Table of Contents

Executive Summary...............................................................................................................................2 Introduction ..........................................................................................................................................3 Freight Forwarding In India...................................................................................................................7 International Organization That Fosters The Activities Of Freight Forwarders ....................................9 E- Freight ...............................................................................................................................................9 Non-Vessel Operating Common Carriers (Nvocc)...............................................................................11 Characterization Of The Forwarders Role...........................................................................................11 Problems For Forwarders ...................................................................................................................12 Federation Of Freight Forwarders Associations In India ....................................................................13 Freight Forwarding Market Report ..................................................................................................14 Business Development........................................................................................................................16 Pestle Analysis Of Freight Forwarder Industry ...................................................................................20 Bibiliography .......................................................................................................................................28

Executive Summary
A freight forwarder is a professional logistics provider. Freight forwarders are third parties and their objective is to dispatch shipments via asset based carriers such as ships, airplanes or trucks. The ability to arrange cargo movement from one destination to another within a short period of time makes a forwarder competent and however customers dependency remains constant on such forwarder. Freight forwarding companies have the expertise required to arrange all the activities related to the international shipping process. Shipping various products between countries and territories usually involves a multitude of carriers, requirements and legal documentation. The freight forwarding services is specialized in handling the great amount of logistics this intricate process requires, helping the client ship goods securely and quickly. Freight forwarding services are typically used by companies that deal with international import and export activities. The freight forwarding company is a third party it doesnt ship the cargo itself. However, the freight forwarder acts as a professional intermediary between the client and the transportation services. Major companies and corporations greatly depend on professional freight forwarders in their import and export activities. The freight forwarding company guarantees that a certain cargo reaches the proper destination upon an agreed date. Furthermore, turning to the services of a freight forwarder is practically the only way you can be certain that your products arrive at the specified destination in good condition. These days, its virtually impossible for a company to ship goods at an adequate price without a forwarder. Freight forwarding companies have an established long-term relationship with carriers of all kinds and will obtain the best deals in the least amount of time. Freight forwarder faces numerous challenges and this has consequently led in the failure of their operations and satisfying customers need. The occurrence of problems of freight forwarders in India is as a result of government regulations, liner companies, non-availability of trailers & trucks, bad roads, lack of straight or access routes, warehousing of goods etc.

INTRODUCTION
To move large quantities of goods across the country and around the world, Nations depend on their freight transportation systema vast network of roads, bridges, rail tracks, airports, seaports, navigable waterways, pipelines, and equipment. A freight forwarder is an individual or company that dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Common carrier types could include waterborne vessels, airplanes, trucks or railroads. The movement of international freight among nations relies on a complex array of longdistance transportation services. The process involves many participants, including shippers, commercial for-hire carriers, third-party logistics providers, and consignees. Moreover, global trade depends on seaport and airport services to move large volumes of merchandise over long distances via a variety of transportation modes. The interaction of these services and participants is vital to successful global trade. Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and also perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment. As an analogy, freight forwarders have been called travel agents for freight. In the U.S., a freight forwarder involved with international ocean shipping is licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary Activities of Freight Forwarders: 1. Researching and planning the most appropriate route for a shipment (taking account of the perishable or hazardous nature of the goods, cost, transit time and security); 2. Arranging appropriate packing (taking account of climate, terrain, weight, nature of goods and cost) and delivery or warehousing of goods at their final destination; 3. Obtaining, checking and preparing documentation to meet customs and insurance requirements, packing specifications, and compliance with overseas countries' regulations and fiscal regimes. 4. Offering consolidation services by air, sea and road - ensuring cost effective and secure solutions to small shippers with insufficient cargo to utilize their own dedicated units 5. Liaising with third parties to move goods (by road, rail, air or sea) in accordance with customer requirements; 3

6. Arranging insurance and assisting the client in the event of a claim. 7. Offering tailored IT solutions and EDI (electronic data interchange) connection. 8. Arranging payment of freight and other charges, or collection of payment on behalf of the client. 9. Transmitting data by internet and satellite systems, enabling real-time tracking and tracing of goods 10. Arranging air transport for urgent and high-value freight and managing the risk door to door 11. Arranging charters for large volume, out-of-gauge or project movements by air and sea. 12. Acting as broker in customs negotiations worldwide to guide the freight efficiently through complex procedures. 13. Arranging courier and specialist hand-carry services. 14. Working closely with customers, colleagues and third parties to ensure smooth operations to deadlines 15. Maintaining visibility and control through all phases of the journey, including the production of management reports and statistical and unit cost analysis. 16. Acting as consultant in customs matters. 17. Maintaining current knowledge of relevant legislation, political situations and other factors that 18. could affect the movement of freight. Functions of Freight Forwarders: Best routing Packing Custom Clearance Transport Insurance Warehousing & Distribution Rate and Contract Negotiations Findings alternatives Grouping & Consolidation Freight Forwarder can provide the Exporter with an initial quotation on the following: Cost & Freight Port charges Consular fees Cost of special documentation Cost of insurance 4

