A REPORT ON INTERNSHIP TRAINING SAGAR LOGISTICS LIMITED Submitted in the partial fulfilment of the requirement for the award of the degree of MASTER OF INTERNATIONAL BUSINESS By SIDHARTH THOMAS REG NO: 11MIB111 2011-2013 SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS Dr. G. R. DAMODARAN COLLEGE OF SCIENCE (Autonomous) Affiliated to Bharathiar University and Re accredited with ‘A’ grade by NAAC, An ISO 9001:2000 Certified Institution Civil Aerodrome Post, Avinashi Road, Coimbatore- 641 014. SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS Dr. G. R.
DAMODARAN COLLEGE OF SCIENCE (Autonomous) Affiliated to Bharathiar University and Re accredited with ‘A’ grade by NAAC, An ISO 9001:2000 Certified Institution Civil Aerodrome Post, Avinashi Road, Coimbatore- 641 014 CERTIFICATE This is to certify that the internship report on GENERAL STUDY ON LOGISTICS is a bonafide record of work done by SIDHARTH THOMAS REG NO: 11MIB111, in partial fulfilment of the requirement for the award of the degree of MASTER OF INTERNATIONAL BUSINESS COURSE DIRECTOR Submitted for Viva-Voce Examination held on INTERNAL EXAMINER EXTERNAL EXAMINER DECLARATION
I hereby declare that the internship report on “A GENERAL STUDY ON LOGISTICS” DONE AT SAGAR LOGISTICS submitted in the partial fulfilment of the requirements for the award of the degree of MASTER OF INTERNATIONAL BUSINESS is the original work carried out by me.
It is not formed as a part of any other project work submitted for the award of any degree or diploma, either to this or to any other university.
SIDHARTH THOMAS REG NO: 11MIB111 ACKNOWLEDGEMENT I express my sincere thanks to DR. K. K. RAMACHANDRAN, Director, G. R. D SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS, for providing me this opportunity to take up this internship training.
I wish to express my deep sense of gratitude to Mr. VS PRADEEP, CHIEF EXECUTIVE OFFICER of SAGAR LOGISTICS PVT LIMITED, for his kind acceptance of training request in the company. The gratitude passes to all the trainers of SAGAR LOGISTICS PVT. LTD, who gave me support and training during my internship training in the company. I also express my sincere thanks to Mr. S. MOORTHY who guided me throughout my report. I extend my sincere thanks to all my family members for being extremely supportive during my training period. SIDHARTH THOMAS TABLE OF CONTENT S. NO| CHAPTER| NAME| PAGENO| 1. | I | 1.
INTRODUCTION TO INTERNATIONAL BUSINESS2. INTRODUCTION TO THE INDUSTRY3. OBJECTIVES4. ROLE AS AN INTERN| 6-891011| 2. | II| 1. COMPANY PROFILE2. VISION AND MISSION3. PRODUCT PROFILE/ SERVICE PROFILE| 111212-20| 3. | III| 1. DEPARTMENTAL ACTIVITIES| 20-26| 4. | IV| 1. OUTCOME OF THE INTERNSHIP2. CONCLUSION| 2728| Introduction to international business International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundary.
Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. 1 It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. 2 International business involves commercial activities that cross national frontiers.
It concerns the international movement of goods, capital, services, employees and technology; importing and exporting; cross border transactions in intellectual property via licensing and franchising; investments in physical and financial assets in foreign countries; contract manufacture or assembly of goods abroad for local sale or for export to other nations; buying and selling in foreign countries; the establishment of foreign warehousing and distribution systems; and the import to one foreign country of goods from a second foreign country for subsequent local sale. 3
All the basic tools and concepts of domestic business management are relevant to international business. However, special problem arise in international business, in particular * Deals might have to be transacted in foreign languages and under foreign laws, customs and regulations. * Information on foreign countries needed by a particular firm may be difficult * Foreign currency transactions will be necessary. Exchange rate variations can be very wide and create many problems for international business. * Numerous cultural differences may have to be taken into account when trading in other nations. Control and communication systems are normally more complex for foreign than for domestic operations. * Risk levels might be higher in foreign markets. * International managers require a broader range of management skills than do managers who are concerned only with domestic problems. 1-Daniels, J. , Radebaugh, L. , Sullivan, D. (2007). International Business: environment and operations, 11th edition. Prentice Hall. * Large amounts of important work might have to be left to intermediaries, consultants and advisers. * It is more difficult to observe and monitor trends and activities in foreign countries.
