A STUDY ON CUSTOMER SATISFACTION IN TLPL SHIPPING PVT LTD

By
SANJAY.S.NATH
Register Number: 720617631099

A PROJECT REPORT
Submitted to
HAPPY VALLEY BUSINESS SCHOOL

In partial fulfillment of the requirements

For the award of the degree
Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI - 600025

MAY, 2019

1
 BONAFIDE CERTIFICATE

Certified that this project report titled “A Study on Customer satisfaction in TLPL shipping
PVT LTD” is the bonafide work of Mr. SANJAY.S.NATH who carried out the research under
my supervision. Certified further, that to the best of my knowledge the work reported herein does
not form part of any other project report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.

…………………………….. ……………………………….

MR.M.LORS PORSEENA Dr.T.BINA

(Project Guide) (Principal)

Submitted for the Viva-Voce Examination held on …………………………………………

------------------------------------------- ----------------------------------------

(Internal Examiner) (External Examiner)

2
 ABSTRACT

This article analyses customer satisfaction with logistics services; however,

considerable attention is paid specifically on their quality. This activity is part of service
industry, whose main feature is that the origin of a service is caused by consumer demand
and its recognition by customer satisfaction.

Customer satisfaction is very important for logistics companies seeking competitive

advantage, because they realize that if they do not satisfy the expectations of customers, their
place will be taken by other companies whose activities will be more concentrated on
customer expectations. Therefore, logistics companies must ensure every customer service
related aspect, no matter what it includes: acceptance of orders, their execution or the solution
of problems. A client of a logistics company must be sure that the chosen company
understands his needs. Considering this, the article presents the results of the research related
to customer satisfaction with logistic services and their quality.

3
 ACKNOWLEDGEMENT

First of all, I thank Almighty for his blessing throughout my life with a light and that
helped to fulfill my endeavor.

I wish to emphasize my sincere and profound gratitude to Dr. C. KANAGARAJ,

Director, Happy Valley Business School, for permitting me to do my project.

I am thankful to Dr.T.BINA , Head of the Department, Happy Valley Business

School, for providing me adequate support.

I ardently thank Mr.M.LORS PORSEENA, Assistant Professor, Happy Valley

Business School, for her inspiring and valuable guidance, constant encouragement and
suggestions in carrying to this project successfully.

I also take this opportunity to thank my parents, friends and all others who directly
assist me in this work.

SANJAY.S.NATH

4
 TABLE OF CONTENTS
CHAPTER NO PARTICULARS PAGE NO
INTRODUCTION

1 1.1 Introduction

1.2 objective of the study

1.3 Scope of the study

1.4 Need of the study

1.5 Limitation of the study

1.6 Industry profile

1.7 Company profile

2 REVIEW OF LITRETURE

RESEARCH METHODOLOGY

3 3.1 Research design

3.2 Data collection

3.3 Sampling meathod

3.4 Sample size

3.5 Tools for analysis

4 ANALYSIS AND INTERPRETATION

5 FINDINGS CONCLUSION AND SUGGESTION

5.1 Finding

5.2 Suggestion

5.3 Conclusion

BIBILIOGRAPHY

APPENDIX

5
 LIST OF TABLES

TABLE NO PARTICULARS PAGE NO

4.1.1 SERVICE USAGE OF TLPL SHIPPING PVT LTD

4.1.2 INDICATING OPINION OF RESPONDENT TOWARDS

SATISFACTION LEVEL
4.1.3 MOTIVATIONAL FACTOR TO SELECT TLPL

4.1.4 CLIENT OPINION ABOUT TLPL SHIPPING

4.1.5 RESPONDENTS PROBLEM WHILE EXPORTING

4.1.6 RESPONDENTS OPINION TOWARDS TLPL SHIPPING

4.1.7 RESPONDENTS PERCEIVE THE SERVICE PROVIDE BY

TLPL SHIPPING
4.1.8 EMPLOYEE RESPONDS TO CUSTOMER PROBLEM

4.1.9 SERVICE QUALITY COMPARING TO OTHER COMPANY

4.1.10 RESPONDENTS RATE CHARACTERSTIC OF TLPL

COMPARING TO OTHER COMPANY
4.1.11 RESPONDENTS LEVEL OF SATISFACTION OR
DISSATISFACTION WITH REGARDS TO SERVICE
4.1.12 RESPONDENTS RECOMMEND TLPL SHIPPING TO
OTHERS
4.2 CHI-SQUARE TEST

4.3 ANOVA

4.4 CORRELATION ANALYSIS

6
 LIST OF CHARTS

CHART NO PARTICULARS PAGE NO

4.1.1 SERVICE USAGE OF TLPL SHIPPING PVT LTD

4.1.2 INDICATING OPINION OF RESPONDENT

TOWARDS SATISFACTION LEVEL
4.1.3 MOTIVATIONAL FACTOR TO SELECT TLPL

4.1.4 CLIENT OPINION ABOUT TLPL SHIPPING

4.1.5 RESPONDENTS PROBLEM WHILE EXPORTING

4.1.6 RESPONDENTS OPINION TOWARDS TLPL

SHIPPING
4.1.7 RESPONDENTS PERCEIVE THE SERVICE
PROVIDE BY TLPL SHIPPING
4.1.8 EMPLOYEE RESPONDS TO CUSTOMER
PROBLEM
4.1.9 SERVICE QUALITY COMPARING TO OTHER
COMPANY
4.1.10 RESPONDENTS RATE CHARACTERSTIC OF
TLPL COMPARING TO OTHER COMPANY
4.1.11 RESPONDENTS LEVEL OF SATISFACTION OR
DISSATISFACTION WITH REGARDS TO
SERVICE
4.1.12 RESPONDENTS RECOMMEND TLPL SHIPPING
TO OTHERS

CHAPTER -1

INTRODUCTION

7
1.1 INTRODUCTION TO THE STUDY

Today’s rapidly changing business environment is creating intense competitio6n among

corporate markets and is changing very faster than before.

An export is the sale of goods to a foreign country, while an import is the purchase of
foreign manufactured goods in the buyer’s domestic market. Importer and exporter should do
all the necessary documentation before import or export of goods. There is a procedure for
carrying out the activities in the export and import. They should follow the procedures
accordingly. Export and import are important for the development and growth of National
economies because not all countries have the resources and skills required to produce certain
goods and services. Nevertheless, countries impose trade barriers, such as tariffs and import
quotas, in order to protect their domestic industries.

Marketing logistics involves planning, delivering and controlling the flow of physical goods ,
marketing materials and information from the producer to a market as necessary to meet
customer demands while still making a satisfactory profit.

Client expectation refers to that perceived value or benefits that the customer seek when
purchasing a good or availing a service. They are the result of learning process and can be
formed very quickly because even first impressions matter a lot. Once established these
expectations can hold significant influence in decision making process and can be very hard
to change.

Client satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or satisfy customer expectation. It is defined as “the
number of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services exceeds specified satisfaction goals.

8
1.2 OBJECTIVES OF THE STUDY

 To identify the level of customer satisfaction towards TLPL Shipping PVT LTD.
 To find whether service rendered by the company is fulfilling the customer’s needs or
not.
 To identify the areas to be improved in order to satisfy the customer expectation.

1.3 SCOPE OF THE STUDY

The study helps me to know the level of client’s satisfaction about the services provided by
the company. And the project also helps me to understand the client’s expectations towards
the firm. The study helps me to give suggestions to improve their sales.

1.4 NEED OF THE STUDY

 How to improve the service foe better satisfaction.

 How the company can retain customers.
 What are the benefits that company wants to do the customers for improving the sales.
 To understand the clients relationship and how can maintain that.

9
1.5 LIMITATIONS OF THE STUDY

 Any personal bias of respondents affects the study.

 The finding of study are confined only to the clients of TLPL Shipping PVT LTD,
and hence it cannot be generalized to the industry.
 Some clients are not interested in giving sufficient information

10
 INDUSTRY PROFILE

LOGISTICS INDUSTRY

Logistics is the process of planning, implementing, and controlling the efficient, effective
flow and storage of goods, services, and related information from point of origin to point of
consumption for the purpose of conforming to customer requirements. Logistics function
includes planning, procurement, transportation, supply and maintenance. The resources
managed in logistics can include physical items, such as food, materials, animals, equipment
and liquids, as well as abstract items, such as time, information, particles, and energy. The
logistics of physical items usually involves the integration of information flow, material
handling, production, packaging, inventory, transportation, warehousing and often security.

According to the Council of Logistics Management, logistics includes the integrated

planning, control, realization, and monitoring of all internal and network-wide material, part,
and product flow, including the necessary information flow , industrial and trading companies
along the complete value-added chain (and product life cycle) for the purpose of conforming
to customer requirements.

