1.

1An overview of the study

The achievements of an organzation are the results of the combined effort of each individual
-

Vince Lombard

Organizations, according to Gray johns, are social inventions for accomplishing goals through
group efforts. This definition, though simple, covers a wide variety of groups such as businesses, schools,
hospitals, fraternal groups, religious bodies, government agencies and the like. There are three significant
aspects for this definition that require further analysis. These are : social inventions, accomplishing goals, group
efforts.
The word social as aderivative of society, basically means gathering of people as against plants,
machines, buildings, even though plants, machines and buildings are necessary contributors to the existence of
the organization. However, organization will cease to exist if there were no people to run these organizations
even if other things remain. On the other hand, ther are organizations such as neighbourhood associations that
have only people in them and are without physical assets. . All organization have reasons for their existence.
These reasons are the goals towards which all organizational efforts are directed. Accordingly any
organizational goal must integrate in itself the personal goals of all individuals associated with the
orrganization. People, both as members of the society at large and as a part of an organization, interact with
each other and are interdependent. The needfor such interdependence has both sociological and anthropological
roots. Individuals in themselves have physcal and intellectual limitations and these limitations can only be
overcome by group efforts.
The managerial functions of organizations are: planning, organizing, leading, controlling.
Planning is considered to be the central function of management and determines an organizations
direction. It is a rational and systematic way of making decisions today that will affect the future of the
company. Organising requires a formal structure of authority and the direction and the flow of such aothority
through which work sub-divisions are defined, arranged and coordinated. Each part relates to other parts in a
united and coherent manner so as to attain the prescribed objectives.The directing function is concerned with
leadership, communication, motivation and supervision so that

the employees perform their activities in the

most efficient manner possible in order to achieve the desired goals. The function of contolling consist of those
activities that are undertaken to ensure that the events do not deviate from the pre arrannged plans. The
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activities consist of establishing standards for work performance, measuring performance and compairing it to
these set standards and taking corrective actions as and when needed to correct any deviations.
Every organization is part of an industry. An industry is the manufacturing or technically productive
enterprises in a particular field, country, region or economy viewed collectively, or one of these individually.
Industry is classified into primary, secondary and teritiary. Primary industry involved in the collection and
extraction of natural resources. A company in a primary industry can also be involved in turning natuaral
resources into products . The industrial sector of an economy that is dominated by the manufacture of finished
products is belonging to he secondary industry. Unlike primary industry, which collects and produces raw
materials for manufacture, a secondary indusrty makes products that are more likely to be consumed by
individuals. The teritiary industry is one of the three industry types in a developed economy the other two being
primary and secondary industries which provides services. As an economy become more developed, it will shift
its focus from primary industry to secondary and teritiary indusries.
The study conducted at POTA Global Logistics (India) Pvt Ltd, Karur is related to logistics industry.
Logistics has huge impact on the domestic and global economy of any country. As such, the role and
importance of logistics has been elevated in many business environments. The objective of the study is to
develop a network of corporate contacts for future career enhancement, to sensitise the naunces of the
workplace and to understand the group process and dynamycs in organizations in first person perspective and to
apply the concepts learn in classroom to practical.
POTA Global Logistics India Private Limited is a Private Company incorporated on 09 March 2007. It is
classified as Indian Non-Government Company and is registered at Registrar of Companies, Chennai. POTA
Global Logistics India Private Limited's Annual General Meeting (AGM) was last held on 30 September 2014
and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March
2014. Logistics has huge impact on the domestic and global economy of any country. As such, the role and
importance of logistics has been elevated in many business environments. Generally, Indias logistics market is
huge but unexploited. With the increasing globalisation, logistics players in India have to face the challenges
since worldwide sourcing and deliveries requires global logistics support.
The prime need of the internship is to get familirise the student with the real work environment. It
helps to develop a network which will useful in my career enhancement, acquie industry specific skills, cultural
aspects of the particular firm etc. Internships greatly increase the chances of getting a full time employment
after graduation. Internships will also allow me to learn about time management, discipline, and effective
communication skills.
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1.2 Need of the study

One problem commonly cited by employers is that many graduates do not have the practical skills
necessary to excel in the job market. They also feel that the professionalism of students is less than it should be.
Even though there are a large number of theories on how to encourage employees and increase profits, it is
apparent that enhanced levels of education are not enough to prepare students for a real world environment.
Being able to improve these weaknesses will make graduates much more effective in their careers. By using
internships, students are provided with experience that will make them stronger. In addition to this, their work
ethic will increase, and they will be confident in their abilities. Internships will also allow students to learn
about time management, discipline, and effective communication skills. In the business world, critical thinking
skills are very important. Graduates must be able to make quick decisions which are based on logic. Internships
will teach students how to excel in a large number of different organizations and industries.

Filling the resume with professional experiences not only allows the hiring entity to see the professional
skills that a student have developed, it also allows , as a wandering, undecided college student, to discover
which career path the student will thoroughly enjoy. If a college student fits a handful of internships under their
belt and develops a passion for a certain area of business, they are guaranteed to gain a leg up in the application
process. In addition to test-driving diverse career paths, internships allow students to network with important
individuals, learn certain cultural aspects of the field, acquire industry specific skills, and have the potential of
landing a job at the same company.

1.3 Significance of the study

The internships have been seen to be beneficial in socialising the student through training and teamwork
assignments at the workplace and also the interns have successfully developed their personal skills, particularly
relating to information technology, time management, communication skills, teamwork, specialist knowledge
and ability to prioritize tasks. internship may pave the way for permanent employment upon graduation as well
as providing an in-depth understanding of actual business practice. The internship programme will contribute
significantly and positively towards enhancing the knowledge base and motivational level of students.
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Internships greatly increase the chances that a student will gain full time employment after graduation. An
internship adds a great value to the resume it shows the students willingness to learn and work in a professional
environment. The letter accomplishment is a sign that the student can adapt themself to much more rigorous
schudule than the college. Internships allows the students the opportunity to apply their knowledge and skills in
a professional setting. Internship offered carefully planned and monitored work experiance with the goal being
to gain additional knowledge from on the job exposure. Through the internship programme the students became
familiar with the functioning and the working conditions of the orgnisation, this will help the students in their
career enhancement.
An internship provides the opportunity to gain hands on work experiance that cant get in the classroom.
Employers are usually more concerned with work experiance than qualification and internships are often the
only way to get the work experiance , need to secure a job. Many employers prefer or require applicants who
have done an internship or relevant work experiance and in many of the more competitive market, it is essential
to set as apart from others. Internship is the best way for students to explore the suitability of a particular job.
Internship programmes are perceived as a valuable way to acquire broad competencies where the practical
knowledge obtained supports and complements the theoretical studies learned in the classrooms ..

1.4 Scope of the study

The internship help the intern to get an overall idea about the logistics industry. Through this study the
intern got an awareness about the company profile, department study, products and service, swot analysis, news
and milestones, industry profile . Investigation about different departments in the organization is carried out,
from there the intern got to know more about the functioning of the departments, its structure , positions and
also about their norms, rules and regulations.Explore industry profile, and understand that logistics is a fast
moving industry and also it is contributing to the GDP,employee opportunity, major players, growth of industry
in global and national perspective. Further more on milestones of the organization including awards acheived .
More on services provided by the company, make an awareness to the intern that the company have adopt latest
technologies to find optimal solutions for the complex logistics problems. Later the researcher senses on
organizations CSR activities focuses on community, environment and safety of both workers and environment.
Then the intern got an opportunity to work with the organization by doing so the intern explored more about the
functioning of the organization.

1.5 Objective of the study

1.5.1 Overall objectives:
1. To sensitise the nuances of the workplace and to understand the group process and dynamics
in the organisation in first person perspective.
2. To apply concepts learned in classrooms and make the students move out of the comfort zone
and experiance real life learning.
3. To develop a network of corporate contacts for future career enhancements.

1.5.2 Subobjectives:
1.
2.
3.
4.
5.
6.
7.
8.

To study the industry.

To study the company profile
To study the various services provided by the organization
To study the different departments and theie functions
SWOT analysis
To study the corporate social responsibilities of the organization
To understand the milestones
Internship activity ( freight log doccumentation of sixteen companies over one year)

1.6 Research design

1.6.1 Type of research

This study focus on descriptive research design. Descriptive research is formal and structured in
manner. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose
of descriptive research is description of the state of affairs as its exists at present. The main characteristics of
this method is that the researcher has no control over the variables he/she can only report what has happened or
what is happening.

1.6.2 Type of data

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Here we use both primary and secondary data.

1.6.2.1 Primary data

Primary data was collected through the discussion with the company guide and the different
department heads and also by observing the functions of various departments.

1.6.2.2 Secondary data

Secondary data is collected through the records and journals provided by the organisation ,
through internet and also through refering some books.
Here intern have selected both primary and secondary data. I had collected information related to SWOT
analysis and department study through primary data and had colllected company profile, industry profile,
relevant newses and milestones related to the company etc through secondary data .