Why firms engage in International Business? Business undertakes international operations in order to expand sales, acquire resources from foreign countries, or diversify these activities (Anderson 1993). The motives for operating internationally are as follows: * Commercial risks can be spread across several countries. * Involvement in international business can facilitate the ‘experience curve’ effect. * Economies of scope (as opposed to economies of scale) might become available. Economies of scale are reductions in unit production costs resulting from large scale operations. The costs of new product dev could require so much expenditure that the firm is compelled to adopt an international perspective. * There might be intense competition in the home market but little in certain foreign countries. * A company’ overall strategies and plans can be anchored against a wider range of opportunities. Sudden collapses in market demand in some countries may be offset by expansions elsewhere. * Cross-border trade is today much easier to organise than in the past. International business is not new – businesses and nations have conducted trade across national boundaries for centuries.
Lured by the prospects of large markets and/or sources of raw materials, businesses have traded with other parts of the world. But as we will see later global business and global industry is different. Overseas trade and Ansoff’s matrix Thinking about international business in the context of Ansoff’s matrix: * Entry into overseas markets represents market development. * Existing products are sold in new markets. * It is appealing because: – market penetration is difficult in saturated markets. – product development is costly. – diversification is risky Why enter overseas markets?
The reasons for entering overseas markets can be categorised into “push” and “pull” factors: Push factors * Saturation in domestic markets * Economic difficulty in domestic markets * Near the end of the product life cycle at home * Excess capacity * Risk diversification Pull factors * The attraction of overseas markets * Increase sales * Enjoy greater economies of scale * Extend the product life cycle * Exploit a competitive advantage * Personal ambition Factors in the choice of which overseas market(s) to enter: * Size of the market (population, income) * Economic factors (state of the economy) Cultural linguistic factors (e. g. preference for countries with similar cultural background) * Political stability (there is usually a preference for stable areas) * Technological factors (these affect demand and the ease of trading) Constraints and difficulties in entering overseas markets: * Resources * Time * Market uncertainty * Marketing costs * Cultural differences * Linguistic differences * Trade barriers * Regulations and administrative procedures. * Political uncertainties * Exchange rates (transactions costs & risks) * Problems of financing * Working capital problems * Cost of insurance Distribution networks Exporting is only one method of doing business internationally * We normally think of overseas trade in terms of exporting and importing goods and services * This involves transporting goods and selling them across national boundaries. * Direct exporting implies that the domestic firm is actively involved in selling the goods abroad * Indirect exporting means that the marketing of goods is delegated to export agents and the UK manufacturer concentrates on production * But exporting involving the movement of goods is only one method of engaging in international business
Other methods of market entry * Overseas product an/or assembly (producing goods abroad) * International alliances and joint ventures (working with foreign companies) * International M&A (mergers and acquisitions across frontiers) * International franchising and licensing allowing foreign based firms to produce, market and distribute goods in specified areas abroad) A. Definition LOGISTICS IS THE ART AND SCIENCE OF MANAGEMENT, ENGINEERING AND TECHNICAL ACTIVITIES CONCERNED WITH REQUIREMENTS, DESIGN AND SUPPLYING, MAINTAINING RESOURCES TO SUPPORT OBJECTIVES, PLANS AND OPERATION. — SOCIETY OF LOGISTICS ENGINEERS (SOLE) 1974. Fierce competition in today’s market has forced business enterprises to invest in and focus on supply chains. The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also known as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities.
The logistics management takes into consideration every facility that has an impact on cost. It plays an important role in making the product conform to customer requirements. Also it involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firms’ activities at many levels, from the strategic level through the tactical to the operational level. Logistics is a challenging and important activity because it serves as an integrating or boundary spanning function.
It links suppliers with customers and it integrates functional entities across a company. With the ever-growing competition in today’s market place it becomes necessary for a firm to use its resources to focus on strategic opportunities. This includes several internal factors like management style, culture, human resources, facilities and several external factors like technology, globalization and competition. This is where the concept of logistics plays a major role, i. e. it helps to leverage certain advantages the firm has in the marketplace.
B. Role of Logistics Lets us now have a look at how logistics works. It is important to recognize the importance of a dynamic balance between the minute details and the main elements involved in a product. The Role of Logistics is to maintain that balance. Once the firm realizes the importance of logistics it is necessary that the firm make full and efficient use of logistics. The first step is to create a buyer value for the customer and a strategic value for the firm. The customer is the most important asset for a company.