The persons doing logistics are called logisticians. He is a professional logistics practitioner.
One can either work in a pure logistics company , such as in a shipping line, airport, or
freight forwarder or within the logistics department of a company .However as mentioned
above , logistics is a broad field encompassing procurement, production, distribution and
disposal activities. A new trend in the industry is the fourth party logistics (4PL), firms,
consulting companies offering logistics services.

The services performed by logisticians in this industry are:

 Procurement logistics
 Distribution logistics
 After- sale logistics
 Disposal logistics
 Reverse logistics
 Green logistics
 Global logistics
 Domestic logistics
 Concierges logistics
11
  Reliability ,Availability and Maintainability (RAM) logistics
 Asset control logistics
 Point of sale (POS) material logistics
 Emergency logistics
 Production logistics
ELEMENTS OF LOGISTICS SYSTEM

 Nature of product
 Location of manufacturing plant.
 Availability of infrastructure facilities
 Availability of different mode of transportation
 Dealer/distributor network
 Government policy
MODES OF TRANSPORTATION

 Air
 Water
 Rail
 Road
 Pipeline
The sector plays a pivotal role in any nation’s development by ensuring seamless movement
of goods across the country and internationally in a cost-efficient manner, thereby enhancing
a nation’s global competitiveness. The domestic sector is currently in a transformation phase
with game-changing trends like implementation of GST, increasing focus by foreign
investors across the logistics value chain, growing demand for end-to-end solution providers
and emergence of new avenues such as e-commerce, logistics parks, cold chains and new
start-ups. The Government’s thrust towards building multi-modal transportation
infrastructure is also likely to have a significant influence on the logistics industry over the
longer-term.

The logistics industry in India is likely to grow at a rate of 9-10% over the medium-term,
supported by underlying structural positives, as per an ICRA note. While the key driving
factor on the demand side would be the economic recovery, the trend towards outsourcing of
non-core activities like logistics, warehousing and associated activities to integrated players is
likely to drive the share of the organised segment.

12
Logistics is regarded as the backbone of the economy, providing efficient and cost effective
flow of goods on which other commercial sectors depend. Logistic industry in India is
evolving rapidly, it is the interplay of infrastructure, technology and new types of service
providers, which defines whether the logistic industry is able to help its customers reduce
their costs in logistic sector and provide effective services.

Despite of the weak economic sentiments, the logistics industry continues to witness growth
due to the growth in retail, e-commerce and manufacturing sectors. The Global Logistics
sector was expected to grow 10-15% in the period 2013-14. Logistics industry is expected to
reach over USD 2 billion by 2019. Rise of e-commerce logistics and increased domestic
consumption will lead the way for the industry in the coming years. With a promise of
growth and improvements, the service oriented logistics industry is ready to expand beyond
the horizons in the latter half of this decade.

RECENT SENERIO

The recent Indian logistics sector comprises of inbound and outbound segments of the
manufacturing and service supply chains. Of late, the logistics infrastructure has gained a lot
of attention both from business industry as well as policy makers. The role of managing this
infrastructure, to effectively compete has been slightly under-emphasized. Inadequate
logistics infrastructure has an effect of creating bottlenecks in the growth of an economy. The
logistics management regimen has the capability of overcoming the disadvantages of the
infrastructure in the short run while providing cutting edge competitiveness in the long term.
There exist several challenges and opportunities for logistics sector in the Indian economy.

13
CHALLENGES FACED BY THE RECENT LOGISTICS INDUSTRY IN
INIDIA

The most essential challenge faced by the industry today is insufficient integration of
transport networks, information technology and warehousing & distribution facilities.
Regulations exist at a number of different tiers, is imposed by national, regional and local
authorities. However, the regulations differ from city to city, hindering the creation of
national networks. Trained Manpower is essential for both the third party logistics sector as
well as the manufacturing and retailing sectors, which is very weak at a practical level, i.e.,
IT, driving and warehouse as well as at a higher strategic level. The disorganized nature of
the logistics sector in India, its perception as a manpower-heavy industry and lack of
adequate training institutions has led to a shortfall in skilled management and client service
personnel. There is a lack of IT standard, equipment and poor systems integration.

Poor facilities and management are the reason for high levels of loss, damage and
deterioration of stock, mainly in the perishables sector. Part of the problem is insufficient
specialist equipment, i.e. proper refrigerated storage and containers, but it is also partly down
to lack of training. The practitioners and the academicians are now aware of the importance
of logistics and supply chain; however, the field is still under penetrated as far as research is
concerned. It is essential to prioritize research and development so that the weaknesses in the
industry can be taken care of and improved.

SOLUTIONS TO SOME OF THE CHALLENGES

Infrastructure is the backbone of every country’s growth and prosperity and for the logistics,
industry to flourish special emphasis has to be on building world-class road networks,
integrated rail corridors, modern cargo facilities at airports and creation of logistics parks
which need to be given a status equivalent to Special Economic Zones.

It is necessary to realize that the benefits which can bestly be practiced in logistics industry
can be brought about by the companies by establishing training intuitions, so that there is
improvement in the overall service quality of the sector. Good storage and Warehousing
facilities are important for the growth of the logistics industry.

14
SHIPPING INDUSTRY

NATURE AND HISTORY OF SHIPPING

Commercial shipping probably began in the Mediterranean Sea where the merchants of Phoe
nicia owned ships and traded widely. Ancient Greece and the Roman Empire adopted many o
f their practices. Later, in the Middle Ages, the merchants of Venice carried on and further ref
ined these practices. Even today, commercial shipping practices associated with marine insur
ance and the carriage of goods can still be traced to those early roots.
From the 15th to the 18th centuries, deep-sea shipping was closely linked to colonial trade es
pecially that of the Spanish Empire, the Portuguese Empire, the Dutch Empire, and the Britis
h Empire, and to the growth of the great enterprises like the Hudson’s Bay Company and the
East India Companies. During the 19th century and until the middle of the 20th century, most
of the world’s merchant fleet operated under the British Flag or the Flag of one of the long est
ablished maritime nations like Norway, France, Germany, and Japan. Shipping truly througho
ut the world have a unilateral rules and regulations in Sea traffic, Port entry clearance, which
was derived and developed by the British during their rule across the globe. However cargo
movement restrictions vary from country to country depending upon their culture, Domestic
Trade and their Government Policy.

NATURE OF SHIPPING INDUSTRY

Shipping is a mode of transport through sea for cargo as well as passenger transport around 9
0% of the international cargo transport is being done through sea. Shipping industry, Export,
and Import are inter dependent. A country where Export and Import are flourishing, there the
shipping business also be very active. Compared to air traffic, Sea traffic is safe and economi
cal.
Apart from Cargo Transport, many of the European countries use passenger vessels, for huma
n transport as it is economical compared to the Air Transport and it develops the Tourism in s
uch countries.

15
INDIAN SHIPPING

The Indian shipping tonnage has developed fairly after independence. India now has a shippi
ng fleet of 6 million gross register tonnage (GRT).
The Indian shipping industry is classified into two categories, like coastal shipping and overs
eas shipping. Indian shipping is a very long history and has its roots from the early centuries.
There are 45 trade routes that emanated from the Indian continent. During the time of indepen
dence the British vessels dominate the coastal scene. So, the government of India declared a "
Coal Reservation Policy" in 1950 in reference to coastal trade. Soon, the Indian ship owners f
ormed," Indian coastal Conference" in 1951.This agreement tried to regulate the business thro
ugh various measures. But still, there were problems like under rating, rebated and other malp
ractices continued. However, by 1953, Shares of British shipping were reduced to nil. Indian
shipping grew in quantum leaps. But the problems faced by the industry are very complex an
d complicated due to various reasons like increase in operational coasts, railways penetrating
the market, etc.
Regarding, the overseas shipping, after 1850 Indian shipping industry began to decorate due t
o various reasons. By the end of the century it was practically nil. The British Government w
as keen on nursing its own interests and never made any attempts to retrieve the Indian indust
ry.

In 1912 the Scandia steam Navigation Company was incorporated. It launched the first moder
n overseas services from Bombay to U.K. Later various companies, both from private and pu
blic sector came into existence. With the evaluation of new Government polices after indepen
dence, the shipping reads began to grow rapidly. Indian Government also signed various trad
e agreements for the benefit of the Indian shipping industry, like Indo- UAR, Indo-USSR, Ind
ia - Romania Bulgaria and Indian polish.

