EXECUTIVE SUMMARY
The title of the project is A Study on Logistic Management at Aero Freight Co Ltd, in Qatar.
Aero Freight is a top international freight forwarding company in Doha Qatar.
This project was carried out during tenure of two month with Aero Freight Co Ltd, Doha
Qatar, Under the guidance of Mrs. Nirmala John. I was entrusted to study the content
development of Aero Freight Co Ltd. The customers of Aero Freight Co Ltd are the various
business entities operating in Doha city.
Data used during the project was primary as well as secondary data. The source used
for primary data was collected by structured questionnaire from customers; secondary
data was collected from internet and various books.
The data analysis was done by using various statistical methods graphical
presentation. The research approach was survey technique in the area of Doha city,
Qatar.
Documentation and procedures, though complex and cumbersome are integral part of
the international marketing operations, Full knowledge and accurate compliance of
procedures and documentation formalities and documentation formalities and as
essential as looking into areas of understanding of the various formalities on the part
of the managers results in protracted correspondence, adversely affecting the business
and cash flow due to delays in realization of export proceeds as also the various
incentives.
No country can fully meet its needs and demand through internal resource. At times
are to be bought from outside (import) to be sold outside that is export to keep
demand and supply under check.
The physical transfer of goods in an international trade has traditionally been
associated with a number of documents and related procedure has multiplied making
traditional trade complex and cumbersome. Need for documentation arises primarily
because of certain peculiarities of international trade transactions. This necessitates
concluding a formal contract laying down duties and responsibilities of buyers and
2
sellers
respectively.
Moreover,
Some
intermediation
become
inevitable.
No
To know about aero freight Co Ltd pricing strategy and their service.
To understand the aero freight co ltd material handling and distribution system
in detail
To know about the transportation mode of aero freight co ltd
This project is a very important part of my career as through this project I will
understand and learn without taking risk and without being held accountable for
anything. This is a very integral part of my curriculum in which i can get practical
knowledge about handling the goods and the documents.
ORGNISATION PROFILE
ORGANISATION PROFILE
FREIGHT FORWARDING
BREAK BULKY AGENCY
CUSTOMS BROKERAGE
PACKING &REMOVALS
CHARTERS
PROJECT FORWARDING
COURIER SERVICE
CONTAINER LINER AGENCY
SHIPPING AGENCY
Aero Freight Company Limited ISO 9002 certification for impeccable quality of
services.An Organized, professional logistics provider to undertake and execute a comprehensive
package of transportation, customs clearance and freight forwarding in Doha. Aero Freight Co
Ltd. met the need of importers and exporters in Qatar fully. A pioneer who has grown into the
premier logistics company in Doha with multi-modal capabilities offering a wide and complete
range of services Freight Forwarding, Shipping Agency, Container Liner Agency, Chartering,
Customs Clearance, Warehousing, Domestic Distribution, Land Transport, Exhibition Logistics,
Packing & Removals and personal effects movement. At the dawn of the new millennium, Aero
Freight was an established pioneer in its field with the added endorsement of the ISO 9002
certification for impeccable quality of services.Aero Freight is fully focused on Global logistics
and has phenomenally grown since its inception in the year 1982. At Aero Freight, company
objective is to move ahead constantly, keeping pace with technology and market requirements.
This dynamic strategy has been well received by our customers who have remained with us for
decades and appreciate our vision focused on their needs. Setting realistic goals and working
towards them diligently, we've introduced several innovations in our operations to remain highly
competitive in the industry.ISO 9001-2000 Certification from Bureau Veritas Quality
International in the Year 2000 for our Quality Systems and Procedures- a milestone in the
glorious history of Aero Freight.
ACHIVEMENTS
ISO 9001-2000 Certification from Bureau Quality International in the Year 2000 for their
Quality Systems and Procedures- a milestone in the glorious history of Aero Freight.
