Introduction

What is LOGISTICS?

Logistics is about moving materials, information and funds from one business to another
or from a business to the consumer. It is a vital part of the business economic system and is a
major global economic activity. In fact 10-15 per cent of product costs are logistics related.
Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is
estimated between 9 and 20 per cent of its GDP.

Every company dreams of achieving the seven R's - delivering the right product in the
right quantity and the right condition, at the right place, at the right time, for the right customer at
the right cost. Effective logistics management alone can make this possible.

Logistics is one of the oldest and also the newest activities of business management. It
involves combining diverse functions and service providers who may be culturally and
objectively different. In the past, quality of products and services was the key differentiating
factor for companies operating in the same market. In due course, quality and low cost became
the winning combination.

Today, responsiveness to the customers' needs is the determining factor. An enterprise

that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a
potent tool for success in today's competitive business environment. Logistics is an organized
process of managing the flow of merchandise from the source of supply - the vendor, wholesaler
or distributor - through internal processing functions like warehousing and transportation, until
the merchandise is sold and delivered to the end customer.

Logistics management aims to reduce inventory-holding costs and improve profits, while
enhancing customer satisfaction. Anything can be ordered online, but receiving a tangible
product is impossible. The difference between e-business success and failure lies in a company's
ability to manage the logistics.

History of Logistics

The Greeks defined logistics as "the science of correct reasoning by means of mathematics".
The first modern use of the term was in the military to identify the process of planning and
coordinating the movement of army and weapon support systems. Good logistics brings out the
ability to move faster and accurately to the battlefront. “If one applies the same to the business
organisation, it is one's ability to reach the product to the consumer at the right time, right place,
right quantity and at the lowest cost.” On similar lines, supply chain management will mean the
network of organisations involved in the process by which goods are moved from producer to
consumer and the counter flow of information, to manage the supply chain as a single entity.

A prominent application of logistics was in World War II where weapon movements were
coordinated to ensure success. A recent instance of massive logistics initiatives is in the Gulf
war. With increasing competition in the market place, managements started focusing on

1
customer services in the early 1950s in developed markets such as Europe and the U.S. In late
1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the
concept of just in time in manufacturing customer-servicing standards were given more
importance and new integrated logistics models and solutions were born. The emergence of
organized distribution system by department stores and super fast courier service organisations
gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless
transaction systems to co-ordinate their information and material requirements along the value
chain.

At the micro level any manufacturing and marketing company spends 5 - 35 per cent of
sales on logistics. The major cost components are transportation, warehousing and inventory
carrying cost. Improvements in logistics get reflected in a reduction in inventory levels, shorter
delivery schedules, and improved servicing standards with significant savings in total costs.

Logistics Management Process

Michael Porter in his famous book "Competitive Advantage'' has spoken of the value
chain approach and emphasized logistics as one of the most important tools for competitive
advantage.
The various processes and elements that are part of logistics as a discipline are:

Inbound logistics: Purchasing, Inbound transportation, Inventory Management.

Manufacturing: Production planning systems, Machine scheduling system.

Outbound logistics: Order booking process, Distribution management, outbound transportation,

and Warehouse management systems.

As customers started demanding improved servicing standards, fast cycle time has become the
key factor for business success, whether it is custom made tailoring service in Hong Kong or
development of a new car in Detroit.

Scenario of Logistics in India

At present, companies specialising in logistics operations in India use traditional

technologies and cater to stand alone services like transportation, warehousing, clearing and
forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply
chain, improve productivity levels and bring down operating costs. Any technology that can
improve productivity in transportation operations will be a great boom to the economy both
directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the
savings on downstream users of transport will be much higher and the cost multiplier effect on
the economy will be reduced to that extent.
Given the emerging business and technological trends there are possibilities for adoption
of innovative logistics solutions specifically designed for India. In addition, there is a
requirement for an integrated strategy towards developing logistics and its related IT
infrastructure and also enhancing its industry base.

2
 In recognition of the growing need for technology-enabled solutions in logistics in India
and abroad, many companies such as e-Logistics are taking shape. In fact, there are a dozen
multinational logistics companies such as Exel, Bax Global and Menlo which have started
operations in India during the last few years.

Today logistics management in India has become complex with about ten million related
outlets to cater to the needs of 1000 million people.

The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per
cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like
China and Korea.

A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion
or Rs. 21,600 crores annually.

Besides significant benefits can be reaped through the multiplier effect of better logistics
on all economic sectors.

About Customer Service

It is clear that excellent customer service performance seems to add value for all
members of the supply chain. Thus, a customer service program must identify and prioritize all
activities important to accomplish operating objectives. A customer service program also needs
to incorporate measures for evaluating performance. Performance needs to be measured in terms
of goal attainment and relevancy. The critical question in planning a customer service strategy
remains, does the cost associated with achieving the specified service goals represent a sound
investment and, if so, for what customers? Finally, it is possible to offer key customers
something more than high-levels basic service. Extra service beyond the basics is typically
referred to as value- added. Value-added services, by definition, are unique to specific customers
and represent extensions over and above a firm’s basic service program.

The three fundamental dimensions of customer service were: -

Availability: It means the probability that a system is operational at a given time, i.e. the amount
of time a device is actually operating as the percentage of total time it should be operating. High-
availability systems may report availability in terms of minutes or hours of downtime per year.
Availability features allow the system to stay operational even when faults do occur. A highly
available system would disable the malfunctioning portion and continue operating at a reduced
capacity. In contrast, a less capable system might crash and become totally non-operational.
Availability is typically given as a percentage of the time a system is expected to be available

Reliability: It means the probability that a system will produce correct outputs up to some given
time. Reliability is enhanced by features that help to avoid, detect and repair hardware faults. A
reliable system does not silently continue and deliver results that include uncorrected corrupted
data. Instead, it detects and, if possible, corrects the corruption, for example: by retrying an
operation for transient or intermittent errors, or else, for uncorrectable errors, isolating the fault

3
and reporting it to higher-level recovery mechanisms (which may failover to redundant
replacement hardware, etc.), or else by halting the affected program or the entire system and
reporting the corruption.

Performance: Performance standards are the pre-established guidelines your small business has
in place for various areas of business operations. Customer service performance standards dictate
the ways in which customers are to be treated and the best practices to be observed. Having such
standards in place and educating employees on your directives can help encourage repeat
business and improve your overall business operations.

4
 About Sanjana traders and logistics
Sanjana traders and logistics support industry and trade in the global exchange of goods through
land transport, worldwide air and ocean freight, contract logistics and supply chain management.

Integrated logistics resides at the world’s most important intersections, where the flow of goods
creates an effective link between carriers. Our value-added services ensure the flow of goods
continues seamlessly and supply chains stay lean and optimized for success. Our business holds
top positions in automotive, technology, consumer goods, trade fair logistics, special transports,
and special events logistics.

Land, Air & Ocean

Sanjana Traders and Logistics provides its customers with time- and cost-optimized services for
general cargo, partial loads, and full loads. Our dense Indian network allows us to provide
services from a single source that adheres to our uniformly high, certified quality standards.

Due to its natural geography, the Indian sub-continent offers a promising future for short-sea and
coastal trade. With our fleet of vessels, Sanjana Traders and Logistics ships to all major ports in
the west, south and east coast of the Indian subcontinent with an assurance of minimizing the
cost and time of your supply chain.
You can count on us to make your supply chain flexible, efficient and future ready. We partner
with you to deliver your commitments by offering custom-solutions designed for you to profit.
From promising safer movement of goods even with large parcels, over dimensional cargo, to
more economical mode for break bulk cargo; we make it happen.

