A STUDY ON ISSUES FACED BY FREIGHT FORWARDERS

WITH REFERENCE TO REDOVA LOGISTICS

Submitted in partial fulfilment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

by

KEVIN KENNEDY.J
Register No.40410215

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600 119

APRIL 2022
 SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in

SCHOOL OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of KEVIN KENNEDY J
40410215 who carried out the project entitled “A Study on Issues Faced by Freight
Forwarders with Reference to Redova Logistics” under my supervision from
January 2022 to March 2022.

Dr. DHIVYA SATHISH

Internal guide External Guide

Dr. BHUVANESWARI .G
Dean – School of Management Studies

Submitted for Viva voce Examination held on_____________________

Internal Examiner External Examiner

 DECLARATION

I KEVIN KENNEDY.J (40410215) hereby declare that the Project Report entitled “A
Study on Issues Faced By Freight Forwarders With Reference To Redova
Logistics” done by me under the guidance of DR.DHIVYA SATHISH is submitted in
partial fulfilment of the requirements for the award of Master of Business
Administration degree.

DATE:

PLACE: KEVIN KENNEDY.J

 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing it
successfully. I am grateful to them.

I convey my sincere thanks to Dr. G. Bhuvaneswari, Dean - School of Management

Studies and Dr. A. Palani, Head - School of Management Studies for providing me
necessary support and details at the right time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
DR.DHIVYA SATHISH for her valuable guidance, suggestions and constant
encouragement paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the School
of Management Studies who were helpful in many ways for the completion of the project.

KEVIN KENNEDY.J
 TABLE OF CONTENTS

CHAPTER NO CHAPTERS PAGE

NO
CONTENT I, II
ABSTRACT III
LIST OF TABLES IV
LIST OF CHARTS V
I INTRODUCTION 1
1.1 INDUSTRY PROFILE 10
1.2 COMPANY PROFILE 15
1.3 STATEMENT OF PROBLEM 22
1.4 NEED FOR THE STUDY 22
1.5 OBJECTIVES 22
1.6 SCOPE OF STUDY 23
1.7 LIMITATIONS OF THE STUDY 23
II REVIEW OF LITERATURE 24
III RESEARCH METHODOLOGY 26
3.1 TYPE OF RESEARCH 26
3.2 DATA SOURCES 26
3.3 SAMPLE DESIGN 26
3.4 TOOLS FOR ANALYSIS 26
IV DATA INTERPRETATION AND 27-50
STATISTICAL ANALYSIS

4.1 PERCENTAGE ANALYSIS 27

4.2 TESTING 45
V FINDINGS, SUGGESTION AND 51-53
CONCLUTION
5.1 FINDING 51
5.2 SUGGESTIONS 52
5.3 CONCLUSION 53

i
ANNEXURE 1 - QUESTIONNAIRE
ANNEXURE 2 – BIBLIOGRAPHY
ANNEXURE 3 – RESEARCH
ARTICLE

ii
 ABSTRACT

The term Logistics Management or supply chain 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's requirements.
A freight forwarder is a person or company that organizes shipments for
individuals or corporations to get large orders from the manufacturer or producer to
market or final point of distribution. Forwarders will contract with a carrier to facilitate
the movement of goods. A forwarder is not typically a carrier, but is an expert in supply
chain management. In other words, a freight forwarder is a "travel agent," for the cargo
industry, or a third-party (non-asset-based) logistics provider. A forwarder will contract
with asset-based carriers to move cargo ranging from raw agricultural products to
manufactured goods.
The primary objective of this project is to conduct ‘A study on issues faced by
freight forwarders in Redova Logistics’. It is important to analyse the Issues faced by
freight forwarders from the carriers as well as companies and individual customers.
 Population size : > 300
 Sample Size : 121
 Sampling Technique : Convenience Sampling
 Statistical Tools : Chi Square, Correlation, Anova
 Graphical Tools : Bar Charts, Pie Charts

By studying and comparing the various issues faced by the freight forwarders.
It is easy identify the solutions to avoid the problems and make sure the smooth flow
of business. This will help Redova Logistics to establish a reasonable share in the
market place.

iii
 LIST OF TABLES

TABLE TITLE PAGE

NO. NO
1 AGE
27
2 GENDER
28
3 EDUCATIONAL QUALIFICATION
29
4 INCOME
30
5 OPERATIONAL AREA
31
6 EXPORTING GOODS

32
7 MODE OF TRANSPORT
33
8 OPINION ABOUT FREIGHT RATES
34
9 RANK THE ISSUES FACED FROM CARRIERS DURING
FREIGHT FORWARDING 35
10 RANK THE ISSUES FACED FROM COMPANIES OR
INDIVIDUALS CUSTOMER DURING FREIGHT 36
11 THEFT AND DAMAGE OF THE GOODS
37
12 SATISFACTION FACTOR
38
13 PROBLEM WITH SHIPPING
39
14 PROMPTNESS OF SERVICE
40
15 SAFETY OF GOODS
41
16 TERMS AND CONDITIONS
42
17 DOCUMENTATION FOR TRANSACTION PROCESS 43
18 CUSTOM CLEARANCE
44

iv
 LIST OF CHARTS

TABLE TITLE PAGE

NO. NO
1 AGE
27
2 GENDER
28
3 EDUCATIONAL QUALIFICATION
29
4 INCOME
30
5 OPERATIONAL AREA
31
6 EXPORTING GOODS
32
7 MODE OF TRANSPORT
33
8 OPINION ABOUT FREIGHT RATES
34
9 RANK THE ISSUES FACED FROM CARRIERS DURING
FRIEGHT FORWARDING 35
10 RANK THE ISSUES FACED FROM COMPANIES OR
INDIVIDUALS CUSTOMER DURING FREIGHT 36
11 THEFT AND DAMAGE OF THE GOODS
37
12 SATISFACTION FACTOR
38
13 PROBLEM WITH SHIPPING
39
14 PROMPTNESS OF SERVICE
40
15 SAFETY OF GOODS
41
16 TERMS AND CONDITIONS
42
17 DOCUMENTATION FOR TRANSACTION PROCESS
43
18 CUSTOM CLEARANCE
44

v
 CHAPTER 1

1.1 INTRODUCTION

THEORETICAL BACKGROUND OF THE STUDY MEANING

The word of logistics originates from the ancient Greek logos (λόγος), which
means “ratio, word, calculation, reason, speech, and oration”. Logistics as a concept is
considered to evolve from the military's need to supply them as they moved from their
base to a forward position
. In ancient Greek, Roman and Byzantine empires, there were military officers
with the title ‘Logistikas’ who were responsible for financial and supply distribution
matters.
The Oxford English dictionary defines logistics as: “The branch of military science
having to do with procuring, maintaining and transporting material, personnel and
facilities. “Another dictionary definition is: "The time related positioning of resources."
As such, logistics is commonly seen as a branch of engineering which creates "people
systems" rather than "machine systems
The term logistics seems all pervasive. It appears on the sides of trucks, ships
and aircraft, forming part of the name of many business enterprises, in classified job
advertisements as well as newspaper articles and on television news broadcasts.

DEFINITION
Logistics is a process of planning, implementing and controlling efficient and cost-
effective flow of materials and information from point of origin to point of consumption.
Hence, Logistics is nothing but the process of strategically managing the movement and
storage of materials, parts, and finished inventory from suppliers, between enterprise
facilities and customers.

FREIGHT FORWARDER
A freight forwarder, forwarder, or forwarding agent is a person or company that
organizes shipments for individuals or other companies and may also act as a carrier.
A forwarder is often not active as a carrier and acts only as an agent, in other words as
a third-party logistics provider, they have the expertise that allows them to prepare and

1
process the documentation and perform related activities pertaining to international
shipments.
Some of the typical information reviewed by a freight forwarder is the commercial
invoice, shipper's export declaration, bill of landing and other documents required by the
carrier or country of export, import, or transhipment. Much of this information is now
processed in a paperless environment.
LOGISTICS MANAGEMENT
Logistics Management is that part of the supply chain which 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 customers' requirements.
BUSINESS LOGISTICS
Logistics as a business concept evolved only in the 1950s. This was mainly due
to the increasing complexity of supplying one's business with materials and shipping out
products in an increasingly globalized supply chain, calling for experts in the field who
are called Supply Chain Logisticians. This can be defined as having the right item in the
right quantity at the right time for the right price and is the science of process and
incorporates all industry sectors. The goal of logistic work is to manage the fruition of
project life cycles, supply chains and resultant efficiencies.
In business, logistics may have either internal focus(inbound logistics), or
external focus (outbound logistics) covering the flow and storage of materials from point
of origin to point of consumption (see supply chain management). The main functions
of a logistics manager include Inventory Management, purchasing, transport,
warehousing, and the organizing and planning of these activities. Logistics managers
combine a general knowledge of each of these functions so that there is a coordination
of resources in an organization. There are two fundamentally different forms of logistics.
One optimizes a steady flow of material through a network of transport links and storage
nodes. The other coordinates a sequence of resources to carry out some project.
Logistics as a concept is considered to evolve from the military's need to supply them
as they moved from their base to a forward position. In ancient Greek, Roman and
Byzantine empires, there were military officers with the title
‘Logistikas’ who were responsible for financial and supply distribution matters.