'Quality Service without Compromise' is their motto and their track record is ample testimony to
the fact that they have eminently succeeded in their endeavour. Successfully handled the first
bulk vessel in Sep 2001 and continued, very successfully, to handle large vessels in a routine
basis at Doha and Ummsaeid ports in Qatar. Secured many Awards from various Airlines as the
Best Cargo Agent for the Year
Golden Falcon Cargo Agents Silver Award by Gulf Air Global Cargo in 1991
Golden Falcon Cargo Agents Silver Award by Gulf Air Global Cargo in 1992
Golden Falcon Cargo Agents Silver Award by Gulf Air Global Cargo in 1993
Certificate of Appreciation by Emirates Sky Cargo for 1994-1995
Golden Falcon Cargo Agents Bronze Award by Gulf Air Global Cargo in 1997
Royal Jordanians Silver Award by Royal Jordanian in 1998
Golden Falcon Cargo Agents Bronze Award by Gulf Air Global Cargo in 1998
Cargo Agents Recognition Awards by Gulf Air Global Cargo in 1998
Cargo Agents Bronze Award by Gulf Air Global Cargo in 2000
Certificate of ISO 9001:2000 in Quality Standards by BVQI in 2000
Outstanding Cargo Sales Performance award by Saudi Arabian Airlines in 2001
Gulf Air Cargo Agents Bronze Award by Gulf Air Global Cargo in 2002
Certificate of Appreciation by SriLankan Airlines in 2002
Certificate of Membership - The Freight Club in 2002
Outstanding Performance Award by KLM Cargo for 2003-2004
Mission
To deliver cost effective and high quality service on time , every time, To be the market leader in
transportation and integrated logistics services ,To set the standard for excellence in global
logistics through total commitment to quality in people and customer service, with superior
financial results. To solve reliable transportation and logistics services to the needs of the
business community
ORGANISATATION FUNCTIONS
FREIGHT FORWARDING
Air Freight Import and Exports
Aero Freight Company Ltd. is an accredited IATA Freight Forwarder in state of Qatar,
providing export and import services on all carriers and all routes, to and from any region. They
work with an extensive network of selected agents to provide you with a seamless and reliable
service; extensive schedule includes direct and consolidated shipments on all major trade lane
routes, including transhipment every day.Service options beyond direct and consolidated services
include: Charters; Oversize shipments; Packing & crating; Break-bulk and on-forward
distribution; Dangerous Goods handling; and Insurance. Include specialized services for:
Handling Garment shipment.
Main Features
Air Freight services from all major airports
Export & Import Consolidation
Priority, Regular & Deferred Services
Time up With Leading airfreight forwarders in the region handling all types of cargo
Garments Export
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Overland Transportation
Aero Freights Overland Transport Division operates a modern fleet of trucks and trailers that
conveys assorted cargo to any destination in the Middle East. We have twenty units of Trucks
and Trailers including Skeleton Container Chassis to meet our requirements. They can provide
door delivery of containers using our trucking system.
SHIPPING AGENCY
Liner Agency Service
With the abrogation of state monopoly as the sole agent for shipping lines
operating to Doha in 2003 by the Ministry of Communication and Transport,
They
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Vessel Handling
Being an experienced ship agent , having acquired top-of-the line nautical
education , a comprehensive array of shipping agency services are provided to the
charters vessels calling on any Qatar ports like
Taking overall care of the ship i.e., its crew and cargo.
Adorning the role of professional mediators in carrying out taks entrusted in
talks between the captain and stevedoring companies.
Advising ship owners on factual conditions existing at any Qatar port at any
given point of time.
Carrying out statutory clearances.
Surveys of survey of cargo Quantity and Quality.
Cargo Canvassing.
Crew change and supply of bunkers
Follow up of Purchase Orders with the suppliers and to provide feedback to the
CUSTOMS BROKERAGE
When importing goods, the consignment must clear customs. As customs Brokers Aero Freight
or its chosen agent can clear the goods through customs and have the consignment delivered to
its final destination. In order for clearance, proper documentation is required which is mentioned
below.
Bill of Lading or Airway bill
Commercial invoice with description and value of the goods
Power of Attorney
Additional documentation may be needed, depending on the Commodity, Value and Origin.
2,100 Sq. meters space. They bring unmatched expertise in managing dedicated and multi-user
facilities providing services that support clients. Specialized, value added services focus on needs
of specific industries, including consumer packed goods, automatic, industrial equipment,
chemicals, consumer electronics and consumer durables.
They provide facility of booking storage area on rented basis for short term or long term. As the
warehouse has been provided with a multi user computer facility to maintain the stock on daily,
monthly & yearly basis.
It is also know as a pre-distribution management; AFC Logistics can load your product at point
of origin, sort by final destination and will ship direct to the concerned place.
The features
Warehouse Size
Closed W/House
Open Yard
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Their knowledgeable crews can pack on site at your facility or pick up your equipment to pack in
house at our Ware House. They have different register packing supplies and can create any kind
custom packaging to protect your products.
CHARTERS
In their time starved era , an incomparable range of services are offered by us making your
travel pleasurable and stress-free whether its for conferences , sports and entertainment events ,
cargo logistical mission or government missions.