Shipping conference administer their own freight rates through their own tariffs. This is unlik
e the transporting sector where freight rates are determined through the market force of suppl
y and demand, The administered freight rates are which member liner of conference caters to
the requirements of shipper have often been a bone of contention between shippers and the co
ncerned conference. As India's foreign trade become modernized. The freight making policies

16
of these shipping conferences also become much more complicated.

In most cases, the actual carriers of the Shipping lines never touch the Indian port. Instead, re
aches the Colombo port the transhipment port for this port of Asia. The cargo from various In
dian ports is transported to the Colombo port, through the shuttle service operating between t
hese ports and the Colombo port. From there, the cargo is transhipped to various destinations.
This is done in order to reduce the time and cost involved in carrier touching all the ports in t
he same ports in the same region. The shuttle service will be more or less a regular one and it
is known as the 'Feeder Service' and the actual carrier is known as the 'Mother Vessel

17
COMPANY PROFILE

TLPL Shipping and Logistics was established with the aim of combining the group strengths
and years of experiences in the shipping field to provide a single platform to cater to all our
customers needs.

It is part of the Transworld Group of Companies which was found in 1977 and with
unmatchable capabalilities delevoped over the years, has emerged as an internationally
business house of repute.

Today, the Group is expanding its business through innovations stemming from a global
perspective. the Group’s determination to have a globl presence is supported by a
fundamental philosophy – to explore and discover new business horizons. Transworld
Group’s scale of operations is expanding limitlessly on land and sea. Besides Ship Owning,
Shipping Agencies, Ship Management, Marine & Container Repairs, Container Storage,
Inland Transportation, the Group also has interests in Freight Forwarding and Logistics.

We have on board, a team of proffessionals who are qualified and equipped to deliver
specialized services that are based on customer’s varied requirements. Our priority is to
provide customized solutions to assist our customers in being more competitive in their
respective markets. Our solutions are specifically designed for the challenges and
opportunities unique to each client.

At TLPL, we aim to provide creative and practical ideas along with the means to execute
your simple and even the most complex logistics problems. By providing clients with ready
solutions to their logistics problems, TLPL continues to meet its commitment to quality.

SERVICES PROVIDED BY THE COMPANY

1. Agency Business
 TLPL represents various international shipping companies for vessel
operation & containerized shipping
 Fully independent, automated and electronically linked offices across
the country ensure smooth, efficient and speedy transactions
 Professional Liability Insurance (Loss Occurrence), by A.T.L.A.S.,
LONDON, UK

2. Freight Forwarding & Door-to-Door Logistics

18
  International Freight Forwarding by Sea & Air
 Own MTD/CTD bill of lading, duly insured by A.T.L.A.S., LONDON,
UK
 Member of WCA Family, Hong Kong, East West Logistics Network
and EBB
 Tracking & tracing of cargo
 E-customs documentation
3. Projects & Bulk Cargo Handling
 Freight Management
 Warehousing
 Transportation & Distribution
 Value added services
 Project Logistics

Our experience in break bulk and project cargo handling makes it easier for you to give
us your enquiries and through our extensive contacts; we will work out the best and
most economical solutions for you.

4. Specialized Cargo Handling

 Specialized handling of ODC shipments
 Offer you solutions for safe and efficient handling of any size or weight of
cargo
EXPORT AND IMPORT DOCUMENTS

Documents are used to be prepared before the shipments of goods while some others
are required while completing customs formalities. In addition, the shipping company
issues some documents. All such documents are useful for completing the procedure of
exporting and are called Shipping Documents. . The purposes of preparing these
documents are:

 Declaration of export as per exchange control regulation

 Transportation of goods
 Customs clearance of goods
 Any other purpose.
ALIGNED DOCUMENTATION SYSTEM (ADS)

19
In India since 1991 new standardized documents are introduce by the government
under

Aligned Documentation System (ADS).

This new system is based on the UN layout key. Exporter should use such standard
forms while preparing various export documents. This gives convenience to all
concerned parties. Moreover, such standard forms are now used in more than hundred
countries. ADS have simplified export documentation procedure.

CLASSIFICATION OF DOCUMENTS

ADS has classified documents into two categories viz

1) Commercial Documents

.2) Regulatory Documents

COMMERCIAL DOCUMENTS

These documents need to be prepared in order to help export-import trade. Out of 16

commercial documents, 14 documents have been standardized and aligned with one
another. Commercial documents have the following objectives

A) To facilitate transfer of title of goods and property from the exporter to the importer

B) To ensure safe transfer of goods from the country of the exporter to the country of
the importer.

C) To help the exporters to realize payments without problem & delay.

Commercial documents include commercial invoice, certificate of origin, bill of

lading, certificate of inspection, etc.

REGULATORY DOCUMENTS

Regulatory documents are needed under the law as they are prescribed by various
government departments and bodies covering foreign exchange regulations, export
inspection, custom formalities etc. Out of regulatory documents 4 have been
standardized.

Common regulatory documents are Form GR, Shipping Bill, ARE 1 Form, etc.

20
EXPORT DOCUMENTS

A. INVOICE

1) PROFORMA INVOICE

A proforma invoice is a quote in an invoice format that may be required by the buyer
to apply for an import license, contract for pre-shipment inspection, open a letter of
credit or arrange for transfer of hard currency.

A proforma may not be a required shipping document, but it can provide detailed
information that buyers need in order to legally import the product. Proforma invoices
basically contain much of the same information as the formal quotation, and in many
cases can be used in place of one. It should give the buyer as much information about
the order as possible so arrangements can be made efficiently. The invoices inform the
buyer and the appropriate import government authorities’ details of the future shipmen,
changes should not be made without the buyer’s consent.

As mentioned for the quotation, the points to be included in the proforma are:

1. Seller’s name and address

2. Buyer’s name and address

3. Buyer’s reference

4. Items quoted

5. Prices of items: per unit and extended totals

6. Weights and dimensions of quoted products

7. Discounts, if applicable

8. Terms of sale or Inco term used (include delivery point)

9. Terms of payment

10. Estimated shipping date

11. Validity date

2) COMMERCIAL INVOICE

21
A commercial invoice is document used in foreign trade. It is used as a customs
declaration provided by the person or corporation that is exporting an item across
international borders. Although there is no standard format, the document must include
a few specific pieces of information such as the parties involved in the shipping
transaction, the goods being transported, the country of manufacture, and the
Harmonized System codes for those goods. A commercial invoice must also include a
statement certifying that the invoice is true, and a signature. A commercial invoice is
primarily used to calculate tariffs.

3) CONSULAR INVOICE

It is a certification by a consular or government official covering an international

shipment of goods. A consular invoice, obtained from the consul of the importing
country at the point of shipment, insures that the exporter's trade papers are in order
and the goods being shipped do not violate any laws or trade restrictions.

B. CERTIFICATE

4) CERTIFICATE OF ORIGIN

A Certificate of Origin (often abbreviated to CO or COO) is a document used in

international trade. It traditionally states from which country the shipped goods
originate, but "originate" in a CO does not mean the country the goods are shipped
from, but the country where their goods are actually made. This raises a definition
problem in cases where less than 100% of the raw materials and processes and added
value are not all from one country. An often used practice is that if more than 50% of
the sales price of the goods originate from one country, that country is acceptable as
the country of origin(then the "national content" is more than 50%). In various
international agreements, other percentages of national content are acceptable.

5) COMBINED CERTIFICATE OF ORIGIN AND VALUE

This Document is applicable to commonwealth countries only. This document certifies

22
not only the origin of goods but also the value of goods.

C. CUSTOMS DOCUMENTS

6) SHIPPING BILL

It is the main custom document. It is required by the custom authorities for granting
permission for the shipment of goods.

Shipping Bill/ Bill of Export is the main document required by the Customs Authority
for allowing shipment. Usually the Shipping Bill is of four types and the major
distinction lies with regard to the goods being subject to certain conditions which are
mentioned below:

 Export duty/ cess

 Free of duty/ cess
 Entitlement of duty drawback
 Entitlement of credit of duty under DEPB Scheme
 Re-export of imported goods
The following are the documents required for the processing of the Shipping Bill:

 GR forms (in duplicate) for shipment to all the countries.

 4 copies of the packing list mentioning the contents, quantity, gross and net
weight of each package.
 4 copies of invoices which contains all relevant particulars like number of
packages ,quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description
of goods etc.
 Contract, L/C, Purchase Order of the overseas buyer.
 AR4 (both original and duplicate) and invoice.
 Inspection/ Examination Certificate. The formats presented for the Shipping
Bill are as given below:
 White Shipping Bill in triplicate for export of duty free of goods.
 Green Shipping Bill in quadruplicate for the export of goods which are under
claim for duty drawback.
 Yellow Shipping Bill in triplicate for the export of dutiable goods.
 Blue Shipping Bill in 7 copies for exports under the DEPB scheme.