2
PRODUCTION LOGISTICS
The term is used for describing logistic processes within an industry. The purpose
of production logistics is to ensure that each machine and workstation is being fed with
the right product in the right quantity and quality at the right point in time. The issue is
not the transportation itself, but to streamline and control the flow through the value
adding processes and eliminates non-value adding ones.
Production logistics can be applied in existing as well as new plants.
Manufacturing in an existing plant is a constantly changing process. Machines are
exchanged and new ones added, which gives the opportunity to improve the production
logistics system accordingly. Production logistics provides the means to achieve
customer response and capital efficiency.
COMMERCIAL VEHICLE OPERATION
Commercial Vehicle Operations is an application of Intelligent Transportation
Systems for trucks. A typical system would be purchased by the managers of a trucking
company. It would have a satellite navigation system, a small computer and a digital
radio in each truck. Every fifteen minutes the computer transmits where the truck has
been. The digital radio service forwards the data to the central office of the trucking
company. A computer system in the central office manages the fleet in real time under
control of a team of dispatchers.
In this way, the central office knows where its trucks are. The company tracks
individual loads by using barcoded containers and pallets to track loads combined into
a larger container. To minimize handling-expense, damage and waste of vehicle
capacity, optimal-sized pallets are often constructed at distribution points to go to
particular destinations.
A good load-tracking system will help deliver more than 95% of its loads via truck,
on planned schedules. If a truck gets off its route, or is delayed, the truck can be diverted
to a better route, or urgent loads that are likely to be late can be diverted to air freight.
This allows a trucking company to deliver a true premium service at only slightly higher
cost. The best proprietary systems, such as the one operated by FedEx, achieve better
than 99.999% on-time delivery. Load-tracking systems use queuing theory, linear
programming and minimum spanning tree logic to predict and improve arrival times. The

3
exact means of combining these are usually secret recipes deeply hidden in the
software.
The basic scheme is that hypothetical routes are constructed by combining road
segments, and then poor ones are eliminated using linear programming. The controlled
routes allow a truck to avoid heavy traffic caused by rush-hour, accidents or road-work.
Increasingly, governments are providing digital notification when roadways are known
to have reduced capacity.

A good system lets the computer, dispatcher and driver collaborate on finding a
good route, or a method to move the load. One special value is that the computer can
automatically eliminate routes over roads that cannot take the weight of the truck, or
that have overhead obstructions. Usually, the drivers log into the system. The system
helps remind a driver to rest. Rested drivers operate the truck more skill fully and safely
.When these systems were first introduced, some drivers resisted them, viewing them
as a way for management to spy on the driver. A well-managed intelligent transportation
system provides drivers with huge amounts of help. It gives them a view of their own
load and the network of roadways.

COMPONENTS OF CVO INCLUDE

Freight Administration
Electronic Clearance
Commercial Vehicle Administrative Processes
Crossing Clearance
Roadside CVO Safety
On-Board Safety Monitoring
ROLE OF LOGISTICS MANAGEMENT
The primary objective of logistics management is to effectively and efficiently move
the supply chain so as to extend the desired level of customer service at the least cost.
Thus, logistics management starts with ascertaining customers’ needs till their fulfilment
through product supplies. However, there are some definite objectives to be achieved
through a proper logistics system. These can be described as follows:

4
IMPROVING CUSTOMER SERVICE

An important objective of all marketing efforts, including the physical distribution

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

RAPID RESPONSE

Rapid response is concerned with a firm's ability to satisfy customer service

requirements in a timely manner. Information technology has increased the capability
to postpone logistical operations to the latest possible time and then accomplish rapid
delivery of required inventory.

REDUCE TOTAL DISTRIBUTION COSTS

The cost of physical distribution consists of various elements such as

transportation, warehousing and inventory maintenance, and any reduction in the cost
of one element may result in an increase in the cost of the other elements. Thus, the
objective of the firm should be to reduce the total cost of distribution and not just the
cost incurred on any one element.

GENERATING ADDITIONAL SALES

A firm can attract additional customers by offering better services at lowest

prices. For example, by decentralizing its warehousing operations or by using economic
and efficient modes of transportation, a firm can achieve larger market share. Also by
avoiding the out-of-stock situation, the loss of loyal customers can be arrested.

CREATING TIME AND PLACE UTILITIES

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

5
PRICE STABILIZATION
It can be achieved by regulating the flow of the products to the market through a
judicious use of available transport facilities and compatible warehouse operations. By
stocking the raw material during the period of excess supply and made available during
the periods of short supply, the prices can be stabilized.

QUALITY IMPROVEMENT

The long-term objective of the logistical system is to seek continuous quality

improvement. Total quality management (TQM) has become a major commitment
throughout all facets of industry. If a product becomes defective or if service promises
are not kept, little, if any, value is added by the logistics. Logistical costs, once
expended, cannot be reversed.

MOVEMENT CONSOLIDATION

Consolidation one of the most significant logistical costs is transportation.

Transportation cost is directly related to the type of product, size of shipment, and
distance. Many Logistical systems that feature premium service depend on highspeed,
small shipment transportation. Premium transportation is typically high-cost. To reduce
transportation cost. It is desirable to achieve movement consolidation.

3 PL & SUPPLY CHAIN MANAGEMENT

At Committed Group, the company define functional experience, expertise,

speed, flexibility, and ingenuity to manage certain freight efficiently every time. As
an experienced provider of 3PL (Third Party Logistics) 24 x 7, they provide a total
supply chain solution for your logistics and freight management needs. Our ongoing
goal is to simplify the shipping process for our clients by finding the best rates and then
smoothly coordinating all aspects of the shipment from pick-up to ship to on time
delivery
• It Provides solution and Supply Chain Management enables cost savings
and better route planning

• Ability to connect customers and their supply chain partners through a

real-time information hub
6
 • 10-15% reduction in transportation costs

• Real-time monitoring of inventory, orders and events

• Intelligent order sourcing across multiple stocking locations

FUNCTION OF FREIGHT FORWARDERS INTERNATIONAL

FREIGHT FORWARDERS

International freight forwarders handle both direct and consolidated shipments. A direct
shipment is sent on its own without being co-loaded with other goods. This could be an
entire container, truckload or airfreight shipment. Consolidated shipments are those
where goods from two or more parties are shipped together, adding weight and security
to the shipment, and usually lowering the cost of freight.

SERVICES OF AN INTERNATIONAL FREIGHT FORWARDER

Freight forwarders facilitate shipments by air, vessel or other common carrier.

Their services may include, but are not limited to:

• Ordering cargo to the port of export

• Preparing export declarations
• Booking, arranging for and confirming cargo space
• Preparing delivery orders or dock receipts
• Preparing ocean bills of lading
• Preparing consular documents or arranging for their certification
• Preparing and processing letters of credit
• Arranging for warehouse storage
• Clearing shipments in accordance with U.S. government export regulations
• Preparing and sending advance notifications of shipments or other documents to
banks, shippers, consignees or agents as needed
• Handling freight or other monies advanced by shippers

7
ORGANIZATIONAL STRUCTURE OF FORWARDERS
Twenty years ago, companies specialized in direct air shipments, ocean shipments, air
consolidations, ocean consolidations or other distinct services based on product, market
and industry. Today, many international freight forwarders provide a complete logistical
solution for exporters, from door to door. There are still exceptions, which require a brief
review of how forwarding services are organized.
THE INTERNATIONAL AIR FREIGHT IATA AGENT
International Air Transport Association, or IATA, is a governing body that allows
forwarders to collect a modest commission from the airline based on the freight rate
applied to the cargo. IATA certification is based on the forwarder meeting specific
financial and credit requirements, having a presence of physical facilities and
possessing professional qualifications and ethical business practices. In turn, they are
permitted to issue airline air waybills and represent the shipper to the airline and vice
versa.
IATA agents may provide additional services to their customers. They often focus
on crating, packing, labelling and logistics and turn the cargo over to the airline or an air
cargo consolidator. In the food business, an exporter might find an IATA agent that
specializes in certain perishable items, such as produce or seafood. IATA agents do not
publish their own rates or issue their own waybills, so they do not provide consolidation
services directly, although they could assist in making those arrangements on behalf of
an exporter.
THE INTERNATIONAL AIR FREIGHT FORWARDER
These companies are IATA agents as well, meaning they can handle direct
shipments and prepare the airline air waybill. In addition, they issue their own air
waybills, known as “House” air waybills and publish their own rates. With the issuance
of house air waybills, they are transporting merchandise under their own name, with
what is known as a “Master” airway bill. In a consolidated shipment there can be multiple
house air waybills associated to a master air waybill.
International Air Freight Forwarders provide consolidations of air cargo shipments to
destinations around the world, and in providing the airline with volume shipments, are
able to collect the IATA commission in addition to commission based on performance.
They usually have a network of their own offices or agents in major cities around the

8
world and now in developing countries as well. The overseas offices can provide
valuable information about regulations, duties, taxes and prices for services provided at
the destination. Taking advantage of air consolidation freight rates makes your landed
cost more attractive to the buyer and should be considered if the mode of transport is
airfreight.
INTERNATIONAL OCEAN FREIGHT FORWARDER
These companies need to be licensed by the Federal Maritime Commission
(FMC). Like IATA agents, they do not publish their own rates or issue their own bills of
lading, as they don’t provide consolidation services. Their services to the exporter
include: coordination of cargo, booking with the steamship line, crating, packing and
document preparation.