Fee of the Freight Forwarder

Main activities of Freight Forwarders in seamless cargo movement: Exports: Imports:

Packaging Documentation Warehousing Transportation Statutory compliance License customs

Monitor arrival of carriers Monitor arrival of cargoes Documentation De unitization Warehousing delivery & distribution

Multifaceted activities of Freight forwarders: As a advisor & consultant: Sourcing Transportation & Routing Packing Statutory requirements Documentation Insurance Road haulage Ocean carriage Air carriage Multimodal transport NVOCC As a warehouse agent: Bonding facility Transit bonding Post & Pre shipment Warehousing & Inventory management Retail distribution Elements considered by shipper while selecting Freight Customer service Document quality accuracy Shipment tracking Global coverage Pricing Information 5

On time performance

FREIGHT FORWARDING IN INDIA

Freight Forwarding Agents Business Dictionary (2012) defines a freight forwarder as a firm specializing in arranging storage and shipping of merchandise on behalf of shippers. It usually provides a full range of services including tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance and filling of insurance claims. Supply Chain Supply chain is a network of organizations that are involved in the upstream & downstream linkages in the different processes & activities that produce value in the form of products & services in the hands of the ultimate customer or consumer (Lysons & Farrington 2006). Upstream means against the current & relates to the relationships between an enterprise & its suppliers & suppliers suppliers. Downstream is with the current & relates to the relationship between an enterprise & its customers. Nichols & Handfield (1999), point out that the supply chain encompasses all activities associated with the flow & transformation of goods from the raw material stage (extraction), through to the user, as well as the associated information flows. Material & information flow both up & down the supply chain. The supply chain council (1997), states that the supply chain is a term used by logistic professionals which encompasses every effort involved in producing & delivering a final product from the suppliers suppliers to the customers customer. Four basic processes are: plan, source, make, deliver Broadly define these efforts, which include managing supply & demand, sourcing raw material & parts, manufacturing & assembly, warehousing & inventory tracking, order entry & order management, distribution across all channels & delivery to the customer. Lamming (1996), points out that Supply Chain is an extension of logistics. According to Mentzer J T, DeWitt W, Keebler J S, Soonhong M, Nancy W, Smith D C and Zacharia Z G (2001),: Supply Chain Management (SCM) is the systematic, strategic coordination of the traditional business functions and the tactics across these functions within a particular company and across business within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole. Hines (2004) defines SCM as supply chain strategies requiring total systems views of the linkages in the chain that work together efficiently to create customer satisfaction. Costs must be lowered across the chain by driving out unnecessary costs and focusing attention on adding value. International freight forwarders can esteem SCM to address problems in distribution network configurations, distribution strategies, trade-offs in logistics activities, information and in cash flows and payments transactions. SCM entails supply chain execution, with managing and coordinating movement of materials, information and funds across the supply chain. The purpose of SCM is to improve trust and collaboration among supply chain partners, thus improving velocity of inventory movement, responsiveness and adaptability. Due to globalization and the proliferation of multinational companies and business partnerships, organizations increasingly find that they must rely on effective supply chains or networks to compete as a global and networked economy and therefore a strong demand for freight forwarding services.

Logistics Logistics is defined by Fearson (2006), as the total management of the key operational functions in the supply chain. It is the process of managing both the movement & storage of goods & materials from the source to the point of ultimate consumption & the associated information flow. It is part of the supply chain process that plans, implements & controls the efficient & effective flow & storage of goods, services & related information from the point of origin to the point of consumption in order to meet the customers requirements. Some of the logistical functions are transportation, warehousing, information technology, & inventory management. Efficient logistics will ensure the least cost in the supply chain while meeting or exceeding customer requirements. Value Chain Dumond (1996) defines value as customer benefits. Value chain refers to all the transforming activities performed on an input to provide value to a customer, the contribution of the supply chain in creating value can be found in the better quality of inputs, the optimization of input costs, timeliness of transformation (production) &customer satisfaction. Value chain is the various steps a good or service goes through from raw material to final consumption (Porter, 1998). Factors Which Hinders the Success of the Freight Forwarding Industry in India Factors that influence a shippers mode of transport are based on the Total Product Concept (TPC) which affects the efficiency in distribution of goods. This also include reliability, frequency, transit time, capital tied up in stock, quality of service, packaging, warehouse charges, permits and licenses, import duty and insurance. Customer loyalty is lost due to inefficiency in distribution of goods. Customers expect to benefit through consumption of goods imported, thus creating a value chain. Goods have to reach the point of consumption within the shortest possible time. Use of unqualified and inexperienced clearing agents contributes to delays in clearing of goods. Mistakes done by inexperienced staff are costly in terms of demurrage charges, damage to customer goodwill and relations in upstream and downstream linkages in the supply chain. Having unqualified personnel is the most dangerous gamble and liability which should never be experimented with since customers reject delayed cargo and the clearing agent end up facing legal penalties thus increasing costs in the supply chain. Poor infrastructure has a negative impact on the efficiency and effectiveness in distribution of cargo. Poor transportation and communication network influences the bad performance of freight forwarders. Poor management of roads, railways, airports, waterways and bonded warehouses negatively impact the efficiency of the supply chain hence there is a need for the government to invest heavily in infrastructural development. Strict regulatory environments Cumbersome Clearing Procedures at the Border Posts 8