23
D. Transport Documents

7) MATE RECEIPT

A declaration issued by an officer of a vessel stating that certain goods have been
received on board his vessel. It is an archaic practice and an acknowledgement of
cargo receipt signed by a mate of the vessel. The possessor of the mate's receipt is
entitled to the bill of lading, in exchange for that receipt.

8) BILL OF LADING

A bill of lading (sometimes referred to as a BOL, or B/L) is a document issued by a

carrier to a shipper, acknowledging that specified goods have been received on board
as cargo for conveyance to a named place for delivery to the consignee who is usually
identified. A through bill of lading involves the use of at least two different modes of
transport from road, rail, air, and sea. The term derives from the verb "to lade" which
means to load a cargo onto a ship or other form of transportation. A bill of lading can
be used as a traded object. The standard short form bill of lading is evidence of the
contract of carriage of goods and it serves a number of purposes:

 It is evidence that a valid contract of carriage, or a chartering contract, exists,

and it may incorporate the full terms of the contract between the consignor and
the carrier by reference (i.e. the short form simply refers to the main contract as
an existing document, whereas the long form of a bill of lading issued by the
carrier sets out all the terms of the contract of carriage
 It is a receipt signed by the carrier confirming whether goods matching the
contract description have been received in good condition (a bill will be
described as clean if the goods have been received on board in apparent good
condition and stowed ready for transport)
 It is also a document of transfer, being freely transferable but not a negotiable
instrument in the legal sense, i.e. it governs all the legal aspects of physical
carriage, and, like a cheque or other negotiable instrument, it may be endorsed
affecting ownership of the goods actually being carried. This matches everyday
experience in that the contract a person might make with a commercial carrier
like FedEx for mostly airway parcels, is separate from any contract for the sale
of the goods to be carried, however it binds the carrier to its terms,

24
 irrespectively of who the actual holder of the B/L, and owner of the goods, may
be at a specific moment.
TYPES OF BILL OF LADING

 Straight bill of lading

 Order bill of lading
 Bearer bill of lading:
 Surrender bill of lading
9) AIRWAY BILL

Air Waybill (AWB) or air consignment note refers to a receipt issued by an

international courier company for goods and an evidence of the contract of carriage,
but it is not a document of title to the goods. Hence, the AWB is non-negotiable. The
AWB has a tracking number, which can be used to check the status of delivery, and
current position of the shipment. The number consists of a three digits airline prefix
issued by IATA and an 8 digit number. The first three copies are classified as originals.
The issuing carrier or their appointed agent, 2nd copy by the receiving carrier, retains
the first copy or their appointed agent, 3rd copy is used as Proof Of Delivery (POD).
The goods in the air consignment are consigned directly to the party (the consignee)
named in the letter of credit (L/C). Unless the goods are consigned to a third party like
the issuing bank, the importer can obtain the goods from the carrier at destination
without paying the issuing bank or the consignor. Therefore, unless a cash payment has
been received by the exporter or the buyer's integrity is unquestionable. Consigning
goods directly to the importer is risky. For air consignment to certain destinations, it is
possible to arrange payment on a COD (cash on delivery) basis and consign the goods
directly to the importer. The goods are released to the importer only after the importer
makes the payment and complies with the instructions in the AWB. The AWB must
indicate that the goods have been accepted for carriage, and it must be signed or
authenticated by the carrier or the named agent for or on behalf of the carrier.

E. EXCHANGE CONTROL DOCUMENTS

10) GR FORM

It is an exchange control document which is to be submitted to the RBI after clearance

from the customs authorities. It is designed mainly to furnished guarantee to the RBI to

25
remit the foreign exchange earned from the export shipment within 180 days from the
date of export.

11) PP FORM

It is also an exchange control document. It is used in place of form GR when goods are
exported by post parcel.

F. PAYMENT DOCUMENTS

12) BILL OF EXCHANGE

A bill of exchange or "draft" is a written order by the drawer to the drawee to pay
money to the payee. A common type of bill of exchange is the cheque, defined as a bill
of exchange drawn on a banker and payable on demand. Bills of exchange are used
primarily in international trade, and are written orders by one person to his bank to pay
the bearer a specific sum on a specific date. Prior to the advent of paper currency, bills
of exchange were a common means of exchange. They are not used as often today.

A bill of exchange is an unconditional order in writing addressed by one person to

another, signed by the person giving it, requiring the person to whom it is addressed to
pay on demand or at fixed or determinable future time a sum certain in money to order
or to bearer. It is essentially an order made by one person to another to pay money to a
third person. A bill of exchange requires in its inception three parties--the drawer, the
drawee, and the payee.

The person who draws the bill is called the drawer. He gives the order to pay money to
third party. The party upon whom the bill is drawn is called the drawee. He is the
person to whom the bill is addressed and who is ordered to pay. He becomes an
acceptor when he indicates his willingness to pay the bill. The party in whose favour
the bill is drawn or is payable is called the payee. The parties need not all be distinct
persons. Thus, the drawer may draw on himself payable to his own order.

A bill of exchange may be endorsed by the payee in favour of a third party, who may
in turn endorse it to a fourth, and so on indefinitely. The "holder in due course" may
claim the amount of the bill against the drawee and all previous endorsers, regardless
of any counterclaims that may have disabled the previous payee or endorser from
doing so. This is what is meant by saying that a bill is negotiable. In some cases a bill

26
is marked "not negotiable". In that case it can still be transferred to a third party, but
the third party can have no better right than the transferor.

G. MISCELLANEOUS DOCUMENTS

13) MARINE INSURANCE

Marine insurance covers the loss or damage of ships, cargo, terminals, and any
transport or property by which cargo is transferred, acquired, or held between the
points of origin and final destination.

Cargo insurance—discussed here—is a sub-branch of marine insurance, though

Marine also includes Onshore and Offshore exposed property (container terminals,
ports, oil platforms, pipelines); Hull; Marine Casualty; and Marine Liability.

14) CERTIFICATE OF INSURANCE

A document issued by an insurance company/broker that is used to verify the existence

of insurance coverage under specific conditions granted to listed individuals. More
specifically, the document lists the effective date of the policy, the type of insurance
coverage purchased, and the types and dollar amount of applicable liability.

A certificate of insurance is often demanded in situations where liability and large

losses are a concern. For example, a company wishes to hire a driver from a temp
agency. The company will most likely ask the agency to show them a certificate of
insurance that proves that certain liabilities will be covered by insurance in the event
the driver causes problems, such as incurring damages from driving the company’s
vehicles.

15) HEALTH CERTIFICATE

It is required for export of food products, seeds, animal meat products, etc. This
certificate is issued by the health department of the exporting country certifying that
these items are free from infection and contamination.

IMPORT DOCUMENTS

27
1. BILL OF ENTRY
A bill of entry is a formal declaration describing goods which are being imported
or exported. The bill of entry is examined by customs officials to confirm that the
contents of a shipment conform to the law, and to determine which taxes, tariffs,
and restrictions may apply to the shipment. This document must be prepared by the
importer or exporter, with many companies hiring a clerk specifically to handle the
process of preparing bills of entry.

A typical bill of entry includes a description of the goods in the shipment,

including details and the quantity of the goods, along with an estimate of their
value. Customs officials reserve the right to inspect the shipment to determine
whether or not it is consistent with the bill of entry, and discrepancies can be
grounds for legal proceedings. Once a bill of entry has been reviewed and the
shipment has been inspected, it can be cleared for sale or transfer. If there is a
problem, customs may opt to confiscate the goods.

Many nations have specific laws about how bills of entry should be formatted and
presented. It is important to have accurate documentation, or goods can be held up
in customs. This can cause an inconvenience in some cases, and spoilage or
destruction of the goods in others; a shipment of fruit, for example, will not hold up
through a lengthy retention by customs while details of the shipment are worked
out. In addition to a bill of entry, goods may also need additional supporting paper
work. Works of art, for example, may need to be accompanied by certificates of
provenance. Archaeological artefacts also need to be accompanied by paperwork
indicating that their release has been approved by the government, and describing
the purpose for which the artefacts are being moved across international borders.
This is designed to prevent the illegal sale and trade in priceless cultural artefacts.

Companies keep copies of their bills of entry on record as part of their financial
paper work; they need to be able to track the movement of shipments. These forms
are also used by customs officials to track the type of goods being moved over their
borders, and in the case of objects with import and export quotas, to make sure that
these quotas are not exceeded. This paperwork is also used in the preparation of
statistics which are designed to shed light on a nation's economic health and trade

28
balance with other nations.