5
 Origin service solutions

6
 Warehousing

India’s warehousing requirement, 919 million sq.ft. in 2014 and estimated to be 1,439 million
sq.ft. in 2019, is expected to grow at an annual average rate of 9%, according to Knight Frank. In
fact, the Indian warehousing industry was valued at 745 billion in 2013 and was growing at 15%
for 3 consecutive years. The rising demand of warehousing can be attributed to a blend of
maturing industry segments, rising external trade, rising domestic consumption, increasing
private and foreign investments in infrastructure and emergence of organized retail.

 Inbound Processes
Receiving - Speed Dock to Stock
The receiving process in the Exacta warehouse management system provides options for
verification of receipts against purchase orders, advanced shipping notices or blind receipts
based on your operational needs. Problem product can be placed into quarantine with a reason
code associated for quick and easy visibility and reporting. Configuration enables an appropriate
put-away location to be identified as products are received, allowing operators to process more
efficiently and get product put away into stock quickly.

Returns - Enhance Reverse Logistics

When products are returned to your warehouse, the Exacta WMS enables operators to input data
regarding the returned items and determine the appropriate action to take. This could include
putting the items back into inventory, a staging area for delivery or scrapping the item.

Quality Control - Exceed customer expectations

Based on your business rules, the Exacta WMS detects if an item requires any quality control
(QC) procedures. If QC is required, the check is performed during the receiving process, and

7
Exacta will display the necessary instructions. Any item that fails the QC is placed into a
quarantine zone for additional handling.

 Outbound Processes
Waving - Plan and Process What You Need When You Need
Waving is the process of grouping orders and activating them for processing. Together, the
waving suite of programs, wave planning, wave management, and wave closeout and exception
handling provide end-to-end control and visibility for order processing.

Picking - Improve Your Accuracy

Batch pick is performed using an RF handheld scanner to pick orders. Exacta displays
instructions on the RF screen, and the operator provides feedback via barcode scanning or
manual keying of data.

Packing and Shipping - Reduce Costs, Stay On Time

With the rising costs of transportation, it is even more important to find ways to reduce costs
while still meeting the delivery requirements of customers. Proper packing and shipping is
important to minimize monthly freight bills while meeting customer delivery expectations. The
pack process is used to prepare orders for shipping and can be performed by the operator
scanning each item for a complete order audit or by a single scan of the container or order to
accept it as picked.

By understanding your issues and anticipating your business and logistics needs, Sanjana traders
and logistics experts provide robust solutions that will drive value for your business.
Whatever industry sector you operate in, Sanjana traders and logistics provides dedicated and
shared warehousing and distribution operations to ensure that you can deliver your service
promise to your customers worldwide.
Dedicated Operations
If the scale, location or complexity of your business requires a dedicated solution, SANJANA
TRADERS AND LOGISTICS has the people and expertise you need. Starting with a thorough
analysis of your specific business requirements, our teams design, implement, operate and
improve dedicated warehousing and distribution operations that deliver value to your business.
SANJANA TRADERS AND LOGISTICS possesses the industry and logistics expertise to
enable you to adapt quickly to your changing business needs. Our expertise covers all areas,
from specifying and sourcing real estate, solutions design, project management, process
improvement, to recruitment and training. All our dedicated solutions are bespoke to your
individual needs, but also benefit from SANJANA TRADERS AND LOGISTICS scale
combined with our local knowledge and expertise.
Our solutions are also flexible depending on your specific situation – the warehousing and
distribution infrastructure can either be wholly owned by Sanjana traders and logistics or we can
advise on how to improve and optimize your existing infrastructure.

8
 Transportation Management
Moving products from manufacturing plants to warehouses, between international, national, and
regional facilities and to distributors, can represent more than half of your total logistics costs.
Add international sourcing and final distribution to store or end customer, and those costs can
rocket even higher. Transportation management solutions give you the resources and visibility
you need, at a cost you can manage.
Whether we're managing your carriers, creating a dedicated fleet or a mix of the two, we deliver
high levels of service, reliability and control over your product movement to your customers.
Transportation includes:
o Supplier collections
o Line haul and trucking
o Store delivery
o Reverse logistics
o Track-and-trace/Electronic Data Interface (EDI) visibility solutions
o Cross-docking and merge-in-transit
o Home delivery
o Managed transport services
o Air, ocean, rail and road freight forwarding services
o Express parcel delivery services
o Supply chain consultancy, including logistics network strategy and transport modelling
o Carrier management
o Control Tower services.

Our services include:

o Solutions design and analysis - to help you improve your bottom line and stay flexible in
the face of changing business needs
o Campus locations offering labour balancing and distribution synergies across sites
o A range of dedicated and multi-customer transportation solutions to meet your service
needs
o Best practice operational processes, controls and management information
o Detailed project management methodology to reduce risk, cost and time on start ups
o A strong portfolio of warehouse management systems and interface software to drive
productivity and enable faster and more reliable start-ups
o Define Measure, Analyze, Improve and Control process improvement methodology to
drive continuous improvement and adapt to your changing needs.

 Value Added Services

SANJANA TRADERS AND LOGISTICS’s dedicated and shared user warehousing solutions
are not just about holding stock. There are a wide range of additional services that we offer, as
part of an overall solution that can improve the performance of your supply chain.
From sub-assembly, packaging services, customization, postponement, kitting, sequencing to
pre- retail activities across all industry sectors, we help you reduce costs, reduce inventories, and
better match supply with demand.
Co-locating these services alongside the storage of your products not only saves money but
removes steps in the supply chain. The elimination of transportation time to a packaging facility

9
means you can reduce your lead times and decrease your inventory. And by having SANJANA
TRADERS AND LOGISTICS perform all these activities you receive the same visibility and
operational excellence that you've grown to expect from the market leader in contract logistics.

 Assembly, Kitting and Packaging Services

SANJANA TRADERS AND LOGISTICS operates a range of services to pack, prepare and
customize your products for different markets.

Product assembly/postponement/configuration
SANJANA TRADERS AND LOGISTICS can assemble finished products from modules and
components, and help you implement a postponement strategy. By producing large runs of
standardized products and then customizing them for local markets in the downstream supply
chain, stockholdings can be minimized and inventory obsolescence reduced. We offer a wide
range of postponement services and processes - including tailored packaging and bundling,
hardware configuration, software installation, and localization, such as the addition of
documentation and labels.

Kitting/pre-assembly
SANJANA TRADERS AND LOGISTICS offers a full range of kitting and pre-assembly
services, including materials and order management, component kit building, assembly line
operations, packing, shrink-wrapping and blister packs. These give customers distinct supply
chain efficiencies, thanks to product packs being localized, programmed and finished at the last
moment.

Sequencing/line feeding
SANJANA TRADERS AND LOGISTICS can implement consolidation, pre-assembly and
sequencing of materials flows into the manufacturing process. Line-feeding covers the delivery
of assembled components to a production line on a just-in-time or just-in-sequence basis,
delivering availability and cost benefits.

Packaging Services
Contract packing involves the integration of outsourced packing operations into distribution
centres, to increase flexibility and streamline fulfilment. This reduces cost, enhances product
visibility and control, and increases speed-to-market. SANJANA TRADERS AND LOGISTICS
offers a comprehensive packaging service, including the re-packing of finished products to
support product launches, promotions and customization for local markets.

Packaging design
SANJANA TRADERS AND LOGISTICS offer additional packing solutions, including
packaging design and packaging materials procurement, as well as environmentally friendly
transit packaging which includes safe and economical returnable containers and packaging-free
transport solutions, helping you cut waste and labour costs. We’re also a leading provider of
packaging compliance services, helping you meet local packaging legislation requirements.