He drives the entire supply chain including manufacturing, marketing and logistics. Hence it is important for a firm to have a clear understanding of what the customer demands and to keep up to the customers expectations. Once a company has a clear understanding of its customer’s requirements it must device a strategy on how to use logistics to achieve it. This means that the company has to have a clear understanding or assessment of company’s strategic direction. Now lets take a look at the various steps involved in a logistics strategy development and planning process.
Visioning: this includes the systematic development of an organizational consensus regarding the key inputs to the logistics planning process as well as identification of the potential alternative logistics approaches. This is an important step for the following reasons: * Helps to define a strategic direction to the company and also to get a clear understanding the role of logistics in it. * Get a clear idea of the requirements of the various segments of customers. * Have a look at the various factors that would affect the strategy of the company. * Define alternative strategies and also the scope of the planning effort.
Strategic analysis: this involves taking a look at the various components involved in the process and selecting the best logistics process among the alternatives. These components, which are to be reviewed, are revealed during he first step. This may include revamping the entire process to assessing how a single component can be used more effectively. Planning: this involves the assembling of a plan that outlines the mission and goals for the logistics function and the programs and activities to achieve these goals. Logistics planning is an iterative process.
The plans have to be redefined every year to improve the quality of performance. Managing change: this involves effective management to implement enhanced ways of conducting business. The management should keeping changing the plans in accordance with the change in the market and also coach the organization to effectively embrace this change. C. Current Logistics Related Issues There are several factors that affect logistics. These issues need to be anticipated, prepared for and taken advantage of for a company to be successful in today’s market. They are External: * Globalisation * Technology Workforce 2000 * challenging nature of the work force * Environmental concerns Internal: * Customer service and quality * Third party networks * Supply chain management * Changes in management and organization style Listed below are some of the steps that could be followed to mitigate the above mentioned issues: Performance: * Better service for customers * Improved productivity * Assess just in time and quick response needs System structure: * Better relationship with vendors, customers and third parties to more effectively manage the supply chain * Better relationship within and across the organization
Technology integration: * Better information systems that connect functions and organizations * Combine information and material handling systems for increased efficiency and effectiveness. OBJECTIVE OF THE STUDY * To study the performance of LOGISTICS process. . * To know about the marketing techniques and promotion measures. * To understand the overall functioning of all the various departments. AS A INTERNEE I did my Internship training at SAGAR LOGISTICS PVT. LTD. I had a very good experience observing and working with various departments of SAGAR.
COMPANY PROFILE SAGAR shipping was started in the year 1987 at Willington Island, Kochi, Kerala to provide professionalized service in the area of clearing and forwarding. This is our Silver Jubilee year. OUR LEADER & MISSIONARY : Mr. V. S Pradeep is the founder of this organization and is the chief executive officer. Amongst the many laurels that adorn his professional cap the following needs special mention. President Cochin Customs Agent Association (1999-2001) Director Indian Chamber of Commerce & Industry (Two terms) Trustee Cochin port (2000-2002)
OUR MISSION : Our mission is to provide a personalized touch to the professional service of Clearing & Forwarding by finding the right person for the right job and by ensuring the right job for the right person. It is our Endeavour to translate our years of experience, competence and goodwill to cater to the stringent demands of changing times. We take pride in building long term relationships and quality service with uncompromising thoroughness, integrity, confidentiality and timely delivery. We take time to listen, understand and match the needs of our clients.
OUR ETHICS : We are a value based organization. We conduct reference checks before our service is offered. We ensure confidentiality to our clients. OUR SERVICES : * Custom Clearing forwarding * Baggage clearance * Packing * Freight forwarding * Warehousing * Transporting Packing and Warehousing The packing of the goods for export is a complex task to ensure goods are protected against the risks involved in their handling and the modes of transportation being used. Consideration needs to be given to the climates and terrain of the countries through which the consignments will be travelling.
Too much heavy packing could prove costly for goods travelling by air, for example. On the other hand, too little packing might prove a false economy. Many forwarders provide a packing service for their customers, and the forwarder’s expertise . . Who are Freight Forwarders? The different types of freight forwarding companies can be broadly divided into three categories: Local companies – These are generally small single office companies which tend to deal with customers in the local area, or operate at a seaport or airport concentrating on particular types of traffic.