1.6.3 Data source

Secondary data sources
Search engine like google
Investopedia
Company records
Website of POTA global logistics

1.6.4 Method of data collection

Primary data was collected through

Discussions : SWOT analysis is prepared through discussing with the staffs.

Direct interview method : department study is conducted by the direct interview wuth the department
heads.

1.6.5 Data presentation

Data collected through
Flow charts , used represent the functions of departments
Graph , used to represent the emerging trends in logistics
Diagrams , used to represent the EDI transactions

1.7 Limitations of the study

The firm does not disclose all the details.
Information collected through secondary data is not accurate.
Lack of corporation from the top level management due to their busy work schedule.

1.8 Chapterisation
The chapter scheme of the study is as follows:
Chapter 1

Introduction

Chapter 2

Industry profile

Chapter 3

Company profile

Chapter 4

Organization structure and department functions

Chapter 5

Internship activity

Chapter 6

SWOT

Chapter 7

Conclusion
Bibliography
Appendices

Logistics has huge impact on the domestic and global economy of any country. As such, the role and
importance of logistics has been elevated in many business environments.

2.1 Overview of Global Logistics Industry

Transportation is a key element in a logistics infrastructure. Adequate capacity and reliability of
transport infrastructure and services are important factors which contribute towards the ability of the country to
compete in the field of international trade and attract foreign direct investment. It is necessary for the country
of the size of India to create a policy that encourages competitive pricing and coordination between alternative
modes inorder to provide an integrated transport system that assures the mobilit y of goods at maximum
efficiency and minimum cost.
As for India, its infrastructure can be viewed as a major hindrance to the logistics business. Despite being a
large country wit h a landmass of 3.29 million squarekm, the Indian infrastructure comprising roads, railways,
seaports and airports is considered very poor as compared with other developed and developing countries. The
poor infrastructure and inefficient transport services result in inefficient movement of freight and delays result
ing in enormous amount of time, and therefore money. Such inefficient and unreliable transport and logistics
systems make the countrys export less competit ive. The overall Indian infrastructure is rated 54th among the
59 countries in comparison to other developing countries.
The poor infrastructure and transportation performance in India is essentially due to some underlying
institutional problems. Firstly, the fragmentation and overlapping of responsibilities among various government
agencies confuse and limit accountability, and as a result, affect the pressure on various agencies to perform.
For example, in urban transport, many agencies have a role but none assumes overall responsibility leading to
poor policy and unclear accountability. Secondly, resource mobilization is inadequate in India. Public
investments in transport have been stagnant and declining relative to GDP, and the input from private finance
continues to be very limited. The weak asset or system management in the country is the third problem that
affects the Indians transportation infrastructure sector. Overstaffing, inadequate data collection and untrained
decision-makers results in poor analysis in decision making. Uneconomical investments made under political
influence, lack of competition in procurement and excessive focus on new investment at the expense of existing
asset maintenance are some of the other factors.
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In order to tackle the shortcomings above and to reform the transportation and infrastructure sectors, India has
made substantial efforts in recent years. For example, the public fundingfor transport sector has been increased
significantly in t he Nint h Five-Year Plan .The increase in public funding is specifically notable in the roads,
ports and inland waterways. the progress is still slow relative to the major changes around the world. For
example, transport deregulation, increased private sector participation, and decentralized and commercial
management of transport assets and operations. Worldwide transport growth has been consistently higher than
the economic growth. If India wants to achieve its projected growth of 8% in GDP over the 10 Plan (2002-07)
period, the countrys transportation sector growth should hit 10 -12% per year! (current transportation growth is
only about (8-9%). In order to reach global standards in transportation infrastructure, India has to emphasis on
their capacit y enhancement and more competit ive operations from existing infrastructure through policy and
operational improvements. Invest ments in the creation of better and more modern infrastructure could help to
further boost their transportation growth.

2.2 Overview of Indian logistics industry

The Indian logistics industry provides an overview of the various modes and infrastructure segments, in
addition to an assessment of the supply-chain cost structure in nine non-bulk segments and third-party logistics
(3PL) opportunities in India.
Globally, the logistics industry is valued at US$3.5trillion.
The indian logistics industry is presently estimated at US$ 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 4.5 million people.
It is forecaste to grow at a Compoud Annual Growth Rate (CAGR) of approximately 8% over the next
three to five years.
The industry comprises the following main segments:

Freight and passenger transportation via road, rail, air and water
Warehousing and cold-storage

The contribution from the movement of goods including freight transportation and storage is about 90 per cent.
Aggregate freight traffic is estimated at about 2-2.3 trillion tonne kilometres. Road dominates the mode of
freight transport mix and constitutes about 60 per cent of the total freight traffic. Rail and coastal shipping
account for about 32 per cent and 7 per cent, respectively, while the share of inland waterways transportation
and air is less than 1 per cent each.

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Warehousing comprises industrial and agricultural storage. Of the total warehousing space of about 1,800
million sq ft, the industrial and agricultural segments constitute about 86 per cent and 14 per cent, respectively.
Government organisations including Food Corporation of India, Central Warehousing Corporation and the state
warehousing corporations account for about two-thirds of the agricultural warehousing segment1 . Warehousing
also includes cold storage, comprising over 5,300 units; most of which are concentrated in the states of Uttar
Pradesh, Punjab and West Bengal. According to the Ministry of Agriculture, at present, the cold chain capacity
is about 9 million tonnes

2.2.1 Overview of Industry Segments in India

India is emerging out to be a strong economy since reforms through liberalization

programmes began in 1991. A series of Second Generation Reforms aimed at deregulating the country and
stimulating foreign investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific
region. Today, the country is the 11th largest economy in terms of industrial output, with the GDP growth rate of
6.0% in 2003 and an estimated growth rate of 7.2% for 2004. The stable growth, together with the large
diversified economy, the increasing world trade and the growing consumer market, India is set to be one of the
largest and fastest growing markets in the world. Most of the industry segments in India are highly fragmented
with many organized and unorganized units.

2.2.2 General Characteristics of India Logistics Market

Generally, Indias logistics market is huge but unexploited. With the increasing globalisation, logistics players
in India have to face the challenges since worldwide sourcing and deliveries requires global logistics support.
Unlike China, the development in the logistics market is relatively slow and still in the infancy stage in India.
However wit h the entry of several foreign logistics companies into the country, domest ic logistics players are
realising the advantage of supply chain management and trying to adopt them into their business to remain
competit ive. As a result, recent years has been wit nessing increasing service levels in the industry. Growth is
varied within different industry segments. Some industry segments are highly fragmented with many organized
and unorganized units. In fact, about 85% of the logistics services are in unorganized sectors.

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Apart from providing the prime logistics service functions such as transportation, warehousing and distribution,
and freight forwarding, the logistics players in India have also started to handle other activit ies like inventory
management, order processing, collection of bills, sales and excise duty documentation, among others.
However most players offer only one or two services out of the gamut of service products comprising
transportation, warehousing, freight forwarding, express cargo delivery, courier services, container services,
shipping services and others.

The Indian logistics sector has typically been driven by the objective of reducing transportation costs that were
(and often continue to be) inordinately high due to regional concentration of manufacturing and geographically
diversified distribution activities as well as inefficiencies in infrastructure and accompanying technology.
Freight movement has slowly been shifting from rail to road with implications on quality of transfer, timeliness
of delivery and consequently costs except for commodities which over long distances, predominantly, move
through the extensive rail network. According to a survey on the practices in logistics industry in India, it was
revealed that warehousing, inbound and outbound transportation, custom clearance, packaging, fleet
management and consolidation are gaining attention and growing in popularity in the country and more and
more companies are planning to use 3PL services in the future as an integrated set of services rather than for
just movement of material. The state of the prime logistics functions in India is discussed in brief below:

2.2.2.1 Transportation:

Transportation is an essential and a major sub-function of logistics that creates time and place utilit y in the
supply chain management. Transportation is also the largest component in the logistics cost. In India, about
40% of the logistics cost is due to transportation alone. The major infrastructure required for moving goods in
India involve the active roles of roads, railways, ports and shipping, and airports all of which are eit her
managed or regulated by the government.

Multimodal transport is the movement of cargo from the point of origin to the final destination using two or
more modes of transport. It facilitates international trade by ensuring the smooth flow of the containerised
cargo under single contract and giving better control over the transport chain. In India, CONCOR is the major
player in the mult imodal logistics business in India. It provides logistics support for the countrys international
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trade by developing the necessary infrastructure such as rail and road services and containerised cargo
movement within the country. Current ly CONCOR provides the only means by which shippers may obtain
containerised freight transportation by rail in India.
With rising consumer demand and the resulting growth in global trade, the role of infrastructure support in
terms of rails, roads, ports & warehouses hold the key to the success of the economy. In this section we provide
a quick overview of the status of the logistics infrastructure in India and the current initiatives, both private and
public, in that area. Goods are transported predominantly by road and rail in India. Whereas road transport is
controlled by private players, rail transport is handled by the central government. With the second largest
network in the world, road contributes to 65 per cent of the freight transport . Road is preferred because of its
cost effectiveness and flexibility. Rail, on the other hand, is preferred because of containerization facility and
ease in transporting ship-containers and wooden crates. Sea is another complementary mode of transport.
Ninety five per cent of Indias foreign trade happens through sea. India has 12 major ports, six each on the West
and East coasts and 185 minor ports.