10
 Other Services
Ensure quality control and the smooth flow of goods to where they need to be.
QA/QC control
At SANJANA TRADERS AND LOGISTICS, our quality assurance (QA) and quality control
(QC) services ensure that products entering and leaving our warehouses or consolidation centres
are free from defects and in a suitable condition.
Customs compliance
SANJANA TRADERS AND LOGISTICS combine our expertise in worldwide customs
regulations with local knowledge to ensure the smooth flow of international shipments.
Consolidation/Deconsolidation
SANJANA TRADERS AND LOGISTICS provides consolidation and deconsolidation services
for increased flexibility and greater cost-effectiveness in international freight shipments.

Bonded Warehousing
SANJANA TRADERS AND LOGISTICS provides bonded warehousing services, for tax
efficient supply chain management, fully complying with government regulations.

SANJANA TRADERS AND LOGISTICS operates on two guiding principles; professionalism

and utmost customer satisfaction.

Professionalism
Offering excellent services while maintaining the highest code of professionalism is our principle
objective. We value our clients, and our sole purpose is to offer the best services. In this regard,
our excellent services make us the most preferred warehousing solutions company. We have
expanded our operations to various cities in the country because we believe in flexibility. The
operations in all these cities help us get close to our customers and enhance their convenience.
The establishment certifies our capacity to grow as a business because our expansion means
flexible services for businesses operating in various cities. Our vision is to establish a rich
network so that we can offer Global Warehouse Solutions.

Utmost Customer Satisfaction

Satisfied customers are our source of motivation. We know that there is stiff competition in
business world. We help you attain that competitive advantage by designing your facilities in
accordance with the operational process. Consequently, you can run your business with ease. We
have professionals who give valid advice based on you operations and supply structure. As a
result, you can make informed decisions about the best warehouse solutions that will help your
business grow.

11
 Picking and packing

“Pick and Pack” is another popular batch picking process and is a two-stage fulfillment process
of picking and then packing (usually with different staff members picking and packing). Batch
picking significantly reduces travel times and improves order picking productivity. Travel time
can easily account for 50% or more of order picking hours. By combining orders into a single
trip the time spent traveling is greatly reduced. The barcode scanner will accuracy improvement
by ensuring the correct items are scanned and packed.
The first stage is the picking stage where the items to fulfill a batch of orders are pulled from the
aisles and brought to a central location. The second stage is the order packing stage where orders
are individually packed at a central location like a packing table. In this process, each item is
scanned twice: first while picking in the warehouse, and again while packing on the central
packing location.

Stage 1 – Picking

In the first stage, a consolidated pick list consisting of a batch of orders is created to allow team
members to efficiently pick the items from the warehouse. A consolidated pick enables picking
of multiple orders at the same time. These orders are more effective for pickers traveling lengthy
distances within a warehouse or other pick area. By combining orders into a single trip the time
spent traveling is greatly reduced.
Starting with the first aisle, pickers will utilize a cart and our integrated barcode scanner solution
to guide the picker. As pickers grabs and scans the first product off the shelf, the scanner will
confirm they have picked the right product and will then guide them to the next location. This
process is continued until everything on the consolidated picks list has been picked and is on the
cart. Once picking is complete the cart is dropped off at a packing station for shipping. The
picker can grab a new cart and empty totes and start the process over.

12
Order picking process
Let’s take a look at some of the different ways companies can handle the order picking process.
The biggest challenge in the picking process is streamlining the movement of order pickers as
they move through the warehouse to fulfil the largest number of orders in the shortest period of
time. Four of the most common order picking strategies include:

1. Piece Picking: This is probably the most straightforward picking method, and it is where most
companies begin. Orders are picked one by one as they come in. The process can be as simple as
sending a warehouse worker out into the warehouse with an order in hand, and having them pick
items off the shelves until each order is filled. This process is easy to implement, but rarely is it
very efficient in anything but the smallest warehouse.
2. Batch Picking: Warehouses that have a bit more traffic will typically need to find a more
efficient way to fill orders, and for many, batch picking is the next logical step. Batch picking is
similar to piece picking but rather than picking orders one at a time, the order picker might fulfil
several orders at once. This streamlines traffic through the warehouse and allows more orders to
be fulfilled quickly. As order volume grows, however, it still has limitations.
3. Zone Picking: Zone picking recognizes that piece picking and batch picking aren’t the fastest
ways to pick an order, and that many hands make light work. In zone picking, warehouses are
divided up into zones, or areas. Order pickers are assigned to pick items only from their assigned
zones. If items from multiple zones are required to fill an order, the boxes for those items move
from one zone to the next until orders are filled. Often, these boxes are moved via conveyor belt,
but it can also be done manually.
4. Wave Picking: Wave picking is essentially the combination of zone picking and batch
picking. Orders are picked in batches, with workers assigned to a zone where they will pick
batched orders.
For even greater efficiency, companies can move toward automated picking, using either a
sorting systems method, where orders are actually brought to the picker by conveyor and
automated storage units, or the pick to box method, which is similar to the sorting systems
method but involves multiple order pickers at multiple stations, with boxes moving by conveyor
between stations. However, automated picking can be expensive.

13
Stage 2 – Packing

After the items have been picked and your packers are ready to begin packing orders, they only
need to scan the order number from a packing slip and the barcode scanner will suggest the first
item to be scanned and packed. When the correct product is scanned the packer will get visual
and audio confirmation and will be prompted for the next item. The process continues until all
items have been scanned and packed.
Once scanning and packing is complete the status for the order is updated and inventory counts
are adjusted. Since Finale scans items into and out of your warehouse you have true item-level
visibility of your physical inventory with every stock operation stored to Finale giving you
complete transparency. Each inventory change is made automatically as items are shipped and
received, giving you an accurate inventory counts.
The challenge in the packing process is to use the right size and least number of boxes to
complete each order in such a way that shipping costs are minimized, and to use the right kind of
packing materials to ensure that orders arrive in good condition.

An order management system can be used to meet these challenges: the order management
system maintains information regarding each item’s size and weight, and the best type of
packaging material is assigned to each item. When orders are filled, the order management
system analyzes the order and automatically selects the proper packaging that will keep down
freight cost, keep damage to a minimum, and take the least amount of time to complete the order.

14
Steps to make pick and pack process more efficient

1. Minimize Touches: Ideally, when an order is picked and packed, it should only need to be
touched once throughout the process. To accomplish this, the order must be error-free and
packed correctly the first time, moving directly from shelf to box to truck without having to be
moved in and out of totes or repacked into smaller or larger containers. Minimizing this kind of
rework helps make the picking and packing process more efficient.
2. Optimize Your Storage Strategy: How and where you store your products in the warehouse
directly affects picking efficiency, so this is an area to look at when you are trying to speed up
your processes. The most common storage strategies are random storage (where items are
assigned to any location that happens to be open), and volume-based storage (where items are
ranked by demand and assigned a storage location accordingly. Most-used items are stored
nearest pack stations to minimize worker movement).
Class-based storage is a combination of the two. Items are classified into areas based on demand,
but then assigned to any open space within that area. If you are using a random storage strategy,
reorganizing your warehouse based on a volume or class based system could help ease traffic
within the warehouse and speed up your picking process.
3. Use the 80/20 Rule: The Pareto Principle says that 80% of effects come from 20% of causes,
and this is true in your warehouse as well. So, keep this principle in mind. 80% of your orders
are likely to come from 20% of stock. If these items are stored and handled in the most efficient
manner, it can help to maximize your overall efficiency.
4. Consider a Different Picking Strategy: Most companies begin with manual piece picking,
but as they grow they find that this strategy cannot accommodate higher traffic and volume in the
warehouse. Looking at zone, batch or wave picking, along with some level of automation is a
logical progression to support further growth and efficiency.
5. Minimize Movement: Walking around a warehouse all day makes people tired, and tired
people make mistakes. To maximize efficiency and order accuracy, look at ways to minimize
how many trips around the warehouse your people need to make. Your storage and pick
strategies will have a direct effect on this, so if you’re using manual piece picking and random
storage strategy, switching to a zone-based pick system and volume or class-based storage
systems can allow you to minimize trips.
The pick and pack process is highly complex, and its success ultimately depends on getting a
number of factors right. The design of your warehouse, the technology and tools you use, how
items in your warehouse are stored, the routes your order pickers take through the warehouse,
your order picking strategy, how you pack, stage and prepare your orders – along with multiple
other factors – all play a role in whether your pick and pack process results in a properly fulfilled
order and a happy customer.