THE INTERNATIONAL OCEAN FREIGHT CONSOLIDATOR

This type of company is referred to as an NVOCC, Non-Vessel Operating
Common Carrier, or an NVO. NVOs provide services that are very similar to the
International Air Freight Forwarder. They are licensed by the FMC and can also provide
the services of an Ocean Freight Forwarder. They are licensed to publish their own rates
and issue their own ocean bills of lading, transporting goods under their own name. This
is a very similar process as the master and house air waybills used with air freight
consolidations.
If an exporter has a shipment that needs to move by sea freight and does not have
enough volume to warrant the purchase of an entire container, the NVOCC is a logical
choice, as they can load the shipment into a container with other cargo and provide a
competitive rate for their services. Many international freight forwarders provide both
export services for ocean and air freight, directly and consolidated.

9
 1.1 INDUSTRY PROFILE
The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and
60s, military was the only organization which used logistics. The scope of logistics
has been extended beyond the army, as it has been recognized as one of the
important tools for developing competitiveness. Competitive advantage means the
company has the ability to differentiate itself, in the customer’s eyes, and also is
operating at a lower cost and greater profit.
Logistics facilitates in getting products and services as and when they are needed and
desired to the customer. It also helps in economic transactions, serving as a major
enabler of growth of trade and commerce in an economy.
Logistics has come to be recognized as a distinct function with the rise of mass
production systems. Production and distribution were earlier viewed as a sequential
chain of extremely specialized activities. The role of logistics is to ensure availability
of all the required materials before every step in this chain. Obviously inventory of raw
materials, semi-finished and finished goods is a must across this chain to ensure its
smooth functioning.
The concept of logistics has its base upon the systems approach. There is a single
chain, with flow of materials starting from the supplier, then to the plant and finally to the
end customer, and also these activities are done sequentially in order to achieve
customer satisfaction at low cost. For this to be successful there has to be coordination
in the activities of the department.
With reference to an organization, an organization gets a concrete shape due to its
structure. In the earlier times, the suppliers in distribution activities were spread across
the entire structure, thus resulting in an overlapping of activities and finally in
unaccountable authority and responsibility. In today’s process driven organization,
where the focus has shifted from functions to process, logistics has become an essential
part of the process.

10
Definitions of logistics:
The American Council of Logistics Management defines logistics as “the process of
planning, implementing and controlling the efficient, cost effective flow and storage of
raw materials, in-process inventory, finished goods and related information from point
of origin to point of consumption for the purpose of conforming to customers’
requirements”.
Philip Kotler defines logistics as “planning, implementing, and controlling the
physical flows of materials and finished goods from point of origin to point of use to
meet the customer’s need at a profit”. Objectives of logistics:
Logistics has the following objectives:
Reduction of inventory: Inventory is one of the key factors, which can affect the profit
of an enterprise to a great extent. In the traditional system, firms had to carry lot of
inventory for satisfying the customer and to ensure excellent customer service. But,
when funds are blocked in inventory, they cannot be used for other productive
purposes. These costs will drain the enterprise’s profit. Logistics helps in maintaining
inventory at the lowest level, and thus achieving the customer goal. This is done
through small, but frequent supplies.
Economy of freight: Freight is a major source of cost in logistics. This can be reduced
by following measures like selecting the proper mode of transport, consolidation of
freight, route planning, long distance shipments etc.
Reliability and consistency in delivery performance: Material required by the
customer must be delivered on time, not ahead of the schedule or behind the schedule.
Proper planning of the transportation modes, with availability of inventory will ensure
this.
Minimum damage to products: Sometimes products may be damaged due to
improper packing, frequent handling of consignment, and other reasons. This damage
adds to the logistics cost. The use of proper logistical packaging, mechanized material
handling equipment, etc will reduce this damage.
Quicker and faster response: A firm must have the capability to extend service to
the customer in the shortest time frame. By utilizing the latest technologies in
processing information and communication will improve the decision making, and

11
thus enable the enterprise to be flexible enough so that the firm can fulfill customer
requirements, in the shortest possible time frame. The various functions of
logistics are as follows:
1. Order Processing: Processing the orders received from the customers is an
activity, which is very important by itself and also consumes a lot of time and
paperwork. It involves steps like checking the order for any deviations in the
agreed or negotiated terms, price, payment and delivery terms, checking if the
materials is available in stock, producing and scheduling the material for
shortages, and also giving acknowledgement to the owner, by indicating any
deviations.

2. Inventory Planning and management: Planning the inventory can help an

organization in maintaining an optimal level of inventory which will also help in
satisfying the customer. Activities like inventory forecasting, engineering the
order quantity, optimization the level of service, proper deployment of inventory
etc. are involved in this.

3. Warehousing: This serves as the place where the finished goods are stored
before they are sold to the customers finally. This is a major cost center and
improper warehouse management will create a host of problems.

4. Transportation: Helps in physical movement of the goods to the customers

place. This is done through various modes like rail, road, air, sea etc.

5. Packaging: A critical element in the physical distribution of the product, which

also influences the efficiency of the logistical system.

Logistics delivers value to the customer through three main phases:

a. Inbound logistics: These are the operations, which precede manufacturing.

These include the movement of raw materials, and components for processing
from suppliers.
12
 b. Process logistics: These are the operations, which are directly related to
processing. These include activities like storage and movement of raw materials,
components within the manufacturing premises.
c. Outbound logistics: These are the operations, which follow the production
process. These include activities like warehousing, transportation, and inventory
management of finished goods.
Logistics Solution:
Generally, the in-house logistics departments in manufacturing organizations take care
of all aspects of logistics. But this is not an area of core competency of manufacturing
or trading organizations. Today, a lot of successful business corporations across the
world are outsourcing logistics to the third party logistics providers, who are having the
necessary infrastructure and expertise to do the job in a better manner. Complete
logistics solutions to manufacturers and traders is provided by the third party logistics
providers, and they help in integrating various logistics operations, thus ensuring speedy
and uniform movement of materials across the supply chain.

Logistics is nowadays widely used in virtually every area. The success of a logistics
service providing company depends on how they conceptualize and implement the
logistics solution, and also tune to the requirements of the customer.

Future of Logistics

Nowadays corporations look only for sustainable competitive advantage, not only for
growth, but also to survive. There is so much killing competition that corporations are
compelled to review their business process while they deliver the products and services
to customers, who are looking for more and more value for the money that they are
spending. The focus of competition has shifted from the product to the supply chain.

Today, logistics management is based on the system concept and cost approach.
Transportation, warehousing, handling of material, inventory management and order
processing are the major logistics activities, which impact the customer cost and
operation. Integrated logistics helps in taking the cost out of the supply chain and also
enhance the customer service level.
When looking at the macro level, a growth of a country’s economy depends on the
availability of excellent logistics infrastructure. The speed of the movement of goods

13
depends to a great extent on the various modes of transportation like rail, road, air, and
sea.
Logistics has a bright future, especially in India, but certain pressing issues like abolition
of octroi levy, rationalization of customs formalities, improvement in road and rail
infrastructure, creation of modern warehouse facilities etc, have to be taken care of.
The geographical position of India also is well positioned to emerge as an excellent
hub for a variety of products.

14
 1.2 COMPANY PROFILE

Redova Logistics Pvt Ltd was founded by logistics professionals in 2001 with a vision to
be recognized as the most dependable and responsive logistics service provider.
Survival of the fittest is more than apt in today’s competitive world. One has to provide
qualitative services at the most competitive prices at the right place & at the right time.
For this you need to have a reliable service provider so that you can concentrate on
your core competencies.

With Redova Logistics Pvt Ltd– the leading service provider with a full menu of logistics
services–your business will boom. Our logistics services are at the forefront, offering
state-of-the-art 3rd party and 4th party logistics solutions to all customers. Redova
Logistics Pvt Ltd is structured to provide logistics and supply chain solutions to the
growing global industry.

OUR STRENGTHS:

We have Logistics Engineering team to overview productivity and process review within
the warehouses , Cycle Count Team to monitor inventory integrity and MIS team to
provide and design customized MIS. These are some of our key differentiator functions
over the competition – enabling us to execute our promise to deliver continuous value.

Our performance in productivity, inventory integrity, resource quality and quantity are
among the best in the industry. We rely heavily on customized MIS to demonstrate
performance improvements on a continuous basis.

Crashing transaction times

Meeting agreed transaction times allow you to meet your delivery schedules. Improving
these times by increasing productivity sharpens warehouse throughput and makes your
invoices payable early. Crashing times actually adds to your working capital.
We work on improving transaction cycle times by using modern Industrial Engineering
techniques, as well as implementing learning achieved from experience and industry
benchmarks.
15
On a larger plane - TTM (Time to Market), TTC (Time to Cash) etc. are our customer
expectations that we have assisted them in bringing around remarkable results.

Innovative Solution
"Value addition" is the basis of any successful and sustained business relationship
between two entities.
Redova Logistics Pvt Ltd offers innovative solution as one such value addition to our
customers, where we contribute to our customer's value chain not only as a one-time
value addition but of a continual nature due to Redova Logistics Pvt Ltd tradition of
improving it, with time.

Apart from the best in class performance which is a trademark Redova Logistics Pvt
Ltd service, a good example is the Redova Logistics Pvt Ltd "Business Industrial
Engineering" (BIE) function which adds value to our customer businesses via innovative
solutions upon and around their key W&D requirements of: Innovative Warehouse
design to enable Higher thoughput at lesser costs. MHE and MSE selection to suit the
Volume, flow (direction & magnitude) and cycle time metrics for Optimal Cost-Benefit
ratio.
Distribution network design based on data analysis of our customer's transaction
numbers.
Continuous Improvement - Redova Logistics Pvt Ltd BIE function does this as a 'birth
principle' than a customer need / expectation / requirement.