2.2.2.2 Warehousing:

Warehouse management is one of the crit ical components of supply chain that ensures the products are properly
handled, stored and delivered. In India, warehousing industry is mostly dominated by state warehousing
corporations and public sector undertakings such as Central Warehousing Corporation (CWC), Punjab State
Warehousing Corporations (conware) and others. The CWC is the largest warehouse operator in India which
operates across the country through 444 warehouses and provides storage capacit y of 7.3 million tonnes for a
wide range of products. Foodgrain warehouses, custom bonded warehouses, container freight stations, inland
clearance depots and aircargo complexes are among the warehousing activities provided by the CWC. Besides
the warehousing corporations, most of the major ports of India also provide warehousing facilities through their
own warehouses and also through privately-owned warehouses located within or outside the port area.

Material handling system is the fundamental part of warehouse management which accounts for the major
portion of the warehousing cost. In India, there is a serious lack in this system in terms of equipment and
technology, leading to improper staking and storage. Godrej & Boyce Mfg. Co. Ltd, among the few players in
India in the material handling area offers a wide range of the equipment such as battery-powered rider,
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pedestrian pallet trucks, manual and powered stackers, among others. In terms of sophistication such as the
Warehouse Management System (WMS) technology which is used abroad, the concept is still not very
prevalent in the Indian market. However with the recent emergence of some software developers in India, such
as the Eclipse Systems, there has been continuous effort to provide cutting edge technologies such as barcode
scanning and RF technologies to automate the warehouse operations. Such system offers accuracy, flexibilit y
and power that warehouse management demands by giving the customers total control of the warehouse from
receiving, cross-docking, putaway, pulling, picking, replenishment, bulk order, cycle count, validation,
shipping and customer returns. As such, the concept of WMS is gaining momentum inthe indian logistics
market.

Figure no : 2.1

2.2.2.3 Distribution:

The large distances, inhospitable terrain, poor highway infrastructure, an overstretched railway network and a
myriad of state and central excise laws are among the challenges faced by logistics players in India in the
distribution of goods within the country. As a result, the delivery process at times takes longer period and is
expensive and can be unreliable too. However there have been efforts in this area wit h some logistics players
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trying to set up complex distribution models using mult imodal means of transportation to achieve which
achieve right balance between cost and, efficiency and reliability.

2.2.2.4 Freight forwarding:

The freight forwarders in India are t ypically described as an agent who arrange the transportation and prepare
shipping documents. However, today their role have changed and they are expanding their service port folios
by offering more services including port handling, chartering, custom broking, project management, packing
and moving, road and rail transportation, through bill of lading and air freight import and export services. Due
to their abilit y to manage international freight movement through air and sea freight, there are increasing
chances for freight forwarders to become full-fledged logistics service and solution providers.

2.2.2.5 Value added services:

Besides the prime logistics funct ions above, logistics players in India are also providing value added services as
a strategy to stay competit ive in the logistics industry. Among the value added services provided by many
players today includes kitting, packing, repacking into various sizes, labelling, light assembly, consolidation and
cross-docking, and among the value added services provided in the overall supply chain processes are order
processing, inventory management, payment collection, insurance, tax management, reverse logistics and
information management.The logistics challenge in such an environment is immense build the infrastructure,
manage the requirements of a changing structure of various sectoral supply chain, change industrial policies to
facilitate efficient production and movement of goods and services, deploy effective managerial practices and
technology to enhance the competitiveness through better management of logistics networks, and develop new
models for new sectors especially in the service sectors as well as traditional areas like agri-business etc. It must
be mentioned that the logistics industry in India is transforming itself very interestingly despite its peculiarities
by developing innovative business models and by chipping away at the such structural and policy based
rigidities.

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With the increasing trend of companies to outsource their logistics requirement such as theabove, logistics
market and the 3PL industry are also growing in the country. The entry of large third party logistics (3PL)
carriers like Federal Express and DHL and the expansion of domestic networks of Indian firms like Gati and
Shreyas Shipping is also transforming the nature of services and the business practices across the sector. Table 4
gives an idea of the investment plans announced by the various firms for the coming financial year and gives a
sense of their increasing activity. Another trend driving growth in this sector has been the consolidation amongst
the logistics player. Mergers & Acquisitions amongst Indian and MNC logistics firms is starting to increase the
reach of MNC 3PLs in the domestic

2.3 Key trends in logistics industry

2.3.1 Entry of global players:

Several global players view the Indian logistics market favourably and have announced intentions to increase
their capacity of transporting goods from/to Indian markets. Several large global logistics companies have
entered India by the way of mergers with or acquisitions of Indian logistics companies and joint venture
agreements. For example:

In 2013, FedEx Express acquired Mumbai-based integrated logistics service provider AFL.
In 2012, GATI signed an agreement with Kintesu World Express, a Japan-based air and ocean freight
services provider. As per the agreement, GATI transferred its express distribution and supply chain
business to the new joint venture under the name GATI-Kintesu World Express. GATI holds 70 per cent

stake and Kintesu invested US$ 53.54 million for 30 per cent stake in the venture.
TNT acquired Mumbai-based Speedage Express Cargo Service for about US$ 40 million in 2006.
DHL acquired 68 per cent stake in Blue Dart Express Limited for US$ 147.04 million in 2004.

2.3.2 Increasing number of multi-modal logistics players:

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The demand for multi-modal transport services by the end users is increasing, because it results in the reduction
of overall transportation costs and quicker movement of cargo. It also requires less documentation. Several
Indian logistics companies have formed joint ventures with other global and local players so as to provide
multi-modal logistics services extending to air, rail, road and water. For example, Container Corporation of
India has around 12 strategic joint ventures with companies including Maersk, TCI, Halcon, DPI, APM,
Gateway Rail and Allcargo.

2.3.3 Increased PE investments:

The Indian logistics market has attracted investments from large global and Indian private equity (PE)
firms. Some of the deals are as follows: Indian Equity Partners struck deals with two logistics players. It
took over the domestic road operations of TNT Express in India in December 2011 and acquired a
minority stake in Gwalior-based Swastik Roadlines Private Limited, a food cargo supply chain service

provider, in December 2010.

In April 2011, Warburg Pincus invested US$ 100 million in Chennai-based Continental Warehousing

Corporation Limited, a subsidiary of the NDR Group.

Some of the other deals include a US$ 10 million investment by Ashmore Alchemy Investment Advisors
in Siesta Logistics Corporation and Blackstones investment of US$ 75 million in Allcargo logistics.

The key growth drivers are: rapid growth in industries such as automobile, pharmaceuticals, fast-moving
consumer goods (FMCG) and retail; increase in trade because of integration of Indias economy with world;
government initiatives such as FDI regulations, private sector participation and development of logistics
infrastructure and increasing trend of outsourcing logistics to third party service providers. In the coming years,
the key trends that are likely to affect the industry positively are entry of global players, increase in number of
multi-modal logistics service providers, and greater investments.

2.4 Major Drivers of Logistics Industry in India

The concept of logistics is cont inuing to gain strength in India. There are several major drivers fuelling
the growth of the industry.

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1. Organizations are realizing the huge potential savings that efficient logistics can offer, and its impact on
revenue growth and improved profitability. Moreover, the increasing complexity of supply networks,
globalization of businesses, proliferation of product variety, and shortening of product lifecycles forcing them to
realize that it is better to allow the experts to manage their logistics, and this results in acceptance of
outsourcing as a business practice.
2. The increasingly demanding customers, coupled with the increasing cost pressure and competition, there is
an urge for companies to differentiate themselves from their competitors through value added services and
competitive prices. As such, price and time factors, for example on-time delivery, shorter lead time, improved
service and better inventory management become important criteria in selection of suppliers. Availabilit y of
efficient logistics service providers become an important part of the sourcing equation.
3. The globalization trend in the complex business environment worldwide also poses great opportunit ies for
the logistics industry in India. Worldwide companies have started adopting global sourcing and distribution
strategies and have given higher priorities on efficient management of supply chain and logistics. Such global
strategy has significant implication on the growth of Indian logistics industry.
4. Another major driver of the logistics industry is the internet. With the emerging e-commerce, there is a need
for e-companies to offer an efficient distribution system that ensures fulfilment and t imely delivery of goods
ordered through the internet. Companies are on lookout for the strategic logistics players who can streamline the
movement of their goods and ensure faster delivery. In addition, with EDI, bar coding and tracking of goods in
transit used widely, many companies are depending on the logistics providers to provide the IT integration.
5. The Indian governments init iative in improving the infrastructure is a positive factor for boosting the
logistics industry. The simplification of trade rules and regulations, allowing private sector participation in
roads, seaports and airports, and the increase of public funding in upgrading the infrastructure will further
support the growth the logistics industry in India.