What strategies are you using for your pick and pack processes? We’d love to hear about it in the
comments.

15
 Supply chain Solution

Principles of supply chain management

o Customer is King.
o Management of Logistics.
o Customer Management.
o Process Integration.
o Leveraging of Sourcing.
o Strategic alliances and relationship management.
o Develop performance measures.
o Living and dying by "the plan"

16
SANJANA TRADERS AND LOGISTICS understands that every business has its own unique
supply chain requirements and challenges. That's why we work with you to determine the best
possible supply chain solution that benefits your business. Our experienced consultants can help
streamline your supply chain for your maximum competitive advantage.

From site analysis and selection to supply chain modelling and network optimization, we provide
the expertise for end-to-end supply chain reengineering. Our team of experts can help design and
reengineer a leaner and robust supply chain for your business.

Our scale and expertise, combined with our experience across all industry sectors, means we
have developed successful supply chain solutions for customers of all sizes, including many of
the world's leading brands and corporations. Whatever your requirement, there's a good chance
we’ve already developed a range of innovative solutions to meet your challenges

 Supply Chain Analysis & Design

Many customers come to SANJANA TRADERS AND LOGISTICS India with a business
problem, and not necessarily a supply chain problem. Through supply chain consulting and
network design studies, we show you the big picture - what's working and what could be
optimized for operational efficiency and better service to your customers.

Combining innovative supply chain modelling tools with the real-life practical experience
accumulated over hundreds of implementations. The result is a supply chain that will help
business starting day one, and give you the flexibility to meet changing business needs.

When you're more nimble as a business, form better relationships with your customers, and
achieve better visibility throughout your supply chain, that's when we know we've accomplished
our goal.
SANJANA TRADERS AND LOGISTICS Supply Chain Analysis and Design Services:
o Supply chain consulting to define business needs and logistics opportunities
o Distribution network analysis and design
o Transportation network analysis and design
o Facility modelling and layout, including mechanization option assessment
o Technology needs assessment and integration planning
o Labour management opportunity assessment
o Real estate services
o Implementation project management services
o Supply chain maturity modelling
o Logistics network strategy
o Transport design
o Warehouse and facility design and simulation
o Project management
o Operational analysis and improvement

17
 Supply Chain Management
Designing a great solution is just the first step. SANJANA TRADERS AND LOGISTICS also
helps to put the plan in place, becoming an extension of your team in the implementation and
ongoing management of your supply chain. Also gives commitment of quality assurance and
continuous improvement keeps your team and ours focused and effective.
At SANJANA TRADERS AND LOGISTICS, it's all about how we work to build a foundation
for ongoing success.
SANJANA TRADERS AND LOGISTICS Supply Chain Management Services:
o Dedicated, on-site resources
o Event management tools
o Supplier management / lead logistics provider services
o Engineered operational standards
o Quality assurance methodology
o Facility and process reengineering teams
o Continuous improvement workshops
o Consolidated management reporting

 How we work
Our approach sets us apart from other logistics providers. Our program managers, engineers, and
logistics experts pursue solutions that are focused on your challenges, but reflect lessons we've
learned in other industries here in India and around the world. We know your supply chain is
unique, as are your needs and objectives. We recognize and respond with creativity, insight, and
ownership.

SANJANA TRADERS AND LOGISTICS is driven by a process philosophy that is both

disciplined and flexible. Whether we're conducting a network design study across, SANJANA
TRADERS AND LOGISTICS uses consistent structures that keep our work on track and within
budget. How to make our customers' projects successful and we've developed processes to
leverage this knowledge for you.

But SANJANA TRADERS AND LOGISTICS is not driven by strict process alone. Listens and
learns along the way so that solution hits the mark for your specific needs, scale, and market -
and keeps getting better every year.
Believing how working with clients makes us a true supply chain and business partner. Explore
this section to learn how every phase is planned around your success or let us know how we can
help your business.

18
 Custom brokerage
A shipping agency or shipping agent is the designated person or agency held responsible for
handling shipments and cargo, and the general interests of its customers, at ports and harbours
worldwide, on behalf of ship owners, managers, and charterers. In some parts of the world, these
agents are referred to as port agents or cargo brokers. There are several categories of shipping
agents such as: port agents, liner agents, and own agencies, each rendering specific services
depending on the shipping company they represent.
Shipping agents will usually take care of all the regular routine tasks of a shipping company
quickly and efficiently. They ensure that essential supplies, crew
transfers, customs documentation, and waste declarations are all arranged with the port
authorities without delay. Quite often, they also provide the shipping company with updates and
reports on activities at the destination port so that shipping companies have real-time information
available to them while goods are in transit.

Responsibilities of Shipping Agents Include:

 Ensuring a berth for the incoming ship
 Arranging for the pilot and the tugs if necessary
 Drawing up the documents for the customs and harbour services
 Arranging for the necessary ship fresh water / provisions
 Arranging for the necessary doctor for the crew any medical assistance
 Arranging for storage bunkers if these are needed
 Arranging for the necessary repairs
 Conveying instructions to and from the ship owner
 Organizing the supply, transport and the handling of the goods
 Organizing the necessary contacts with the stevedores
 Collecting freights, cargoes
 Contacting shippers and the receivers of the goods
In the case of damage to cargo or the ship, the shipping agent also makes the necessary
arrangements (at the request of the ship's master or owner) with the insurance company, and for
nautical inspections and the services of experts or surveyors, etc.
The specific tasks of a cargo broker or port agent include:
 Providing the necessary information concerning the freight rates and the publication of the
sailing lists
 Looking for cargo via notices and sailing lists
 Booking of cargo and the conclusion of the agreements
 Drawing up, initiating and delivering the required documents (booking lists, shipping
permits, delivery orders) related to the cargo
 Contacting the shippers/forwarders with regard to the deliveries for shipment
 Fulfilling the necessary formalities regarding the delivery and reception of the goods
(customs etc.)
 Settling cargo claims with insurance companies

19
  Freight forwarding –Import
Initially, both freight forwarding export and import activities were dealt with simultaneously.
However the level of import has significantly increased over the years which have made it
necessary for a freight forwarding company.

