INTRODUCTION TO LOGISTICS

Logistics is a broad, far-reaching function which has a major impact on a society’s

standard of living. In a modern society, we have come to expect excellent logistics services, and
tend to notice logistics only when there is a problem.

 The difficulty in shopping for food, clothing, and other items if logistics systems do not
conveniently bring all of those goods or items together in one place, such as a single store or
a mall.

 The challenge in locating the proper size or style of an item if logistical systems do not
provide for a wide mix of products, colours, sizes, and styles through the assortment process.

 The frustration of going to store to purchase an advertised item, only to find out the store’s
shipment is late arriving.

There are only few of the issues for granted which illustrate how logistics touches many
facets of daily lives. Because of the magnitude of the impact of logistics on society and
individuals, a macro approach is taken to understand the logistics management.

Logistics is called by the many names, including the following:

 Business logistics

 Distribution

 Logistical management

 Supply chain management

 Supply management

What these terms have in common is that they deal with the management of the flow of
goods or materials from one point of origin to point of consumption, and in some cases even to
the point of disposal.

The Council of Logistics Management (CLM) describes logistics management as “The

process of planning, implementing and controlling the efficient, effective flow and storage of
goods, services, and related information from point of origin to the point of consumption for the
purpose of conforming to customer requirements.”
 KEY LOGISTICS ACTIVITIES

Outlined below are the key activities required to facilitate the flow of a product from
point of origin to point of consumption. All of these activities, listed below, may be considered
part of the overall logistics process.

 Customer service
 Demand forecasting/planning
 Inventory management
 Logistics communication
 Material handling
 Order processing
 Packaging
 Plant and warehouse site selection
 Procurement
 Return goods handling
 Traffic and transportation
 Warehousing and storage

While all organization may not explicitly consider these activities to be part of logistics
activities, each activity affects the logistics process.
 NEED FOR THE STUDY

To study the various aspects involved in the Logistics management.

Logistics management is also important for creating visibility into a company’s supply chain.

Advanced transportation management systems (TMS) analyze historical data and track real-

time movement of goods into and out of a business. Logistics managers can use this

information for process optimization and avoiding potential disruptions. TMS data analysis

keeps a company’s supply chain moving more efficiently, all while gaining operational

insight.

Proper logistics management drives increased revenue. Improved customer service can bring

a good reputation to a company’s brand and generate more business, and supply chain

visibility creates opportunity for major cost savings in operations. Logistics management will

give a company control over inbound freight, keep inventory at optimal levels, organize the

reverse flow of goods, and utilize freight moves on the proper transportation modes – all of

which can cut costs significantly.

OBJECTIVES OF THE STUDY

1. To understand the logistics management and role of infrastructure in logistics

management.
2. To study various documents maintained while transportation of goods.
3. To study manpower used and material handling in loading and unloading of
trucks.
4. To study various costs involved in logistics and steps to reduce those costs.
5. To study the booking and delivery process maintained in organization and
importance of warehousing in logistics.
 METHODOLOGY OF STUDY

It’s not only the data; it is the way in which we collect the data. So methodology
is the sequence in which the data are collected. The tools for collection of data for the present
project work are the primary data and secondary data. The information furnished in this report
has been collected primary data as well as secondary data.

The primary data is collected through the interaction with the managers,
supervisors, drivers, and labours of the company. The secondary data has been collected from
annual reports and company website.

LIMITATIONS OF THE STUDY

The necessary information about the project was given by the company. Some of the
study was depended on observation.

1. As the period of the study is limited so the data collection also will be limited.
2. As the data is collected in the working hours of the employees, they are busy and they
could not give the complete response.
3. Unable to obtain proper feed back because of the limited time period & busy schedule of
the employees.
4. Unable to interact with all the employees.
5. Problem with the confidential information.
 INDUSTRY PROFILE

INDUSTRY OVERVIEW

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

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

Recent scenario

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

Healthy economic growth, rise in the production of key commodities, infrastructure

investments and growth in import-export have led to growth in freight movement in the past 5
years, with roadways dominating freight movement on account of higher flexibility, reach and
customer preference.
 Domestic freight transportation service (DFTS) refers to transportation of goods within
India; Here the mode of transportation also mainly refers to roadways and railways, as they carry
nearly 90 per cent of the cargo in volume terms.

The domestic freight transport services may be characterized as a large growing sector.
The size of the DFTS sector in India, comprising mainly transport by roads, railways, coastal
shipping and pipelines is estimated at 1,590 billion tonne kilometres (btkm) in volume terms and
at Rs. 1,990-2,010 billion in value terms in 2006-07. In volume terms, as per CRISIL Research it
is estimated that the sector has grown at 10.5 per cent per annum during 2001-02 to 2006-07,
whereas during 2006-07 to 2011-12, it is forecast to grow at 10.1 per cent per annum, and reach a
projected size of 2,569 bottom by 2011-12.Going forward, given the buoyancy in the economy
and expected completion of infrastructure projects, the overall freight movement is expected to
remain strong. As a result, roadways will further gain market share, backed by its inherent
advantages of flexibility and due to the growth in demand from redistribution segment. On the
other hand, railways’ share will decline on account of capacity constraints, until the dedicated
freight corridors are completed.

In 2006-07, road transport services comprised nearly 58 per cent of the total freight share,
followed by rail transport at around 32 per cent and coastal shipping and pipelines with relatively
smaller shares of around 5 percent each. As per CRISIL Research roadways expects to continue
to dominate freight movement, with its share expected to grow to a tidy 61 per cent in 2011-12.