COURIER SERVICE
First Flight courier service, Their courier division has specialized in overnight delivery or your
parcels to major cities, fastest delivery to the Indian Subcontinent at affordable prices. In a short
span of time, we are abreast with other courier service companies as we are focused on providing
excellent pre and post dispatch service
Faster and Reliable movement of outbound/inbound parcels to/from Europe and USA.
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PROJECT FORWARDING
As a leading freight forwarder with project expertise, Aero Freight Company has carved Out a
niche in dealing with cargos requiring specialized handling and shipping. Anything from delicate
to oversize and difficult-to- handle cargos receive the care they demand
Having established a strong footing in Qatar market, They provide an elevated level of technical
expertise, making available total transport solutions in commensurate with your requirements.
These services are available round-the-clock and are personalized to suit your objectives of preplanning, loading and discharging your cargo
You can take advantage of our global link with a strong network of agents that nearly guarantees
the quickest possible response to your transportation enquires, speed the movement of your cargo
and attends to the required documentation. Their success emanates from establishing long-term ,
trusting relationship with clients as well as with carriers
If you are craving for professionalism, flexibility, pricing and unrivalled commitment service,
aero freight is the only solution. With Qatar expected to grow faster than expected over the next
decade, you can count on us in handling of your project related shipments
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As regards exports, Shipping Bills are required to be filed along with other documents such as
invoice, Application for Removal (ARE), packing list etc. The Assessing Officer in the export
department checks the value of the goods, classification, rate of duty and others with regards to
different provisions and the Foreign Trade Policy and related documents. After the Shipping Bill
is passed by export department, the exporter presents the goods to the Shed Appraiser (Export)
for examination. The examination is carried out under supervision of Shed Appraiser/
Superintendent (Export) and after examination, officer gives a Let Export order, after which
exporter may load the goods into vessel/aircraft under supervision of Customs Officer.
The goods are brought directly to CFS under a Shipping Bill. The export cargo in Less than
Container Load (LCL)/ Full container Load (FCL) is received by the Custodian of CFS for safe
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custody. After stuffing of the goods, Container/ Customs Bonded Truck (CBT) is sealed by the
Custom Officer and the same is removed from CFS for export through the desired Port.
MARKETING DEPARTMENT
Logistics and marketing management are concerned with the effective flow of products and
services in the economy and pertain to the distribution of both consumer and industrial goods.
Marketing is considered to be a vital part of an economy and there is a need for an efficient
marketing system which can ensure that all marketing activities are carried out in accordance
with the predefined goals of the business.
Logistics is primarily concerned with a high degree of development in the relations that concern
marketing exchange. It is commonly believed that an effective marketing strategy creates
opportunities for the implementation of logistics in addition to building up effective and efficient
logistics systems.
Organization which wants to achieve equilibrium of stability and overall development must
consider marketing and logistics as an integral part of the organization.
Defining the services that company provides. Delivering raw materials to factories, or finished
products to consumers, Transportation of goods by ship /Air to overseas locations, Air & Ocean
Freight Forwarding, Break bulky agency, Door-to-Door Service , Consignee selling, Routing
order execution , Bounded warehousing & Distribution, Packing & Crating, Air & Marine
insurance , Charters, project forwarding, By defining services, the Company develop tactics to
market offerings.
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Whether to focus on shipments like electronics items, Garments, refrigerated food items for
supermarkets. ODC cargos.Whether to focus on shipments only to particular country.Whether to
target small number of large customers or many smaller organizations.Defining the primary
market as well as any secondary markets.
Identify competition
Who offers similar services or targets similar clients. Identifying the competition will help to
develop tactics to position the company to compete with them.
Lower prices, newer trucks, better service or high tech tracking tools, Reliability
Responsiveness, Equipments, Specialization in ODC. Outlining makes better logistics choice
than competitors for the target market.
How much money to be allocated towards marketing business .Allocating a fixed amount of
money for a year, allocate a percentage of revenue that is calculated each quarter. Marketing
dollars can be allocated to specific target markets or directed to certain offerings or budget
marketing dollars can be spent promoting the company as a whole. Need to know how much
money has to invest before considering specific tactics.