Currently, Sanjana Traders and Logistics imports both air and sea freight and has its networks all
over the world and has offices in inland container depot and at the airport to manage the import
activities. The major commodities that are imported by Sanjana Traders and Logistics are
electronics, Chemicals, Furniture, etc.
Import activities start from approaching the importers which is done by the import sales team of
MGH. After the importer has completed all L/C formalities, salespersons meet importers and
offer an agreeable rate to the importer for handling the freight forwarding and an agreement is
reached. Salespersons obtain suppliers‟ details (the exporter in this context) and provide partner
details which are then followed by a series of CRM activities.
The exporter is requested to provide information regarding the cargo status – the date of cargo
arrival in the importer’s country and is required to fill up a “booking form” which obtains
relevant information about the cargo such as port of loading, port of destination, container type,
etc. A shipping order is generated against this information to the shipping line and the exporter is
notified.
The exporter collects the specific container from the depot and the stuffing of cargoes is done.
The exporter then places the container in the port to be handed to the port authority within 48
hours before the cut off is established. The inspection team at the port tests the cargoes and
checks its conformity. Once cargoes are on board, all documents regarding the import are drawn
up in the following 5 days. The master bill of lading is one of such documents that is made by
the shipping line and contains all details of the cargoes that is accepted for transportation from
the freight forwarder.

Once before arrival of cargo at destination port, the carrier has to file the details of cargo arriving
to such port of importing country with the Customs. The filing of such details of cargo is called
IGM filing (Import General Manifest filing). The procedures to file IGM (Import General
Manifest) are done by the carrier of goods or his agent. Normally IGM is filed on the basis of
Bill of Lading or Airway bill, issued by the carrier. The IGM Import General Manifest contains
the details about shipper, consignee, number of packages, kind of packages, description of goods,
airway bill or bill of lading number and date, flight or vessel details etc. Once after filing Import
General Manifest, the importer is informed and he or his customs broker files necessary
documents for import with customs under the said imported goods. This filing is done on the
basis of Import General Manifest (IGM) information filed by the carrier on arrival of goods. If
any mistakes in filing Import General Manifest, the import customs clearance documents cannot
be accepted, as the details of such documents has to be matched with the details in Import
General Manifest (IGM).
The house bill of lading is a document used by the exporter and the importer. It is used when
goods reach their destination as evidence that the exporter has kept his side of the promise. The
house bill of lading is forwarded to the importer who submits it to its local bank of L/C along
with the payment for the cargoes and after the successful correspondence between the exporters
and importers bank ( in order to make sure of the authenticity of the HBL) the bank returns the

20
commercial invoice, packing list, L/C copy, certificate of origin to the importer. These
documents are then used by the importer for clearing and forwarding activities to release the
goods from the customs.
After the above processes are taken care of, a delivery order is issued by the freight forwarders
addressing the port and shipping line to handover the goods to the importer. The freight forwards
obtains its service charges at the rate decided by the sales personnel (at the very beginning). The
payment received is called N.O.C (no objection charge). The N.O.C is paid by the importer
during the release letter is issued or as per the terms decided between the importer and the freight
forwarder.

CLEARING AND FORWARING (C&F)

Clearing and forwarding agents act as intermediaries in transactions between shippers and
suppliers of logistics services, and are required by customs to represent the owner in the
procedures for clearing cargo over international borders. The Government of India has rules and
regulations regarding the transfer of goods/cargoes in and out of the country and all the
operations of C&F encompass abiding these laws. Each individual working at the customs as a
representative of the owner of the cargoes is required to have an enlisted identification to work in
customs. CHA was established officially in the year 2012, on July 1st, to cater the services of
clearing and forwarding to exports/importers with its vision of becoming a one-stop-service point
in the long term. Whilst there are many companies in India competing in the freight forwarding
market, the clearing and forwarding services are still an untapped industry that MGH aims to
explore.
The following are a discussion of the activities of C&F:
There are basically two parts of the C&F activities; firstly the customs house activities and
secondly the off-dock customs activities.
At the customs house, CHA is required to present the following documents for initiating the
cargo clearance process-
 The export permit is a legal document that is necessary for a company wishing to export its
goods from one country to another. It is issued by the suppliers‟ local bank (after receiving
L/C from buyer) vouching the right for the supplier to export goods to other countries. The
company must have an export registration certificate which will certify that the company is
eligible to export its commodities to foreign countries.
 HS Code stands for Harmonized Commodity Description and Coding System. This is the
common standard worldwide for describing the type of commodity. Every commodity that
enters or crosses most international borders has to be declared to customs by means of this
code. This helps in standardizing the codes worldwide. VAT is paid against the HS code.
 Shipping bill is the most important document in the export of goods. It is the main document
required by the Customs Authority for allowing shipment. Shipping bill contains all required
details about the goods planned to export. It contains copies of the packing list mentioning
the contents, quantity, gross and net weight of each package, copies of invoices which
contains all

relevant particulars like number of packages, quantity, unit rate, total f.o.b, correct & full
description of goods, contract, L/C, Purchase Order of the overseas buyer.
It is a requisite for seeking the permission of customs to export goods. It contains a
description of export goods by sea/air. It contains a description of export goods, number and

21
 kind of packages, shipping marks, and number numbers, value of goods, the name of the
vessel, the country of destination, etc. On the other hand, importers have to submit copies of
document called Bill of Entry for customs clearance. Later, a copy has to be given to the
bank for verification
All documents must be assessed by Customs before the export of goods, followed by goods
examination, which is the next part of customs clearance.
 Customs endorse the shipping documents only after examining the cargoes at the dock.
Customs personnel cross-check the goods against their commercial invoice before they can
be stuffed. There can be situations where the quantity of goods in the invoice doesn‟t match
with the real quantity of goods, in which case there are short shipping certificates (in case of
shortage) and amendment certificate (in case of surplus).
Suppliers’ payment- Upon the successful stuffing of the suppliers‟ cargo for export, the supplier
will take the bill of lading and shipping bill documents and request his local bank for payment.
Upon receiving the suppliers‟ request, the local bank will make correspondence with the buyers‟
bank in the foreign country and, upon successful communication the monetary transaction takes
place between the two respective countries‟ central banks.
Raw materials for RMG- The BTMA (India Textile Manufacturers‟ Association) certifies the
use of local fabrics for the production of ready-made garments. In case the raw materials
(fabrics) are imported from foreign countries to meet the requirements of the buyer, a Utilization
Declaration must be made. These two elements are vital for the “pass book” for every RMG
factory, which records the use of fabrics for RMG production. This is required during customs
audit at the end of each year.

22
 Ocean freight

Goods are packed in shipping containers, the freight forwarder books the space or container with
the ship agent, cargo is trucked to the shipping line at the port of origin and shipped overseas to
the importer at the port of destination. The itinerary can be port-to-port or can include truck pick
up and or delivery, door-to-port, port-to-door and door-to-door.

Ocean freight versus air freight

Airfreight is much faster, but more expensive than ocean freight. The size of the cargo will
determine the feasibility of airfreight versus ocean freight.

Some cargo is restricted from airfreight so it must be shipped by ocean freight. Perishable cargo
may have to travel by air to keep from spoiling during the shipment.
In ocean freight, incoterms - standardized shipping term sheets - determine the shipper and
consignee's contractual obligations and financial responsibilities. Those terms provide guidelines
as to which party, between the importer and the exporter, is responsible for the shipping
arrangements and assign the liability for each step of of the itinerary, whether it is door-to-door,
port-to-port, or door-to-port. This process also determines who has to insure the cargo. If you are
financing your transaction with a Letter of Credit (LC), the bank will verify that the incoterms
have been met before releasing the funds. In other words, incoterms dictate when the ownership
of the cargo is transferred to the consignee.

