A STUDY ON OPERATIONS OF FREIGHT FORWARDING AT

“HYUNDAI GLOVIS INDIA PVT LTD, CHENNAI”

Internship report submitted for partial fulfillment of the requirement for the degree of
Master of Business Administration in International Transportation and Logistics
Management

Submitted By

Akash Kumar

Registration No-1803305003

SCHOOL OF MARITIME MANAGEMENT

INDIAN MARITIME UNIVERSITY

CHENNAI CAMPUS

NOVEMBER 2O19

1
2
S.
No
. TABLE OF CONTENT Page No.

ACKNOWLEDGEMENT 4

DECLARATION 5
INTERNSHIP CERTIFICATE 6

CHAPTER 1
1.1 EXECUTIVE SUMMARY 7
1.2 REVIEW OF LITREATURE 8
1.3 INTRODUCTION 9
1.4 FUNDAMENTAL ROLES OF FREIGHT FORWARDERS 9

1.5 FUNCTIONS 10

1.6 ROLE OF FREIGHT FORWARDER 10

1.7 FREIGHT FORWARDERS AS A AGENT OR PRINCIPAL 11

1.8 TYPES OF FREIGHT FORWADERS 12-13
1.9 TRANSFORMATION OF FREIGHT 13

CHAPTER 2
2.1 14
COMPANY PROFILE
2.2 14 -15
GLOBAL NETWORK OVERVIEW
2.3 GLOBAL BUSINESS 15 -19
2.4 HYUNDAI GLOVIS INDIA PVT LTD(CHENNAI) 20 -28

3 CHAPTER 3
3.1 OPERATIONS 29-33
3.2 DEPARTMENTS 34-40
3.3 LEARNING FROM THE ORGANIZATION 41
3.4 INCOTERMS 42- 44
4 CHAPTER 4

4.1 45-48
SWOT ANALYSIS

3
 4.2 48
COMPETITORS
4.3 49-50
COMPETITIVE ANALYSIS
5 CHAPTER 5

5.1 51
CONCLUSION

6 BIBLIOGRAPHY 52

ACKNOWLEDGEMENT

I the students of Indian Maritime University, Chennai Campus have undergone internship in
HYUNDAI GLOVIS PVT LTD. We wish to acknowledge the support and helping hands

4
extended by the entire members of the TRAINING DEPARTMENT and all those who helped
and guided us on our visit to the various depart.

Any successful work is accompanied by the Helping and Co-operation of well-wisher. Whatever
we have tried to present in our project cum training report would remain incomplete unless and
until we extend our heartiest thanks to all the people who have spent their valuable time to help
and explain us all that we wanted to know. May words will fall short to describe their importance
to us, our gratefulness to them and also to their kind and co-operative attitude throughout the
course of our training in HYUNDAI GLOVIS PVT LTD (Chennai).

No matter wherever we will stand in our life and career in the end, these glorious days of our
short stay with all the people connected directly or indirectly to GLOVIS (Chennai) will never
fade away from my mind.

It’s my honour to extend our gratitude and thanks to Mr. M.S Vijayakumar for his constant
encouragement. We are also very grateful to our parents for their undivided enthusiasm.

This report summarizes the huge learning experience that we had in all the sections of this
modern logistic

DATE:

PLACE: CHENNAI

DECLARATION

I, Akash Kumar, hereby declare that the internship report titled, “HYUNDAI GLOVIS PVT
LTD, CHENNAI”, is a bonafide work submitted to the School of Maritime Management, Indian
Maritime University, Chennai Campus, under the supervision of Dr. A Mourougane, assistant
professor& Head, School of Maritime Management, Indian Maritime University, Chennai
Campus. For partial fulfillment of the requirement of award of the degree MBA (ITLM) is a

5
report of original work done by me and this work has not been submitted before in part or full to
this or any other university or institution for the award of any degree, diploma or any other
courses.

Date: AKASH KUMAR

6
 CHAPTER 1

1.1 EXECUTIVE SUMMARY

Shipping is the physical process of transporting commodities and merchandise goods and cargo by
sea. “Logistics”, a term borrowed from the military environment, is also fashionably used in the
same sense.

7
 Land or “ground” shipping can be by train or by truck in air and sea shipments, ground transport is
required to take the cargo from its place of origin to the airport or seaport and then to its destination
because it is not always possible to establish a production facility near ports due to limited coastlines
of countries. Ground transport is typically more affordable than air, but more expensive than sea
especially in developing countries like India, where inland infrastructure is not efficient.