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REVIEW OF LITERATURE
Over the past 10 years, various kinds of logistics information systems have
been developed to store and process all sorts of data and information to
support daily logistics operations. However, the logistics planning or
decision-making of logistics activity is still executed manually.(Knowledge-based
system for managing logistics operations ; K. H. Chow, K. L. Choy and W. B. Lee 2007)
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The
problem
of
the
determination
of
the
space
requirements
for
warehousesystems operating under a dedicated storage policy, full turnoverbased storage, is investigated. Space shortage occurs when demand exceeds
the warehouse storage capacity. The additional space requirement is
satisfied by considering a leased storage space. (Optimization of Warehouse Storage
capacity under adedicated storage policy - M.-K. Lee a& E. A. Elsayedb)
The warehouse storage capacity problem is then formulated as a nonlinearprogramming model to minimize the total cost of owned and leased
storage space. An iterative search procedure, which always generates the
optimal solution, is developed.
Illustration of the approach for systems operating under the standard
economic-order quantity inventory model is provided. The results obtained
using the optimization approach presented can be used for determining
bounds or approximations for the first cutdesign of the storage space
requirements.
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OUTLINE OF PROBLEM
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OUTLINE OF PROBLEM
Logistics is the system of managing and regulating the movement of goods,
services, information and other resources from supplier to final user. The
main objective of logistics is to co-ordinate these activities in a way that
meets customer requirements at minimum cost. It involves the integration of
information, transportation, warehousing, inventory, material handling and
packaging. Logistics accounts for one of the highest costs of doing business.
Logistics expenditure normally ranges from 5% to 35% of sales. The field of
logistics has now come to be considered as an immensely complicated
responsibility.
The study is concentrated with Logistics activities at Aero Freight's Logistics
and distribution division assessing and analysing the various activities in
distribution Material handling Transportation and Warehousing.
Creating logistics value is costly. Thus logistics even though very important
for any business success is expensive.
To know more about aero freight co ltd pricing strategy and their
services.
To understand the material handling & distribution system at
aero freight
co ltd Doha, Qatar
To know about the transportation mode of aero freight co ltd.
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RESEARCH DESIGN
&
METHODOLOGY
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RESEARCH METHODOLOGY
Research is an art of science investigation. It is defined as A careful
investigation or enquiry especially through search for new facts in any
branch of knowledge
Research methodology is considered as the nerve of the field work or any
project. Without proper well organized research plan, it is impossible to
complete the project and reach to any conclusion. The project was based on
the survey plan. The main objective of survey was to collect appropriate
data, which work as a box for drawing conclusion and getting result.
Research Methodology comprises defining and redefining the problem,
formulating hypothesis or suggesting solution, collecting, organizing and
evaluating the data, making deduction and reaching to conclusions.
Research Methodology is a way to solve research in study and solving
research problems along with logic behind them. Thus while talking about
research methodologies we are not only talking of research methods but also
consider the logic behind the methods.
Research Design
Collection of Data
Analysis of Data
Hypothesis testing
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Preparation of Report
Research Design:
A research design is the master plan or model for the conduct of formal
investigation and survey. It is a specification of methods and procedures for
acquiring the information needs for solving the problem.
It decides the
Research Procedure:
It is not possible for s researcher to collect data from every member of the
population for a particular research, so i have adopted convenience random
sampling procedure. In this sampling procedure, it mostly assures each
element in the population an equal chance of being included in the sample.
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Primary Data:
During survey the primary data was collected with the help of structured
questionnaire. In this survey method a questionnaire is personally given to the
respondent from the selected sample with a request to answer the questions and
return the questionnaire. A questionnaire consist number of question relevant to the
research problem, printed or typed in a definite order on the form or sets of forms.
The questionnaire is personally provided to respondents under the guidance of the
researcher.
Secondary Data
Secondary data collected form, internet and various books. For the collection of
secondary data various books, website, company internal records and personal
researches relevant to the research problem have been included.
SAMPLE DESIGN
Sampling is done to get reliable information in a lesser time, at lower cost
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Sample size
the study
Questionnaire.
Interaction with walk-in customers.
Personal Interview.
Company website and Database
Since sample size is only 100, which is not a true representative of the
population as a whole
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I have got that the views from customers cannot be considered as totally
perfect. Most of the customers did not take the questionnaire seriously as it
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DATA ANALYSIS
AND
INTERPRETATION
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Q.1
Table 1
Option
Number of Respondent
Percentage %
Excellent
69
69
Very good
21
21
Good
Fair
Total
100
100
Graph 1
Interpretation From the above graph, it is inferred that 69% of the respondents says that the
services of aero freight are excellent, 21% of the respondents are saying very good. 6% of the
customers are satisfying as good. .only 4 % of the customers feedback is that aero freight
providing fair service .So the services provided by aero freight are excellent and the customers
make use of aero freight ltd. for its services.