23
 What is FCL shipping?
FCL shipping is a type of ocean freight and the term FCL refers to full container load. Shipping
FCL does not mean you need to have enough cargo to fill an entire container. You may ship a
partially filled container as FCL. The benefit is that your cargo will not share a container with
other shipments, like it would happen if you picked as a less than a container load (LCL). It is
common for exporters and importers to ship their cargo in a half full or partially full containers,
due to time constraints, deadlines or to protect their cargo from contamination of other cargos.
Often a partially full container is less expensive to ship because there will be none of the
consolidating and handling fees associated with loose cargo, as in an LCL shipment. The rule of
thumb is, if you are shipping 6 standard pallets in a 20ft container, 12 standard pallets or more in
a 40ft container, it might be cost effective to ship your cargo as an FCL shipment, full container
load, rather than LCL shipment, less than a container load.
Most FCL shipments are door-to-port, but it is possible to ship FCL port-to-port, port-to-door, or
door-to-door. In the export and import business, the shipper is usually responsible for the door-
to-port and the consignee is responsible from the port of destination to his warehouse.
However, Incoterms will determine how obligations and financial responsibilities are divided
between the exporter and importer.

If you decide to pack your own container, this is referred to as "live load". The container will
arrive at your residence or warehouse on a truck and you will be given two hours to load your
cargo. If you need more than two hours, please make your request in advance. The additional
time will be assessed by the hour.

A standard container, both 20ft & 40ft, have a door opening of 2.34m width (7'8") x 2.28m (7'6")
height x 5.898m (19'4") length.

A 20ft container will fit 10 standard pallets or 12 Euro pallets on the floor of the container, 20
standard and 24 Euro, for a 40ft container. This is assuming that the pallets cannot be stacked.

Container Types
There are many types of containers: standard dry containers, flat rack containers, collapsible flat
rack containers, refrigerated containers, and tank containers. Each type has a specific application
and is available in several sizes. The most common containers are:
 20ft standard dry
 40ft high cube dry
 45ft high cube dry
 20ft open top
 40ft open top
 20ft refrigerated

24
 40ft refrigerated
 20ft flat rack
 40ft flat rack

What is LCL Shipping?

It is possible to make small ocean freight shipments called LCL (less than a container load) for
import and export.
When shipping LCL, cargo is consolidated with other shippers' goods to fill a container. The
price is determined by volume and weight. You are charged only for the space the cargo
occupies in the container. Excess weight becomes a factor when your shipment is trucked to and
from the port
LCL shipments are facilitated by a non-vessel operating common carrier (also known as an
NVOCC).
NVOCC's reserve full containers from shipping companies based on traffic volume forecasts to
different destinations. They are then able to offer space in the containers for small shipments at a
reduced rate compared to a FCL(full container load) shipment.

LCL Shipping Frequency

LCL shipments to major ports occur weekly or bi-weekly. Shipments to secondary ports are less
frequent and may run every 2-3 weeks depending on the destination. This will sometimes result
in a waiting period for the container to be filled.

When shipping to secondary ports, your cargo may be off loaded at a trans- shipment point,
where it will wait for more cargo to fill the container, before continuing to its final destination.

Palletizing Your Shipment

In order to ship LCL, the goods must be palletized. If you are shipping boxed, crated or loose
cargo, it must be place on pallets.
Shipping loose cargo

To ship loose cargo it must be packed in cardboard boxes and or packing material and placed on
pallets. Furniture and items that do not fit in boxes are also considered loose cargo and must be
wrapped in plastic and also placed on pallets.

Shipping boxed cargo

Boxed cargo will be goods that are packed into wood crates or plywood boxes which are then
placed on pallets. Any wood used in packing or pallets must be heat treated and have a visible
stamp verifying ISPM 15 exemption.

25
Pallets

There are two types of pallets: Standard (1.2m/47 ¼" X 1m/39 ⅜") and (1.2m/47 ¼" X .8m/31
½".)

It is important to know which pallets you are using and if your cargo is stackable in order to
calculate your shipping charge.

LCL Shipping pricing

The price of an LCL shipment is calculated by destination, volume and weight. If volume is over
353 cubic feet, we recommend checking the price difference between FCL and LCL. It is
generally more cost effective to ship FCL if volume is greater than 530 cubic feet.
If you want to know prices of LCL shipments for a given route, we encourage you to use our
freight calculator or to send us a rate request if you are shipping a nonstandard cargo.

Consolidating Warehouse
In order to ship LCL there must be a consolidating warehouse at the port. So that it is easy to
segregate the materials and distributed it been where it is been ordered. These warehouses are
usually near the ports so that shipping it to the customers becomes easy.

26
 Breakbulk Shipping

Most shippers are familiar with the more common methods of moving cargo – such as container
shipping and air freight forwarding – but what if a piece of cargo is too big to fit in a container or
too heavy for a plane? What options does a shipper of oversized cargo have? The answer can be
found in breakbulk shipping.

Breakbulk Explained

Breakbulk cargo is defined as general cargo or goods that do not fit in or utilize standard
shipping containers or cargo bins. Breakbulk is also different from bulk shipping, which is used
for cargo such as petroleum products or grain. Instead, breakbulk cargo is transported
individually, oftentimes on a skid or pallet or in a crate.

Examples of breakbulk cargo include construction equipment, manufacturing materials,

oversized vehicles, boats, cranes, turbine blades, ship propellers, generators, large engines and
more.

In the early days of shipping, ocean-going cargo was most commonly breakbulk. However, with
the increased use of more efficient and secure shipping containers in the late 1960s, it is now
generally reserved for cargo that is too heavy or large to fit in a container. Though an effective
method of shipping oversized cargo, breakbulk shipping is more time-intensive than container
shipping because each piece must be loaded and unloaded individually, oftentimes with special
equipment.

27
Benefits of Breakbulk Shipping

The main benefit of shipping in this manner is the ability to move oversized, over-weight items
that wouldn’t otherwise fit into a container or cargo bin. Simply getting these large items from
point A to point B via such a service is a big plus for many shippers.

But there are other benefits, too. In some cases, breakbulk can be an affordable way to ship such
large cargo — since the item will not have to be dismantled to ship. This same benefit applies in
terms of speed. When you reduce the time spent in deconstruction and re-construction, the item
will be ready for dispatch upon arrival much more quickly.

Drawbacks of Breakbulk Shipping

When you only look at the benefits, you may wonder why breakbulk cargo isn’t used more often.
The reason being is that it can be more expensive. Large cargo often takes up more space in the
ship or cargo hold than items that are packaged neatly in uniform, stackable containers, which
results in higher shipping costs for breakbulk items.

Making it Work

Ships that are used for breakbulk shipping are often outfitted with special cranes and other pieces
of equipment to accommodate such loads. It’s true that attempting to ship oversized and heavy
items is more difficult than more standardized cargo, but companies like Crowley are capable
and ready to handle the job. With Crowley’s expertise and equipment, it is possible to move
nearly anything, anywhere by ship.

28
 Processes & procedures

Basic Documents importing

Bill of lading
Invoice
Packing List
Certificate Of origin

Importing procedure

Requirements for Custom clearance

Checklist

Online custom submission

Bill of entry with duty amount

Duty payment

After payment of duty container proceeds to clearance from yard.

We have to find the container in the yard

To Get authority from custom officer for examination

At time of examination authorised container seal is broken in front of custom officer for goods
examination

After examination custom officer giver authority for taking container out from custody of custom
after the payments of the outstanding amounts is done.