2.5 Future trends in logistics

Likewise China, experts believe many foreign companies will make India as the manufacturing centre for their
Asia or global market, therefore changing logistics demand and shipper characteristics dramatically. As such,
Indias potential growth cannot be ignored by global manufacturers and logistics players. As an impact,
changes will be apparent in the Indias logistics industry.
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Indian component manufacturers will move up the value chain as contract manufacturers and deliver quality
components at the OEM factory floor. As such, it will become crucial to provide parts consolidation and
transportation, and to manage the flow of crit ical part delivery to ensure high service levels, customer
satisfaction and inventory visibilit y. Frost & Sullivan has estimated that the revenue of the logistics industry
from the manufacturing sector alone was $13.46 billion in 2003, and the market is likely to grow at a CAGR of
6.2% during the next five years. Chemicals, metal, FMCG, cement and text iles are expected to be the top five
contributors of the Indian logistics industry revenues. Besides that, India will be facing the issue of strategic
location of industries and the major concern of the B2B connectivit y to marketplaces in the future.

Figure no: 2.2

The growing technologies worldwide are expected to change the India logistics industry in future. At the time,
the concept of e-commerce and open buying on the internet (OBI) are still in nascent stage in India due to the
19

traditional mindset of the corporate and people, low awareness, absence of strong infrastructure and secure
payment system and also due to the lack of privacy and safety on the net. However in the future, the growth of
e-commerce and its logistics needs will become inevitable and India will overcome these barriers. The
increasing online sales will force e-companies to forge strategic alliance with logistics service providers that can
provide cost effective and seamless distribution solutions. As such, India can expect a shift in t he retail
logistics, B2B procurement practices and the way the distributions are handled. The adoption of new
technologies such as GPS and RFID will take place rapidly in the future. The defence logistics will also emerge
as an important area for new technologies in India.
As for the logistics infrastructures in India, improvement and further development can be expected in all the
areas comprising roads, railways, seaports and airports. The air cargo industry for example, will cont inue to
undergo huge transformation wit h more participation in freight business. It is est imated that the air cargo
market will grow at 7% per annum for the next two years against global freight markets projected 5.3% growth
for the same period. As part of global war against terrorism, India should also step up security at seaports,
airports and trains. Tighter security measures including the implementation of The International Ship and Port
Facility Securit y Code (ISPS), which requires ships and ports to implement a broad range of security measures
covering communications, port and ship access control, monitoring people and cargo, and screening personnel,
baggage, cargo and vehicles should be in operation at all ports in India. In addition, India should also
participate in the Container Securit y Init iatives (CSI) with the United States to identify and eliminate potential
terrorist threats from cargo ships.

Changes will also take place among the logistics players. It is expected that the market for 3PL services is
likely to grow at a Compound Annual Growth Rate (CAGR) of 20.4% during the next five years, wit h the
growth being fuelled by the entry of MNCs and the export focus of Indian companies. The industry
consolidation will eventually result in a few large players. In the long term, Indian service providers will
develop restructuring strategies and some will become strong players. However, it is the global service
providers that will dominate the industry. They will play a larger role, strengthening their domest ic capabilities
to leverage global client resources. Both local and mult inational service providers will become more
specialized in industries served and provide more customized services. The existing customers, on the other
hand will reduce the number of providers used and will begin to demand higher standards of reliability and
quality which includes state-of-art technology. The logistics solution available in future will also be highly
technology driven.

20

However, as Indias logistics outsourcing and investments to improve logistics efficiencies are still at a nascent
stage, these future trends will take place, but it will take longer time to materialize. The resources needed for
wholesale development will also take enormous amounts of time and resources. However, India should
recognize the extraordinary role logistics plays in economic development and in enhancing the competitiveness
of all sectors of the economy. As such, India should move forward for an integrated strategy towards
developing a world-class logistics industry.

The logistic industry is going through a time of rapid and unprecedented transformation. The future of logistics
is paved with innovation and technology. It was not long ago that ideas like 3D printing, the Internet of
Things (IoT), drone delivery, and augmented reality were things of science fiction. Today, the industry is
cautiously adopting these technologies to provide faster, cheaper, more reliable and sustainable delivery. At the
same time, their customers - primarily the manufacturers and retailers - are wasting no time urging their 3PL
logistic providers to integrate these technologies into their service.

3.5.1 4 Emerging Technologies Shaping the Future of Logistics

a. 3D Printing
3D printing as an idea is not new; it has been floating around for many years. However, it was only in recent
years that the idea became a reality. This technology makes it possible for manufacturers, businesses and
individuals to print exact working replicas of parts and products using metals, plastic, composite materials, and
even human tissue.

b. The Internet of Things (IoT)

21

This revolutionary technology allows devices to communicate with each other within an existing internet
infrastructure without human intervention. Its application in the future of logistics is expected to increase speed,
decrease waste and reduce overall costs.
c. Drone delivery
Amazon caught a lot of attention when it announced its plan to use drones to deliver products to customers.
Since then, many companies have announced their plan or are considering the idea. But skepticism is still
widespread as this use of a new transportation mode in the future of logistics.
d. Driverless vehicles
Google's vision of driverless electric vehicles has had a lot of people predicting that the future belongs to selfdriving vehicles. Such a vehicle is equipped with electronic eyes and ears and capable of navigating without
human input. Its application in logistics can make an enormous reduction in costs.

2.6 Logistics Players in India and their Strategies

A major strategy currently being practiced by global logistics players in doing business is by providing
integrated logistics solutions and by offering value added services to customers. The aim is to build a long-term
relationship with the customers by providing one-stop solution. This improves the supply chain efficiency and
also enables the OEMs to concentrate on their core activit ies. Some players in the industry have become
partners ofchoice by providing hi-tech infrastructure which includes excellent IT and communicationsystem.
Although many of the 3PL players in India still offer the basic services like transportation and warehousing,
large MNCs and some Indian companies have started adopting these strategies to show strong presence and
remain competitive in the region. Transport Corporation of India Ltd (TCI) for example, offers integrated
solutions such as consult ing, transport management, warehousing, and IT and MIS (Material Information
Systems) services and other valued added services such as reverse logistics, kitting services, custom clearance,
e-logistics and tax and facilitating tax management. In response to e-commerce, apart from 3PL providers,
many ocean carriers such as APL, Maersk and P&O are also adopting the integrated logistics services. Maersk
India which already operates a logistics centre (container freight station) in Dronagiri Warehousing Complex in
Navi Mumbai, is planning to set up another total logistics centre near Gugaron in Haryana to meet the growing
demand from the northern states.In response to the growing demand in t he logistics industry worldwide, the
22

Indian players have set globalization as their long-term vision. Thus another strategy adopted by them is to
expand and establish themselves on an international level through alliances and partnering agreements, and
through joint ventures.

The logistics industry is evolving rapidly and it is the interplay of infrastructure, technology and new types
of service providers that will define whether the industry is able to help its customers reduce their logistics costs
and provide effective service. Changing government policies on taxation and regulation of service providers
will also play an important role in this process. Coordination across various government agencies require
approval from multiple ministries and is a road block for multi modal transport in India (e.g., ports, roads,
railways, container freight operations etc. are all managed by different ministries in the Government of India .
At the firm level, the logistics focus will have to move towards reducing cycle times in order to add value to
their customers.

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3.1 HISTORY

Pota Global Logistics India Private Limited is a Private Company incorporated on 09 March 2007. It is
classified as Indian Non-Government Company and is registered at Registrar of Companies, Chennai.
Pota Global Logistics India Private Limited's Annual General Meeting (AGM) was last held on 30 September
2014 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March
2014.

Qube is Australias largest integrated provider of import and export Logistics services with national operations
that provide broad range of services. The Ports and Bulks division has diversified operations from Port Hedland
in the west, where they stockpile and load iron ore for export markets, through to Port Kembala in the east,
where they handle motor vehicles, heavy machinery and project cargoes.In March 2012, POAGS rebranded to
Qube ports and Bulk and POTA changed its name to Qube Logistics to represent the wider Qube group of
companies. Qube Logistics is focused on growing and developing its infrastructure and establishing additional
strategic Logistics hubs at both the Port and inland locations. This hubs will have the ability and focus to allow
rail to develop as an alternative method of transport. In conjunction with this operating plan, Qube Logistics
will continue to develop cuttingedge technology and applications to provide clients with a complete supply
chain solution.The Logistics division has strategically located facilities in all capital city ports and provide road
and rail containers transport, customs and quarantine services, container parks, intermodal terminals,
warehousing and international freight forwarding etc.
24

3.2 MISSION STATEMENT

To deliver customized and unique logistic solutions globally ensuring tme and cost savings for customers in
resposible and sustainable manner.