Managing Reliability in Processes

Redova Logistics Pvt Ltd recognizes the importance of stable processes in
Warehousing and Transportation, which form most significant costs out of total
Logistics costs.
Errors often creep even in routine transactions, the impact of which adversely affect
customer satisfaction and may result in consequential problems of payment delays /
defaults, loss of "repeat business" maybe profits as well.

16
Redova Logistics Pvt Ltd has been providing reliability levels of over 99+% to our
customers with. We have achieved this based our process flow mapping, mechanism
to measure them and take proactive steps to improve them. SOPs, DPMs, Daily
Exception reporting and management are some of the tools we will use to achieve the
said reliability for you.
Redova Logistics Pvt Ltd cherishes dependability as one of the core values.

2. Third Party Logistics

Redova Logistics Pvt Ltd is one source for comprehensive logistics services. Our
established operations offer supply chain, transportation and inventory management,
warehousing operations, reverse logistics and more -- all custom-tailored to the
individual needs of our customers. Our in-house consultants and operations experts
provide valuable experience and expertise in a wide variety of areas including IT,
automotive and e-commerce. The warehouses are equipped with the best material
handling and storage equipment, controlled by an in-house developed Warehouse
Management System.

Inbound Logistics

• Planning
• Purchase Order Management
• Milk Route Collections
• Hub & Spoke model for Consolidation
• Container Movement
• Stores Management and Line Feeding
• Just In Time Inventories
• Vendor Managed Inventories
• Performance Analysis and Process Optimization
• Space Management
• Planning & Forecasting
• Excise & Octroi

17
 • Consolidation Centers
• Line Feeding
• Transportation

Outbound Logistics

• Setting up a Distribution network

• Providing certainty and committed service levels.
• Shared Public Warehouses
• Optimization to bring down Total Transaction Cost
• Pre Delivery Inspection
• Packaging
• Accessory fitting
• Audit
• Storage
• Inventory
• Invoicing
• Dispatch

Reverse Logistics

• After Sales
• Customer Feedback
• Claims Settlement
• Receiving
• Quality
• Payment
• From warehousing to transportation, our process strength and operational excellence
extends to all core functions of contract logistics.
• We combine warehousing, transportation and value-added services to ensure a custom
fit. Our facilities share common processes and systems, so you receive consistent

18
 reporting in addition to dependable customer service. IT enablers like Warehouse
Management System simplifies all data exchange.
• We invest time and expertise to fully understand your business before designing plans
to improve your supply chain. We take responsibility for the performance of all our
suppliers and for ensuring availability of resources and equipment needed to control the
flow of goods under our charge.
We seek to deliver advanced customer service quality by:

• Customizing dedicated facility or flexible shared facilities

• Optimizing performance of your existing assets. We are happy to work from your
facilities if it increases efficiency.

Our services deliver:

• Inventory integrity
• Shorter lead times
• Increased productivity
• Greater responsiveness
• Fast and reliable start-ups
• Flexibility to meet growing volumes and resultant peaks and valleys
• Recruitment, training and motivation of workforces
• Transfer of industry best practices from other sectors and regions
• Rock-solid record keeping
• Transaction integrity
• Transaction history record keeping
• Comprehensive menu of standard reports

3. Warehousing and Distribution Services

Our range of warehouse offerings is amongst the most diverse in India. We provide the
following types of warehousing services:
• Dedicated Warehouses
• Shared-user Warehouses
• Limited term project centric warehouses.

19
Dedicated Warehouses
Best in class solutions
Customized to meet your specific requirements of design, layout, storage and handling,
we an set up dedicated warehouses wherever you wish.
We are mobile, flexible and ready to go. From concept to operations, we use modeling
to find an optimal location, identify the real estate using our database, and define the
necessary systems and operating structure. We work closely with you right through the
design and layout stages.
Our project management team integrates facility and systems operations and resource
planning before hand over. Your distribution centre functions smoothly and you get
visibility of the project from the very beginning.
Shared Warehouses
Flexibility all the way
Our Shared logistics facilities provide you flexibility on space and services without a
sizable investment and long-term commitment.
These facilities can receive products and provide downstream distribution. Through
shared resources - space, overheads, labour and equipment - our customers benefit
from synergies that significantly reduce supply chain costs and improve efficiencies
dramatically.
Smaller businesses requiring distribution operations without long-term lease or capital
commitments can benefit from this. As can larger enterprises for a new acquisition,
product launch or seasonal overflow. Leading manufacturers and retailers of the
Automotive, Telecom and Retail, among other sectors, use our services.
In-Plant
Taking charge, giving control
We offer a range of programs within our customers' facilities. We can support your team
– or be your team – by handling such tasks as labour or yard management, packing,
designing, container stuffing, line feeds, water spider maintenance, and justin-time
deliveries.
We help you cut costs, increase productivity, and get the best out of your most valuable
resource - your people. Quality and safety are part of our culture and we invest a

20
 substantial amount of time building consistent processes, aligned with your best
practices and training, to achieve our goals of zero recordable incidents.

4. Installation Support Logistics

Our support to Installation Engineers combines several critical functions involving
warehouse, transportation, up-lifting expertise and on site marshalling of manpower and
lifting equipment.
The installation material is typically delicate, large, unwieldy and heavy and needs care
for material and building protection. We also take care of local permissions.

We have special teams providing Telecom Installation Support logistics. Our flexible
response to severe Transaction skew is greatly appreciated by our clients. We have a
large vendor base which allows us to scale up on demand. Our transportation
management skills and computer software allow us to meet these requirements. We run
complex programs that ensure high levels of accuracy.
We also manage local and specialized deliveries - from coordinating and training staff
on product installation to retail merchandising and more. These include customized
inside-the-home deliveries and installation services.
Our proven transportation solutions coupled with local market intelligence helps us in
delivering these capabilities:

• Dependable Vendor Management

• Route understanding, planning & optimization
• Octroi Management
• Milk-Run Management
• Multi-Point Distribution Management
• Pan-India & regional Services Management

21
1.3 STATEMENT OF THE PROBLEM:

Logistics play a vital role in international business. A freight forwarder can help
to improve the delivery of products and increase customer service. Redova Logistics
faces problems in documentation, transport, Custom clearance, freight forwarder and
this affect the exports and integral part of global supply chain so to overcome all
these problem study is conducted.

1.4 NEED FOR THE STUDY:

A freight forwarder is a person or company that organizes shipments for individuals or

corporations to get large orders from the manufacturer or producer to market or final
point of distribution. It helps to analyse the problems faced by freight forwarders from
the carriers as well as companies and individual customers. It helps to understand the
satisfaction level of the custom clearance.

1.5 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

To study the issues faced by freight forwarders with special reference to Redova
Logistics in Chennai
SECONDARY OBJECTIVE:

To analyse the issues faced by freight forwarders from the carriers.

To analyse the issues faced by freight forwarders from the companies and
individual customers.
To know the satisfaction level with the customs clearance and terms and
conditions imposed on the freight forwarders by the carriers.
To suggest solutions to reduce the issues faced by the freight forwarders.

22
1.6 SCOPE OF THE STUDY

. A forwarder is often not active as a carrier and acts only as an agent, in other
words as a third-party logistics provider, they have the expertise that allows them to
prepare and process the documentation and perform related activities pertaining to
international shipments.
It helps the company to identify the bottleneck/s within the freight-forwarders
It helps the company to identify the better way for the Freight Forwarders to
accomplish their tasks
This study focus on understanding the problems of the freight forwarders

1.7 LIMITATIONS

 Opinion of employees may be biased at time.

 Respondents would have hidden some facts due to the fear of management.

 The study is based on the data collected from respondents and a journal hence
the reliability of the data is not probed into. Utmost care has to be taken while
extending the results to the other areas.

23
 CHAPTER 2
2.1 REVIEW OF LITERATURE

Benjamin Ertel and Mike Jones (2007) A study on “Performance Based Logistics
Perspective”. The objective of the study is about the critical concepts for successful PBL
incorporation and common PBL misconceptions in logistics. It also describes keys to
successful PBL implementation Viz. Alignment of supplier incentives with requirements,
competitive advantage and empowerment of support provider. It gives the PBL value
proposition as improved integration and gives the necessary steps for implementation
of performance based logistics.

Sebastian (2008) A Study on “Problems of Logistics Industry “. The objective of the

study about the problem that faced logistics industry. He concluded that India’s logistics
industry is low in their planning and current professionals in the industry should sharpen
their skills on a broad base of key elements of transportation and logistics. Finally he
said that, there should be very balanced between solid knowledge and real world
application.

M. Dhanabakyam and K. Parimala (2006) A study on “Role of Freight Forwarders and

Customs House Agents In Logistics-A Perceptual Study. The study concerned with the
freight forwarding is a vital part of logistics in international trade activity. The objective
of the study was to identify the study appraise the role played by Freight Forwarders in
logistics was conducted. Thus the study showcased that, as the world has become a
global village, the service providers like Freight. Forwarders should be prepared to face
the challenges of tomorrow, by extending their network in every corner of the world and
providing more accuracy in their commitments.