29
Basic Documents Exporting
Shipping bill like bill of lading
Invoice
Packing List
Certificate Of origin
Exporting procedure

Submission of documents to custom officer

Shipping bill

Take carting from custom officer

Get gate pass

Show gate pass of Yard

Counting, Examining & stuffing the Container

Sealing the container is done

Authority for Out Of Charge

Out of Charge of Container

Shipping company gives Bill of lading

Chamber of Commerce issues Certificate of Origin

Then shipment is transported

30
 Problem framing & problem analysis
 Problems faced while importing & Exporting

If the Indian economy grows at the same pace, India would most definitely export goods worthy
and may supersede the exports of other large developing countries like Brazil.
1. Language Difference: - Each country has its own language. When a trader of one country
deals with trader of another country then because of different languages, it becomes difficult
More Risk: - the quantum of risk is higher in foreign trade than that in internal business. In
foreign trade, goods are transported from quite long distances and usually through seaways.
Rocks, waves and climate in sea can damage the goods to a great extent. While in transit,
enemy countries can also attack.
2. Government Control: - international business is usually done under government control. For
import & export of products, various licenses are taken and various information are to be
submitted. Moreover, the whole procedure is quite complexion Difference in laws:- the rules
related to export-import are separate in each country. Due to the difference of rules in each
country, there is always some doubt in the mind of trader regarding payment and other terms
of business.
3. Custom duty: - to control the export- import of country, the government uses custom duty.
The objective of tax on import is to increase the price of foreign goods so that it becomes
unattractive for domestic consumers. The objective of tax is to reduce the flow of foreign
goods Difficulty in payment: - each country has different currency. So, businessmen face alot
of problems while paying or receiving money.
4. Lack of information: - It is difficult to find out the details of financial position and business
of any businessman sitting at distant places. Such information can be taken from banks,
information agencies, chamber of commerce, etc. Evil effects of foreign trade:- the advanced
countries of the world are benefitted through international trade, while developing and
underdeveloped are hit hard. These countries are unable to produce at that pace as, they
should be producing.
5. Economic Dependence: - if a country depends upon other country for raw materials and if
due to war or some other reasons imports are stopped, the whole economic life of that
country will be paralyzed. Sometimes economic crisis of one country spreader all over the
world. Disadvantages to Agricultural countries:-the law of “increasing returns” applies in
industries, while the law of “diminishing returns”applies in agriculture. It is clear that the
quantum of importing of manufactured goods is more than the exporting of agricultural
goods.
6. International Jealousy: - the biggest problem in the international trade is the jealousy between
the trading companies. The developed countries always exploit the weaker nations and
ultimately they have to bow down before their trading terms and conditions. One-sided
development of the country:- the international trade is conducted on the basis of geographical
division of labors and specialization. Therefore, it does not provide the chance to develop
each and every country. Thus, the development of the country becomes one- sided rather than
multi-sided.
7. Dumping: - according to this policy, the advanced countries export their goods at the rates
even below the cost of production. Japan adopted this policy during the pre-second world
war and put Indian Textile industry under great loss.

31
8. Other problems:-o Affected by weather & climate Low labor productivity Less technology
Patent (high payment of royalty)o Laziness
9. Trader should know various languages To protect from risk marine insurance is a powerful
tool Businessmen should have the knowledge of changes in exchange rates Modernization
Adopt modern technology in agriculture Standardization of products and process

 Problems faced In Custom Clearance

International shipping business is subject to numerous import controls and regulations and it is
costly and time consuming when something goes wrong or when you fail to comply with these
regulations and this ends up causing penalties, delays, unexpected costs and confiscation to the
importers as it can be hard to fix problems once the shipment is on its way.

Sometimes even though you comply with the regulations, you might still face with the delays
and unexpected costs with your import shipments. Below points are some of the most common
situations/problems importers might face with their import shipments.
 Custom Exams: Import containers can face with several different types of exams for many
different reasons. Some exams are random and some others are targeted at specific issues
with particular types of shipments. There are many different type of exams as given below
and import containers may face with one or sometimes more than one type of exams if the
customs see the need to further examine the containers. Exams cause extra costs to importers
like exam fee, demurrage, per diem and delays the delivery process of the shipments. (Please
see our custom exams article on our web site for further detailed information.
– Document review (at either the carrier manifest level, or customs entry document level)
– VACIS (Vehicle and Cargo Inspection System) Examining the containers with X-ray
without opening / breaking the seal of the containers.
– Unloading and physically inspecting of all or part of a shipment (CET / AQI / MET /
USDA)
– Sampling and laboratory testing of products from a shipment (FDA Exams)
32
 Damage: One of the problems importers might face with their shipments is damage to their
cargo or to the container. Due to wrong leashing or not securing the cargo properly inside the
container while stuffing at origin, the cargo might get damaged during the transportation or
the container might get damaged due to careless work of the terminal or vessels operators. If
any damage happens, the claim to the right parties should be done in a timely manner
according to the claim procedures so that the importer will compensate their loss due to the
damage from the responsible parties. (Please see our article on Damage claim process on our
web site for further detailed information on this subject)
 Demurrage: Demurrage is a cost, charged by steamship lines which occurs at the port
area when the containers are held longer than the agreed standard free time for the use of
their shipping containers. A limited number of free days, which varies depending on the
carrier and location is granted, after which demurrage charges will be incurred for each
additional day. This fee is intended to discourage the use of the carrier’s equipment for
storage purposes and to compensate the carrier for the use of their equipment. Demurrage
might be caused from many different reasons like late freight release and / or custom release
of the containers, long exams, damaged or overweight containers, which will cause the
importers to pay additional costs and also will delay the cargo delivery.
 Per Diem: Per diem is a charge applied by the steamship lines for the use of their
equipment. The per diem fee is incurred after the containers leave the terminal until the
equipment is returned back to that terminal. It is expected that the carriers’ empty containers
will be returned to a designated location within a certain number of agreed free days. A
container cannot remain at the consignee’s facility beyond the allotted number of days
because their warehouse is full or they lack staff or equipment for unloading the container.
This late return of the empty containers will cause additional charges to the importers.
 Detention: Detention charges are often charged by the truckers due to excess time taken by
the consignee for unloading the cargo. These fees are mostly billed hourly. Most truckers
allow 2 hours free for the unloading of the containers. When that time is exceeded, it
prevents the trucking company from utilizing their trucks and drivers for additional
deliveries. The detention fees compensate for the use of these resources.
 Missing Documents: The Original B/L’s are one of the most important document in shipping
business therefore when they go missing due to some unforeseen reason (it might get lost
with the courier or it might get lost at origin or destination), this affects the freight release
process of the shipments and might cause extra charges like demurrage to the importers due
to delay with the freight release of the shipments. There are some ways like getting
indemnity letter from the shipper and also from the consignee and from the bank (If B/L is
consigned to the bank) however as this process also takes some time, it might still cause extra
costs to the importer.
 Custom Clearance Problems: In order to prevent any delay in custom clearance procedures,
importers should provide complete and accurate information to the Customs Brokers/Freight
Forwarders so that the clearance process will be smoother and your shipment will be
less likely to face with any exams.
The last thing you want is for customs to find out that your shipping manifest is inaccurate
and get the impression that you’re trying to trick them.
The rules, regulations, and laws sometimes differs from country to country. If there is a
problem with your customs clearance, your shipping costs could go up by hundreds or
thousands of dollars. On top of these costs, the delay in getting your shipping containers