3.3 VISION STATEMENT

To become a leading integrated global logistics and supply chain management company providing business
enabling solutions and exceeding customer expectations.

3.4 VALUE
At POTA Global Logistics , they believe the customer comes first : they are focused to ensure customer delight,
superior quality of delivery and increased customer profitability.
At their operations all over world, they practice and enduring value system based on an open culture, honest,
fair business and personnel conduct , earning the confidence and trust of our associates and customers. They
practice transparency with all agencies that we are involved with. They value the importance of all collegues
evolving a sense of togetherness and passion to deliver.

3.5 OBJECTIVES
The key objective of POTA Global Logistics is

To be the leading provider of integrated logistics solutions targeting the export import supply chains.

Finding optimal solutions to the complex logistics problems

3.6 CORPORATE GOVERNANCE

The active Directors/partners of Pota Global Logistics India Private Limited are
Mr. Prabakaran Kaliappan
25

Mr. Radhakrishnan Prabhakaran

Mr. Annathur Ekambaram Bharathy
Mr. Ranjeeth
Mr.Ravindran Sajith
The General Manager of POTA Global Logistics in south India is Mr. S.S Shyam.
The branch manager of POTA Global Logistics India Pvt Ltd, Karur is Mr. Robert Charles.

3.7 DEPARTMENTS OF POTA GLOBAL LOGISTICS INDIA PVT LTD

The POTA Global Logistics comprises of the departments such as..,

Sales
Customer Service
Operations
Doccumentation
Accounts

3.8 BRANCHES OF POTA GLOBAL LOGISTICS

There are 13 branches for POTA GLOBAL LOGISTIC INDIA PVT LTD all over India, they are in the
locations,..
1

Chennai

Mumbai
26

Banglore

Tuticorin

Tirupur

Coimbatore

Cochin

Ahmedabad

Karur

10 Moradabad
11 Hyderabad
12 Newdelhi
13 Andheri

Their state-of-the-art technology system provides unparalleled real-time, 24/7 tracking and status. The
technology we offer includes:

GPS-based Geofence technology

Transport and warehouse visibility system

Global track and trace system

POTA Global Logistics operates one national system for all landside business operations. It is updated in real
time for 24/7 online tracking. All their trucks are GPS enabled and PODs are automatically sent after electronic
acceptance. Freight is tracked in real time with status messages sent automatically based on Geofences and
without driver activation. Any customer can enjoy B2B interfaces on their operating systems with real-time data
updates.

27

3.9 POLICIES OF POTA GLOBAL LOGISTICS

:- The policies of POTA Global Logistics is strongly bounded with the environment and the community

3.9.1 ENVIRONMENT POLICIES

Through the adoption and promotion of sound and sustainable environmental practice in business, it is POTA
Global Logisticss objective to be the company of choice in creating value for employees, shareholder,

business partners, customers and suppliers

This policy outlines objectives and methods that assist POTA Global Logistics to identify and address its
environmental responsibilities and to create and meet achievable targets through a commitment to continuous
improvement while engaging in business activity:

Manage day to day operations in a manner that seeks to minimise any harmful impact on the
environment

Comply with and aim to exceed all applicable environmental legislation nationally

Implement and maintain an Environmental Management System that conforms with or exceeds AS/NZS
ISO 14001:2004

Promote leadership in environmental protection through employee training and support for third party
educational and training initiatives

Develop business, community and political relationships with like-minded partners to foster a culture of
environmentally sustainable growth and development

Communicate proactively, promptly and transparently with all stakeholders, the community, media and
government on environmental issues

Engage proactively in thought leadership, development, implementation and promotion of new

environmentally sustainable business practice

3.9.2 COMMUNITY POLICIES

28

As a company employing over more than 1000s of people within the country, POTA Global Logistics has a
commitment to local employment and sources services and products from the local market when possible and
commercially appropriate.
To sustain the regional operations it is vital that the local industry and community is involved to provide labour
and support services which are the cornerstone of their business operations. POTA Global Logistics seeks to
employ local staff as a preference and endeavours were possible to source its supplies and services from the
local community ensuring ongoing local support and also they conduct programmes to support the advancement
of indigenous communities.

3.10 COMPETITORS
The major competitors of POTA Global Logistics are.,
1.DHL Logistics Pvt Ltd
2.BlueDart Express Ltd Logistics
3.Godwin Logistics Pvt Ltdsss
DHL, Mumbai is a part of leading network which delivers solution to all logistics need
from shipping to courier service. Blue Dart is a cheennai based company providing shipping solution and offers
express package and courier service.Godwin Logistics enjoys excellent relationship with all major airlines and
IATA recognised MNC partners with complete agency network worldwide, this makes them a proffesional Air
Cargo Logistics.

3.11 SERVICES

POTA Global Logistics is a world leader in implimenting logistics programs. So they can manage the matrial,
products and information from vendors all the way to the customers door step. Their specialist engineer every
solution around one hub to the customers so be it air/ocean transport, warehousing, custom brokerage, trade
consulting or distribution, every service obeys the customers orders with clockwork precision. Take a look at
whats on offer

29

Custom Brokerage
Scheduled FCL & LCL Service
De-Consolidation & on-Forwarding
Project Management
Pick up Consolidation & Containerization

3.11.1 Custom Brokerage

This is about profession that involves clearing of goods through customs barriers for importers and
exporters (usually businesses). This involves the preparatio of doccuments and/or electronic submissions, the
calculation (and usually the payment) on beha;f of the client of taxes, duties and excises and facilitating
ccommunication between the importer/exporter and governmental authorities.

3. 11. 2 Scheduled FCL & LCL Services

FCL- Full Container Load
LCL- Less than Container Load

3.11.3 De-Consolidation & on-Forwarding

Seperating a consolidated (usually containerized) shipment into its original constituent shipments, for
delivery to their respective consignees

3.11.4 Project Management

It is the discipline of planning, organizing and managing resources to bring about the successful
completion of specific project goals and objectives. A project is a finite endaevor having specific start and
completion dateundertaken to meet particcular goals and objectives, usually to bring about beneficial change
or added value. The primary challenge of project management is to achieve all of the project goals

3. 11 .5 Pick up Consolidation & Containerization

It refers to fusing all the individual concerns and they bring together. Later they make consolidated things
to containers to make safe path for destination

Sea Freight
Air Freight
30

 Warehousing & Distribution

Transportation
Projects

3.11.5.1 Sea Freight

A major portion of the globally traded goods is shipped using Ocean vessels. Today POTAs main line of
Freight forwarding business is ocesn freight forwarding service. This service is the best soluion for delivering
economically sizable loads of cargoes. We have extensive experiance handling both general and specialized
shipments including both inbound and outbound cargoes.

POTA can ensure the consignment travel by the most cost effective route to almost anywhere in the world.
With import and export movements by full container loads (FCL), or less than container loads (LCL) from
major markets around the world they utilize both conference and non conference vessels to give the customers a
choice that best meet theirrequirements. Furthermore, if the customers have a larger number of suppliers with
small consignments destined for different locations, POTA can can consolidate them in FCL shipping
containers, and coordinates the consignments. Thus, saving time and money.

POTA can handle the sea freight collections, container loading, doccumentation and actual movements, no
matter what size or shape is the import or export consignments. In addition POTA can arrange the best shipping
operations such as multimodal combinations of sea/land/air to meet the specific needs for safety, schedule and
location.

3.11.5.2 Air Freight

POTA is a IATA Licensed freight forwarder that combines air freight with ocean freight, customs
brokerage, inland transportation and integrated logistics POTA Groups comprehensive, cost-effective services
gurantees that the air freight shipment will be delivered on time and with in budget every time.

31

3.11.5.3 Warehousing & Distribution

POTA Groups warehusing network is located throughout India. Their logistics centers in strategic
locations are designed to support the global sourcing and J.I.T material management needs. These centers also
serves as central distribution hubs for direct-to-customer shipments. Best of all , with POTA Group, the
customer can avoids the expense or investment of maintaining dedicated warehousing facilities in multiple
locations.

3.11.5.4 Transportation
Keeping in line with POTAs commitment towards providing efficient cargo management services to the
customer POTA have promulgated a transportation division and armed it with Closed Body Trucks this would
enable and ensure timely and efficient movements of the Shipper and Consignee cargoes. In addition to CBTs
POTA have also deployed trailers of different capacities to facilitate the movement of containers in order to
serve Export/Import FCL trade.

3.11.5.5 Project
Company would like to introduce projects division, which will specialize in projectt and heavy lift
transportation, marine chartering and RoRobshipping. Their mission is to became a strong player in these niche
markets with an innovative approach and high service level to serve their clients even beter in these dynamic
sectors.