2. CERTIFICATE OF INSPECTION
Inspection report or report of findings is required by some importers and/or
importing countries. Please see the sample Inspection Report. The export-trader
uses such a report in the inspection of goods purchased from a manufacturer. The
export-manufacturer also uses such are port in the inspection of its own
productions. In case an inspection certificate is required, the importer may stipulate
in the letter of credit (L/C) to use a specific independent surveyor. In the case of a
foreign government required pre-shipment inspection, which is stipulated in the
L/C, the report of findings can be in the form of a security label attached on the
invoice. The label bears the number and date of the corresponding report of
findings issued by the foreign government engaged surveyor.

3. CERTIFICATE OF MEASUREMENT

There are two ways how freight can be charged i.e. on the basis of weight or
measurement. When freight is charged on the basis of weight, the weight declared
by the exporter is accepted. However, the exporter can obtain certificate of
measurement either from the Indian chamber of commerce or any other approved
organization and submitted to the shipping company for calculation of applicable
freight. The certificate contains detail like name of the vessel, port of destination,
description of goods, length, breadth, quantity, depth, etc. of the packages.

4. FREIGHT DECLARATION
When the importer agrees to pay the freight or the overseas supplier pays the
freight; in both the cases freight declaration is needed from the overseas supplier.

5. FUMIGATION CERTIFICATE
In order to ensure safety against spread of harmful virus importer insist on
fumigation certificate where the cargo includes plants & weeds. Unless his
certificate is provided the cargo will not be allowed to enter into their countries.
The exporter is responsible to carry out fumigation & also obtain a certificate from

29
the prescribed agency. Serious complications will arise in the certificate from the
exporter. The certificate will enable importers easy clearance of goods.

FIVE STEPS IN IMPORT OF GOODS

1. DECIDE THE COUNTRY

Different countries have different export/import regulations. While the material itse
lf might be cheap to buy from a certain country, there might be other factors which
might add up to the cost. Requirements for importing specific commodities depend
on a wide variety of criteria. Some information, such as whether an item is subject t
o quota restrictions, eligible for reduced rates of duty, or restricted from entry beca
use they originate in an embargoed country, can be determined only if you know th
e item’s Harmonized Tariff Schedule classification number.

2. SEARCH FOR SUPPLIERS

If you are new importer, there are government agencies that are ready to answer y
our questions. The International Trade Administration and US Business Administr
ation are few of the many organizations that are there to help you. Use online sour
ces, consult trade and professional associations, and join domestic and internation
al trade shows. Once you have made the contact with an overseas supplier, it is al
ways good idea to go meet the supplier in their country.

3. SEARCH THE DUTY AND TAXES

Import duty can be calculated in a variety of ways, but most import duties are figu
red as a percentage of the declared value of the commodity. Import duty differs fr
om product to product and is dependent on the commodity being imported, its dec
lared value, its country of origin, and other factors like anti-dumping legislation a
nd quota controls. Import duty values can be as low as zero or as high as 100% (or
more) of the product’s declared value. Import duties are collected to generate reve
nue and to protect local markets.

30
 4. FIND A RELIABLE FREIGHT FORWARDER AND CUSTOMS BROK
ER

You already have too much to worry about. Do not add shipping procedure and d
ocumentation to the list. Always work with a reliable freight forwarder or NVO th
at will provide you with daily updates from the moment you place the order with
your shipper. This will give you time to concentrate more on your business.

5. SHIP THE GOODS ON TIME

Do not ship your goods last minute. This might cost you more than you need to
pay. However, by shipping early you may end up paying inventory costs. Always
consider that delays might happen during the process, such as goods might not be
produced on time, the vessel might not sail as scheduled, goods might be held by
the customs both in origin country and here USA. Be prepared for all this and plan
accordingly.

EXPORT PROCESS

1. CONFIRMATION OF ORDER

On receiving an export order, it should be examined carefully in respect of items,

specification, payment conditions, packaging, delivery schedule, etc. and then the
order should be confirmed. Accordingly, the exporter may enter into a formal contract
with the overseas buyer.

2. PROCUREMENT OF GOODS
After confirmation of the export order, immediate steps may be taken for procurement/
manufacture of the goods meant for export. It should be remembered that the order has
been obtained with much efforts and competition so the procurement should also be str
ictly as per buyer’s requirement.

3. QUALITY CONTROL
In today’s competitive era, it is important to be strict quality conscious about the expor

31
t goods. Some products like food and agriculture, fishery, certain chemicals, etc. are s
ubject to compulsory pre-shipment inspection. Foreign buyers may also lay down their
own standards/specifications and insist upon inspection by their own nominated agen
cies. Maintaining high quality is necessary to sustain in export business.

4. FINANCE
Exporters are eligible to obtain pre-shipment and post-shipment finance from Commer
cial Banks at concessional interest rates to complete the export transaction. Packing Cr
edit advance in pre-shipment stage is granted to new exporters against lodgement of L/
C or confirmed order for 180 days to meet working capital requirements for purchase o
f raw material/finished goods, labour expenses, packing, transporting, etc. Normally
Banks give 75% to 90% advances of the value of the order keeping the balance as mar
gin. Banks adjust the packing credit advance from the proceeds of export bills negotiat
ed, purchased or discounted.

Post Shipment finance is given to exporters normally up to 90% of the Invoice value fo
r normal transit period and in cases of usance export bills up to notional due date. The
maximum period for post-shipment advances is 180 days from the date of shipment. A
dvances granted by Banks are adjusted by realization of the sale proceeds of the export
bills. In case export bill becomes overdue Banks will charge commercial lending rate o
f interest.

5. LABELLING, PACKAGING, PACKING AND MARKING

The export goods should be labelled, packaged and packed strictly as per the buyer’s s
pecific instructions. Good packaging delivers and presents the goods in top condition
and in attractive way. Similarly, good packing helps easy handling, maximum loading,
reducing shipping costs and to ensuring safety and standard of the cargo. Marking suc
h as address, package number, port and place of destination, weight, handling instructi
ons, etc. provides identification and information of cargo packed.

6. INSURANCE
Marine insurance policy covers risks of loss or damage to the goods during the while t
he goods are in transit. Generally in CIF contract the exporters arrange the insurance w
hereas for C&F and FOB contract the buyers obtain insurance policy.

32
 7. DELIVERY
It is important feature of export and the exporter must adhere the delivery schedule. Pla
nning should be there to let nothing stand in the way of fast and efficient delivery.

8. CUSTOMS PROCEDURES
It is necessary to obtain PAN based Business Identification Number (BIN) from the Cu
stoms prior to filing of shipping bill for clearance of export good and open a current ac
count in the designated bank for crediting of any drawback amount and the same has to
be registered on the system.

In case of Non-EDI, the shipping bills or bills of export are required to be filled in the f
ormat as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. A
n exporter need to apply different forms of shipping bill/ bill of export for export of dut
y free goods, export of dutiable goods and export under drawback etc.

Under EDI System, declarations in prescribed format are to be filed through the Servic
e Centres of Customs. A checklist is generated for verification of data by the exporter/
CHA. After verification, the data is submitted to the System by the Service Centre oper
ator and the System generates a Shipping Bill Number, which is endorsed on the printe
d checklist and returned to the exporter/CHA. In most of the cases, a Shipping Bill is p
rocessed by the system on the basis of declarations made by the exporters without any
human intervention. Where the Appraiser Dock (export) orders for samples to be draw
n and tested, the Customs Officer may proceed to draw two samples from the consign
ment and enter the particulars thereof along with details of the testing agency in the IC
ES/E system.

Any correction/amendments in the check list generated after filing of declaration can b
e made at the service centre, if the documents have not yet been submitted in the syste
m and the shipping bill number has not been generated. In situations, where corrections
are required to be made after the generation of the shipping bill number or after the go
ods have been brought into the Export Dock, amendments is carried out in the followin
g manners.

1. The goods have not yet been allowed "let export" amendments may be permitted b
y the Assistant Commissioner (Exports).

33
2. Where the "Let Export" order has already been given, amendments may be permitte
d only by the Additional/Joint Commissioner, Custom House, in charge of export secti
on.

In both the cases, after the permission for amendments has been granted, the Assistant
Commissioner / Deputy Commissioner (Export) may approve the amendments on the s
ystem on behalf of the Additional /Joint Commissioner. Where the print out of the Ship
ping Bill has already been generated, the exporter may first surrender all copies of the
shipping bill to the Dock Appraiser for cancellation before amendment is approved on
the system.

9. CUSTOMS HOUSE AGENTS

Exporters may avail services of Customs House Agents licensed by the Commissioner
of Customs. They are professionals and facilitate work connected with clearance of ca
rgo from Customs.

10.DOCUMENTATION
FTP 2015-2020 describe the following mandatory documents for import and export.

 Bill of Lading/ Airway bill

 Commercial invoice cum packing list

 Shipping bill/ bill of export/ bill of entry (for imports)

(Other documents like certificate of origin, inspection certificate etc may be required a
s per the case.)

11.SUBMISSION OF DOCUMENTS TO BANK

After shipment, it is obligatory to present the documents to the Bank within 21 days fo
r onward dispatch to the foreign Bank for arranging payment. Documents should be dr
awn under Collection/Purchase/Negotiation under L/C as the case may be, along with t
he following documents

 Bill of Exchange

 Letter of Credit (if shipment is under L/C)

 Invoice

34
  Packing List

 Airway Bill/Bill of Lading

 Declaration under Foreign Exchange

 Certificate of Origin/GSP

 Inspection Certificate, wherever necessary

 Any other document as required in the L/C or by the buyer or statutorily.

12.REALISATION OF EXPORT PROCEEDS

As per FTP 2015-2020, all export contracts and invoices shall be denominated either in
freely convertible currency of Indian rupees, but export proceeds should be realized in
freely convertible currency except for export to Iran.

Export proceeds should be realized in 9 months.

35
 CHAPTER -2

REVIEW OF LITERATURE

Mentzer et al. (2004) developed a unified theory of logistics in their conceptual study. They
adopted the definition of logistics management as suggested by Council of Logistics
Management (2003)
“Logistics Management is that part of Supply Chain Management that plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customer requirements”.
Their study underscored supply chain management to encompass all of logistics activities i.e.
logistics activities are an integral part of supply chain management. Hence logistics
management is an intra-firm function that extends beyond firm boundaries. The study
reviewed several theories of firm for e.g. economic theories (neoclassical model, market
value model and agency cost model), behavioral theory, resource dependence theory,
resource based theory, comparative institutional model, knowledge based theory, resource
learning theory and constituency based theory. The study adapted different tenets from these
theories for exploring the role of logistics. The study explored internal operations of a firm,
its external environment, its logistics capabilities and finally their linkage with competitive
advantage.

Stank et al. (2005) in their conceptual study explored the interplay between strategy-
structure-performance (SSP) framework and three different levels of organizations e.g.
corporate level, strategic business unit (SBU) level and functional level. The study reviewed
two prevailing paradigms: (1) strategy-structure-performance paradigm that argued that a
firm’s strategy, when formulated in accordance with its environmental considerations,
governs the development of a firm’s structure and processes (Miles and Snow, 1978) (2)
resource based view paradigm that argued that a firm generates its competitive advantage due
to possession of different resources and capabilities

36
Esper et al. (2007) explored the way a firm learns, develop and evolve its logistics
capabilities and utilize the same for gaining sustainable competitive advantage. The study
argued that firms are leveraging their logistics capabilities to attain competitive
differentiation. Logistics leverage was defined as the attainment of distinctive logistics
performance which when suitably appropriated with marketing strategy; creates enhanced
customer value (Mentzer and Williams, 2001). The study highlighted several derived benefits
of logistics leverage for e.g. achieving customer satisfaction through improved inventory
services and scheduled delivery of goods. However, logistics leverage may not be sustainable
unless complemented with logistics learning over time. Therefore, the study argued that a
firm needs to constantly learn and develop its logistics capabilities for maintaining its
position in the market.

Esper et al., 2007 The study posited that firms with a focus on logistics learning will be
more able to sustain competitive advantage through suitably harnessing their logistics
capabilities. However, a firm’s logistics learning capability is affected by different factors
like social, political, cultural and structural. The study argued that each of these factors were
manifested through certain other variables : (a) cultural component is manifested in a firm
through open-mindedness, shared vision and commitment to learning

Sinkula et al.,1997 the structural component should support the learning process through
training, creativity enhancement, workshops, job-rotation, cross-functional task forces,
knowledge sharing incentives (c) the relational component underscored that relationship
structure and supply chain partner selection is important for improving the learning of the
organization (d) from a temporal perspective, an organization should also keep a focus on the
speed at which the firm is welcoming new ideas and sharing knowledge with its partners.

Cho et al. (2008) empirically examined the relationship between firm’s logistics capability,
logistics outsourcing and its performance in an e-commerce market environment. The study

37
argued that e-commerce firms have a higher likelihood of creating a sustainable competitive
advantage and improving performance if they have strong logistics capability. The study
presumed that the use of 3PL or logistics outsourcing would further increase a firm’s logistics
capability and would enhance performance through utilization of 3PL’s expertise in order
management and fulfillment. Logistics capability is that part of a firm’s resources (including
all assets, competencies, organizational processes, information, knowledge etc.) that allows it
to formulate and implement strategies directed to improve efficiency and effectiveness. The
study equated logistics outsourcing with 3PL. Third party logistics refers to using the services
of an external supplier to perform some or all of a firm’s logistics function.

Sandberg and Abrahamsson (2011) explored the link between (operational and dynamic)
logistics capabilities and sustainable competitive advantage. The study used two Swedish
retail companies for investigating the proposed links. The study used resource based view as
the theoretical backdrop for the aforesaid study. The study argued that the success of these
two Swedish companies was based on logistics: operational and dynamic capabilities.
Capabilities were defined as “complex bundles of individual skills, assets and accumulated
knowledge exercised through organizational processes that enable firms to co-ordinate
activities and make use of their resources”

Olavarrieta and Ellinger, 1997 The study defined dynamic capabilities as the firm’s
capacity to create, extend or modify its operational capabilities over time. Operational
capabilities are valuable, rare, and imperfectly imitable and have appropriate organizational
processes

Mentzer et al. (2004) indicated logistics as an integral of supply chain management.

Accordingly logistics capabilities must contribute for developing supply chain capabilities.

Gligor and Holcomb (2012) conceptually explored the role of logistics capabilities in
developing supply chain agility. The study did extensive literature review in logistics

38
capabilities and supply chain agility areas and formulated a theoretical model. The time frame
chosen for the review was 1991 through 2010. The study adopted integrative literature review
that included five stages: (a) problem formulation (b) literature search (c) evaluation of
research (d) research analysis and interpretations and (e) presentation of results. The study
reviewed four unique literature areas: manufacturing agility, organizational agility, supply
chain agility and logistics capabilities. The study used EBSCO data base for article search on
each of these areas.

Ralston et al. (2013) empirically explored the impact of logistics salience on logistics
capabilities and performance. The study undertook two logistics capabilities: logistics
innovativeness and logistics service differentiation. Therefore, the study objectives were: (1)
to explore the influence of logistics salience on logistics innovativeness and logistics service
differentiation (2) to explore the influence of logistics capabilities (i.e. logistics
innovativeness and logistics service differentiation) on firm performance. The study utilized
resource based view as the theoretical foundation and argued that unique possession of
resources will lead to a capability which in turn influences performance.

Zacharia and Mentzer, 2004 Logistics innovativeness was defined as the employee
activities concerning searching of new ideas and implementation. Logistics service
differentiation was defined as the process of delivering unique logistics solutions which
customers find valuable

Gligor and Holcomb (2014) empirically explored the influence of communication,

cooperation and coordination on integrated logistics capabilities. The study further explored
the influence of integrated logistics capabilities on firm performance. The study used
relational view as the theoretical backdrop. The relational view posits four sources of inter-
firm competitive advantage: relation-specific assets, knowledge-sharing routines,
complementary resource/capabilities, and effective governance

39
Dyer and Singh, 1998 In this study, communication, cooperation and coordination were
posited as inter-firm routines and processes and hence served as sources of competitive
advantage. The study defined logistics capabilities as “complex bundles of skills and
accumulated knowledge, exercised through organizational processes, which enable firms to
coordinate activities and make use of their assets” (Day 1994, p.38). Integrated logistics
capabilities develop when effective linkage and synchronization are made among various
categories of logistics capabilities across members of the supply chain

Christopher and Peck (2004) supply chain re-engineering, collaboration, agility and risk
awareness. Supply chain re-engineering argued that resilience must be designed into a supply
chain in advance of a disruption so as to sustain operations and provide an efficient and
effective response when faced with a disruption

Ponomarov and Holcomb, 2009. Collaboration unifies the individual efforts of different
supply chain partners and helps them to attain mutual goals and benefits

Johnson et al. (2013) explored empirically the influence of cognitive, structural and
relational (viz. three dimensions of social capital) as antecedents of these formative
capabilities of supply
chain resilience. The study defined supply chain resilience as the adaptive capability of the
supply chain to prepare and respond to disruptions with adequate control over structure and
function

40
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Design

Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researches. A research design specifies the
methods and procedures for conducting a particular study. Research design is a plan
conceptual structure and strategy of investigation conceived as to obtain answers to research
questions and to control variance.