Davis, Beth R (2006), a study on” Logistics service driven loyalty: an exploratory study”.
The Journal shows that supply chain relationships can be a stable source of competitive
advantage to firms in the supply chain because of their ability to create barriers to
existing competition and conclude that improving logistics customer service is an

24
ongoing focus for firms. Suppliers are trying to become more proactive with their
customers and anticipate customer expectations.

Mohitayalamanchi (2009), a study on “Logistics and Customer Value”, the objective of

the study is about the customer value that companies have created through logistics
management, in their quest for new ways to establish a competitive edge. A number of
new tools and approaches have emerged as proactive elements of the logistics
response to the task of creative value for the customer viz. emphasis on logistical
customer service, management of the supply chain, the development of strategic
alliances. It gives an explanation of various steps taken by different firms for identifying
and implementing quality improvement processes in the logistics areas.

Berrada A. Chakir&Ciro Aida (2009), a study on “Bottlenecks in the Freight

Forwarding sector in West-coast Africa”. The objective of the study about a to identify
the bottleneck/s within the freight-forwarding industry in west coast Africa. The Study
revealed that the series of interesting findings First, the activity of a Freight Forwarder
depends on a series of factors that do not depend on the Freight Forwarder per se. And
second, Freight Forwarders in order to accomplish their tasks have access to services
that are shared by all providers, and that are beyond their control. To conclude the study
identifies infrastructure as a major bottleneck in the Freight Forwarding sector.

Bock (2012) Proposed a real time oriented control approach for freight forwarders to
expand load consolidation , reduce empty vehicle trips , and handle dynamic
disturbances.

Feo et al. (2015) explored the preference analysis of Spanish freight forwarders model
choice between short sea shipping and door-to-door road transport in terms of value of
time, value of reliability and value of frequency in freight transport.

25
 CHAPTER III
3.1RESEARCHMETHODOLOGY

3.1 TYPE OF RESEARCH:

The type of research design undertaken is Descriptive Research. Descriptive
research includes surveys and fact-findings enquiries of different kinds. The major
purpose of descriptive research is description of state of affairs, as it exists at present.

3.2 DATA SOURCES

DATA COLLECTION METHOD:

The main sources through which data is collected are:

Primary data:
The Primary data was collected through a structured questionnaire from the
employees of Freight forwarder - Redova Logistics in Chennai

Secondary data:
Secondary data was collected from magazines, journals, books and websites.

3.3 SAMPLE DESIGN:

Sample Design is method of selecting the samples. The convenient
method of sampling was applied to select the sample respondents. A sample of 121
employees of Redova Logistics in Chennai is taken for this study.

3.4 TOOLS FOR ANALYSIS

The Data collected was analysed using Frequency analysis, Chi Square, Correlation
and Anova.

26
 CHAPTER IV
DATA INTERPRETATION AND STATISTICAL ANALYSIS
4.1 PERCENTAGE ANALYSIS

TABLE 4.1.1: AGE

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 20-30 8 7
2 30-40 18 15
2 40-50 40 33
4 Above 50 55 45
TOTAL 121 100

AGE

50
45
40
35
30
25
20
15
10
5
0
20-30 30-40 40-50 Above 50
particulars

CHART 4.1.1: AGE

INTERPRETATION:
From the above table it can be interpreted that 45% of the respondents are in
above 50 years of age.
INFERENCE :
Majority 45% of respondents age is above 50

27
TABLE 4.1.2: GENDER OF THE RESPONDENTS

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 MALE 93 77
2 FEMALE 28 23
TOTAL 121 100

90
80
70
60
50
40
30
20
10
0
MALE FEMALE
PARTICULRS

CHART 4.1.2: GENDER OF THE RESPONDENTS

INTERPRETATION:
From the above table it can be interpreted that 77% of the respondents are
male.
INFERENCE:
Majority 77% of respondents are male

28
TABLE 4.1.3: Educational Qualification.

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Graduate 34 28
2 Post graduate 23 19
3 Iti 45 37
4 Diploma 19 16
TOTAL 121 100

40

35

30

25

20

15

10

0
Graduate Post graduate Iti Diploma
PARTICULRS

CHART 4.1.3: EDUCATIONAL QUALIFICATION

INTERPRETATION:
From the above table it can be interpreted that 37% of the respondents are
completed ITI.
INFERENCE:
Majority 37% of respondents are completed ITI

29
TABLE 4.1.4: Income

S.NO NO OF
PARTICULARS RESPONDENTS PERCENTAGE
1 10,000-20000 21 17
2 20000-30000 20 16
3 30000-40000 47 39
4 40000-50000 15 12
5 Above 50000 18 16
TOTAL 121 100

45
40
35
30
25
20
15
10
5
0
10,000-20000 20000-30000 30000-40000 40000-50000 Above 50000
particulars

CHART 4.1.4: INCOME

INTERPRETATION:
From the above table it can be interpreted that 39% of the respondents got the
income level of 30000 – 40000.
INFERENCE:
Majority 39% of respondent’s income level is 30000-40000

30
TABLE 4.1.5: Operational Area

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Chennai 69 58
2 Coimbatore 30 25
3 Tuticorin 17 14
4 Madurai 5 3
5 Cochin 0 0
TOTAL 121 100

70

60

50

40

30

20

10

0
Chennai Coimbatore Tuticorin Madurai Cochin
PARTICULRS

CHART 4.1.5: Operational area

INTERPRETATION:
From the above table it is interpreted that 58% of the respondents have
functional area in Chennai, 24% of the respondents have Coimbatore.
INFERENCE:
Majority 24% of respondents have functional area in Chennai

31
TABLE 4.1.6: Exporting goods

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Daily 9 7.5
2 Biweekly 34 28.3
3 Weekly 51 42.5
4 Fortnight 27 21.6
TOTAL 121 100

45
40
35
30
25
20
15
10
5
0
Daily Biweekly Weekly Fortnight
particulars

CHART 4.1.6: EXPORTING GOODS

INTERPRETATION:
From the above table it can be interpreted that 7% of the respondents are daily
exporting goods, 28% of the respondents are biweekly, 43% of the respondents weekly
exporting the goods.
INFERENCE:
Majority 43% of respondents weekly exporting goods

32
TABLE 4.1.7: Mode of transport

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Shipways 22 18
2 Airways 47 40
3 Railways 17 14
4 Roadways 35 28
TOTAL 121 100

45
40
35
30
25
20
15
10
5
0
Shipways Airways Railways Roadways
particulars

CHART 4.1.7: MODE OF TRANSPORT

INTERPRETATION:
From the above table it can be interpreted that 18% of the respondents prefers
shipways, 40% of the respondents are prefer airways as their mode of transport.
INFERENCE:
Majority 40% of the respondents are prefer airways as their mode of transport.

33
TABLE 4.1.8: Opinion about freight rates

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Highly satisfied 40 33
2 Satisfied 45 38
3 Neutral 32 27
4 Dissatisfied 4 2
5 Highly dissatisfied 0 0
TOTAL 121 100

40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
particular

CHART 4.1.8: Opinion about freight rates

INTERPRETATION:
From the above table it can be interpreted that 33% of the respondents are
highly satisfied with the freight rates, 38% of the respondents are satisfied, 27% of the
respondents stays neutral on freight rates.
INFERENCE:
Majority 38% of the respondents are satisfied

34
 TABLE 4.1.9: Rank the issues faced from carriers during freight forwarding

Variables 1 % 2 % 3 % 4 % 5 % Total
Delivery delay 37 31 52 43 21 17 8 7 3 2 121
Damaging of 5 121
47 39 32 26 24 21 11 9 7
packages
Frequent rise in 121
forwarding cost 21 17 30 24 49 41 13 11 8 7

Lack of proper 42 121

0 0 9 8 28 23 33 27 51
communication
Bulk- Order 26 121
8 7 13 11 22 18 46 38 32
Priority

45 43 42
41
39 38
40
35 31
30 26 27 26
24 1
25 23
21 2
20 17 17 18
3
15 11 11 4
9 8
10 7 7 7 5
5
5 2
0
0
Delivery delay Damaging of Frequent rise Lack of proper Bulk- Order
packages in forwarding communication Priority
cost

CHART 4.1.9: Rank the issues faced from carriers during freight forwarding

INTERPRETATION:

From the above table it could be interpreted that the parameters defining that
Damaging of packages is the main problems faced from carriers during freight
forwarding

INFERENCE:
Majority respondents says Damaging of packages is the main problems faced
from carriers during freight forwarding
35
 TABLE 4.1.10: Rank the issues faced from companies or individual customers
during freight forwarding

Variables 1 % 2 % 3 % 4 % 5 % Total
Delay in 0 121
receiving the 52 43 33 27 28 23 8 7 0
goods
Damaged 0 121
48 39 53 44 14 13 6 4 0
packages
Competitive 121
pricing of 21 18 23 19 32 26 41 34 4 3
forwarding cost
Lack of proper 43 121
4 3 11 9 16 13 39 32 51
communication
Payment delays 19 15 31 26 44 36 16 14 11 9 121

43 44 43
45
39
40 36
34
35 32
30 27 26 26
23 1
25
20 1819 2
15 14 3
15 13 13
9 9 4
10 7
4 3 3 5
5 0 0
0
Delay in Damaged Competitive Lack of proper Payment
receiving the packages pricing of communication delays
goods forwarding
cost

CHART 4.1.10: Rank the issues faced from companies or individual customers
during freight forwarding

INTERPRETATION:
From the above table it could be interpreted that the parameters defining that Delay in
receiving the goods is the main issues faced from companies or individual customers
during freight forwarding