Today’s rapidly changing business environment is creating intense competition among corporations
markets are changing faster now than in any other time in history. Products life cycle are shortening
and business must compete globally. Freight forwarders perform a key role in any trade. The freight
forwarder is the architect of the international transport and plays an important role in the growth of
the international trade in India by facilitating exporters, shippers, importers, customs/ports
authorities etc.

The freight forwarding industry will continue to benefit from growth in trade and certain structural
advantages over carriers. Value is driven by financial performance is driven strategic position.
Strategic position must be assessed in a disciplined manner, which examines the discrete and
interrelated activities within a forwarder value chain to understand sources of synergy and options to
increase value

1.2 REVIEW OF LITERATURE

A few studies and research workers have been followed to understand the present status of the freight
forwarding services. Nearly 30 to 40 studies have been reviewed from the national and international
research papers. A few literatures are given below.

A general definition of a freight forwarder as provided Morash (1987); “A freight forwarder is a

common carrier who assembles and consolidates shipments, and who utilizes another regulated carrier

8
for the line-haul movement. Both shippers’ agents and shippers’ associations perform similar functions
to freight forwarders except that they are exempt from economic regulations” (Morash “The
Interconnections Between the Interstate Commerce Commission and the trucking Industry”,
1987)

Freight forwarders may be local or international ,a “local freight forwarder is a consolidator that
collects small shipments from shippers, consolidates these shipments into large loads ,and present the
consolidated shipments to rail, roads or motor carriers for intercity movement”.

The same definition may apply to International Freight Forwarders by replacing intercity movement
with cross-border movement. However, different authors have provided numerous definitions: for
instance, an International Freight Forwarders may be defined as “An International trade specialist who
can provide a variety of functions to facilitate the movement of cross-border shipment”

International freight forwarders are in business to provide co-ordination and assistance in all phase of
shipments from the exporter’s plant to final overseas destination (Stock and Lambert, 1983).Another
definition as seen by Pope and Thom chick as that “Forwarders are primarily involved in moving
goods out of their country of origin on behalf of exporters or shippers and in bringing goods into
country on behalf of importers”.

1.3 INTRODUCTION

Freight forwarders typically function as intermediaries between the businesses that hire them, and the
various transportation services responsible for getting their products to overseas customers, including
carriers, handlers and customs officials.

9
The number of operatives involved in bringing items from suppliers to customers, largely depends on
the final destination of the shipments and the nature of the products sold. But the overall objective is
always the same: to ensure the delivery of undamaged products, by specified dates. And in the event a
product breaks during shipping, freight forwarders can furnish clients with insurance services that can
reimburse them for losses.

1.4 FUNDAMENTAL ROLES OF FREIGHT FORWARDERS

In today’s challenging competition in the international business, the manufacturers strive for their
processed products to deliver its final consignee before starting competition to the rival ones.
However, developing business volume brought along logistical challenges, so this research attempts to
identify the fundamental roles of freight forwarder and investigate how the fundamental roles can be
integrated to execute the manufacturer firms` international logistics activities smoothly and
distribution in terms of gain competitive advantage, and creating a case study to show the real business
observations and implementation. The freight forwarder or forwarding agent is an indispensable
member of the international trade and transport community, the freight forwarder arranges for
international shipment of merchandise. Like travel agent- but dealing with cargo rather than
passengers- freight forwarder use their knowledge of varying freight rates to offer the shipper the bet
“package deal”. The terms “freight forwarder” and “freight forwarding agent” are generic terms
encompassing a variety of specialized function, within the profession. Some forwarders offer a wide
range of these functions, whereas others restrict themselves to single specialty or particular
geographical coverage.

1.5 FUNCTIONS

Following the sequential order of International Trade Operation, the freight forwarders perform the
following functions:

 Advice on export costs, including freight costs, port expenses, consular fees, insurance costs and
merchandise costs.