There are generally three types of research..

1.Explortatory research

2.Descriptive research

3.Casual research

Among them descriptive research is used in this research.

The reason for choosing descriptive research is that to get knowledge about phenomena by
asking why, when how, where, what. to gain the background information, To define terms ,to
clarify problems and to develop hypothesis to develop questionnaire to be answered by the
respondents regarding “a study on client’s expectation and satisfaction of TLPL Shipping &
Pvt .Ltd, Kochi”.

3.2 Data collection

Data collection ..The client who uses service of TLPL Shipping & Pvt. Ltd.is taken as the
respondents in the study area have been considered for collecting data. Necessary data as
been collected through questionnaire survey

Types of data have been collected for this study which is briefly discussed below:

41
 (A) PRIMARLY DATA:
It is a fist time collected data which is original in character. It is collected when the
secondary data are not sufficient for research. It is collected by the researcher.
Personal interview, for primary data –filling questionnaire.

3.3 Sampling method

There are generally two types of sampling methods
 Probability sampling method
 Non probability sampling method
In this research convenience sampling method is used which is a part of non
probability sampling method.

3.4 Sample size

Sample size determination is the act of choosing the number of observation or replicates to
include in a statistical sample. The sample size is an important feature of any empirical study
in which the goal is to make inference about the population from a sample.

The method for our research will be convenience method and our size of the sample will be
the clients of TLPL Shipping &Pvt.Ltd. Here the sample size is 30

3.5 Tools for analysis

The collected data was then edited and consolidated by using simple statistical tools and is
presented in the form of tables and figures. For the analysis of data, the simple statistical tool
are employed. The statistical tools employed are

1. Percentage analysis
2. Chi-square test
3. One way ANOVA
4. Correlation

42
Percentage analysis
The data collected through survey process was tabulated. A percentage analysis was done
which helps to develop frequency distribution for the different factors considered in the
study. The percentage analysis gives the number of people who have rated factor in a certain
way.

Percentage of respondents= No of respondents

__________________________ X100
Total number of Respondents
BAR CHART
A bar chart or bar graph is a chart that presents grouped data with a rectangular bar with
length proportional to the values that they represent. The bar can be plotted vertically or
horizontally a vertical bar chart is sometimes called as a column bar chart.

CHI-SQUARE TEST
The chi-square test is the most important and most used method in statistical tests the purpose
of chi-square test is to know the difference between an observed frequency and expected
frequency.

χ 2 = ∑ (Oi − Ei) 2
Ei

ONE WAY ANOVA

The one way analysis of variance(ANOVA) is used to determine whether there are any
statistically significant difference between the means of two or more independent groups
The one way ANOVA compares the means between the groups you are interested in and
determines whether any of those means statistically significantly different from each other
specifically it tests the null hypothesis

Hο :µ1=µ2 =µ3=--------------µk

43
Where µ=group means and k= number of groups. If, however the one way ANOVA returns a
statistically significant result we accept the alternative hypothesis (H ) which is that there
are at least two group means that are statistically significantly different from each other.

At this point it is important to realize that one way ANOVA is an omnibus test statistics and
cannot tell you which specific groups where statistically and significantly different from each
other only that at least two groups were. To determine which specific groups differed from
each other, you need to use a post hoc test.

CORRELATION

The analysis tool is used to study the joint variation of two or more variables for determining
the amount of correlation between two or more variables.

Correlation is defined as the relationship between two variables. The Spearman correlation
coefficient is defined as the Pearson correlation coefficient between the relationships of two
variables. The n raw xi ,yi are converted to ranks xi ,yi and ρ is computed from these:

44
 CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1. PERCENTAGE ANALYSIS

Table no1: Service usage of TLPL SHIPPING & PVT.LTD

SL NO DURATION NO OF RES PERCENTAGE

1 <1 Month 0 0%
2 1-6 Month 2 7%
3 6m-1 year 3 10%
4 1-3 year 20 67%
5 > 3 year 5 17%
TOTAL 30 100%

PERCENTAGE
<1 Month 1-6 Month 6m-1 year 1-3 year > 3 year

70%
60%
50%
40%
30%
20%
10%
0%
<1 Month 1-6 Month 6m-1 year 1-3 year > 3 year

Interpretation
This tables indicates that 67% of clients uses TLPL Services for 1-3 years, 17% of clients
uses for more than three years and 10% of clients uses the services from 6 months to 1 year
and remaining 7% uses this service for less than 6 months.

45
Table no2: Indicating opinion of respondents towards Purpose satisfaction level

SL LEVEL OF SATISFACTION NO OF RES PERCENTAGE

NO
1 Fully Satisfied 7 23.30%
2 Satisfied 12 40%
3 Neutral 7 23.30%
4 Dissatisfied 4 13.30%
5 Highly dissatisfied 0 0%
TOTAL 30 100.00%

PERCENTAGE
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Fully Satiafied Satisfied Neutral Dissatisfied Highly
dissatisfied

Interpretation
The table shows that 40% respondents are highly satisfied with the TLPL services, 23.30% of
the respondents are fully satisfied and 23.30% respondents that they are neutral with the
TLPL services and rest of 13% respondents are dissatisfied the services.

46
Table no3: The table indicating the respondents motivational factor to select TLPL

SL NO FACTORS NO OF RES PERCENTAGE

1 Advertisements 8 26.60%
2 Friends 2 6.60%
3 Brand image 10 33.30%
4 Self Decision 6 20.00%
5 Relatives 0 0.00%
6 Others 4 13.30%
TOTAL 30 100.00%

PERCENTAGE
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

Interpretation
The bar chart showing clients motivational factor to select TLPL Shipping PVT.LTD.

47
Table no4: The table indicating clients opinion about TLPL. Shipping &Pvt.Ltd

SL NO OPINION NO OF RES PERCENTAGE

1 Excellent 9 30%
2 Very good 17 56.60%
3 Good 4 13.30%
4 Bad 0 0%
TOTAL 30 100.00%

PERCENTAGE
60%

50%

40%

30%

20%

10%

0%
Excellent Very good Good Bad

Interpretation
The tables showing about clients opinion about TLPL.Pvt.Ltd

48
Table no5 : The table indicating respondents problems while exporting .

SL PROBLEM NO OF RES PERCENTAGE

NO
1 Delay 7 23.30%
2 Damage 3 10%
3 No problem 15 50%
4 Non corporation 5 16.60%
TOTAL 30 100.00%

PERCENTAGE
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Delay Damage No problem Non corporation

Interpretation
The table showing the problems face by the clients in TLPL.Pvt.Ltd

49
Table no6 : The table indicating respondents opinion towards TLPL. Shipping &Pvt. Ltd
terms and condition.

SL NO RESPONSE NO OF RES PERCENTAGE

1 Yes 23 76.60%
2 No 7 23.30%
TOTAL 30 100.00%

PERCENTAGE
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No

Interpretation
The table indicating TLPL. Shipping& Pvt.ltd terms and conditions

50
Table no7: The table indicating the respondents perceive the service provide by the TLPL.
Shipping & Pvt. Ltd

SL LEVEL OF SATISFACTION NO OF RES PERCENTAGE

NO
1 Strongly Agree 5 16.60%
2 Agree 14 46.60%
3 Neutral 6 20%
4 Disagree 3 10%
5 Strongly Disagree 2 6.60%
TOTAL 30 100.00%

PERCENTAGE
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Strongly Agree Agree Neutral Dis Agree Strongly
Disagree

Interpretation
The table showing the service perceive by the respondents.

51
Table no8: The table indicating level of satisfaction of employee responds to customer
problem

SL NO LEVEL OF SATISFACTION NO OF RES PERCENTAGE

1 Strongly Agree 16 53.30%
2 Agree 4 13.30%
3 Neutral 8 26.60%
4 Disagree 2 6.60%
5 Strongly Disagree 0 0%
TOTAL 30 100.00%

PERCENTAGE
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neutral Dis Agree Strongly
Disagree

Interpretation
The table shows the employee responds to customer problem.

52
Table no9: The table indicating TLPL. Shipping &PVT. Ltd service quality comparing to
other companies

SL OPINION NO OF RES PERCENTAGE

NO
1 Good 10 33.30%
2 Normal 13 43.30%
3 Not good 5 16.60%
4 Bad 2 6.60%
TOTAL 30 100.00%

PERCENTAGE
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Good Normal Not good Bad

Interpretation
The table showing maintaining service quality compare to other companies.