INFERENCE:
Majority of respondents says delay is the main issues faced by freight forwarding

36
TABLE 4.1.11: Theft and damage of the goods

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Strongly Agree 29 25
2 Agree 29 25
Neither Agree Nor
3 Disagree 57 46
4 Disagree 6 4
5 Strongly Disagree 0 0
TOTAL 121 100

50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree
particulars

CHART 4.1.11: Theft and damage of the goods

INTERPRETATION:
From the above table it can be interpreted that 25% of the respondents strongly
agreed that their organization takes responsibilities for the theft and damage, 25% of
the respondents agree, 46% of the respondents disagree, 4% of the respondents have
strongly disagreed that their organization takes responsibilities for the theft and damage.
INFERENCE:
Majority 46% of respondents disagree

37
TABLE 4.1.12: Satisfaction factor

Chennai port Tuticorin Cochin

Very satisfactory 9 8 4 3 9 8
Satisfactory 34 28 34 28 35 28
Neutral 69 58 27 22 69 58
Dissatisfactory 9 6 39 33 8 6
Very 0 0
dissatisfactory 17 14 0 0

70

60

50

40

30

20

10

0
Very satisfactory Satisfactory Neutral Dissatisfactory Very
dissatisfactory
particulars

CHART 4.1.12: Satisfaction factor

INTERPRETATION:
From the above table it can be interpreted that 28% of the respondents
satisfied with the all ports, 58% of the respondents stays neutral about Chennai and
Cochin port.
INFERENCE:
Majority 58% of respondents stays neutral about Chennai and cochin port

38
TABLE 4.1.13: Problem with shipping

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 YES 94 78
2 NO 27 22
TOTAL 121 100

90
80
70
60
50
40
30
20
10
0
Yes No
particulars

CHART 4.1.13: Problem with shipping

INTERPRETATION:
From the above table it can be interpreted that 78% of the respondents agrees
that they have problem with shipping, 22% of the respondents do not have any
problem with shipping.
INFERENCE:
Majority 78% of the respondents agrees that they have problem in shipping

39
TABLE 4.1.14: Promptness of service

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Excellent 9 8
2 Good 34 28
3 Neutral 69 58
4 Dissatisfactory 9 6
5 Highly dissatisfactory 0 0
TOTAL 121 100

70

60

50

40

30

20

10

0
Excellent Good Neutral Dissatisfactory Highly
dissatisfactory
particulars

CHART 4.1.14: Promptness of service

INTERPRETATION:
From the above table it can be interpreted that 8% of the respondents says that
the promptness of service is excellent, 28% of the respondents says good, 58% of the
respondents says neutral about their promptness of service.
INFERENCE:
Majority 58% of the respondents says good

40
TABLE 4.1.15: Safety of goods

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Excellent 4 3
2 Good 34 28
3 Neutral 26 22
4 Dissatisfactory 39 33
5 Highly dissatisfactory 18 14
TOTAL 121 100

35

30

25

20

15

10

0
Excellent Good Neutral Dissatisfactory Highly
dissatisfactory
particulars

CHART 4.1.15: Safety of goods

INTERPRETATION:
From the above table it can be interpreted that 3% of the respondents says that
safety of goods in freight forwarding is excellent, 28% of the respondents says good,
22% of the respondents says neutral on safety of goods in freight forwarding.
INFERENCE:
Majority 28% respondents says good

41
TABLE 4.1.16: Terms and conditions

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Highly satisfied 35 29
2 Satisfied 64 53
3 Neutral 13 11
4 Dissatisfied 9 7
5 Highly dissatisfied 0 0
TOTAL 121 100

60

50

40

30

20

10

0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
particulars

CHART 4.1.16: Terms and conditions

INTERPRETATION:
From the above table it can be interpreted that 53% of the respondents says
that they have satisfied with the terms and conditions of freight forwarding, 7% of the
respondents have not satisfies with the terms and conditions.
INFERENCE:
Majority 53% of respondents says that they satisfied

42
TABLE 4.1.17: Documentation for transaction process

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 YES 96 80
2 NO 25 20
TOTAL 121 100

90
80
70
60
50
40
30
20
10
0
Yes No
particular

CHART 4.1.17: Documentation for transaction process

INTERPRETATION:
From the above table it can be interpreted that 80% of the respondents said
that they have done documentation for transaction process, 20% of the respondents
have said that they have not done documentation for transaction process.
INFERENCE:
Majority 80% of respondents said that have done documentation for transaction
process

43
TABLE 4.1.18: Custom clearance

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Highly satisfied 40 33
2 Satisfied 45 38
3 Neutral 32 27
4 Dissatisfied 4 2
5 Highly dissatisfied 0 0
TOTAL 120 100

40

35

30

25

20

15

10

0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
PARTICULRS

CHART 4.1.18: Custom clearance

INTERPRETATION:
From the above table it can be interpreted that 33% of the respondents highly
satisfied with the custom clearance, 38% of the respondents are satisfied, 27% of the
respondents stays neutral with the custom clearance.
INFERENCE:
Majority 38% respondents are satisfied

44
 4.2 STATISTICAL ANALYSIS

ANALYSIS USING KARL PEARSON’S CORRELATION

Correlation analysis is the statistical tool used to measure the degree to which two
variables are linearly related to each other. Correlation measures the degree of
association between two variables.
Null hypothesis (Ho):
There is positive relationship between mode of transport and satisfaction on freight
rates.
Alternate hypothesis (H1):
There is negative relationship between mode of transport and satisfaction
on freight rates.
Correlations
mode of freight
transport rates
mode of Pearson 1 .146
transport Correlation
Sig. (2-tailed) .111
N
121 121
freight rates Pearson .146 1
Correlation
Sig. (2-tailed) .111
N
121 121

𝒓 = 0.146
INFERENCE:
Since r is positive, there is positive relationship between mode of transport
and satisfaction on freight rates.

45
ONE-WAY ANOVA CLASSIFICATION
Null hypothesis (Ho):
There is a significance difference between the Exporting goods and
Mode of transport.
Alternate hypothesis (H1):
There is no significance difference between the Exporting goods
and Mode of transport.

Descriptives
Exporting goods
N Mean Std. Std. 95% Confidence Minimu Maxim
Deviation Error Interval for Mean m um
Lower Upper
Bound Bound
Shipwa
22 1.59 .503 .107 1.37 1.81 1 2
ys
Airways 47 2.55 .503 .073 2.41 2.70 2 3
Railway
17 3.00 .000 .000 3.00 3.00 3 3
s
Roadw
35 3.77 .426 .072 3.63 3.92 3 4
ays
Total 121 2.79 .875 .080 2.64 2.95 1 4

Test of Homogeneity of Variances

Exporting goods
Levene df1 df2 Sig.
Statistic
61.097 3 117 .000

46
 ANOVA
Exporting goods
Sum of df Mean F Sig.
Squares Square
Between 116.00 .000
Groups 68.728 3 22.909 1
Within
Groups 23.107 117 .197

Total 91.835 120

Calculated value = 116.001 Tabulated value = 2.70

F = F cal >F tab F=116.001> 2.70
Hence, the Alternate hypothesis [H1] is accepted.

INFERENCE:
The calculated value of F is greater than the tabulated value. Hence, we reject
the null hypothesis and conclude that there is no significance difference between the
Exporting goods and Mode of transport.

47
 CHI- SQUARE TEST I – (ψ2)
Chi-square is the sum of the squared difference between observed (o) and the expected
(e) data (or the deviation, d), divided by the expected data in all possible categories.
Null hypothesis (Ho):
There is no significant difference between Operational Area and Satisfaction
factor of Chennai port.
Alternate hypothesis (H1):
There is significant difference between Operational Area and Satisfaction
factor of Chennai port.
Expected frequency = Row Total * Column Total Divided by Grand Total

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent
Operational Area *
Satisfaction factor of 121 100.0% 0 0.0% 121 100.0%
Chennai port

Operational Area * Satisfaction factor of Chennai port Crosstabulation

Satisfaction factor of Chennai port Total
Very Satisfac Neutra Dissatisfa
satisfactor tory l ctory
y

Count 9 34 26 0 69
% within 100.0
Operational Operational Area 13.0% 49.3% 37.7% 0.0% %
Chennai
Area % within
Satisfaction factor 100.0% 100.0% 37.7% 0.0% 57.0%
of Chennai port

48
49
 Linear-by-Linear
53.737 1 .000
Association
N of Valid Cases 121
a. 9 cells (56.2%) have expected count less than 5. The
minimum expected count is .37.

Degree of Freedom= (r-1) *(c-1)

= 3*3= 9
Calculated value = 121.504
Tabulated value = 16.919
Z = Z cal <Z tab
Z= 121.504<16.919
Hence, the null hypothesis [H0] is accepted

INFERENCE:
Since the calculated value is less than the tabulated value, we accept the null
hypothesis and hence there is no significant difference between Operational Area and
Satisfaction factor of Chennai port.

50
 CHAPTER: 5

5.1: FINDINGS

1. 45% of the respondents are in above 50 years of age.

2. 77% of the respondents are male.
3. 37% of the respondents are completed ITI.
4. 31% of the respondents got the income level of 30000 – 40000.
5. 58% of the respondents have functional area in Chennai, 24% of the
respondents have Coimbatore.
6. 43% of the respondents weekly exporting the goods.
7. 18% of the respondents prefers shipways, 40% of the respondents are prefer
airways as their mode of transport.
8. 33% of the respondents are highly satisfied with the freight rates.