10
 Planning the most appropriate route for a shipment, taking into account the perishable or
dangerous nature of goods, cost, transit time and safety.
 Advising and contracting insurance for transportation of the merchandise on behalf of the client
and, if applicable, assistance in the event of an accident.
 Preparation and presentation of Transport and Trade Documents required for export and import,
such as the CMR, Bill of Lading, Airway Bill, etc.
 Reservation and contracting of the necessary cargo space on a ship, aircraft, train or truck.
 Use of e-commerce, Internet technology and satellite system to allow real-time tracking of the
transport of the goods.
 Advice on legislation affecting international trade, political and social situations as well as other
factors that may affect the movement of the goods

1.6 ROLE OF FREIGHT FORWARDER

 International packaging and documentation

 Marine insurance coverage
 Distribution and warehousing services
 Assistance for acquiring an export license
 Providing compliance information for the shipping of hazardous goods
 Providing routing and carrier information

It is freight forwarder who ensures that your goods are the treated the way they are supposed to be
treated; gets all the documentation in place so that it is available as when it may be required .He also
has to ensure that your goods depart on time and also reach their destination on-time without any
delays and mishaps when they are on their way.

1.7 Freight Forwarders as agents or principals

A freight forwarders acts as an agent when he performs functions on behalf of and under the
instructions of the principal (the exporter or importer).As an agent, the forwarder will procure the
services of third parties who will perform the packing,storage,transport,handling and custom clearance
of the goods. He agents thus act as an intermediary, “Introducing”, in a manner of speaking, the

11
principal to the service providers. Consequently ,the forwarders are generally not liable for the errors
or breaches of the services providers .As with other agents, the forwarder owes the principal ,the
forwarders owes the principal various duties ,including the duty to inform and the duty of diligence.
When the forwarder acts as a principal, it contracts directly the exporter or importer (the
“customer”).The customer will deal only with the forwarder, who will issue a single bill to the
customer for the total amount of services rendered. As a principal, the forwarder is generally liable for
the errors or breaches of the sub-contracted service providers.

1.8 TYPES OF FREIGHT FORWARDERS

NVOCC (Non-Vessel Operating Common Carriers)

This function involves grouping or assembling diverse shipments from various customers so as to
make up full container loads, thus obtaining lower freight rates. Some consolidators offer regular
shipments on seagoing vessels that they do not own; these are referred to as NVOCCs

Multimodal (or intermodal) transport operators (MTO´S)

A multimodal transport operator offers “one-stop shopping” for traders. This enables traders to
completely outsource or sub-contract their export logistics to a single service provider. Multimodal
transport operators typically offer “door-to-door” transport, with coverage of all related functions such
as insurance, customs, warehousing, etc.

Customs brokers

These parties act as the agents of exporters and importers in order to process customs declarations and
other formalities and pay duties and taxes. Because they may be liable for very large payments of
duties or fines, customs brokers are usually bonded by banks or insurance companies. Traders should
take care to give precise directions and limits to customs brokers to avoid incurring liability in the
event that an unexpectedly high tariff or fine makes it uneconomical to process a particular shipment.

12
Port (sea port, airport or cargo terminal) agent

This agent represents the shipper at the point where the goods are transferred from one transport mode
(typically, from a truck or lorry) to another (as to a seagoing vessel or airplane).

Air freight agent (air waybill agent)

These agents process shipments for airlines and may have the authority to issue air waybills.
Frequently, the air freight agent also handles custom clearance.

Road haulage brokers

Road transport is characterized in many countries by the rapid increase in number of small service
providers. Road haulage brokers acts as intermediaries between road carriers and shippers and are
usually paid by commission.

Loading brokers

These brokers act as the agents of ship owners to obtain and process cargo shipments. Commonly, a
freight forwarder will represent the shipper while a loading broker represents the ship owner, so that
there are two intermediaries between the customer and the transport provider.

1.9 Transformation of Freight Forwarding

At inception, freight forwarding has been a tedious business task as companies have been dealing with
loads of papers used in various documentation processes. Time spent on paperwork constituted the
bulk of time devoted to making a transaction reality. These were necessary rigors companies faced,
and this led to the need for a more efficient way of getting things done. Advancement in technology
with the computer playing a dominant role brought about ease of transaction processes. Loads of paper
files stacked in filing cabinets was replaced with computer hard drives and operations became
software based. This expanded the capacity of small forwarding companies to handle a larger
workload. A further advancement came with the rise of broadband internet connectivity. Businesses
had a wider reach and were no longer restricted to specific location. Mobile phones made it easy for
people to work -on-the-go saving resources and expanding business reach. Transactions became App

13
based documents are stored in the cloud, to be accessed anywhere at any time. This digitalization of
freight forwarding has improved business. Rather than making endless calls in choosing a service
provider, the web has made sorting information much easier. By just filling out your needs on
dedicated platforms, quotations from various service providers’ streams in and the best quotation that
fits one’s need can be chosen. It also helps in price comparison. The evolution of the freight
forwarding business has made the transaction in small and large scales easy to understand and to carry
out. The fundamental goal of freight forwarding which is to help a client get goods from point A to B
has not changed from inception to this day, the means of getting it done has rapidly changed for the
better.