Cost Reduction Strategies within the Supply Chain

INTERNATIONAL ORGANIZATION THAT FOSTERS THE ACTIVITIES OF FREIGHT FORWARDERS

The Freight Forwarding Agents can also benefit from trade agreements such as; Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), World Trade Organisation (WTO) and World Customs Organisation (WCO). The clearing agents can take advantage of these trade agreements by having their goods entering into member states without/ paying the lowest duty. This makes their goods competitive on the international market.

E- FREIGHT
COMPREHENSIVE SOLUTION FOR FREIGHT FORWARDING INDUSTRY E-Freight is the only solution that can address all your requirements and much more with the highest level of flexibility. E-Freight is web centric software catering to Freight Forwarding industry developed using J2EE technology. The system includes modules to cover all complex operations within the freight forwarding industry covering Air Freight, Sea Freight, and Finance, Sales, Stores and HRD functions. Utmost care is given to the architecture such that it has the flexibility to accommodate all the requirements of the clients, let it be a database choice or a choice of communication medium or functionalities or platforms. E-Freight has the facility of drilling down on activities to the level of Identifying the exact time at which a particular job was finished. Facilities are given for the management to customize their own reports on top of the standard reports that are provided. On the whole, working with eFreight make the dealings in Freight Forwarding industry a different experience. Integration E-Freight offers a unique integration between front-end and back-office systems, avoiding duplicate data entry. The design enhances the accuracy and decreases the probability of errors or miscalculations Modular approach E-Freight comes in six different modules with an integrated approach among modules Sea/Air freight operation Finance 9

Sales Stores &HRD Key features: Complete web centric architecture Most effective user interface crossing the barriers of web technology End user comforts Online or Offline Multi location data replication Usage of bare minimum communication infrastructure in interconnecting locations Facility to send reports through email/Fax directly from the system Facility to export to Microsoft Excel, Microsoft Word or Open Office .Org formats. Choice of RDBMS (Oracle, Sybase, MS SQL etc

Benefits:

Anywhere anytime access to data End user comfort. Multi Branch/Location Integration No job left unfinished Communication Infrastructure Cost reduction Flexible medium of transmission Flexible interfaces with third party tools Avoid duplicate data entry

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NON-VESSEL OPERATING COMMON CARRIERS (NVOCC)

Non-vessel operating common carriers (NVOCC) are one type of sea freight forwarders. Instead of using their own ships, they operate as transportation or logistics intermediaries. That is, they book space on ships and sell it in smaller quantities, consolidating freight for transport in standard containers. NVOCCs are those who own their own containers but don't own and operate vessels. These NVOCCs buy container space in vessels from vessel operators and in turn will sell sea freight service in terms of Full Container Load [FCL]/Less than Container Load [LCL] to their customers. Smaller shippers, with less-than-container load (LCL) shipments, can take advantage of the lower costs associated with being a big shipper. Non-vessel operating common carriers (NVOCCs) book space on steamships in large quantities at lower rates and sell space to shippers in smaller amounts. NVOCCs consolidate small shipments into container loads that move under one bill of lading. More favorable rates are passed on to the shipper.