9. it could be interpreted that the parameters defining that Damaging of packages

is the main problems faced from carriers during freight forwarding.

10. it could be interpreted that the parameters defining that Delay in receiving the
goods is the main problems faced from companies or individual customers
during freight forwarding.

11. 25% of the respondents strongly agreed that their organization takes
responsibilities for the theft and damage.
12. 58% of the respondents stay neutral about Chennai and Cochin port.
13. 78% of the respondents agree that they have problem with shipping.
14. 58% of the respondents say neutral about their promptness of service.
15. 22% of the respondents say neutral on safety of goods in freight forwarding.
16. 53% of the respondents say that they have satisfied with the terms and
conditions of freight forwarding.
17. 80% of the respondents said that they have done documentation for transaction
process.
18. 33% of the respondents highly satisfied with the custom clearance.

51
 5.2: SUGGESTIONS

1. Freight rates should be effectively modified in order to get more business. From
the study it is clearly verified most of the customers are not satisfied with the
freight rates. So the organization should take necessary steps.

2. The Redova Logistics can update their documentation process with fully
computerised.

3. Shipway is one of the effective ways of transport, but from the study it is clear
that there is a problem in shipping. The company should take right steps to
make the transport very effective.

4. Organization can give full assure for the theft and damage of the products. It
will increase the image of the company.

5. Can give 24/7 customer care service to their customers.

52
 5.3: CONCLUSION

By studying and comparing the various Issues faced by the freight forwarders. It
is easy identify the solutions to avoid the problems and make sure the smooth flow of
business. This will help the company to establish a reasonable share in the market
place.
Thus, the study showcased that, as the world has become a global village, the service
providers like Freight. Forwarders should be prepared to face the challenges of
tomorrow, by extending their network in every corner of the world and providing more
accuracy in their commitments.
A number of new tools and approaches have emerged as proactive elements of the
logistics response to the task of creative value for the customer viz. emphasis on
logistical customer service, management of the supply chain, the development of
strategic alliances
The activity of a Freight Forwarder depends on a series of factors that do not depend
on the Freight Forwarder per se. And second, Freight Forwarders in order to accomplish
their tasks have access to services that are shared by all providers, and that are beyond
their control. To conclude the study identifies infrastructure as a major bottleneck in the
Freight Forwarding sector

53
 ANNEXURE - 1
QUESTIONNAIRE

DEMOGRAPHIC:

1. Age: a) 20-30 b) 30-40 c) 40-50 d) above 50

2. Gender a) Male b) Female
3. Educational Qualification: a) Graduate b) Post Graduate c) ITI d) Diploma 4.
Designation:
5. Income: a) 10,000-20,000 b) 20,000-30,000 c) 30,000-40,000 d) 40,000-50,000 e)
above 50,000
QUESTIONS:
6. Mention the operation area of your asset-based carriers?
1. Chennai
2. Coimbatore
3. Tuticorin
4. Madurai
5. Cochin

7. How frequently you are exporting the goods?

1. Daily
2. Biweekly
3. Weekly
4. Fortnight

8. What is the most preferred mode of transport by your customers?

a) Shipways
b) Airways
c) Railways
d) Roadways
9. What is your opinion about freight rates?
a) Highly Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly Dissatisfied

10. Rank the issues faced from carriers during freight forwarding?
S.No Variables Rank

54
 1 Delivery delay

2 Damaging of packages

3 Frequent rise in forwarding cost

4 Lack of proper communication

5 Bulk- Order Priority

11. Rank the issues faced from companies or individual customers during freight
forwarding?
S.No Variables Rank

1 Delay in receiving the goods

2 Damaged packages

3 Competitive pricing of forwarding cost

4 Lack of proper communication

5 Payment delays

12. Carriers should take responsibility for the theft & damage of the goods?
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree
5Strongly Agree
13. Rate the satisfaction factors in the following port,
Chennai port Tuticorin Cochin
Very satisfactory
Satisfactory
Neutral
Dissatisfactory
Very
dissatisfactory

14. Have you face any problem with shipping?

a. Yes
b. No
If yes please mention it _____________________________

55
15. What is your opinion about the promptness of service given by Redova Logistics to
its customers?
1. Excellent
2. Good
3. Neutral
4. Dissatisfactory
5. Highly dissatisfactory

16. How far you can assure safety of goods in freight forwarding?
1. Excellent
2. Good
3. Neutral
4. Dissatisfactory
5. Highly dissatisfactory

17. Are you satisfied with the terms and conditions for freight forwarding?
1. Highly Satisfied
2. Satisfied
3. Neutral
4. Dissatisfied
5. Highly dissatisfied

18. Is Documentation done for your transaction process?

a) Yes
b) No

19. Are you satisfied with the customs clearance for your goods?

a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly dissatisfied

20. Any suggestions to reduce the problems faced by freight forwarders?

56
 ANNEXURE 2
BIBLIOGRAPHY BOOKS

• Jain Khushpat .S - Export Import Procedure And Documentations, Mumbai,

Himalaya Publishing House, Third Editions 2006.
• PramodRao – Logistics Management Concept And Cases, Hyderabad, The
Icfai University, First Edition 2007.
• RaghuramAnd N. Rangaraj – Logistics And Supply Chain Management, Mac
Millan India Limited, 2001 Delhi.
• Martin christo-pher – Logistics And Supply Chain Management, , New Delhi.
• Cr.Kothari – Research Methodology, International (P) Ltd New Edition 1998,
Second Edition 2004, New Delhi.
• KrishnaveniMuthaih – Logistics Management Mumbai, Himalaya Publishing
House, 1999.

JOURNALS

• Sebastian,” Problems of Logistics Industry”, Journal of business logistics,

Apr15, 2002

• Davis, Beth R,” Logistics service driven loyalty: an exploratory study”, Journal
of business logistics, 2006

WEBSITE www.shipingindia.com
www.cargoportalservices.com

57
 A STUDY ON ISSUES FACED BY FREIGHT FORWARDERS

Mr. KEVIN KENNEDY J., STUDENT, MASTER OF BUSINESS ADMINISTRATION,

SATHYABAMAINSTITUTE OF SCIENCE AND TECHNOLOGY, CHENNAI, INDIA
Dr. DHIVYA SATHISH, ASSISTANT PROFESSOR, SCHOOL OF BUSINESS ADMINISTRATION,
SATHYABAMA INSTITUTE OF SCIENCE AND TECHNOLOGY, CHENNAI, INDIA

ABSTRACT: The term Logistics Management or supply chain 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's requirements.
A freight forwarder is a person or company that organizes shipments for individuals or corporations to get large orders
from the manufacturer or producer to market or final point of distribution. It is important to analyses the Issues faced by
freight forwarders from the carriers as well as companies and individual customers. By studying and comparing the
various issues faced by the freight forwarders. It is easy identify the solutions to avoid the problems and make sure t he
smooth flow of business. This will help Logistics to establish a reasonable share in the market place. The research uses
the convenience sampling method. The data were collected from employees of Reputed organization . The questionnaire
circulated through Google form received 121 responses. Descriptive analysis and ANOVA were used to analyses the
given data.
Keywords: logistics, freight forwarders, issues, employee, third party logistic

I. INTRODUCTION:
1.1 Logistics: logistics refers to the overall process of managing how resources are acquired, stored,
and transported to their final destination. Logistic management involves identifying prospective
distributors and suppliers and determining their effectiveness and accessibility
1.2 Freight forwarders: freight forwarders is a person or company that organizes shipment for
individuals or corporations to get goods from the manufacturer or producer to a market, customer,
or final point of distributer
1.3 Third party logistics: a 3pl provider out sourced logistic services which encompass anything that
involves management of one or more facets of procurement and fulfillment activities

1
 II. OBJECTIVES OF THE STUDY:

To study the issues faced by freight forwarders with special reference to reputed organization in Chennai

III. RESEARCH METHODOLOGY

1.1 Population size and sample size:
The population size of the employee in reputed organization in Chennai City is indefinite. The sample
size is confined 121 respondents. The research uses convenient sampling method.
1.2 Primary and secondary data:
The study is completely based on primary data. Primary data for the study is collected through the self-
administered questionnaire which was circulated through Google forms. The study uses Secondary data
for theoretical framework of the study and Review of literature collected from journals, books, thesis and
magazines.
1.3 Questionnaire Development:
The structured form consisted of two sets; the primary set consisted of the demographic profile of the
employee of redova, the Second set consisted of the issues. The factors of issues weremeasured with
the assistance of a ranking question
1.4 Theoretical framework:
The variable in this research able to divide into 2 parts, first Independent Variables and second Dependent
Variables as follows:
• Independent Variables: able to divide into 4 variables as follows:
a) Demographic
• Dependent Variables
a) issues faced from company or individual customers during freight forwarding and issues
faced from freight rates and mode of transports

IV. REVIEW OF LITERATURE:

Benjamin Ertel and Mike Jones (2007) A study on “Performance Based Logistics Perspective”. The objective of the study is
about the critical concepts for successful PBL incorporation and common PBL misconceptions in logistics. It also describes
keys to successful PBL implementation Viz. Alignment of supplier incentives with requirements, competitive advantage and
empowerment of support provider. It gives the PBL value proposition as improved integration and gives the necessary steps for
implementation of performance based logistics.

