ACKNOWLEDGEMENT

We have immense pleasure in successful completion of this work titled:

“ LOGISTICS AND EXPORT PROCEDURES ”. The special environment at STES

SKN SSBM, Pune that always supports educational activities, facilitated my work on this project.

We acknowledge the support, the encouragement, extended for this study by our Director Dr. Rajashree Shinde and Co-ordinator Prof. Jyotsana Jadhav.

We greatly appreciate the motivation and understanding extended for the project work, by Mr. Santosh Lunkad, who responded promptly and enthusiastically to my requests for frank comments, despite their congested schedules. We are indebted to all of them, who did their best to bring improvements through their suggestions.

We are also thankful to my college’ Library Staff & Administrative Staff STES

SKNSSBM College, who directly or indirectly have been helpful in some or the other way.

We thank our Dearest Parents, who encouraged me to extend my reach. With their hep and support, We have been able to complete this work.

Introduction

Selection of Topi c:

In partial of our M.B.A course, we are supposed to prepare a project report for our subject “Project Report” in order to show our skills and also to prove our abilities. Hence, we took the opportunity to increase our knowledge concerning to the Foreign Trade Field through this topic.

For us it was a great opportunity and therefore we have selected the title of my project i.e. “LOGISTICS and EXPORT PROCEDURES” with

reference to Prof. Joystana Jadhav.

Objectives of Project

Since we have a keen interest in knowing new things especially related to the area of Foreign Trade. We selected a topic related to the area of this field.

As we want to enhance our career from the Foreign Trade stream, the research made by us to complete this project will prove to be very helpful.

The main objective of our project on the topic “Logistics and Export Procedures” is to study the import and export procedures under logistics and advantages of it with the opening up of Globalization which indeed resulted as the main cause for the emergence of FOREIGN EXHCANGE EARNINGS IN India.

So, we would like to clearly mention that, my project purely involves the basic concepts of The Logistics and Export trade.

LOGISTICS

Logistics is the art of managing the supply chain and the science of managing

and controlling the flow of goods, information and other sources like energy and

people between the point of origin to the point of consumption in order to meet

customers’ requirements. It involves integration of information, transportation,

inventory, warehousing, material handling, and packaging.

Export Logistics involve international movement of cargo. This business has

undergone a great change over the years. Not only have volumes gone up

manifold, the approach to handling those volumes has also seen a paradigm shift.

In short integrated logistics is concerned with getting products and services where

they are needed and required.

The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process and finished inventories where required and achieving a

target level of customers at the lowest cost possible.

SUPPLY CHAIN

A supply chain is a network of facilities and distribution options that performs the

functions of procurements of materials, transportation of these materials into

intermediaries and finished product and the distribution of these finished products to the

ultimate consumer.

A supply chain consists of three or more companies directly linked to each other a basic

supply chain consists of a company and immediate supplier and an immediate customer.

Supply chain involves integration of business processes and linkages with suppliers and

customers in the value chain.

Logistical competency can be achieved by integrating and coordinating its 5 main

constituents.

Hence logistics is concerned with the following functions:

1. INFORMATION

Information plays an important role in every logistical system. Information quality

is of great importance as it reflects on positioning inventory and movement of

goods ultimately results into efficiency of total operations.

Forecasting and Order management are two areas of logistical work that depend

on information.

2. NETWORK DESING

It is the determination of the number and location of all types of facilities required

to perform logistics work based on geographical location of facility. Specific tasks

related to processing customer orders, maintaining inventory and material

handling are all performed within the network design framework. In global

logistics, issues related to network design become more complex in nature.

3. TRANSPORTATION

Based on facilities like network design and information system, transportation is

the operational area of logistics that geographically positions inventory.

Transportation is having fundamental importance and visible cost. It can be

accomplished by –

Having own/Private fleet of vehicles;

Having contracts with transporters/logistics service providers – contract

carriage;

Appointing number of carriers to execute different orders in relevant

manner – common carriers.

4. INVENTORY

The inventory requirements of a firm depend on the network structure and the

desired level of customer service. Common objective is to accomplish efficiency

in customer service by maintaining inventory at minimum level with consistency

in lower total cost. Errors in design of logistical system and inferior management

results into excess inventories.

5. WAREHOUSING, MATERIAL HANDLING AND PACKING

Earlier a warehouse is typically viewed as a place to store inventory. However, in

many logistical system designs, the role of the warehouse is more properly viewed

as switching facility as contrasted to a storage facility. A major problem in

logistical operations during the past several decades has been the level of labor

productivity. Productivity is ratio of physical output to physical input.