53
Table no10: The table indicating the respondents rate the characteristics of TLPL.Shipping
&Pvt Ltd comparing to other companies

OPTIONS Performance Quality Price Reliability Durability

Excellent 40% 20% 23.30% 60% 36.60%
Very good 27% 46.60% 50% 20% 30%
Good 23% 20% 10% 20% 26.60%
Average 10% 13.30% 16.70% 0 6.60%
TOTAL 100% 100% 100% 100% 100%

Chart Title
70%

60%

50%

40%

30%

20%

10%

0%
Performance Quality Price Reliability Durability

Excellent Very good Good Average

Interpretation
The table shows the respondents rate the company comparing to other companies.

54
Table no11: The table indicating respondents level of satisfaction or dissatisfaction with
regards to services.

SL NO LEVEL NO OF RES PERCENTAGE

1 0-20 20 66.60%
2 20-40 7 23.30%
3 40-60 3 10%
4 60-80 0 0%
TOTAL 30 100.00%

PERCENTAGE
70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
0-20 20-40 40-60 60-80

Interpretation
The bar chart shows the level of satisfaction or dissatisfaction with regards to service from
TLPL Shipping &Pvt.Ltd.

55
Table no12: The table indicating respondents recommend TLPL Shipping &Pvt.Ltd. to
others

SL NO RESPONSE NO OF RES PERCENTAGE

1 Yes 25 83.30%
2 No 5 16.60%
TOTAL 30 100.00%

PERCENTAGE
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No

Interpretation
The table shows the respondents recommended TLPL.Shipping&Pvt.Ltd to others.

56
4.2 Chi -square
NULL HYPOYHESIS

H○=There is no significant relationship between client’s usage and satisfaction.

ALTERNATIVE HYPOTHESIS

H1=There is significant relationship between client’s usage and satisfaction

Level of significance α=0.05

Satisfaction * Usage Cross tabulation

Usage Total

1-6 months 6m-1year 1-3year >3year

Fully satisfied 2 3 2 0 7

Satisfied 0 0 12 0 12
Satisfaction
Neutral 0 0 6 1 7

Dissatisfied 0 0 0 4 4
Total 2 3 20 5 30

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 42.857a 9 .000

Likelihood Ratio 37.936 9 .000
Linear-by-Linear Association 17.929 1 .000
N of Valid Cases 30

Calculated value (.000)is less than significant value (0.05) so null hypothesis is rejected
alternative hypothesis is accepted. Hence there is significant between client’s usage and
satisfaction.

57
4.3 ANOVA
NULL HYPOYHESIS

H○=There is no significant relationship between employee’s responding to client’s problem.

ALTERNATIVE HYPOTHESIS

H1=There is significant relationship between employee’s responding to customer problem.

Level of significance α=0.05

Descriptives
Problem

N Mean Std. Deviation Std. Error 95% Confidence Minimum Maximum

Interval for Mean

Lower Upper
Bound Bound

delay 16 1.94 .929 .232 1.44 2.43 1 3

damage 4 3.00 .000 .000 3.00 3.00 3 3

noproblem 8 3.38 .518 .183 2.94 3.81 3 4

nocoperation 2 4.00 .000 .000 4.00 4.00 4 4

Total 30 2.60 1.037 .189 2.21 2.99 1 4

ANOVA
Problem

Sum of df Mean Square F Sig.

Squares

Between Groups 16.388 3 5.462 9.588 .000

Within Groups 14.813 26 .570
Total 31.200 29

Calculated value (.000)is less than significant value (0.05) so null hypothesis is rejected
alternative hypothesis is accepted. Hence there is significant between employees responding
to clients problem.

58
4.3 CORRELATION
NULL HYPOYHESIS

H○=There is significant relationship between clients satisfaction and employees responding

to customer problem.

ALTERNATIVE HYPOTHESIS

H1=There is no significant relationship between client’s satisfaction and employees

responding to customer problem.

Level of significance α=0.05

Correlations

Satisfaction respondance

Pearson Correlation 1 .775**

satisfaction Sig. (2-tailed) .000

N 30 30
Pearson Correlation .775** 1

respondance Sig. (2-tailed) .000

N 30 30

Calculated value (.000) is less than significant value (0.05) so null hypothesis is rejected
alternative hypothesis is accepted. Hence there is significant between client’s satisfaction and
employee respondents to problem.

59
 CHAPTER 5

FINDINGS, CONCLUSION AND SUGGESTIONS

5.1 FINDINGS
 It is understood that TLPL is very effficient in their functions
 It can be found that it is economically feasibleto the customers at TLPL
 Customers are satisfied with the services provide by the company
 It can be found that the employees are well informed about the changes in their field
 The major constraint of the company is lack of branches
 Most of the exports are to Gulf countries, especially to Jabel Ali

5.2 SUGGESTIONS
 Company should implement new technologies in documentation
 Company should open branches to provide their services to more number of
customers
 Company should improve the marketing strategy
 Company should maintain a good customer relationship and want to improve services

5.3 CONCLUSION

The study carried out at TLPL Shipping and Logistics PVT LTD was focused on the
operations of the company, import export documentation and the process of import and
export. TLPL provides services like Shipping Agencies, Ship Management, Marine &
Container Repairs, Container Storage, Inland Transportation, Freight Forwarding and
Logistics, which mainly deals with import and export of cargo and goods through waterways.
TLPL is one of the leading shipping companies in the world. they have unique group of
people and their knowledge and ability to do business is lifted higher and higher everytime

60
they recogonize and connect to the delivery. They provide good service to their customers
and the customers are very much satisfied with their services. Their major exporting port is
Jabel Ali. Lack of branches is the main constrain faced by the company. Implementation of
GST has very much affected the company.

Descriptive research is used for the study. The sample size is 30. Random sampling is used
for taking samples. Analysis is done by using percentage method. Data information is
presented using tables and graphs.

Analysis shows that the clients are satisfied with their expectation are fulfilled through the
TLPL Shipping &Pvt. Ltd. But to improve the satisfaction level of clients a few suggestions
are made to implement Company should implement new technologies in documentation.
Company should open branches to provide their services to more number of customers.
Company should improve the marketing strategy.

Company should maintain a good customer relationship and want to improve services
through good marketing strategy so they can sustain in the competitive market for long time.

BIBILIOGRAPHY:

https://www.wikipedia.org/

https://www.scribd.com

https://tlpllogistics.co.in/

61
APPENDIX

Questionnaire

1)How would you rate your overall experience to accessibility and responses (of TLPL representative)
through phone and e-mail :
 Excellent
 Very Good
 Good
 Fair
 Poor

2) How you rate the representative ability to help you resolve your issue/need?
 Excellent
 Very Good
 Good
 Fair
 Poor

3) How you rate the representative on being Courteous & helpfulness?

 Excellent
 Very Good
 Good
 Fair
 Poor

4)Think specifically about the CLEARANCE Department, How would you rate your overall
experience:
 Excellent
 Very Good
 Good
 Fair
 Poor

5) Think specifically about the SHIPMENT DELIVERY at your doorstep, How would you rate your
overall experience:
 Excellent
 Very Good
 Good

62
  Fair
 Poor

6) In scale of 1 to 5, where 1 represents ‘Extremely Dissatisfied’ and 5 represents ‘Extremely

Satisfied’. How would you rate your level of satisfaction with TLPL SHIPPING.

 1
 2
 3
 4
 5

7)What specifically are you SATISFIED with TLPL SHIPPING. Enter your response below: { E.g., -
Safety & security, Excellent tracking, Less transit time }

8)What specifically are you DISSATISFIED with TLPL SHIPPING. Enter your response below:
{E.g, - Commitment not met. etc.}

9) How likely are you to recommend TLPL SHIPPING to others? The chances are:
 Recommend
 Strongly recommend
 Least recommend

10) In total, how long you have been a customer of TLPL SHIPPING:
 More then 10 years
 7 to 10 years
 5 to 7 years
 3 to 5 years
 Less then 3 years

11)Please list top 3 reasons, initially becoming a member of TLPL in order of importance:

12)Please rate your level of agreement with the following statements. In scale of 1 to 5, where 1
represents ‘Completely Disagree’ , 3 represents ‘Neutral’ and 5 being ‘Completely Agree’
12.1)I believe the company, TLPL deserves my loyalty:
 1
 2
 3
 4
 5

12.2) Over the past years, my loyalty to the company, TLPL has grown stronger.State the
reasons:

12.3) TLPL Values people & Relationships ahead of Short-term goals. Do you agree ?
 Yes

63
  No

Thanks for your valuable feedback.

64