2
Sebastian (2008) A Study on “Problems of Logistics Industry “. The objective of the study about the problem that faced
logistics industry. He concluded that India’s logistics industry is low in their planning and current professionals in the industry
should sharpen their skills on a broad base of key elements of transportation and logistics. Finally he said that, there should be
very balanced between solid knowledge and real world application.

M. Dhanabakyam and K. Parimala (2006) A study on “Role of Freight Forwarders and Customs House Agents In Logistics-
A Perceptual Study. The study concerned with the freight forwarding is a vital part of logistics in international trade activity.
The objective of the study was to identify the study appraise the role played by Freight Forwarders in logistics was conducted.
Thus the study showcased that, as the world has become a global village, the service providers like Freight. Forwarders should
be prepared to face the challenges of tomorrow, by extending their network in every corner of the world and providing more
accuracy in their commitments.

Davis, Beth R (2006), a study on” Logistics service driven loyalty: an exploratory study”. The Journal shows that supply chain
relationships can be a stable source of competitive advantage to firms in the supply chain because of their ability to create
barriers to existing competition and conclude that improving logistics customer service is an ongoing focus for firms. Suppliers
are trying to become more proactive with their customers and anticipate customer expectations.

Mohitayalamanchi (2009), a study on “Logistics and Customer Value”, the objective of the study is about the customer value
that companies have created through logistics management, in their quest for new ways to establish a competitive edge. A
number of new tools and approaches have emerged as proactive elements of the logistics response to the task of creative value
for the customer viz. emphasis on logistical customer service, management of the supply chain, the development of strategic
alliances. It gives an explanation of various steps taken by different firms for identifying and implementing quality
improvement processes in the logistics areas.

Berrada A. Chakir&Ciro Aida (2009), a study on “Bottlenecks in the Freight

Forwarding sector in West-coast Africa”. The objective of the study about a to identify the bottleneck/s within the freight-
forwarding industry in west coast Africa. The Study revealed that the series of interesting findings First, the activity of a Freight
Forwarder depends on a series of factors that do not depend on the Freight Forwarder per se. And second, Freight Forwarders in
order to accomplish their tasks have access to services that are shared by all providers, and that are beyond their control. To
conclude the study identifies infrastructure as a major bottleneck in the Freight Forwarding sector.

Bock (2012) Proposed a real time oriented control approach for freight forwarders to expand load consolidation , reduce empty
vehicle trips , and handle dynamic disturbances.

3
V. RESULTS
5.1 Demographic factors:
Table 5.1 Table indicating the Percentage analysis of Demographic Factors

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 20-30 8 7
2 30-40 18 15
2 40-50 40 33
4 Above 50 55 45
TOTAL 121 100

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 MALE 93 77
2 FEMALE 28 23
TOTAL 121 100

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Graduate 34 28
2 Post graduate 23 19
3 Iti 45 37
4 Diploma 19 16
TOTAL 121 100

4
 5.2 percentage analysis

Table no 5.2.1: Mode of transport

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Shipways 22 18
2 Airways 47 40
3 Railways 17 14
4 Roadways 35 28
TOTAL 121 100

45
40
35
30
25
20
15
10
5
0
Shipways Airways Railways Roadways
particulars

CHART 5.2.1: MODE OF TRANSPORT

INTERPRETATION:
From the above table it can be interpreted that 18% of the respondents prefers shipways, 40% of the
respondents are prefer airways as their mode of transport.
INFERENCE:
Majority 40% of the respondents are preferred airways as their mode of transport.

5
TABLE 5.2.2: Opinion about freight rates

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Highly satisfied 40 33
2 Satisfied 45 38
3 Neutral 32 27
4 Dissatisfied 4 2
5 Highly dissatisfied 0 0
TOTAL 121 100

40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
particular

CHART NO 5.2.2: Opinion about freight rates

INTERPRETATION:
From the above table it can be interpreted that 33% of the respondents are highly satisfied with the freight
rates, 38% of the respondents are satisfied, 27% of the respondents stays neutral on freight rates.
INFERENCE:
Majority 38% of the respondents are satisfied

6
 5.3Relationship between mode of transport and satisfaction on freight rates.

ANALYSIS USING KARL PEARSON’S CORRELATION

Correlation analysis is the statistical tool used to measure the degree to which two variables are linearly related to
each other. Correlation measures the degree of association between two variables.
Null hypothesis (Ho):
There is positive relationship between mode of transport and satisfaction on freight rates.
Alternate hypothesis (H1):
There is negative relationship between mode of transport and satisfaction on freight rates.
Correlations
mode of freight
transport rates
mode of transport Pearson 1 .146
Correlation
Sig. (2-tailed) .111
N
121 121
freight rates Pearson .146 1
Correlation
Sig. (2-tailed) .111
N
121 121

𝒓 = 0.146

INFERENCE:
Since r is positive, there is positive relationship between mode of transport and satisfaction on freight rates .

7
 ONE-WAY ANOVA CLASSIFICATION
Null hypothesis (Ho):
There is a significance difference between the Exporting goods and Mode of transport.
Alternate hypothesis (H1):
There is no significance difference between the Exporting goods and Mode of transport.

Descriptive
Exporting goods
N Mean Std. Std. 95% Confidence Minimu Maxim
Deviation Error Interval for Mean m um
Lower Upper
Bound Bound
Shipwa
22 1.59 .503 .107 1.37 1.81 1 2
ys
Airways 47 2.55 .503 .073 2.41 2.70 2 3
Railway
17 3.00 .000 .000 3.00 3.00 3 3
s
Roadw
35 3.77 .426 .072 3.63 3.92 3 4
ays
Total 121 2.79 .875 .080 2.64 2.95 1 4

Test of Homogeneity of Variances

Exporting goods

Levene df1 df2 Sig.

Statistic
61.097 3 117 .000

8
 Sum of df Mean Square F Sig.
Squares
Between 116.00 1 .000
Groups 68.728 3 22.909
Exporting goods
Within Groups
23.107 117 .197

Total 91.835 120

Calculated value = 116.001 Tabulated value = 2.70

F = F cal >F tab F=116.001> 2.70
Hence, the Alternate hypothesis [H1] is accepted.

INFERENCE:
The calculated value of F is greater than the tabulated value. Hence, we reject the null hypothesis and
conclude that there is no significance difference between the Exporting goods and Mode of transport.

9
VI. FINDINGS

1. 45% of the respondents are in above 50 years of age.

2. 77% of the respondents are male.
3. 37% of the respondents are completed ITI.
4. 31% of the respondents got the income level of 30000 – 40000.
5. 58% of the respondents have functional area in Chennai, 24% of the respondents have Coimbatore.
6. 43% of the respondents weekly exporting the goods.
7. 18% of the respondents prefers shipways, 40% of the respondents are prefer airways as their mode of
transport.
8. 33% of the respondents are highly satisfied with the freight rates.

9. it could be interpreted that the parameters defining that Damaging of packages is the main problems faced
from carriers during freight forwarding.

10. it could be interpreted that the parameters defining that Delay in receiving the goods is the main problems
faced from companies or individual customers during freight forwarding.

11. 25% of the respondents strongly agreed that their organization takes responsibilities for the theft and damage.
12. 58% of the respondents stay neutral about Chennai and Cochin port.
13. 78% of the respondents agree that they have problem with shipping.
14. 58% of the respondents say neutral about their promptness of service.
15. 22% of the respondents say neutral on safety of goods in freight forwarding.
16. 53% of the respondents say that they have satisfied with the terms and conditions of freight forwarding.
17. 80% of the respondents said that they have done documentation for transaction process.
18. 33% of the respondents highly satisfied with the custom clearance.

10
VII. CONCLUSION

By studying and comparing the various Issues faced by the freight forwarders. It is easy identify the solutions to avoid
the problems and make sure the smooth flow of business. This will help the company to establish a reasonable share in
the market place. Thus, the study showcased that, as the world has become a global village, the service providers like
Freight. Forwarders should be prepared to face the challenges of tomorrow, by extending their network in every corner
of the world and providing more accuracy in their commitments. A number of new tools and approaches have emerged
as proactive elements of the logistics response to the task of creative value for the customer viz. emphasis on logistical
customer service, management of the supply chain, the development of strategic alliances The activity of a Freight
Forwarder depends on a series of factors that do not depend on the Freight Forwarder per se. And second, Freight
Forwarders in order to accomplish their tasks have access to services that are shared by all providers, and that are
beyond their control. To conclude the study identifies infrastructure as a major bottleneck in the Freight Forwarding
sector

11
VIII. REFERENCES

• Jain Khushpat .S - Export Import Procedure And Documentations, Mumbai, Himalaya Publishing House,
Third Editions 2006.
• PramodRao – Logistics Management Concept And Cases, Hyderabad, The Icfai University, First Edition
2007.
• RaghuramAnd N. Rangaraj – Logistics And Supply Chain Management, Mac Millan India Limited, 2001
Delhi.
• Martin christo-pher – Logistics And Supply Chain Management, , New Delhi.
• Cr.Kothari – Research Methodology, International (P) Ltd New Edition 1998, Second Edition 2004, New
Delhi.
• KrishnaveniMuthaih – Logistics Management Mumbai, Himalaya Publishing House, 1999.

JOURNALS
• Sebastian,” Problems of Logistics Industry”, Journal of business logistics, Apr15, 2002

• Davis, Beth R,” Logistics service driven loyalty: an exploratory study”, Journal of business logistics, 2006

WEBSITE www.shipingindia.com
www.cargoportalservices.com

12