracker will help customers to
engage transporters plying on the same route for
delivery.

 Constant Cost and Government Barriers :

Even during lean business seasons, the costs
associated with travel, for instance, inter-state
permits, check posts, licensing etc. remain
constant. Furthermore, the logistics industry is
fraught with cartel-government nexus, which
enhances the costs in terms of bribes, bringing in
transparency and regulations in this industry will
help the cause of streamlining the logistics
industry…..

28 | P a g e
29 | P a g e