CHARACTERIZATION OF THE FORWARDERS ROLE

The legal distinction between an ocean or actual carrier's bill of lading and a forwarder's bill of lading is an important issue under Cogsa, and has been the subject of considerable legal argument in recent years both in Australia and internationally. In a typical transaction involving an NVOCC, there are four parties: Export shipper NVOCC Ocean Carrier Import shipper/holder of the bill But there will not necessarily (though sometime there will) be a contract binding all of these parties. There are three convenient characterizations of the NVOCCs legal standing: NVOCC as carrier (principal) NVOCC as shippers agent NVOCC as both carrier principal and shippers agent (and interestingly perhaps, there has not been an attempt to characterize the NVOCC as an independent contractor in the same manner as stevedores) Principal This relationship is straight forward, and involves the NVOCC issuing its house bill of lading to the export shipper and representing its house bill to be a bill of lading with the same rights and liabilities of a negotiable ocean bill of lading, which is then negotiated with the NVOCC at the destination port by the import shipper/holder of the bill, for delivery of the goods.

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So far as the export/import shipper and holder of the house bill and bank through which the house bill is negotiated (UCP 500 Art # provides for the negotiation of house bills of lading) are concerned, it is the only bill of lading they are aware of or concerned about. They will be blissfully unaware of the contract between the NVOCC and the ocean carrier evidenced by the ocean bill of lading. Agent In this characterization, the transaction is as follows: The shipper contracts with the forwarder; The forwarder issues a house bill of lading; The forwarder contracts with the ocean carrier in its own name as agent for the shipper who is an undisclosed principal; Through agency, privity of contract is established between the shipper and the ocean carrier; If the goods are lost or damaged, the shipper must sue the ocean carrier. Principal and agent It has been suggested in this characterization that the NVOCC acts as both principal and agent simultaneously Principal or agent There is no legal reason why the NVOCCs role can not change from agent to principal to agent etc and characterized according to the nature of the transaction at the particular time.

PROBLEMS FOR FORWARDERS

On one view, the forwarder's carriage contract should not be called a bill of lading, as to call it a bill of lading is a misnomer, as these documents are not really documents of title but merely receipts. And by calling them bills of lading, forwarders are attracting all the liability (and often more) of an actual carrier. A more accurate name for these documents is consignment note. In addition, a forwarder who asserts he is a principal and thereby sub-contracts to the actual carrier is involving himself unnecessarily as a defendant in cargo claim litigation, and attracting liability for loss or damage caused by the actual carrier which he need not have. When a freight forwarder represents that it is the actual carrier of the goods it is creating a number of problems which can be avoided: Assumes responsibility for loss or damage to the cargo as if it is the actual carrier under one of the international conventions, for example, under the amended Hague Rules relating to sea carriage which imposes a compulsory minimum limitation of 666.67 SDR (about A$330) per package or shipping unit or 2 SDR (about A$1) per kg, which ever is the greater; Prevents the cargo interests from pursuing the actual carrier for loss and damage. Voluntarily adopts a 12

package limitation which does not otherwise apply to them (see above); Loses the right to exclude all liability; These results are not in the freight forwarder's commercial interests as it voluntarily and unnecessarily assumes the burden of a defendant in cargo claims. The problem for freight forwarders appears to arise by default rather than design as it is not entirely clear why they would want to voluntarily assume the role of a defendant in cargo claims when this onerous burden can be avoided: No thought has been given to the name of the document being used by the freight forwarder. Little thought has been given to the issues which should be addressed. Terms and conditions are a 'cut and paste' of those used by competitors The freight forwarder wants to represent that it owns or operates the aircraft or ships on which the cargo is carried.

FEDERATION OF FREIGHT FORWARDERS ASSOCIATIONS IN INDIA

International Transport is one of the most dynamic and fastest - changing industries in the world. It needs a responsive, forward-looking and national trade association, operating to the highest professional standards. FFFAI is that association. We have redefined our Mission and goals. They, in turn, define what FFFAI is and what it does

History of Association On 5th November 1963, the Federation was registered under the Societies Registration Act, 1860 at Bombay. Mr. Karsandas Tulsidas Khimji of M/s Tulsidas Khimji Pvt. Ltd., was chosen to be the founder President of the Federation. Federation was enrolled as National Member of FIATA - The International Federation of Freight Forwarders Associations, at the World Congress at Copenhagen on 9th September 1965. Mission & Vission To bring in the feeling of togetherness among each and every one of the Custom House Agents operating at different Custom Houses, ICDs, CFSs & Airports. To encourage, support and organise Training Programmes at local, regional and national level. To work closely with Revenue Department i.e. Customs Organisation to create confidence and establish integrity & respectability for its members. To establish and publicise the code of conduct applicable to its members and suitably modify the constitution to provide strict adherence. 13

 To promote and educate the Trade & Industry to understand the necessity to engage only licensed and regulated Custom House Agents. To focus attention and educate the members on the advantages of computer system over manual systems and move them ahead towards total automation. Create councils and invite participation of all arms of transportation industry and evolve a uniform and comprehensive policy. Establish a forum to interact with trade and industry and exchange ideas and views to develop and direct forwarding community to meet their requirements. Establish relation, participation and contribute to policy makers and suggest regulation conducive for us to perform to the expectations of the trade. To move towards a full fledged Electronic Data Interchange regime and become a part of seamless cargo movement.