Their project and heavy lift division is particularly specializing in global transportation of any kind of heavy lift,
oversized units and project related cargoes, either as ocean transport only or as intgrated transport to jobsite.
Their aim is to, through personal contact, understand and support their clients on all levels of project
preparation and planning enabling the clients to achieve best possible and cost-effective handling of their goods.

The freight forwarding and contracting deparments are handling complicated , integrated movements from
factory tofoundation as well as general project forwarding, including heavy haulage, cranage and customs
handling worldwide. Such requirements are always handlrd with complete and careful coordination keeping in
32

mind project schedules as well as all aspects and possibilities available. As they are shipping variety of cargoes,
in many cases they are able to combine cargoes from various prejects creating thereby savings for all involved.

Providing specialized marine vessels and tailor made marine transport solutions is another service ther are
offering. Their specialised marine chartering department sources any type of special carrier for any specific
project always keeping in mind most economic, technically feasible and safe handling of the cargo.

4.1 ORGANISATION STRUCTURE

CEO

MD

33

Regional Manager

General Manager

Branch Manager

Sales &
Marketing
department

Operations
department

Doccumentation
department

Figure no : 4.1

4.2 DEPARTMENT FUNCTIONS

4.3 Structure of Sales and Marketing Department

Sales and
Marketing
Manager

Sales Executive
34

Accounts
department

Customer service
department

Sales and
Logistics
Supervisor

Staffs

Figure No: 4.2

4.3.1 NVOCC
Non-vessel operating common carrier they are kind of subcontractors for shipping. They book
large quantities of space on ships and sell quantities of space to shippers. They also consolidate multiple
shipments into one container load that moves under one bill of lading.

As POTA Global Logistics belongs to NVOCC they used to keep resrve the space in the ships and they market
the space availability to the various exporter. As Karur is prone for its exports in home textile products ther will
be regular consignments so it is essential to have better marketing. Similarly the company uses its maximum
effort tu proliferate the market by involving with unique strstegies and services.
35

Space reservation

offer to public

In this department the major process is to be promote sales to the concern they do with their marketing. They
promote their strength and facilities offered to the people and get image of reliable among business people and
finally get the consignment.They seek the exporter and get the details about the order to be delivered and the
complete details about time, place , type of goods, space needed and all the calculations will be carries out and
the department will evaluate the proper vessel that suits the consignor needs after getting the proper information
regarding with the vessel, the details will be mentoined to the consignor regarding with the vessel type, freight,
no:,carrier, etc.. and then iit will be getting the confirmation from the consignor then the department function is
about booking.

4.3.2 Process flowchart:

Seek for the consignment

Meet the demands of the consignment

Scrutinize

Confirmation

Booking
Figure No: 4.3
36

Booking is the final stage for te initial step once the order is confirmed by the exporter and the details about the
goods will help to determine the facility neededfor shipment after analyzing the all department wil get
confirmation from the exporter about the date, time and all other vital things that makes the process
smooth.when the confirmation is made simultaneously the confirmation to the vessel will be carried. The
company also allots an individual person who will be in charge for the particular transaction until it carried
down. This makes the exporter to feel comfort. This also helps to structure effective customer relationship.

4.3.3 Freight charge

Usually it classified into two types like

Free On Board (FOB)

Freight Prepaid (FPP)

4.3.3.1 Free On Board (FOB)

Free On Board means the sellr fulfills its obligation to deliver when the goods have passed over the ships
rail at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods
from the point.

4.3.3.2 Freight Prepaid (FPP)

Air or ocean freight charges that are paid at the port of origin or loading, and are billed to the importer in the
exporters invoice. It is not refundable even if the shipment fails to arrive at its destination. So based on the
deed which is made by the exporter or importer the freight charge will be collected.

37

4.4 Structure of Operations department

Operations
Manager
Operations
supporting team

Head of
Transportation
Management

Head of Freight
Management

38

Head of
Transportation
Operations

Staffs

Figure no: 4.4

The operations department hold all the major activities with regarding to goods movement from place
exporter to the ship. It has both functions for import or export. So normally this department have high priority in
the functioning. The procedure also differ from the type of cargo and the purpose of export or import. Generally
doccuments filing and customs is the divisions that perform most activities in this department. The procedure
for export area is as follows:

Obtaining the cargo and doccuments from the exporter

Arrangement of carrier

Filing the doccuments

Customs examination

Stuffing

Container initiation
39

Bill of lading

Tracking
Figure no: 4.5

As Karur is majorly involved in export , the organisation is mainly concerned about export of the goods than
import. It also act as clearing and forwarding division in customs. This helpds the consignment flow easy
manner by clearing the requirements of customs. As CFS is located at Karur most of the consignment moved to
CFS and the clearance procedure will be carried out in CFS itself, this made the shipment very easy after getting
the clearance the consignment wll be send to the concerned port.

4.4.1 CFS
A facility at which (export) cargo is received from the merchants for loading (stuffing) into the containers or
at which (import) cargo is unloaded (stripped) from the containers and delivered to merchants.

4.4.1.1 Import procedure

Import general manifest

Bill of entry (request letter reference with consignee,shipper,material)

Bill of entry filing

40

Cargo assessment/auditing

Duty

Cargo release
Figure no: 4.6

While booking the vessel there are two kinds of option,they are

FCL Full Container Load

LCL Less than Container Load

On the basis of the expoort cargo the option wil be selected. The FCL and LCL are differentiated, in practice,
on whether the whole container or not the whole container is intended for the consignee.
The FCL means the load reaches its allowable maximum (or full) weight or measurement. In practice, however,
the FCL in the ocean freight does not always mean packing a container to its full payload or full capacity.
If an exporter intends to pack acontainer to the full capacity or full payload withthe consignments of two or
more consignees for the same destination, the case is LCL and the carrier will charge theLCL freight rate on
each consignment. In the LCL arangement, the shipper is required to deliver the cargo to the carriers container
freight station for containerization, thus there is no guarantee that the two or more consignments from the same
exporter will share the same container. In some cases the exporter will allowed to pack the container at their
premises in the LCL arrangement, and then the carrier uses that same container to pack in more cargo from
other shipper(s) to make a full container load at the container freight station.

4.4.1.2 Overview about the procedures

41

Filing of consignment details with indian customs ie,bill of entry for imports and bill of export for

exports.
Assignment and scrutiny by customs.
Payment of duty if applicable
Quality clearance ie, quarantine, public heaith, etc.
Customs appraisal of consignment and certification of consignment worthness for import export
Delivery order or order of exports as the case maybe
Survey of consignment (optional)

4.4.2 Customs
This section plays a vital part in goods movement. So the company has alloted seperate officials to
deal with the customs procedure. They are specialised in dealing with the various norms that are prescribed by
the indian customs. These officials will have regular touch with the officials inorder to have smooth flow of
function. They used to classify the procedure incase of export they will file shipping bill and for import they
deal with bill of entry.
Electronic Data Interchange it is the latest technology that is being followed by the organisation, at all stages
EDI will help to ease the work process. The company use both EDI and manual filing this will be based on the
situation if the goods need to be moved to CFS Karur they will follow the ordinary manual filing and incase if
the goods transfered to port they stick with EDI process.

4.4.3 3PL(Third Party Logistics)

A third party logistics provider is a firm that provides outsourced or third party logistics servic to
companies for part or sometimes all of their supply chain management function. Third party logistics providers
typically specialize in integrated warehousing and transportation services that can be scaled and customized to
customers needs based on market condition and the demands and delivery service requirements for their
products and materials.

Every export based company cannot afford much on logistics so this made emergence of 3PL they assist this
export and import transactions by breaking up the function. This made the corporate to free their logistic
burden. These 3PL offers various types of services. They would perform activitis such as pick and pack,
42

warehousing and distribution (business) and offer their customers advanced value added services like tracking,
specific packaging, or providing a unique security system.

Shippers also see opportunities to collaborate with their 3PLs using Big Data. About half (50%) see the biggest
such opportunity in creating more agile and reactive logistics/supply chain strategies, followed by supporting
end-to-end visibility. Significant internal hurdles stand in the way of Big Data success, including a disconnect
between internal supply chain and IT operations and a lack of supporting IT infrastructure. Additionally, just
57% of shippers and 47% of 3PLs indicate they have access to timely and comprehensive data relating to
supply chain planning and operations within their organizations. Survey results indicate that there is both great
need and great potential for the use of Big Data by shippers and 3PLs in the supply chain. Ideally, Big Data can
be leveraged not just to predict demand, but can begin to shape or change it.