Material handling process deals with number of labor hours required to perform

creates a vulnerability to any reduction in the output rate as per labor hours. The

application of labor to product selection and handling represents one of the

logistics highest personnel cot components.

Packaging has a significant impact on the cost and productivity of the logistical

system. Costs are associated with packaging raw materials, labor and disposal

functions.

Therefore logistical service is a balance of service priority and cost.

Three Parameters to Measure

Logistical Competency

1. Availability:

Having inventory/stocks to consistently meet the customer product needs.

2. Operational performance:

It deals with the lapse time from the order receipt till/to the delivery of the

product. It can also be viewed in terms of its flexibility in accommodating

unusual and unexpected customer request.

3. Service flexibility:

It means quality attributes of logistics.

The firm established with expressed of objective of providing integrated

logistical services to shipper customers. The vision of these firms is to offer a

service sufficiently comprehensive to provide all or a significant part of

shipper’s total logistical requirements. This activity is called as “Third party

logistics (3PL) and the firm who undertakes the said activity is called as

“third party logistics service provider”.

EXPORT PROCEDURES

INTRODUCTION TO EXPORT

Export trade is governed by legal controls and therefore, every function of it is

carried out under definite procedures. The various procedures that are followed

in the export of goods facilitate execution of export in a systematic manner.

Export market is not merely an extension of domestic market. Apart from the

basic principles of business in domestic as well as foreign market, selling

abroad requires specialised knowledge regarding certain matters such as

detailed market surveys, shipping, marine insurance, customs and foreign

exchange formalities etc.

Preliminaries

1. IEC Number:

Every person (whether an individual, former co.) importing or exporting goods

require an Importer-Exporter Code number (unless specifically exempted by the

DGFT). The IEC number is normally allotted by the Regional Licensing Authority

(RLA) this code number is required to be incorporated in the various export

documents submitted to the authorities for purposes of export.

2. Obtaining Permanent Account Number (PAN):

Export income is subject to a number of exemptions and deductions under

different section of Income Tax Act. For claiming such exemptions and

deductions, the exporter should register his organization with the income tax

authorities and obtain the Permanent Account Number.

3. Membership-Cum-Registration:

Membership of certain bodies will help the exporters in a number of ways. There

are specified Export Promotion Councils for various products groups.

Exporters are advised to become members of local Chambers of Commerce,

Productivity Council, or any other trade promotion organization recognized by the

Ministry of Commerce or Industry.

(a) Registration with EPC/FIEO: For any benefit or concession under the EXIM

policy, an exporter is required to register him with the appropriate authority

and obtain a Registration-cum-membership certificate (RCMC).

(b) Registration with Sales Tax Authorities: For getting exemption from sales

tax on the goods, the exporter should be registered with the Sales Tax

authorities of the concerned state.

(c) Registration with ECGC: The exporter should also register with the Export

Credit and Guarantee Corporation of India (ECGC) in order to secure overseas

payments against political and commercial risks.

4. Inquiry and Offer:

An enquiry is a request from a prospective importer about description of goods,

their standard or grade, size, weight or quantity, terms of payments, etc. on getting

an getting an enquiry, the exporter must process it immediately by making an offer

in the form of proforma invoice.

5. Confirmation of Order:

Once the negotiations are completed and the terms and the terms and conditions

are finalized, the exporter sends three copies of proforma invoice to the importer

for the confirmation of order. The importer signs these copies and sends back two

copies to exporter.

6. Finance:

If the exporter requires pre-shipment financial assistance, he should take the

necessary steps to obtain it.

7. Production or Procurement of Goods:

On securing the pre-shipment finance from the bank, the exporter either arranges

for the production of the required goods or procures them from the domestic

market as per the specifications of the importer.

8. Packing and Marking:

The goods should be properly packed and marked with necessary details such as

port of shipment and destination, country of origin, gross and net weight, etc.

9. Obtaining Mate’s Receipt and Bill of Lading:

The goods are loaded on board the ship for which the Mate or the Captain of the

ship issues Mate’s receipt to the Port Superintendent. The Port Superintendent, on

receipt of port dues, hands over the Mate’s receipt to the C & F Agent.

10. Submission of Documents by C & F Agent to the Exporter:

On the completion of the shipping procedure, the C & F agent submits the

following documents to the exporter:-

A copy of invoice duly attested by the Customs.

Drawback copy of the shipping bill.