National companies – Many forwarders have offices in the major ports and airports throughout the country as well as in the largest industrial towns. They may also have warehousing or handling depots from where they operate their own services. Such companies will often have agents or correspondents overseas in the markets with which they operate. International companies – The truly international company will have its own offices overseas and offer a wide range of worldwide services. Import Procedures Procedures have to be followed by ‘person-in-charge of conveyance’ as well as the importer.
WHO IS ‘PERSON IN CHARGE’ – As per section 2(31), ‘person in charge’ means (a) In case of vessel – its master (b) In case of aircraft – its commander or pilot-in-charge (c) In case of train – its conductor or guard and (d) In case of vehicle or other conveyance – its driver or other person in charge. The significance of this definition is – He is responsible for submitting Import Manifest and Export Manifest He is responsible to ensure that the conveyance comes through approved route and lands at approved place only. He has to ensure that goods are unloaded after written order, at proper place.
Loading also has to be only after permission. He has to ensure that conveyance does not leave without written order of Customs authorities. He can be penalised for (a) Giving false declaration and statement (b) shortages or non-accounting of goods in conveyance Procedure by Importer – The importer importing the goods has to follow prescribed procedures for import by ship/air/road. (There is separate procedure for goods imported as a baggage or by post. ) Bill of Entry – This is a very vital and important document which every importer has to submit under section 46.
The Bill of Entry should be in prescribed form. The standard size of Bill of Entry is 16″ ? 13″. However, for computerisation purposes, 15″ ? 12″ size is permitted. (Mumbai Customs Public Notice No. 142/93 dated 3-11- 93). Bill of Entry should be submitted in quadruplicate – original and duplicate for customs, triplicate for the importer and fourth copy is meant for bank for making remittances. Under EDI system, Bill of Entry is actually printed on computer in triplicate only after ‘out of charge’ order is given. Duplicate copy is given to importer.
Types of Bill of Entry – Bills of Entry should be of one of three types. Out of these, two types are for clearance from customs while third is for clearance from warehouse. ACTIVITIES OF SELECTED DEPARTMENT Sea Freight Forwarding : services are offered irrespective of the nature of business i. e. export or import . Through our ocean Freight Forwarding Services, we handle general, project as well as stock shipments at the quickest pace. We ensure dry area for the proper placement of the arrived shipment at all the sea ports.
Being a reliable Sea Freight Forwarder we also offer LCL and FCL consolidation . We also have support of order follow up and supply chain tracking system. Air Freight Forwarding : Service are the first of all quick and then very safe . The services of International Air Freight Forwarding include door to door service of pick up , custom clearance , delivery on the desired destination . Besides, we also pick up the cargo from the clients end . We promptly notify the consignee about the arrival of the shipment and delivery instruction . Besides, we are a trusted Air Freight Forwarder in India.
The company offers gamut of Import and Export Services in the industry . We are reckoned as one of the leading Import Export agents in India. Our range of services in this category includes custom duty clearance , providing required bills and certificates, certified survey and compliances , third party inspection, transportation, warehousing and logistics solution and so on . Counted among the prominent import Export Agents in India, we take every measure to serve the clients in the most professional manner so that they get maximum satisfaction meeting their end vision.
SAGAR logistics is specialized in offering highly reliable Custom Clearance Services in the industry. We are counted among the best Custom Clearing Agents in India. We extend our services for the hassle free transaction of shipments of the clients in almost all the customs houses in India. Our team of professionals is proficient in the complex documentation process of custom clearance . We take every care for the timely clearance of the goods from the ports or custom house through our Custom Clearance Services OUT COME OF THE INTERNSHIP
Got to observe the various departments as an whole but not in detail Learned new things concerning the procedures of import and export Got a chance to interact with people around 5. 2 CONCLUSION Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. Logistics is important in India because of the country’s size, geography, population variety, natural and man-made calamities etc. The transport facilities are inadequate in India and roads are bad.
India lacks a well-developed road network and waterways are still unexploited. Due to competition, globalization and information availability, logistics has gained extra importance. First: the days are gone when a manufacturer had a better raw material supplier than competitors. Then, the operations in a manufacturing process are well known to all. The processes are more or less standard. Also, technology is available to all. The only area where one can score over competitors is logistics. If logistics cost is reduced, there is a gain. . .