On the other hand, the share of railways is expected to decline to 29 per cent in 2011-12,
on account of capacity constraints during the same period, while the share of pipelines and
coastal movements will remain small. Thus, road transport will remain the growing segment,

owing to its plus points such as greater coverage, higher flexibility and door-to-door delivery.
The sector will enjoy the benefits out of its inherent advantages despite higher effective cost.
Other factors like lower risk of handling loss, lesser loading and unloading of goods, investments
made in the NHDP and relatively higher customer orientation as perceived by users also give
road freight transport an edge.

Transportation is the process of moving goods and passengers from origin to destination
in the timely and cost efficient manner possible with the available modes of transportation.
 MODES OF TRANSPORTATION:

In order to transport material from one place to another transporters have to use Rail,
Road, Air, Water and Pipe Line as the modes of Transportation. A brier introduction to the
various mode of transportation is as follows

 Rail: Used for delivery of a wide range of goods including coal, iron ore, cement, food
grains, fertilizers, steel, petroleum products and other heavy goods.
 Road: Used by suppliers to deliver goods in a cost effective manner. Many transport
companies have expertise for fast delivery, packaging etc. for making scheduled delivery.
 Air: Used mostly for delivery of high value and low volume goods from distant suppliers,
usually not connected by any other mode of Transportation. It is also suitable for emergent
item to be imported for some specific requirement.
 Water: Used by firms for delivery of goods from distant suppliers, mostly conducted in
containers of varied size. This mode is ideal for transportation of heavy and bulky goods and
suitable for products with long lead times.
 Pipe Line: Used by oil sector companies for mass movement of Petroleum products
including gases. Due to quite low operating cost it is one of the preferred modes of
transportation.
 COMPANY PROFILE

Navata Road Transport, a road logistics service provider, established in the year 1982, by
founder Late Parvataneni Subhas Chandra Bose, now occupies a place of pride among the
leading Road Transport Organizations in South India. Navata is spread across a network of 662
branches in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Odisha, Pondicherry,
Maharashtra, Gujarat and Odisha with ambitious further expansion plans pan India.

Infrastructure:
Warehouses and distribution centers are an integral part of hub and spoke operations at Navata.
Strategically located at Visakhapatnam, Tirupathi, Kurnool, Cuddapah, Anantapur, Nellore,
Rajahmundry, Warangal, Karimnagar, Chennai, Bangalore, Nizamabad, Hubli, Salem, Pune,
Surat and Ahmedabad, these transhipments facilitate warehousing, sorting of consignments,
loading and unloading activities etc.

The fleet consists of around 350 closed body vehicles to ensure safe and unprecedented service.

Support Services by Sister Concerns:

Our state-of-the-art work shop in Vijayawada, “M/s PSC Bose Automobiles”caters to the body
building / maintenance / repairs of our entire fleet. M/s PSB Industries at Visakhapatnam, a Tyre
Retreading Unit and M/s Ravi Rays at Visakhapatnam- a petroleum outlet (with highest sales in
south india, and a member of Indian Oil Corporation Chairman panel) extend their support
services.

Social Responsibility:
'Navata' and its group of Firms floated a Trust 'M/s PSCBose Memorial Trust' to take up social
service activities. The trust has established a driving school in the name and style 'M/s PSC Bose
Memorial Driving School' where free training in motor vehicle driving is imparted by providing
free boarding and lodging to those who want to make driving as their profession. A free
dispensary is also provided in one of the biggest autonagars, Vijayawada to provide first aid
facility to the needy workers.
SERVICES PROVIDED BY NAVATA

While our core competency lies in seamless transportation of shipments by adopting world
class standards, we have gained expertise in providing a ‘one-stop’ solution in logistics by
offering our spacious godowns available at various locations across the regions of Andhra
Pradesh and Telangana, besides Chennai, Salem, Bangalore, Hubli etc. We offer Storing, Door
pick-up, Door delivery and necessary administrative support as per the need.

NAVATA specializes in offering customized Warehousing Solutions to its clients. Today,

NAVATA boasts of a number of highly safe, multi customer and large warehouses in key
geographical locations across the Southern States, which enables us to meet storage demand for
our clients irrespective of the size of consignments.

All our warehouses are maintained and monitored 24/7 by a team of highly efficient and
experienced staff. NAVATA has deployed best inventory management, security and
specialized storage system, quality material handling equipment at warehouses which facilitate
smooth movement of goods.

We provide flexible options of dedicated or share storage facilities in order to optimize costs.
Our warehousing functions mainly comprise of:

 Inventory Management
 Order processing
 Allocation
 Pick / Pack
 Reverse Logistics
 DOA Handling
 Scrapping
 Storage
 Documentation

Trained & specialized 3PL team of NAVATA adheres to customer's on time requirement of
sourcing, negotiating, due diligence, statutory compliance and infrastructure deployment apart
from providing a pool of existing storage options for any regular or seasonal requirement. The
team works closely with the customer's representative's to design, develop and implement best
suited supply chain function ensuring streamlined distribution network.

Activities we handle to meet your Logistics needs:

 Warehousing
 Transportation
 Freight Forwarding
 Project Management
 Value Adds
 MIS
 IT
 Statutory
 Operational

We always felt that quality of service is never an accident but is a result of continuous intelligent
effort with hard work. We also believe improved service is not a one-time effort but it is a
continuously ongoing process. We have taken all steps to satisfy our customers in all aspects
with improved service techniques and gained predominance place in Road transport and logistics
management.

The continuous effort for quality of service not only earned the utmost Satisfaction of the
customers but also substantiated through ISO 9001:2008 certification. Brand Equity: ‘NAVATA
ROAD TRANSPORT’, known for its ethical commitment and unblemished track record of
service over the last 30 years, enjoys ‘NAVATA’ brand equity.