CHAPTER 2

2.1. COMPANY PROFILE

14
2.2. GLOBAL NETWORK OVERVIEW

2.1.1. Hyundai Glovis by the numbers (As of 2018)

15
2.3. GLOBAL BUSINESS

 HYUNDAI GLOVIS, a global logistics and distribution company, provides the best service in
logistics, shipping, knock down, and used car sales and trading businesses.
Continuously nurturing top experts in logistics and distribution industry along with cutting edge IT
system, our company has achieved steady growth every year.

 As a global top-tier company, HYUNDAI GLOVIS is fulfilling its responsibilities by

continuously investing in infrastructures and conducting socially responsible activities.

2.3.1. In / Outbound Logistics Overview

 Provide one-stop logistics services such as export, import, packing and storage of products based
on worldwide network and information system.

16
  Vehicle Overview

 Conducts finished car transportation, pre-delivery quality inspection, pre-export duties and harbor
unloading service.

Parts Logistics Overview

Provide one-stop auto parts logistics service in order to maximize efficiency of manufacturing vehicles
covering transportation of parts around the world, distribution of A/S parts, and rental service of logistics
equipment for manufacturing plants.

Bulk Logistics Overview

 Hyundai Glovis takes major part in logistics of steel products, heavy machinery, construction
materials, and heavy weight cargos of Hyundai Motor Group. With this know-how, we provide
customized integrated logistics service to Third Party Customers around the world.

General Cargo Overview

 Provide integrated logistics services (delivery, storage, cargo handling, and package) to third party
customers in various industries such as chemical, oil, steel, industrial materials, food, and
distribution.

Special Cargo Overview

 Transports special products that are difficult to handle such as heavy cargos and military cargos
safely and timely.

17
Logistics Consulting Overview

Hyundai Glovis provides execution-oriented logistics consulting service that improves customer's
logistics competitiveness by diagnosing 6 core areas for customer's SCM optimization using G-
CAT and G-NOAL

2.3.2. SHIPPING & KD

Overseas Shipment for Finished Vehicle Overview

 Using PCTC (pure car and truck carrier: carriers for complete vehicles), we are transporting
various completed vehicles including heavy machines for construction, buses and electric
locomotives. With emphasis on 3PL (third-party logistics) customer base, we are continuously
developing new courses and improving existing routes in order to cover the entire world to
maximize our customer satisfaction.

Bulk Export and Import Overview

 Transport various cargoes such as steel raw materials, dry bulk, and wet bulk with abundant
maritime transport experience, which allows us to respond to customer's needs preemptively with
best quality service.

KD Business Overview

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  HYUNDAI GLOVIS’s KD business collects automotive parts and modules from producing
partners in and out of Korea and efficiently distributes them to abroad production plants of
HYUNDAI-KIA MOTORS.

 Providing the packing service of vehicle part which is optimized for assembly/production in
oversea vehicle plant.

2.3.3. TRADING

Trading Business Overview

 Create new synergies in trading business based on logistics and distribution know-how and global
network.

 Trading of raw materials such as aluminum, copper, scrap, hot rolled / cold rolled steel products
finished / used cars and foreign products between 3 countries.
Used Car Business Overview

 Lead the advancement of used car distribution market through the operation of the largest used car
auction house in Korea.
 Hyundai Glovis Auto Auction is a used car auction brand worthy of trust and transparency. With
the participation of more than 1,650 member companies, Hyundai Glovis Auto Auction will bfor
the best price through open competition, and the auction house will be responsible for post-
management such as transfer of name.

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 2.4. HYUNDAI GLOVIS INDIA PVT LTD, CHENNAI

 Headquartered in Seoul, South Korea, Hyundai Glovis started its operations in India in the
year 2006 to provide integrated logistics solutions to exporters/importers. It operates under a
vision to maximize customer value and satisfaction through customer-focused business.

 Being the group company of Hyundai Motors, Glovis India started its business of car
transportation with Hyundai and over the years has matured into a successful and
independent business house moving from a transactional business to a more strategic based
business covering both domestic as well as overseas transportation.

 The year 2007 marked the beginning of domestic transportation. The domestic car
transportation wing of GLOVIS India today handles more than six lakh cars per
year. GLOVIS India has a well-connected network of transporters and agents who participate
in smooth operations across the nation and beyond.