4.4.3.1 Preferential Sourcing

The volume of cross-border trade has increased considerably, with extra-regional trade strongly outpacing intraregional trade in many regions. Thats driving many shippers to revisit sourcing and distribution decisions, an
activity which requires balancing cost with opportunity, particularly in developing countries. Shippers must also
account for multiple factors, including consumerism, lead-time constraints, risk management/continuity
planning and portfolio differentiation. Yet another factor is the increase of preferential trade agreements (PTAs),
which now number almost 300. Basic management of global supply chain activity the approach taken by
many shippers focuses on the physical movement of goods and viewing production and distribution as fixed
variables. A more advanced approach accounts for additional complexities, referencing a more complete set of
variables to optimize decisions at each point within the supply chain. Shippers undertaking advanced global
supply chain management often find value in developing a mature Global Trade Management (GTM)
methodology, which can be seen in their organizational structure, supply chain decision points and the
completeness of their GTM tools. The 2014 Annual 3PL Study survey found many shippers take a tactical,
rather than strategic, approach to using GTM to manage global trade, entrusting GTM to more traditional
departments, namely logistics (23%), compliance (13%) and procurement (12%). Advanced GTM users locate it
in departments where it would play a more strategic role or consider it a crossfunctional application. Basic users
also typically apply GTM locally by region, while advanced GTM users use it globally to optimize sourcing
decisions. Advanced users also consider PTA terms alongside other factors in evaluating locations, integrate
43

their GTM applications with other tools and apply GTM early in the design and manufacturing processes. Some
3PLs already partner with firms that provide detailed supply chain collaboration services and are wellpositioned to support shippers in their GTM needs. Whether or not they include 3PLs, the increasing complexity
of global trade requires shippers take a more comprehensive approach to sourcing and distribution decisions.

4.4.3.2 Smart Growth

With the new normal comes a new set of skills required of supply chain leaders, which are often quite different
from those needed prior to and during the recession. With the growth of GDP in mature markets stalled at
between 1% and 3%, supply now outstrips demand, and businesses and consumers are cautious and risk-averse.
More than half of shippers (57%) and 3PLs (54%) in the survey agree that the upcoming seven to eight years
following the recession will be a period of more difficult growth than the seven to eight years preceding it. To
succeed in this new normal, organizations need Smart Growth Leaders, a term coined by Korn/Ferry
International. The companys research has demonstrated that todays supply chain leaders need to be
accomplished in several dimensions of maturity and agility. Shippers rated their current leaders capacities in
these dimensions slightly higher compared with 3PLs assessments of their own leadership. Both shippers and
3PLs have room for improvement when it comes to new normal leadership competencies, particularly in
people agility and emotional maturity. Supply chain organizations, already suffering a talent shortage, need a
sustained commitment to both skill-building and recruitment to ensure the smart growth leadership skills
necessary to succeed in the new normal marketplace.

4.4.3.3 Shipper-3PL Relationships

The impact of the recession on shipper-3PL relationships remains unclear: Will they return to the path they were
taking before, or is there a new normal in shipper-3PL interactions? The good news is that shippers continue to
select 3PLs on their ability to provide continuous improvement (55%), experience in the shippers industry
(49%) and an established ongoing relationship (42%) as important selection criteria. Shippers are also relying
more on centralized sourcing in 3PL selection than they have in the past. Nearly half of shippers (48%) and
61% of 3PLs say centralized procurement functions are playing more or much more of a role in the selection
process compared with three years ago. Conventional wisdom says centralized procurement emphasizes cost
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over quality, yet shippers appear to be seeking strategies to control costs while striving for optimal 3PL
relationships by balancing centralized and decentralized sourcing decisions. Mitigating concerns about the
impact of centralization is the finding that the majority of shippers and 3PLs say that their relationships have
grown more collaborative over the past three years. In todays markeplace its important for shippers to strive
for balance in sourcing decisions and seek strategic, collaborative relationships with 3PLs.

4.4.4 Difference between freight forwarding and 3PL

A freight forwarder is an agent for the exporter in moving cargo to an overseas destination. These
agents are familiar with the import rules and regulations of foreign countries, the export regulation of the
government, the methods of shipping, and the doccuments related to foreign trade.
A third party logistics provider is a firm that provides outsourced or third party logistics servic to
companies for part or sometimes all of their supply chain management function. Third party logistics providers
typically specialize in integrated warehousing and transportation services that can be scaled and customized to
customers needs based on market condition and the demands and delivery service requirements for their
products and materials.

4.5 Structure of Doccumentation Department

Head of
doccumentation

Senior Executives

45

Technical Staffs

Figure no: 4.7

This department holds the major legal activities and it develops all kind of proof for export and import.
The major role is to maintain doccuments and get filed with the various alternatives as mentioned by the act.
They often have paperwork, today the technology have made some alteration in its function. That is the
invention of EDI in the global trade activity.

4.5.1 EDI

Electronic Data Interchange is simply a set of data definitions that permits business forms that would
have been rxchanged using paper in the past, to be exchanged electronically. This simple set of definitions has
spurred a number of organisations to put in place an operational environment in which the exchange of
electronic business forms substitute for the exchange of paper forms. Electronic date interchange aims at single
point collection of data for use by various agencies participating in a common activity. This departments often
keep in touch with both ends that is shipper and government officials. It mutually get avail all the information
from the exporter and fies the necessar forms and get approval from the concerned custom and government
officials. They also keep record of the entire process until the consignment reaches the destination, once it
reached, the final formalities will be made and it will intimate the exporter. Later it submits the doccuments that
are to be approved from various officials. The clearance procedure of goods will differ incase of EDI and nonEDI so ther wil be lot of steps that are need to be carried out . non-EDI system is nothing but the old paperwork
procedure. The clearance procedure stated below according to the method.

4.5.2 Tracking information

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Any information required for filing the doccument can received at liners website or to customer care of the
liners. The information such as IGM number , ETA, vessel name, shipping details etc can be received in the
abiove mentoined ways.

4.5.3 Clearance procedure for report

4.5.3.1 Processing of shipping bill-non-EDI:

Under manual system, shipping bills or, as the case maybe, bills of export required to be filed in the
format as prescribed in the Shipping Bill and Bill of Export (form) regulations 1991. The bills of export are
being used if clearance of export goods is taken at the Land Customs Stations. Different forms of shipping
bill/bill of export have been prescribed for export of duty free goods, export of dutiable goods and export under
drawback etc.

4.5.3.2 Processing of shipping bill-EDI:

Under EDI system, declaration in prescribed format are to be filed through the Service Centers of
Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is
submitted to the system by theService Center Operator and the system generates a Shipping Bill Number, which
is endorsed on the printed checklist and returned to the exporter/CHA. For export items which are subject to
export cess, the TR-6 challans for cess is printed and given by the Service Center to the exporter/CHA
immediately after the submission of shipping bill. The cess can be paid on the strength of the challan at the
designated bank. No copy of the shipping bill is made available to exporter/CHA at this stage.

4.5.4 Doccuments involved in export

Shipping Bill / Bill of Export

Customs Declaration Form
Dispatch Note
Commercial Invoice
Consular Invoice
Customs Invoice
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Packing List
Certificate of Inspection
Certificate of shipment
Health / Veterinary / Sanitary certification
Certification of Conditioning
Antiquity measurement
Shipping Order
Cart / Lorry Ticket

4.5.5 Clearance procedure for import

EDI
EDI

Non- EDI
System
Non-EDI
System

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If the goods are cleared through the

EDI system no formal Bill of Entry is
filed as it is generated in the computer
system, but the importer is reqired to
file a cargo declaration having
prescribed particulars required for
processing of the entry for customs
clearness.

Signed invoice
Packing list
Bill of Lading or Delivery

Order/Airway Bill
GATT declaration from duly filed in
Importers/CHAs declaration
License whereever necessary
Letter of Credit/ Bank Draft
Insurance doccument
Import license
Industrial license , if required
Test report incase of chemicals
Adhoc exemption order
DEEC Book / DEPB in original
Catalogue , Tchnical write up,
Literature incase of machineries,spares
or chemicals as may be applicable.
Seperately split up values of spares,

components, machineries.
Certificate of origin
No commission declaration

Table no: 1

4.6 Structure of Accounts Department

Chief
Accounting
Officer

Finance Officer

Accounts
49
Officer

Audit Officer

Accounts
Officer

Figure no: 4.8

This department functions with all kind of fund related activities. This often keeps record about contract details
and the payment that are to be made or received. The accouts department prepares bills for the clients as per
contract term. They maintain the accounts and makes arrangement for the collection of dues. The key functions
that are classified are as follows
Payment follow up
Duties
Bank accounts

Payment follow-up is nothing about the fare is vested with the particular consignment. The department will hold
various records and it finally prepares the essential invoice to the exporter this also have record about the
transaction cash, it will submit and fulfill the doccuments on behalf of the exporter and it will submit and fulfill
the documents on behalf of the exporter and it will present to the banker inorder to claim for the money by the
exporter.

Duties is nothing about various taxes that are to be paid by the client while export or import there are certain
duties that are to be paid by the person, this duties depends on the various condition that will change based on
the industry and various duty drawback schemes so it must to have proper idea to process this section

Once the certain activities are carried out that is preparing invoice and other bills, the department will forward
those essential one to doccumentation department and there it wil be field. This department also has function in

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the staffs salary allotment. They hold down all the bank related activities. They also used to record all the
expenses that are made within the organisation.