Export promotion copy of the shipping bill.

A full set of negotiable and non-negotiable copies of bill of lading.

The original L/C, export order or contract.

Duplicate copy of the ARE-I form.

DYNAMIC LOGISTICS

COMPANY PROFILE

Dynamic Logistics is an end-to-end logistics provider dedicated to providing strategic

business results via innovative technologies, expert financial analysis, and time-proven

distribution policy practices. Dynamic Logistics PVT. Ltd. Founded in 1983 is the

flagship company of the Talera Group. Starting modestly as a simple warehousing

company, today it is recognised as the pioneering giant that ushered the role of Third

Party Logistics (3PL) Services in the country. Dynamic Logistics provides a vast array of

services to various brand established clients in multi-locations.

By providing the expertise in Inventory and Distribution management which extend to

over 600 destinations in India and abroad, it has catapulted as the industry in 3PL

Services. It is the first ISO-9002 compliant logistics provider in India and has upgraded

the standard to the current ISO 9001-2000. The company’s mission is to provide world-

class, cost effective and highly efficient end-to-end global supply chain solutions so as to

enable its clients to significantly improve their performance capabilities where

dramatically are cutting their logistics costs. The company corporate office and operation

base is in Pune, India, a city which is well connected by road, rail & air; is ideally located

near all major industrial hubs which seek the specialised services, and is also in proximity

to the port city Mumbai which facilitates the EXIM Trade. The 3PL Services in Pune are

currently operated from three centres and the company is also represented for very

esteemed and established clients in Chennai, Indoor and Aurangabad. Besides the

Logistics Services, the company also operates in Pune the Inland Container Depot

(ICD) or the Dry-Port facility with custom bonded warehouses and the provision for

clearing ship and air cargo which is a boon to hinterland based importers and exporters.

Vision and Mission of Dynamic Logistics

VISION: 

To  be  the  preferred  business  partner  to  organizations striving  for dramatic  improvement  in   performance.

MISSION: 

To  enable  our  clients  to  significantly  improve  their performance  capability  and  to  be  proactive  by  managing  change ;  providing   them  with  world –class,   cost  effective and  highly  efficient , technology enabled  logistics  services.

SERVICES:

From in-depth analysis of their business plan to site selection and operations, Dynamic Logistics is uniquely positioned to help you optimize your distribution network. Its major services are

Supply Chain Management (SCM)

Warehousing

Container Freight Station

Fleet services

Technology solutions.

Dynamic logistics uses state-of-the-art network modelling tools to determine how well their distribution network is serving their customers. From inbound to outbound, we analyse their facilities, inventory, and service, employing all modes of transportation.

(A) SUPPLY CHAIN MANEGEMENT

Dynamic Logistics is one source for comprehensive logistics services. Our established operations around the world 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, including computers, automotive and e-commerce.

INBOUND LOGISTICS

Just in time Supply i.e. JIT

Milk Run collection

Consolidation Centres

Excise and Octroi support

Reverse logistics

Cluster formation

OUTBOUND LOGISTICS

Pre Delivery Inspection

Accessory fitting

Unit packing

Export Packing is the ambassador of their brand. Right type of packing as per the country of the consumption is vital. Dynamic understands this need and has developed mechanism to provide packing that would meet stringent quality standards set by global standards. Packing for domestic markets has to undergo various obstacles on the way. On one side packing has to withstand in transit upheavals, on the other side it has to take care of pilferage and their elimination. Packing need to take care of different characteristic of the product being packed.

Labelling requirement varies from country to country and market to market. It also needs to take into account requirement as per the local laws. At the corporate level this activity is beyond core-competence of the company profile. Dynamic has experience to undertake labelling if products and free companies to concentrate on their core functions. With vast experience of last eight years in business dynamic has labelled products amounting to over 2 billion rupees.

PROCUREMENT

Purchase function Purchase Order Management Inventory Level Maintenance Schedule Generation Reporting

Order desk is a place where all types of dealer orders through fax, email and telephones are received, the order is single source of communicate to dealers on the state of their orders. Order desk provides information on the status of order fill, items moved into back order, expected date of arrival of such items from suppliers. In case the dealers are provided schedule to place an order this information is again given by order desk to dealers.