FREIGHT FORWARDING MARKET REPORT

It is estimated that, in 2005, the UK international freight-services market was worth around 19.76bn, of which 15.43bn was attributable to freight forwarding. Freight forwarding is defined to include related warehousing, storage and customs-clearance activity. It supports the international freight-services market, which includes international freight transport operations by road, air, sea and rail. Largely because of improvements in transport efficiency, demand for such freight services has increased less than proportionately to growth in gross domestic product (GDP). However, over the 5-year review period (2001 to 2005), growth experienced by the freight-forwarding sector exceeded growth in the freight-transport sector as a whole. Recent influences supporting the growth of the freight-forwarding sector have included the trend towards outsourcing of non-core business activities by many firms across the commercial spectrum, the growing complexity of regulation affecting international trading relationships, and an increasing awareness of security considerations. All of these factors have made it more beneficial for clients to use the services of a professional forwarder, but other developments, which have reduced the regulatory burden on shippers and transport operators alike, have lessened the benefits of using these specialists. Noteworthy among these has been the progressive deregulation of transport markets within and between the member countries of the EU, with the dismantling of customs barriers between member countries removing the need for many of the specialist services formerly provided by the freight forwarder. Other influences affecting the sector in the recent past have included the need to comply with many onerous regulations, including those concerning terms and conditions of employment, which have had a disproportionate impact on the many smaller freight forwarders operating in the sector. Road transport remains the dominant mode for international freight transport, but sea freight showed the highest growth over the review period, with receipts from cross trades showing a 14

particularly large increase. Although the share of air freight is small in terms of tonnage carried, it represents a much higher share in terms of the value Of items carried and the service provided. The international rail-freight sector performed well below its potential over the period, largely as a result of disruption to services caused by asylum seekers at the SNCF-operated rail-freight terminal near Calais in 2002 and continuing issues regarding the quality of service to clients. Independent forecasts of the development of the UK economy indicate that it will continue to experience steady if modest economic growth over the period to 2010, with inflation and unemployment continuing at relatively low levels. This, together with further market globalisation, an increased awareness of security and environmental issues, and the continuing development of IT applications to enhance the value of the freight-forwarding product, suggest a favorable environment for the continued growth of the sector.

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Business Development
Business development is a broad term applied to the process of strengthening ties with existing clients as well as cultivating customers in other sectors of the consumer market. The traditional barriers between sales, marketing, customer care, operations, and management are often crossed in order to promote this process of expansion on more than one level. This means that a specialist in the field must exhibit a degree of competence in many different areas in order to identify and capitalize on growth opportunities. One of the foundational aspects of business development, is to assess the current assets of the company as they relate to the maintenance and expansion of the business. To this end, a specialist will work closely with sales and marketing professionals to identify the degree of penetration already enjoyed by the company in various sectors of the consumer base. At the same time, he or she will also work with customer care professionals to assess the feedback gathered from existing clients on the perception of the company and its products. This type of activity can often identify ways to refine current sales and marketing techniques in order to capture a wider share of consumers within sectors where the business already has a presence. At the same time, the addition of the data acquired through customer care contacts may help identify applications for the product line that are not promoted at present and could lead to capturing new markets if marketed properly. It is important to note that the successful business development specialist is not focused only on making sales or keeping current customers happy. While those aspects are part of the overall picture, he or she will also be concerned with making the best use of the company's resources, refining the process and function of management and various departments, and addressing any legalities that must be observed as the company continues to move forward. In many organizations, this gives the specialist a wide range of authority to solicit information from anywhere within the corporate structure and to influence every aspect of company function. The process can be applied to just about any corporate situation. Even companies that are small need this type of activity in order to remain stable and to achieve growth over time. Often, the inclusion of at least one person who is focused on development activity makes it possible to capture a view of the company that is hard for people with responsibility for specific functions with the organization to achieve without help. Business development may take place by creating an arm or department of the corporation that carries out these functions. It is also possible to contract with a consultant in order to evaluate the company's current circumstances and identify strategies for future growth. Tips for Successful Business Development Identify the appropriate market and target the appropriate segments within the market -Deep pockets; ability to leverage core product from one segment to another without major design/development changes. Make sure there exists a market problem/pain that currently demands a solution. Is the problem large enough to justify the price of your solution? Is someone with P/L 16

responsibility willing to pay for the solution? Test: Are you able to clearly delineate a value proposition that gets a customers attention? Solve the customers problem, dont just build cool technology. Value is always in the application of the technology, not technology per se Have a clear understanding of your value chain. Know who are your partners, competitors, and customers it isn't always obvious Understand where you are in the market cycle, from a timing perspective: new technology, competitors entering, segmentation, consolidation, solutions offering, commoditized, etc. Dont fight the market and where it is in its life cycle you will lose Price based on value of solution, not to undercut competitors. Compete first on functionality, not price. If you truly are the only one solving the custom ers problem, you should be able to price your offering based on value of your product/solution to the customer You compete on price only after the product/solution has become a commodity end of the life cycle Techies should never hire sales people; they dont know what skill-sets and personality traits to look for. Test: If it's someone who is too aggressive and a person techies don't want to hang out with, it's probably a good sales guy Identify the end user of your product or service before you start thinking about Business Development. Even if you do not sell directly to the end users, you should know as much as possible about them. Don't be fooled by the misconception that your target market is "everybody". Write a detailed plan of action. Prioritize your opportunities and consider partnering with proven and profitable businesses first. It is very common to see announcements of strategic alliances between companies with so-called "ideas" and not solid business models. Don't invest much time talking to your suppliers or companies you have to pay money to. It is their job to give you the best deal. Always assign a monetary value to the deal before exploring it. Form alliances with companies that will bring you revenue first.

Learn as much as you can about the potential partner and their competitors before you contact them. Determine how your deal can make your partner's company more profitable. That is, list all the ways in which your proposed joint agreement adds value your partner's business. What holes does it fill in your partner's product/service line? How does the deal enhance your partner company's core business? How will your product attract more customers to your partner company's business? How does "doing the deal" brace your partner against the trends of the industry, for which they might otherwise be unprepared? Identify the personal issues. What are the personalities of the people who will be influential in the decision to sign the agreement? What are their personal motivations? Growth/expansion? Hot buttons? Family? Loyalty and commitment to the company they represent? Business process simplification? Eventual merger/acquisition? 17

Identify the PR potential of the joint agreement. Why is it hot news? To whom, in particular? How can you leverage these PR possibilities in negotiating the deal? How do they add value to the overall equation? Be careful in announcing so-called "strategic alliances" where only a purchase of equipment or services was made. To insure that the partnership will successfully evolve, commit the necessary resources to insure that the deal is implemented and periodically evaluated. Set guidelines and performance metrics as part of the deal. Involve senior management in every step of the way. Assign a single point of accountability for the deal. Business development is much more than simply going to trade shows and being a wheeler dealer. Business development is hard work and you must stay focused on the long term. Hopefully the above tips will help you whether you are experienced in biz dev or if the role of business development was thrust upon you due to layoffs, firings or other factors.

Business Development Manager The definition of a business development manager is a person who explores and exploits opportunities to increase growth and revenue for his business. They are also known as economists and business planners. Their job is to help to keep the company growing and to find new ways to make money or to improve the fields and ventures that the company is already involved in by maximizing the profitability. They are the key to how successful a business will be. The definition of a business development manager is a person who explores and exploits opportunities to increase growth and revenue for his business. They are also known as economists and business planners. Their job is to help to keep the company growing and to find new ways to make money or to improve the fields and ventures that the company is already involved in by maximizing the profitability. They are the key to how successful a business will be. The main duty of a Business Development Manager is to strategize on acquiring new customers for their products at the same time maintaining their existing customers and creating better relationships with them. The Role of the Business Development Manager A Business Development Manager works to improve an organizations market position and achieve financial growth. This person defines long-term organizational strategic goals, builds key customer relationships, identifies business opportunities, negotiates and closes business deals and maintains extensive knowledge of current market conditions. Business Development Managers work in a senior sales position within the company. It is their job to work with the internal team, marketing staff, and other managers to increase sales opportunities and thereby maximize revenue for their organization. To achieve this, they need to find potential new customers, present to them, ultimately convert them into clients, and continue to grow business in the future. Business Development Managers will also help manage existing clients and ensure they stay satisfied and positive. They call on clients, often being required to make presentations on solutions and services that meet or predict their clients future needs.

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Responsibilities of a Business Development Manager Investigate the economic conditions surrounding your small business activity such as industry trends and competition. Conduct extensive market research prior to starting up your business and continue gathering information throughout the life of the business. Prepare a detailed business plan so you will not lose sight of your goals and objectives. Secure sufficient financial resources for future development or expansion. Contact professional advisors such as an accountant, banker and/or lawyer to provide expert information about your business. Network with other small businesspeople; establish a support group. Remember, you are not alone. Attend workshops, trade shows, and seminars to keep up-to-date on changes in the industry. Adopt a team approach; work with others in pursuing common goals. Develop a situation analysis of your company including its strengths, weaknesses, opportunities and threats to assist in the development of a strategic plan for the future of the business.

In general, a business manager is responsible for running the business day-to-day. Whether, a managing director in a medium-sized company or a business unit director in a large corporate organization, this general management role is crucial to hold the business together, and to lead the changes which will ensure future success. Challenges The main challenge in to business development is to attract and retain customers because they generally dont have large enough marketing budgets to compete with the advertising dollars that larger companies can spend. You need to be strategic and creative in how you attract new customers. Online marketing, search engine optimization, email marketing and social media are great ways for you to attract and retain customers if you have a smaller budget. Its important while using these tactics that you spend the time differentiating your business from the competition so your message speaks to your consumer markets. If you dont know who the members of your target market are and where they live, start by polling your existing customers and consider doing additional market research

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PESTLE Analysis of Freight forwarder Industry

(Impact level 1 is lowest and 5 is highest) Political Current legislation Period: Long time Current: CSC and structural and testing regulation which is technical requirement placed on containers are given in the standards in the International conversation safe container or CSC It applies to all containers used for international transport, except contains developed for air travel Impact Level: 3 Internal/External: External Policy for taxation: Period: Short term Current: base on assumption 10% of the value of services Impact Level: 4 Internal/External: External Foreign trade regulation Period: Medium Current: Title 46 C.F.R. - shipping and title 48 C.F.R.- transportation Impact Level: 3 Internal/External: External Government Policies Period: Sort term Current: Creation of appropriate skill set among the rural migrants and urban poor to make growth inclusive, Increase manufacturing sector growth 12 to 14% over the medium term to make it growth engine, Increase domestic value addition and technological depth in manufacturing Future: Increase the rate of job creation in manufacturing to create 100 million additional by 2022 Impact Level: 4 Internal/External: External Government term and Changes Period

Current: Creation minimum wages which have recently been extended under 18s. Requirement of Businesses to cater for disabled people, by building ramps into offices and 20

shops etc, Providing increasingly tighter protection for consumer to protect them against corrupt business practices , Creating tighter rules on what continues fared confidences between business Future: it will change if government will change Impact Level: 4 Internal/External: External Trading Policy Ideology of current ruling party Period: Medium

Current: In case of export or import that is permitted freely under FTP (foreign trade policy) is subsequently subject to any restriction or regulation, such export or import will ordinarily permitted notwithstanding such restriction and regulation, unless otherwise stipulated, provided that shipment of export or import made within original validity with the respect to available balance and time period of an irrevocable commercial letter of credit. Before the date of imposition of such restrict Future: Dont have direct impact but as it will impact export thus will impact the demand for container Impact Level: 5 Internal/External: External Economics Wage cost Period: Medium Current: The Minimum Wages Act, 1948 is based on Article 43 of the Constitution of India which states that, "The State shall Endeavour to secure by suitable legislation or economic organization or in any there way to all workers, agricultural, industrial or otherwise, work, a living wage (emphasis added) conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities" Impact Level: 3 Internal/External: External Interest rate Period: Short Current: Interest in India is currently 7.5 % which is the interest rate hike for nearly. 375 basis point Future: it will increase or decrease every year depending on economic situation

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Impact Level: 2 Internal/External: External Home economic situation Period: short time Current: In Second and third quarter GDP is 4.4% and 4.8% respectively Future: Indian GDP is likely to cross 5 Trillion USD in 2020 as per article in Economic Times Importance: Growth rate in economy will impact in various ways, like government policy will depend on the GDP growth rate, In high growth rate government adopts liberal policy like low interest will be charged contribution of various sector in GDP will decide government attitude for their focus in various industry Impact Level: 3 Internal/External: External Overseas Economic Period: medium Term Current:

Future Importance: Important it will impact world trend and thus will impact export import and consequently requirement of container Impact Level: 4 Internal/External: External Technology Intellectual property right Period: Medium Term Current: The Indian Patent and Design Act 1911, The Patent Act 2002 came into force form 20th may 2003, the patent (amendment) Act Affective from from first January 2005. Impact Level: 2 Internal/External: External 22

Rate of obsolescence Period: long term Current: Base on assumption technology become absolute within 10 year.

Impact Level: 2 Internal/External: External Speed and cost of technology transfer Period: long period Current: Base on assumption speed and technology may transfer within 10 year

Impact Level: 3 Internal/External: External Rate of innovation and new product Development: Period: Medium term Current: Base on assumption the soft ware change in 5 to 6 year.

Impact Level: 3 Internal/External: External Access to technology by the firm in the industry: Period: Medium Term Current: It has become integral part data interchange which system that allows to computer conduct business transaction over telecommunication network. Future

Impact Level: 3 Internal/External: External

Legal
Local legislation Law Period: Long time it changes after every 25 years Current: Prevent Of money Laundering Act, 2002. Union Duties of Excise (Electricity)
Distribution Repeal Act, 2006. The Payment and Settlement Systems Act, 2007

Impact Level: 4 Internal/External: External State legislation Law Period: Short Current: Central sales and purchase of goods, tax on consignment, Carriage of Goods by Sea Act, 1991 23

Impact Level: Internal/External External Nation legislation Period - Long time

Current: Imports and Exports (Control) Act, 1947 which has been taken over by the Foreign Trade (Development and Regulation) Act, 1992, Foreign Trade (Development and Regulation) Act, 1992, Import-Export (EXIM) Policy 1997-2002, Basic Logistics Policy Act, 2009

Impact Level: 4 Internal/External: External

International legislation Law Period Current: foreign trade (regulation and Development) Act , 1992, Indian institute of packing (IIP), Freight Forwarders (Licensing and Operations) Rules, 2008Mumbai, Administrative Order No 6, Philippine Shippers' Bureau - revised Rules on Freight Forwarding, 2005,

Future Impact Level: 4 Internal/External Employment Law Period: long term Current: National commission rural law 1991, Minimum wage, Bonded Labour, child labor contract labor.

Future Impact Level: 4 Internal/External: External Land laws Period: long time Current: Land acquisition law 1894, Transfer property act 1882

Future Impact Level: 2 24

Internal/External: External

Social
Population of growth rate Age division Period : long

Current: current population age group between 15-64 years old is 64%, age group between above 65 year is 5% and age group between 0 to 14 year old 1% Future Importance Internal/External: External Gender Division Period: Short term

Current: Total population of India is 1,21,01,93,422 which consists of 62,37,24,248 males and 58,64,69,174 females with the sex ratio of 940 females per 1000 males.

Impact Level: 3 Internal/External: External Education Spread Period: Short term

Current: the Literacy rate of India has shown as improvement of almost 9 percent. It has gone up to 74.04% in 2011 from 65.38% in 2001, thus showing an increase of 9 percent in the last 10 years. It consists of male literacy rate 82.14% and female literacy rate is 65.46%. Impact Level: 4 Internal/External: External Population growth rate Period: Short term

Current: population growth is 1.58% in India 2012-13 Impact Level: 5 Internal/External: External

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Income level

Period: Short term Current: India's per capita income, a gauge for measuring living standard, is estimated to have gone up 11.7 per cent to Rs 5,729 per month in 2012-13 at current prices, compared with Rs 5,130 in the previous fiscal. Impact Level: 5 Internal/External: External Spend able

Period: Short term Current: spendable income in urban 94.2%, Rural 96.4% and all India 94.7% Future Importance Internal/External: External Saving

Period: Short term Current: saving rate in Urban5.8%, Rural3.6%, And all India 5.3% Impact Level: 3 Internal/External: External Income Distribution

Period: Shot term Current: Household consumption 56%, 11% Investment inventory, fixed capital 29.6% , investment in the inventory 3.5% Impact Level: 5 Internal/External: External Consumerism Period: Medium term Current: Consumer protection act 1986.

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Impact Level: 5 Internal/External: External

Level of urbanization

Period: medium Current: in India urbanization was 30% in 2010, Future: it will increase up to 32% in 2015 and 34% in 2020 Impact Level: 4 Internal/External: External

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BIBILIOGRAPHY
logisticsjournaltoday.blogspot.com www.shiplilly.com scholar.google.com www.tandfonline.com www.scribd.com www.marketresearchreports.com www.accenture.com iiei.dunlap-stone.edu dl.acm.org hub.onemorepallet.com http://en.wikipedia.org/wiki/List_of_Indian_federal_legislation/retrive Date 06-01.2014, Time 9.01 http://www.indianyellowpages.com/support/india-legal-aspects/exports-and-imports-act.htm Time 9.14 http://business.gov.in/legal_aspects/import_export.php http://www.unescap.org/ttdw/publications/tfs_pubs/ff-standard/ff-standard-ch2.pdf http://www.medindia.net/health_statistics/general/sex-ratio-in-india-2011.asp http://www.indiaonlinepages.com/population/literacy-rate-in-india.html http://data.worldbank.org/country/india http://articles.economictimes.indiatimes.com/2013-02-07/news/36972679_1_constant-pricesincome-in-real-terms-capita-income http://en.wikipedia.org/wiki/Income_in_India

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