33
 released to you because of customs clearance problems could cost your business more money
because the arrival of your shipment is delayed.
 Overweight / Unevenly distributed cargo: Another problem importers might face at the
destination is overweight or uneven distribution of the cargo inside the container. In some
cases the weight of the container is more than what is shown on the documents and when the
trucker attempts to pick up the container to scale, it shows that the container can not go on
the roads as it is more than the allowed container weight for that type of container or needs to
be used a tri axle to be able to be delivered. If the cargo is distributed unevenly, this causes
for one of the axles to weigh heavier than the others (although the whole container might not
be overweight) and in this case, the container needs to be taken to a facility to be opened up
so that the cargo inside the container can be stuffed evenly on each axle and this causes extra
costs to the importer.
 Strikes: Strike is a work stoppage caused by the mass refusal of employees to work. The
strikes might be either at the Origin port, transshipment port or the destination port countries
however no matter where it is at, it will definitely delay the shipments due to work stoppage
and congestion caused because of the strike and this will again cost your business money
because the arrival of your shipment will be delayed inevitably. (For further information on
strikes, please read our article on our web site regarding this)
 Penalties: Importers have to comply with some regulations when importing cargo and failure
to do so causes fines, penalties. An example for this one is the ISF filing. Importers are
responsible of filing the ISF in a timely manner before their shipment leaves the last foreign
port and if this is not filed on time, US Customs might charge up to $5000 fines per shipment
and this will also cause your shipment more likely to be subject to customs examinations
once it arrives into the port of destination. (For further information on ISF, please check our
article on our web site on this subject) Another fine importers would face is the customs
penalties due to incorrect information provided to customs for the custom clearance as I
mentioned above.
 Holidays: This is also a very common delay reason for the importers as there are many
different holiday periods in many different countries all around the world. The shipments
might get affected by the national holidays either at the origin port or at the destination
port. After the holidays are finished, the ports, truckers, customs, etc… get very busy and this
causes congestion and affects either the release or delivery of the containers and importer
might end up paying demurrage, per diem or delay with the deliveries inevitably.
 Lost Containers at the terminal: After the import containers arrive into port of destination and
discharged from the vessel, as most of the port areas are so big, sometimes the discharged
containers get lost (UTL), meaning the port stuff would not be able to spot the container if
the container is not at its spot location as per the terminal’s records. In these cases, the port
stuff searches for the container and to spot the container might take from one day to several
days (I just had a case with one of our customers where the terminal found their container
after two weeks). As this is due to out of control of the importer, the ports most of the time
waive the demurrage in case it occurs so the loss of the container would not cause extra
charge but importer will end up with delays for the delivery of the container due to that.

34
 Suggestions and recommendations
 Documentation for the import & export should be done as the process usually stops for
improper documents so the documents flow and preparation should be properly done and
even should be transported before the shipment is in the country.
 The payments for the import clearance should be online as it would be east to do
transaction and can easily flowed and even flow of black money will be eliminated stamp
duty is now online but all the payments should be preferably online to avoid errors
 Proper training should be given to the employees for loading and unloading the
shipment/container so that the damage is less and can easily transported to anouther place
 Mark your goods legibly and conspicuously with the country of origin unless they are
specifically exempted from country of origin marking requirements, and with such other
marking as is required by the marking laws.
 Include all information required on your invoices. Prepare your invoices carefully. Keep
the data within each column. Make sure that your invoices contain the information that
would be shown on a well prepared packing list.
 Work with local customs to develop packing standards for your commodities. Mark and
number each package so it can be identified with the corresponding marks and numbers
appearing on your invoice.
 If your shipment is customs-declarable, it needs to be accompanied by an invoice at all
times. If it is a commercial shipment with a commercial value, you will need a
commercial invoice. If it is a non-commercial shipment (non-business purpose), such as a
personal gift or a sample, you need a proforma invoice. Customs invoice is an extended
form of commercial invoice required by customs (often in a specified format) in which
the exporter states the goods, quantity and selling price, freight, insurance, and packing
costs, terms of delivery and payment, weight and/or volume of the goods for the purpose
of determining customs import value at the place of destination.
 Show details on your invoice of each item contained in each individual package.
 Comply with the provisions of any special laws that may apply to your goods, such as
laws relating to food, drugs, cosmetics, alcoholic beverages, and others.
 If you use a licensed customs broker for your transaction, check availability of his
Qualification Certificate and License.
 Establish sound security procedures at your facility and while transporting your goods for
shipment. Do not give smugglers the opportunity to introduce restricted items into your
shipment.
 Observe the instructions closely with respect to invoicing, packaging, marking, labeling,
etc., sent to you by your customer. He or she has probably made a careful check of the
requirements that will have to be met when your merchandise arrives.

35
 A peep into the future

The importance of international trade was felt many centuries ago. It led to discovery of
many new different trade routes. Even ‘America was discovered because of man’s quest to
discover new trade routes.
Today many economies realize the importance of trade and so many of the government
policies are framed to encourage imports and exports of business.
There is a lot of demand for certain products in a particular Geography and in contrasts there
is lot of supply of that particular product in a certain country. So trading helps in mutually
benefiting both the parties
There are countries who are specialized in manufacturing certain products like Germans
make good cars, Japanese people are specialized in manufacturing electronic items, Indians
are good in growing certain fruits etc. So importing and exporting of these products drives
the economies of these nations.
In economic terms, Developed countries have positive balance of trade which is a good sign
of healthy economy. Hence the future of import/export business is very bright.
Many countries encourage companies who are dealing in exports by giving them export
clearances and different type of subsidies. There are free trade agreements signed between
few countries for easy flow of goods and services
In today’s world of globalization, it is difficult for a particular economy if does not exchange
hands with other economies of the world.
Another factor which will drive the imports and export business is the scarcity of certain
products in certain geographies for e.g. which is available in abundant quantity in Middle
East countries. The economy of almost all the Middle East countries is dependent on exports
of oil.
Import / export are a good business in which one can get into as it involves local expertise
and minimum resources. One does not need huge capital investment.
The success of the businessman dealing in imports and exports is dependent on his
networking skills in international market. Being able to speak different languages is
definitely an added advantage. Internet has simplified the communication process and things
are lot simpler now as compared to 2-3 decades back.
Many small players have now emerged into this business because of their knowledge and
skills. So there are ample opportunities for anyone who wants to enter into this business.
Anticipating huge opportunities in this sector, there are even specialized courses of foreign
trade offered by universities to groom young minds who are showing inclination in making
their career in Import-export business.
There is heavy competition among all the countries in providing better products at cheaper
costs to domestic and international markets. Especially huge markets like India and China
cannot be ignored. Ultimately it is benefitting the customers. Thus encouraging more imports
and exports of products. The segment is highly regulated for import –export of certain
products which fall under sensitive category like pharmaceutical drugs, Gold/ Diamonds etc.
Even illegal practices in imports and exports of branded products are highly discouraged.
Necessary due diligence should be followed in import and exports of food items. But overall
it’s a lucrative segment offering enough opportunities for anyone to survive and grow.

36
 Conclusion
The future for Sanjana traders & logistics will be fruitful. The company is a developing in the
freight forwarding industry in Mumbai and has diversified its investment to make a strong
portfolio. Sanjana traders & logistics plans on further expansion of its business in the near future
and has already taken considerable attempts to open a learning and development in the company
to aid employee training by spotting training needs and arranging them periodically. Although
employee turnover rates have recently increased, such issues are being taken into consideration
to improve future employee retention.
The experience of spending my internship period as a management trainee in Sanjana traders &
logistics has been rewarding and very fulfilling. The organization has given me a scope of
functioning as a member of a highly active team of professionals catering to the need of various
global brands and has added to my capabilities of working under pressure and adequately
maintaining all aspects of work environment. I have been given a great opportunity of
developing a professional attitude which would undoubtedly act on my benefit in my future
career endeavors.

37
 Bibliography

www.google.com

www.dhl.co.in

38