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Q.2
Table 2
Option
Excellent
Very good
Good
Fair
Total
Number of Respondent
38
33
19
10
100
Percentage %
38
33
19
10
100
Graph 2
Interpretation From the above graph we can see that 38% of the customers are saying Aero
Freight Co Ltd pricing strategy is excellent. 33% of the customers are saying Aero Freight Co
Ltd pricing strategy is very good. 19% of the customers are satisfying as good, .only 10% of the
aero freight customers saying their pricing strategy is fair. Here we could understand that it is
inferred that quite a majority of the customers were satisfied with pricing strategy offered by
Aero freight Ltd.
Hence it can be said that the service provided in respect of price is satisfactory.
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Q.3How would you rate Aero freight Ltd. in terms of handling of goods?
Table 3
Option
Excellent
Very good
Good
Fair
Total
Number of Respondents
28
33
34
5
100
Percentage%
28
33
34
5
100
Graph 3
Interpretation From the above graph 28% of the aero freight customers are satisfying
excellent in terms of handling goods.33% of the customers are representing as very good.34% of
the aero freight customers are saying in terms of handling goods aero freight as good .5% of the
aero freight customers are satisfying as fair in terms of handling goods
It is inferred that the handling of the goods by Aero freight ltd. seems to be good as of all the
respondents say its very good. Aero freight seems to take the utmost care of the goods.
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Q.4what do you feel about the distribution system of Aero freight Ltd.?
Table 4
Option
Number of respondent
Percentage%
22
42
32
4
100
22
42
32
4
100
Excellent
Very Good
Good
Fair
Total
Graph 4
Interpretation From the above graph 22% of the aero freight customers are representing
excellent in terms of distribution system. 42% of the customers are saying very good in
distribution system. 32% of the customers are satisfying as good. Only 4% of the aero freight
customers are saying fair while in terms of distribution system
It is inferred that there was a mixed view of respondents and from the satisfaction level it is
successfully interpreted that the aero freight ltd. has achieved in good in level of customer
satisfaction.
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Q.5 which are the mode of transport used by aero freight for transporting goods
Table 5
Mode of transportation
Percentage%
Sea
60
Road
32
Air
Graph 5
Interpretation:- From the above chart representing that 60% of aero freight goods are
transport ting by sea line .32% of the goods are transporting by road way. Only 8% of the goods
are transporting by air line. Here we could understand that more of the goods transporting
through sea line.
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ACTIVITY CHART
36
ACTIVITY CHART
WEEKS
ACTIVITY
1 week
Induction on training.
2 week
3 week
4 week
5 week
6 week
7 week
8 week
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KEY LEARNING
38
KEY LEARNING
39
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Feedback and suggestion from the customers has been collected and proper corrective
measures were taken on that basis.
The promotional activities of the organization may be increased because it plays a vital role
in the environment.
The advertisement may be provided with more importance in the visual media than the
printed media.
The company should use better mode of transportation, for small consignment or sending
samples.
Though many documents prevail in documentation, only certain document plays vital role
in part of company unwanted paper work could be avoided.
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CONCLUSION
The internship at Aero Freight Co Ltd helped me to understand Logistic Management System.
The main reason behind the success of the company is good service. From the study at Aero
Freight Co Ltd, was able to acquire practical knowledge about the functioning of export, import,
custom clearance and marketing procedure. It is also immense help to me in understanding
various methods together, how they are properly coordinated to achieve the goals of the
company, which had only theoretical knowledge so far. Also the study gave me an idea about the
various problems faced by the company and how solutions are arrived and was able to
understand the importance of documentation and customs procedure, which are the integral part
the foreign trade. There are many departments working within the company such as Marketing,
operations, documentation etc. Generally the study helped to fill the gap between theory and
practice.
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REFERENCE
&
APPENDIX
43
QUESTIONNARIE
Q.2 How would you rate Aero freight Ltd. in terms of price?
Excellent
Very Good
Good
Fair
Q.3 How would you rate Aero freight Ltd. in terms of handling goods?
Excellent
Very good
Good
Fair
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Q.4 what do you feel about the distribution system of Aero freight ltd.?
Excellent
Very good
Good
Fair
Q.5which are the mode of transport used by aero freight for transporting goods?
Sea
Air
Road
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BIBLOGRAPHY
WEBSITES -
www.aerofreight.com
www.wikipedia.com
www.google.com
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