CHAPTER 1

Introduction to the study and & industry

profile.
Organizational study is to understand how an organization functions. It is
important for us to understand key issues in strategy development like mission,
vision, goals and objectives. It is equally important to understand as to how the
different functional areas of an organization work together in realizing the
common goal of the firm .

INDUSTRY PROFILE:

➢ GLOBAL SCENARIO:
Over the last two decades, economic globalization, trade liberalization and competition
have enhanced transportation needs to the point that now competent logistics management
─ activities relating to the procurement, transport, transshipment and storage of goods ─ is
not just an economic support, but also recognized as an economy driver.

➢ INDIAN SCENARIO:
The Rs 4,000 billion Indian logistics industry, growing at an average growth rate of 20%
annually,is driven by robust economic growth, rising export and import, government
infrastructure investment and logistics outsourcing. Logistics cost accounts for nearly 13%
of GDP, higher than that in the US (10%), Europe (11%) and Japan (10%). Besides,
logistics (transportation, warehousing, inventory management and value-added services
like packaging) represent one of the highest production costs ─ transportation 35%,
inventories 25% ─ making it imperative for companies to work with specialized solution
providers to enhance competitiveness.

➢ The Indian logistics sector is fragmented. Two-thirds of the total trucks are owned
and operated by transporters with fleets smaller than five trucks. The result is
intense competition, low freight rates and thin profitability.
➢ The logistics cost in India is still high compared with developed markets owing to a
non-conducive policy environment, extensive industry fragmentation and
infrastructure inadequacy.
➢ The sector employs (directly and indirectly) about 40 million people.
➢ The sector is seeing increased productivity through growing investments in GPS
tracking, radio frequency identification, online analytics and new supply chain tools.
➢ The entry of global logistics players in India is helping local companies benchmark
with global standards.

• Categories :
The logistics industry in the country is divided across the following categories:

.
 Transport Corporation of India is India's leading integrated
supply chain and logistics solutions provider and a pioneer in the sphere of
cargo transportation in India. Leveraging on its extensive infrastructure, strong
foundation and skilled manpower, TCI offers seamless multimodal
transportation solutions. An ISO 9001:2008 certified company, TCIL is listed
with premier stock exchanges like NSE and BSE.

The company progressed from being a "One Man, One Truck, One Office" set
up to becoming India's leading Logistics & Supply Chain Solutions provider
with a Global presence. After 50 years, TCI moves 2.5% of India's GDP by
value and is the proclaimed market leader of the Indian Logistics Industry.
TCI Group has an extensive network of over 1200 company owned offices, a
huge fleet of customized vehicles and managed warehouse space of 8.5
million sq ft.and a strong work force of 6500. With its customer-centric
approach, world class resources, State-of-Art technology and professional
management, the group follows strong corporate governance principles and
is committed to value creation for its stake holders and its social
responsibilities.

Group Strengths:

1. 1200 fully computerized offices

2. 8.5 million sq ft of warehousing space
3. State of the art Modern warehouses
4. Latest IT systems and technologies
5. Fleet of 6 cargo ships
6. Moving 2.5% of India's GDP by value

7. Listed on premier Stock Exchanges- BSE

& NSE
8. 6500 satisfied employees
9. Huge Loyal Customer based

MISSION: