A STUDY ON THE HR DIMENSIONS OF FREIGHT FORWARDERS IN COIMBATORE DISTRICT

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1 A STUDY ON THE HR DIMENSIONS OF FREIGHT FORWARDERS IN COIMBATORE DISTRICT Dr. G.VIGNESH 1 D.NAVEENA 2 1 Head PG Department of Commerce with International Business, NGM College Pollachi. 2 Research Student, PG Department of Commerce with International Business, NGM College Pollachi. ABSTRACT The services of a freight forwarder can vary between different companies but the main function of the freight forwarder is to act as an intermediary between the client who is hiring them and various transportation services that are involved in getting the product overseas to the customer. The research mainly discuss to elaborate the dimensions of freight forwarders (supply chain competitors, business in freight forwarding). Samples for the purpose of the study are selected systematically. The study makes use of statistical techniques such as Percentage analysis, Index method and Chi- square test in analyzing the data for finding the result. The study concluded that major problems identified by the freight forwarders in their business operation Stuffing, loading and unloading, non-availability of trailers and trucks, Routing and scheduling. A consortium of freight forwarders could be formed so that problems of non-availability of trucks and containers could be minimized. Keywords : Services, Freight forwarder, Transportation and problems INTRODUCTION The freight forwarder is hired to get the product to the customer by a specific date and in an undamaged state. The freight forwarder will provide the client insurance services to make sure that if the items do arrive damaged, they will be reimbursed and not liable for the damages. Logistics is science of planning and carrying out the movement and maintenance of force those aspects of operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation, and hospitalization of personal; acquisition of construction, maintenance, operation and disposition of facilities; and acquisition of furnishing of services. The negotiation, planning and implementation of supporting logistic arrangements between nations, their forces and agencies. It includes furnishing Logistics support (major end items, materials, and / or services) to, or receiving Logistics support from one or more friendly foreign governments, international organization or military force. It also includes planning and action related to the intermeshing of a significant element, activity, or component of the military Logistics system or procedures of the United States with those of one or more foreign governments, international organization or military force on a temporary or permanent basis. Global logistics is a full services customer broker, freight forwarder and international trade consulting firm specialize in helping small and mid sized business manager their all aspects of international trade,ensuring goods reach their destination on time and in good condition. Containers ultimately enabled multimodal transport to be applied to most types of general cargo by means of an international standardized transport unit. Only particularly large (out-of-gauge) and particularly heavy cargoes cannot be containerized. Containerisation is basically the largest form of unitization. Containers are loaded with products at the shipper s premises and sealed, and then they are carried over to the consignee s premises intact, without the content being taken out or re-packed en route. This is the essence of container transport as well as multimodal transport, but 1 editor@researchscripts.org

2 containerization is not synonymous with multimodal transport. Containerization contributes to a higher efficiency in the development of multimodal transport operations. FUTURE PROSPECTS OF LOGISTICS Facing the worldwide competition, the improvement of logistics system should be advanced by both private companies and government. Weeld and Roszemeijer (Ho, 1997) discerned three revolutions in business that have substantial impacts on the purchasing and supply strategies of the manufacturing sectors. These three revolutions are: (1) the globalisation of trade; (2) the coming of the information era; (3) more demanding consumers and continuously changing consumer preferences. The main characteristics of future logistics development are: Government role Growth of international goods transport Improvement of services Revolution of logistics operation Shorter product life cycle Improvement of logistics facilities Channel cooperation between companies Specialized logistics delivery Logistics centers Freight transport SCOPE OF THE STUDY This study helps to improve the performance of the company. Among all these aspects of freight forwarding operations, containerization is essential for speedy and safety reach. Hence, the study encompasses the role of freight forwarders in containerization. OBJECTIVES OF THE STUDY The present study is aimed to analyze the following objectives empirically To elaborate the dimensions of freight forwarders (supply chain competitors, business in freight forwarding). To analyze the relationship between the logistics company and its freight forwarders. RESEARCH METHODOLOGY In the present study, an extensive use of both primary and secondary data was made. The study has been made in a descriptive and analytical way. RESEARCH DESIGN Convenient sampling was followed to select the sample respondent for the study. To obtain primary data, the researcher approached 60 respondents out of 20 registered freight forwarders in the area of Coimbatore. The data collected from the sample respondents has been subdued in to suitable tabulated forms. 2 editor@researchscripts.org

3 SAMPLING METHOD The type of research that has been adopted by the researcher is descriptive research. It described the study on Freight Forwarders in the Coimbatore sector and the growing importance and Role of Freight Forwarders. SAMPLING SIZE To obtain primary data, the researcher approached 60 freight forwarders in the area of Coimbatore district. METHOD OF DATA COLLECTION The study has been used both primary and secondary data. a) Primary Data The primary data collected from the selected respondents, viz., Logistics operators, and freight forwarding agents in the study area. Field survey techniques were used to collect the first hand information from the respondents. A well structured interview schedule was prepared to collect data from the freight forwarders. Pilot study has been conducted with the help of the few sample schedules and necessary modification was carried down as and when required. b) Secondary Data The Secondary data was gathered from the records of freight forwarders association, internet sources, various Journals, Magazines, and Websites etc. STATISTICAL TOOLS The following statistical tools are used in the study Percentage Analysis Index Method Chi square test PERIOD OF THE STUDY The period of the study is for months from December to March AREA OF THE STUDY The data has been collected from the exporters at Coimbatore. LIMITATIONS OF THE STUDY The study is confined to the particular area only and this is not applicable to other areas. The has not considered the financial aspects of Freight forwarders. Lack of time available for research. REVIEW OF LITERATURE K. Parimala (2013), Exporters Choice of Freight Forwarder in Moving Their International Cargo. The study reveals that the goods are moved from the manufacturers/exporters to the customers/consumers by the freight forwarders with their effective utilization of the road/sea/air transportations. The key concept in freight forwarding service is the delivery of the cargo till the destination point or at the forwarders place to perform the operations to bring the goods to their end users. The international freight forwarders act as bridge between the manufacturers/exporters to the destination of the consumers. Their role through the development of multimodal transport operations 3 editor@researchscripts.org

4 is important to increase efficiency in international movement of goods, which is a critical component in the quest of improving our total export competitiveness. Dong Wang, (201), The study and use of AHP in logistics and customer satisfaction. In terms of logistics, the positive feedback of customer satisfaction is the essential element for logistics enterprises to survive and develop. This article talks about customer satisfaction in logistics by using (AHP) Analytic Hierarchy Process. The Sample Size of the study is 200. Customer satisfaction is a subjective ideology. Among them, we can form a hierarchical goal. The level of this goal is composed from top to bottom. The highest level is the master goal of the system. The technical analysts should always pay great attention to the attitudes of customers, analyze and generalize the change, and make appropriate adjustment in time to deal with the problems in customer satisfaction. K.Bagyalakshmi and R.Karthika (2015), A study on the influencing factors for exporters in choice of selecting the freight forwarders. Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, animals, equipment and liquids, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in logistics for import and export. Dr.D.Rajasekar and Mr.T.Sandeep Prabhakar (2015), Importance of Freight Forwarding and Work Activities of Freight Forwarders- an Empirical Analysis. 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 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. A freight forwarder organizes the safe, efficient movement of goods on behalf of an exporter, importer or another company or person, sometimes including dealing with packing and storage. Taking into account the type of goods and the customers' delivery requirements, freight forwarders arrange the best means of transport, using the services of shipping lines, airlines or road and rail freight operators. In some cases, the freight forwarding company itself provides the service. ANALYSIS AND INTERPRETATION I) PERCENTAGE ANALYSIS Table 1 Company Profile S.No Determinants No of Respondents Percentage (%) 1 Type of Industry Agriculture Textile Food Furniture editor@researchscripts.org

5 2 Number of Employees Less than Capital Invested in our Company Less than 50 Lakhs More than 50 lakhs to 1 crores More than 1 Crore to 10 Crore Position of the Company Material manufacturer Sub product / assemble manufacturer Final product manufacturer Assemble and Distribution Nature of Industry Small Scale Medium Scale Large Scale Type of Goods Produced Industrial Goods Consumer Goods Type of Business Organization Sole proprietor Partnership Public Limited Private Limited Kind of Manufacturing Product Process Both Manufacturing Pattern of the Company Make - to -order Make- to-stock Assemble - to -order Engineer - to - order Market Coverage Domestic Market International Market Both Nature of exports Merchants Exporters Manufacturing Exports Third part / buying export editor@researchscripts.org

6 Status of exports house Registered Exports 100% Exports House STH SSTH Capital or Initial Investment Less than 50 Lakhs 50 lakhs - 1 crore More than 1 crore Exported Countries USA Europe Australia Africa Supply Chain Management is very vital for business success Yes No Active Supply Chain Management Yes No II) INDEX METHOD SUPPLY CHAIN COMPETENCIES ly there are 15 statements considered with five point scale ( ie strongly agree, Agree, Neutral, Disagree, Strongly Disagree) and weight age have been given with coding 5,,3,2,1 and maximum score an individual respondents will get is 60. Out of which high, moderate and low categories have been framed, the respondents where core is more than 65 are considered to be High, below 58 are considered to be low and the respondents whose average is between 59 and 6 belong to moderate category. Based on these, the following Chi-square have been made. The Mean level of preference of the sample respondents is 6.07 and their standard deviation is Table 2 Supply Chain Competencies Index S.No Statements 1 Supplier Delivery Performance 2 Supplier lead time against industry norm Above 65 Between Below 3 Supplier pricing against market 59 to 6 58 Sampling lead time 5 Production lead time 6 editor@researchscripts.org

7 6 Product cost 7 Information processing cost 8 Accuracy of forecasting techniques 9 Human resource productivity 10 Capacity utilization 11 Variety of products and services offered to customers 12 Flexibility of system to meet customer needs 13 Delivery reliability performance 1 Quality of delivered products 15 On time delivery of products Mean 6.07 SD 5.93 Mean - SD Low Mean + SD High Between High & Low (Average) Moderate Table 3 Age and Supply chain competencies H 0 = There exist no significant association between age of the respondents and supply chain competencies. Age Supply chain competencies Below 25 years years Calculated χ2 Value: Degree of freedom: 2 Table Value: Five per cent level: Since the calculated χ2 value (2.251) is less than the table value (5.991) at five percent level age of the respondents and supply chain competencies. Table Gender and Supply chain competencies H 0 = There exist no significant association between gender of the respondents and supply chain competencies. Gender Supply chain competencies Male Female Calculated χ2 Value:.367 Degree of freedom: 2 Table Value: Five per cent level: editor@researchscripts.org

8 Since the calculated χ2 value (.367) is less than the table value (5.991) at five percent level gender of the respondents and supply chain competencies. Table 5 Place of Residence and Supply chain competencies H 0 = There exist no significant association between place of residence of the respondents and supply chain competencies. Place of Residence Supply chain competencies Rural Urban Calculated χ2 Value: Degree of freedom: 2 Table Value: Five per cent level: Since the calculated χ2 value (0.557) is less than the table value (5.991) at five percent level place of residence of the respondents and supply chain competencies. Table 6 Educational Qualification and Supply chain competencies H 0 = There exist no significant association between educational qualification of the respondents and supply chain competencies. Educational Qualification Supply chain competencies School level Graduate or Diploma level PG level Calculated χ2 Value: Degree of freedom: Table Value: Five per cent level: 9.88 Since the calculated χ2 value (2.825) is less than the table value (9.88) at five percent level educational qualification of the respondents and supply chain competencies. 8 editor@researchscripts.org

9 Table 7 Monthly income and Supply chain competencies H 0 = There exist no significant association between monthly income of the respondents and supply chain competencies. Monthly income Supply chain competencies Less than Rs.10, Rs.10,001 - Rs.15, Rs.15,001 - Rs.20, Above Rs.20, Calculated χ2 Value: Degree of freedom: 6 Table Value: Five per cent level: Since the calculated χ2 value (27.658) is greater than the table value (12.592) at five percent level of significance. H 0 is rejected. Hence it is concluded that there is a significant association between educational qualification of the respondents and supply chain competencies. BUSINESS IN FREIGHT FORWARDING INDEX ly there are 8 statements considered with five point scale ( ie strongly agree, Agree, Neutral, Disagree, Strongly Disagree) and weight age have been given with coding 5,,3,2,1 and maximum score an individual respondents will get is 60. Out of which high, moderate and low categories have been framed, the respondents where core is more than 35 are considered to be High, below 31 are considered to be low and the respondents whose average is between 32 and 3 belong to moderate category. Based on these, the following Chi-square have been made. The Mean level of preference of the sample respondents is 3.38 and their standard deviation is 3.9. Table 8 - Business in Freight Forwarding Index Statements Safe and speedy delivery Moderate and low freight charges Payment of Freight Crossing Loading Ex-mill Above 35 Between 32 to Timing of loading 3 Monetary help Below 31 Return of empties and containers Communication from / information about the consignees Mean 3.38 SD 3.9 Mean - SD Mean + SD Between High & Low (Average) Low High Moderate 9 editor@researchscripts.org

10 Table 9 Age and Business in freight forwarding H 0 = There exist no significant association between age of the respondents and Business in freight forwarding. Age Business in freight forwarding Below 25 years years Calculated χ2 Value: Degree of freedom: 2 Table Value: Five per cent level: Since the calculated χ2 value (5.016) is less than the table value (5.991) at five percent level age of the respondents and Business in freight forwarding. Table 10 Gender and Business in freight forwarding H 0 = There exist no significant association between gender of the respondents and Business in freight forwarding. Gender Business in freight forwarding Male Female Calculated χ2 Value:.359 Degree of freedom: 2 Table Value: Five per cent level: Since the calculated χ2 value (.359) is less than the table value (5.991) at five percent level gender of the respondents and Business in freight forwarding. Table 11 Place of Residence and Business in freight forwarding H 0 = There exist no significant association between place of residence of the respondents and Business in freight forwarding. Place of Residence Business in freight forwarding Rural Urban Calculated χ2 Value: Degree of freedom: Table Value: Five per cent level: 50 editor@researchscripts.org

11 Since the calculated χ2 value (6.188) is greater than the table value (5.991) at five percent level of significance. H 0 is rejected. Hence it is concluded that there is a significant association between place of residence of the respondents and Business in freight forwarding. Table 12 Educational Qualification and Business in freight forwarding H 0 = There exist no significant association between educational qualification of the respondents and Business in freight forwarding. Educational Qualification Business in freight forwarding School level Graduate or Diploma level PG level Calculated χ2 Value: 2.15 Degree of freedom: Table Value: Five per cent level: 9.88 Since the calculated χ2 value (2.15) is less than the table value (9.88) at five percent level educational qualification of the respondents and Business in freight forwarding. Table 13 Monthly income and Business in freight forwarding H 0 = There exist no significant association between monthly income of the respondents and Business in freight forwarding. Monthly income Business in freight forwarding Less than Rs.10, Rs.10,001 - Rs.15, Rs.15,001 - Rs.20, Above Rs.20, Calculated χ2 Value: Degree of freedom: 6 Table Value: Five per cent level: Since the calculated χ2 value (13.962) is less than the table value (12.592) at five percent level of significance. H 0 is rejected. Hence it is concluded that there is a significant association between monthly income of the respondents and Business in freight forwarding. Table 1-Supply Chain Competencies Index Factors H 0 H a Age X Gender X Place of residence X Educational qualification X Monthly income X 51 editor@researchscripts.org

12 Table 15 Business in freight forwarding Index Factors H 0 H a Age X Gender X Place of residence X Educational qualification X Monthly income X Percentage Analysis The majority of the respondents are material manufacturer of the company. The majority 8 (80.0%) of the respondents are worked in medium level company. The majority (73.3%) of the respondents are produced industrial goods. The majority 5 (75.0%) of the respondents are worked in Sole Partnership of the organization. The majority 50 (83.3%) of the respondents are worked in product manufacturing company. The majority 0 (66.7%) of the respondents are worked in make to order pattern of the company. Majority of the respondents are focusing at domestic level segmentation. The majority of the respondents are merchant exporters. The majority 2 (70.0%) of the respondents are exporting registered export house. The majority 8 (80.0%) of the respondents are said that 50 lakhs to 1 crore of exporting annual turnover in the organization. The majority of the respondents export is mostly restrained to USA country. The majority 58 (96.7%) of the respondents are said supply chain management is very vital for business success. The majority 56 (93.3%) of the respondents are follow active supply chain management. Chi Square Test There is no significant association between age of the respondents and supply chain competencies. There is no significant association between gender of the respondents and supply chain competencies. There is no significant association between place of residence of the respondents and supply chain competencies. There is no significant association between educational qualification of the respondents and supply chain competencies. There is a significant association between educational qualification of the respondents and supply chain competencies. There is no significant association between age of the respondents and business in freight forwarding. There is no significant association between gender of the respondents and business in freight forwarding. There is a significant association between place of residence of the respondents and business in freight forwarding editor@researchscripts.org

13 There is no significant association between educational qualification of the respondents and business in freight forwarding. There is a significant association between monthly income of the respondents and business in freight forwarding. SUGGESTION Majority of the respondents are satisfied with their freight forwarder and hence it is suggested to maintain high customer care and to offer excellent services to retain the existing customer base. Many customers usually bear a huge freight rates for their shipments, the freight forwarders can provide suggestions to minimize the freight rates by using efficient mode of transportation and proper care should be taken to reduce the cost. The freight forwarders can improve themselves by providing various new facilities for the customers for completing their shipments in proper way. The government rules and regulations have to be liberalised, so that trading can be done easily. The customers can be informed about the new policies and regulations provided by the government for effective trade. The freight forwarder can give more importance to the transportation facilities. By improving the facilities and adopting modern techniques help the freight forwarders to create a better business environment. CONCLUSION Major problems identified by the freight forwarders in their business operation Stuffing, loading and unloading, non-availability of trailers and trucks, Routing and scheduling.a consortium of freight forwarders could be formed so that problems of non-availability of trucks and containers could be minimized. REFERENCE K. Parimala (2013), Exporters Choice of Freight Forwarder in Moving Their International Cargo. International journal of innovative research in technology, volume 1 issue 10, pp Dong Wang (201), The study and use of AHP in logistics and customer satisfaction. IJISET - International Journal of Innovative Science, Engineering & Technology, Vol. 1 Issue 6, Pp K.Bagyalakshmi and R.Karthika (2015), A study on the influencing factors for exporters in choice of selecting the freight forwarders, International Journal of Multidisciplinary Research and Development, Volume- 2, Issue, pp S.Swathy (2016), A Study on Exporters Satisfaction Towards Freight Forwarders In Karur, Intercontinental Journal of Marketing Research Review, Volume, Issue 3, pp editor@researchscripts.org