4.6.1 Overall key activities

Researching and planning the most appropriate route for a shipment (taking account of the perishable or
hazardous nature of goods, cost, transist tim and secrity):

Arranging appropriate packing (taking account of climate, terrain, weight, nature of goods and cost),
delivery and warehousing of goods at their final destination;

Negotiating contracts, transportation and handling cost;

Obtaining, checking and preparing doccumentation to meet customs and insurance requirements,
packing specifications and compliance with overseas countries regulations and fiscal regimes.

Offering consolidation services by air, sea and road cost-effective and secure solutions to small
shippers with insufficient cargo to utilize their own dedicated units.

Liasing with third parties to move goods (by road, rail, air or seai) in accordance with customer
requirements.

Arranging insurance and assisting the client in the event of a claim.

Offering tailored IT solutions and Electronic Data Interchangr (EDI) connections.

Arranging payment of freight and other charges, or collection of ppayment on behalf of the client.

Using e-commerce internet technology and satellite systems to enable real-time tracking and tracing of
goods

Arranging air transport for urgent and high-value freight and managing the risk door to door

Arranging charters for large volume, out-of-guage or project movements by air and sea

Acting as broker incustoms negotiations worldwide to guide frieght through complex efficiently
procedures.

4.6.2 Services offered to the client overview

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The total service that are offered by POTA to its clients are described below,

Arrangement of local support

Getting to local warehouse or customs bounded area
Preparing for customs clearance
Stuffing
Leading to vessel
Departure
Figure no: 4.9
These are the some facilities that are offered by POTA to its clients in effective , these above mentoined are just
a layout not involved in deep sight. The company offers a lot of unique services , the diagrammatic depiction of
the process involved in export an import tem are given below..

4.6.3 Export activities layout

Booking

Customer

Made document

Customer service

Harbor, trucker

Customs clearance

Figure no: 4.10

4.6.4 Import activities layout

Harbor trucker
Customer
service

B/L exchange
52 Made
Customs
document
clearance

Customer

Figure no : 11

4.7 Structure of Customer Service Department

Customer service department provides a significant value added benefits to the supply chain in a cost effective
way.

Department structure
Customer service
manger

Support Department

Service Department

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Customer
Communication

Service Management

General Staffs

Figure No: 12

The components of customer service are as follows.:

Pre-transaction elements

Written customer service policy

Organisational structure
Method of ordeing
Single order contact point
Accessibility of order personnel
Order size constraints
System flexibility

Transaction elements

Location of goods
Inventory availability
Delivery time
Delivery reliability
Delivery of complete order
Order status information

Post transaction elements

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Invoicing procedure
Invoicing activity
Product tracing/warranty
Return policy
Availability of space
Call out time
Customer complaints and procedures

Customer service is a multifunctional area , out of this the main functions of customer service are:
Time
Usually order fulfillment cycle time, particuarly from the perspective of seller looking at the
customer service. On the otherhand, the buyer usually refers to thr timr dimension as the lead time or
replenishment time.

Dependability
Guranteed fixed delivery times of accurate, undamaged orders. It can be more important than lead time.
The customer can minimize its inventory level if lead time is fixed.

Communication
Ease of order taking and queries to respond

Flexibility
The ability to recognize and respond to the customers changing needs

4.7.1

Simple diagrammatic representation of customer service

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Order booking

handling doccumentation

feedback

Figure No: 13

4.8 MILESTONES AND NEWS OF POTA GLOBAL LOGISTICS (INDIA) PVT LTD

In 2006, the global assets of P & O Steam Navigation Company, including P&O Ports , were acquired
from DP World and subsequently in the early May 2007, a consortium led by Kaplan Equity Limited, a Private
Equity Fund managed byKaplan Funds Management acquired both the automotive and general Stevedoring
operations and the landside logistics and marine container transport operations from DP World and launched the
two businesses, P&O and General Stevedoring and P&O Tans Australia (POTA) with DP World containing a
shareholding in both companies.

In Novenber 2009, the Kaplan consortium acquired the 25% shareholding from DP World and the P&O
Automotive & General Stevedoring business rebranded to become known as POAGS. The POAGS company
continued to be owned by a consortium of significant shareholders composed of international shipping
companies and investors that included the $AUD 200 million ASX listed Managed Investment Scheme, called
(KIL).

In late August 2011,the listed investment scheme, Qube Logistics (previously KFM Diversified Infrastructure
& Logistics Fund KIL) completed a corporatisation of the held logistics assets and formed Qube Holdings
Limited. Qube was admitted to the official list ofASX Ltd on 22 August 2011.

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In March 2012, POAGS rebranded to Qube Ports & Bulk and POTA changed its name to Qube Logistics to
represent the wider Qube Group of business.

4.7.1 AWARD

POTA Global Logistics (India) Pvt Ltd won the consolidation award on 2013-2014.

4.9

SOCIAL RESPONSIBILITY

POTA Global Logistics is also concentrate on some social corporate responsibility works. They are committed
to working with local communities and donating its services and other financial assistance to local issues.

4.8.1 COMMUNITY
POTA Global Logistics is committed to working with local communities and donating its services
and other financial assistance to local causes. Each year, they identifies communities and charities it wishes to
support.

4.8.2 ENVIRONMENT
POTA Global Logistics is committed to a sustainable environment within the company and across all
external operations. We provide a safe working environment for all employees and everyone we come into
contact with. POTA Global Logistics' policy ensures its employees and customers are aware of their ongoing
responsiblities to their workplace and the environment.

4.8.3 SAFETY
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Safety is a core POTA Global Logistics value. Their safety working practices and methods are
industry leading and are designed to eliminate all accidents and injuries. Pota Global Logistics' impressive
safety record is the result of senior management ensuring all employees, contractors and visitors are correctly
skilled, trained and briefed on safety.

5.1 Daily activity report

1st june 2015 : department visit

2nd june 2015 : explore the history of the organisation
3rd june 2015 : study the vision , mision and values of the organization
4th june 2015 : identify the cooperate governance and branches of the organization
5th june 2015 : study the objectives , policies , and competitors of the company
6th june 2015 : Department study
8TH june 2015 : freight log doccumentation
9th june 2015 : study on operations department
10th june 2015 : study on customer service department
11th june 2015 : studyon sales and marketing department
12th june 2015 : learn about third party logistics
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15th june 2015 : explore various services providedd by the organization

16th june 2015 : understand the features of FCL and LCL
17th june 2015 : draw the department structure
18th june 2015 : research the milestones of the organization
19th june 2015 : read the news and other significant details of the company
22nd june 2015 : prepare swot analysis
23rd june 2015 : overview of global and national logistics industry
24th june 2015 : profit sharing details
25th june 2015 : prepare company profil and organization structure
26th june 2015 : investigate the details of export and imort layout
27th june 2015 : study the employee opportunity in the organization
29th june 2015 : the task given is subitted to the company guide
30th june 2015 : preparation of final report

5.2 detailed activity report

5.2.1 TASK NO: 1

Freight log doccumentation

5.2.1.1 SUBTASKS
Freight log doccumentation of 16 companies
Tabulate freight collection
Tabulate freight prepaid
Identify the unique vessel number of each company
Type of cargo that is proposed to be export
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 Quantity of cargo
Type of container (eg: 20 std: , 40 std:, 40 HC, 45 HC. Etc. )
Details of shipper and consignee

5.2.2 TASK No: 2

Discuss with the company guide and prepare the SWOT analysis.

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CHAPTER 6
SWOT

6.1 SWOT Analysis

STRENGTH

WEAKNESS

61

Table No: 2

Market leader in logistics sector in India.

Lack of patent protection.

High level of resource and surplus.

The company uses its equity funds.

Industrial expertise

Increasing debt-to-equity ratio

Smooth communication and good management

relation.

The company has constituted a core constituted

a core Risk Management Committee (RMC)
for managing the integrated risk of the
company.

The company has strong financials and highly

committed team of experianced and skilled
manpower with in-depth knowledge of
multimodal logistics business.

Extensive Global reach

OPPORTUNITY

THREAT

Customer delights by the way of efficient

respondse and integrated multimodal services.

Increase in revenue by diversification and

product differentiation.

Availability of new technology.

Supply chain can influence wide scale action.

Government policies over import and export

Threats of big players

New entrants with better technologies

This internship was carried over in the POTA Global Logistics (India) Pvt Ltd,
karur. Logistics has huge impact on the domestic and global economy of any country. As such, the role and
62

importance of logistics has been elevated in many business environments. The internship programme
helps to sensitising the nuances of the workplace and understanding the group process and dynamics of
organisations in first person perspective, developing a network of corporate contacts for future career
enhancements,and most importanntly applying the concepts learned in classrooms. They provide some
internship activities and also went through the industrial profile, company profile etc.
Through the discussion with the company guide the SWOT anlysis was also prepared. The limitations of this
study is the firm does not disclose all the details.

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