WAREHOUSING

Growing beyond one million sq. ft. of warehousing space with large realty holdings in Pune, Chennai and other cities of India. Dynamic Logistics is geared to take on daunting logistic challenges of the new millennium, their service more than 400 locations in India and Nepal.Warehouse building

Warehouse Location Selection Material Handling

INVENTORY CONTROL

Minimum Inventory Levels LIFO FIFO Inventory Counts

Inventory counts cycle counts can be undertaken both manual as well as through computer control. The idea behind cycle count is to eliminate the year end farce of undertaking full inventory count. If required they can undertake computerised inventory count where data will be uploaded from a hand-held terminal. End of Period Counting Audits and in hand with the cycle count we can undertake process audit in your organisation. The audits will look at streamlining processes, reducing waste and cut down on paper work. Minimum Inventory Levels LIFO FIFO.

VALUE ADDED SERVICES

Dynamic Logistics expertise extends far beyond merely providing warehousing and transportation services. A good majority of their work for clients involves value-added services such as Labelling/Bar coding put away also refers as binning in the warehouse parlance. It is the starting line of warehousing activity. Picking/Packing If picking is the value-generating department then packing materialises these values. Picking can be divided into assignments greatly enhances pick time and allows faster inventory turnaround time. Packing needs to consider the type of part that needs to be packed.

Dynamic logistics offers a full range of customised transportation solutions and services. They can serve as an extension of their business and provide a single-source transportation solution to meet your specific needs. They adopt non asset based transport management model which optimally utilises vast source of small transport operators. Generating synergy from both inward and outward transport requirements of their various clients, they optimize the transportation costs and ensure peak performance.

Planning

Route planning with the help of road map, load factor and frequency route will be planned to bring or deliver material to customer cluster information vendor or customer locations are being analyzed to cluster are made for effective control and cost optimization schedule generation movement.

Milk route collection according to pick-up schedule material from certain radius will be lifted from the vendors and be delivered to assembly line of clients as JIT concept. Milk route distribution material will be distributed from specific point to different delivery within certain radius as per given schedule.

Optimization

Route optimization Freight optimization Planning for Minimum Handling

TECHNOLOGY SOLUTIONS

A dynamic e-com solution is the IT division of Dynamic Logistics. They are involved in the building of Application Software, Web-sites and Web-Portals. They have developed major software’s like CFS, WMS and TMS, which are instrumental in the efficient and lucrative execution of operations throughout Dynamic Logistics.

CAREERS

OUR PEOPLE, OUR ASSETS

1. They select and retain the right people who are team players and realise that the greatest opportunity is to manage their customers.

2. Their quality policy speaks of constant innovation and updating, which comes from the inner desire to excel by learning and sharing with the continuous stress on results.

3. Their techno-savvy personnel from varied professional background constantly bench-mark their overall output through self appraisal.

4. Their individual employees are their advantage, and their combined team is their biggest asset, where each player focuses on total customer service and satisfaction.

S.W.O.T. ANALYSIS OF COMPANY

STRENGTH:

1. There is strong support from the government to Inland Container Depot and Dynamic Logistics is ICD.

2. Providing 3PL services are cost-effective and of good quality.

WEAKNESS:

1. An unfavourable rule for private companies and Dynamic is Private ICD.

OPPORTUNITIES:

1. Huge potential in the domestic as well as foreign market.

2. Increasing popularity of this company.

THREAT:1. Competitive rivalry in markets, competitors is also sourcing components

from the same Dynamic suppliers at low cost.

2. There are many competitors are there to Dynamic and which are wholly owned by Government and this is Private Company.

OBSERVATIONS

1. Dynamic Logistics is a Service provider company which provides 3PL Services, and it is also Dry port.

2. Overall the hospitality and service I received was worth appreciating.

3. The employees were very co-operative and share a friendly relationship with the top level and low level as well.

4. Company is having good infrastructure and the services they are offering and providing are good quality.

5. Dynamic offers 3PL, SCM, Warehousing, Fleet services and technology solutions

CONCLUSION

After taking into consideration and going through the procedure of the company for

EXIM we arrived at following conclusion.

Export logistics have assumed a different and more important role in recent years.

Warehousing is a crucial component of export logistics.

This visit has given me firsthand experience of physical and psychological aspects

involved.

It helped me a lot to bridge the gap between theory application and practical

application of it.

Information is the lifeline of any business, particularly so in the case of foreign

trade.

There is huge opportunity in this field, because of the ultimate demand from the

foreign countries, thus it helps in generating employment opportunities.

BIBLIOGRAPHY

NAME OF THE BOOK AUTHOR NAME

1. International Logistics Pierre David

2. Export and Import management Aseem Kumar

Websites

1. en.wikipedia.org 2. www.dynamiclogistic.com