 Having established their efficiency in the transportation sector, GLOVIS India expanded its
services in the vertical of Container Freight Station (CFS) and the clients include the various
vendors of Hyundai Motor Group. In 2010, GLOVIS India launched CKD operations for
exporting Hyundai car parts to Overseas Assemblers. From the year 2011 , the growth of
GLOVIS India is on the express phase with introduction of 3PL Operations.

2.4.1. HISTORY

 2014

 Regional Offices Set Up

 Change is inevitable and growth is optional. Having growth as the only focus in mind, Glovis
started a new chapter of expansion. Starting with Regional offices in Chennai, Mumbai,
Hyderabad and moving further with offices in Bangalore, Delhi, Pune and Ahmedabad. All
RO's will offer gamut of logistics solutions ranging from Transportation, Freight Forwarding,
Custom house clearance, Warehouse, Used Car Trading, RORO and CFS solutions.

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 2013

 Glovis India ventures into the new arena of Trading in the Indian market.

  Corporate Social Responsibility

 Glovis India started focusing on giving back to the society. CSR activities small and big
slowly begin. With support to the young and old equally. Activities such as going to old
age homes, visiting schools for the underprivileged were few of the activities.

 2012

 Initiated 3PLbusiness: As our group companies produce high quality and reliable steel
products. We are working as their trading arm in India and can trade the best quality steel
products at reasonable price. Concentrating on outside market apart from auto industry to
expand 3rd Party Logistics.

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 2011
Started CKD operations to provide end to end integrated services on CKD such as parts
ordering, packaging, shipping and freight forwarding .Started CFS operations to for
export / import container movements. Our facility is endowed with incomparable facilities
and geared to provide an efficient and trouble free operation.

 2007

 Launch of export car movement thorough Hyundai Glovis’s own RoRo vessels.
The following services have been started
- Stevedoring
- Logistics between multi countries
our car carriers are covering entire length and breadth of the country.

22
  2006

 Started freight forwarding operations for Export and Import logistics through Sea and Air
with specialization in the field of international cargo transportation as Freight Forwarder.

2.4.2. Management Philosophy

 VISION“ Your Value Chain Partner”

Through differentiated and value-added logistics & trading services, we pursue
sustainable growth by maximizing efficiencies of the customer’s value chain

 CORE VALUES

All employees pursue the 5 core values for their behaviors and decision making process to
realize future vision based on the ‘Success DNA’ that Hyundai Motor Group has.

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CUSTOMER
we promote a customer-driven corporate culture by providing the best quality and impeccable
service with all values centered on our customers.

CHALLENGE
We refuse to be complacent, embrace every opportunity for greater challenge, and are confident
in achieving our goals with unwavering passion and ingenious thinking.

COLLABORATION
we create synergy through a sense of “togetherness” that is fostered by mutual communication
and cooperation within the company and with our business partners.

PEOPLE
We believe the future of our organization lies in the hearts and capabilities of individual
members, and will help them develop their potential by creating a corporate culture that respects
talent.

GLOBALITY
we respect the diversity of cultures and customs, aspire to be the world’s best at what we do, and
strive to become a respected global corporate citizen.

2.4.3. Service Features and Benefits

24
  GLOVIS India aims to be equipped and to be treated as business partner rather than a
service provider. The services are not limited to the quality and size of the fleet but value
addition and innovation. GLOVIS India ensures competitive transportation price, high
safety, service variety, order configuration, flexibility and transparency while maintaining
time and points of contacts. GLOVIS India now provides an entire array of services such as
transportation, warehousing and logistics management.

 The other added advantages are:

- The entire flow of operations is system controlled, system managed and system
dependent.
- Automated and customized reporting at every 8 hours or on pre designed schedules.
- Managed and operated by a team of highly motivated and enthusiastic professionals.
- Round the clock survey facility at in/out gates during container entry/exit for all
operations.
- Power supply of CFS is backed up with power generator.
- Adequate firefighting measures have been incorporated.

2.4.4. BUSINESS SCOPE

 LED BUSINESS

 Greater Energy Saving

 High light conversion efficiency
 Long product life
 Minimal harmful substances released
 Installation Support
 Close partnership with LED manufacturers

 Finished vehicle Logistics

25
 Annual dispatch
 4.6 lakh cars domestically
 2.5 lakh cars in the export segment
 Well-connected network of transporters and agents who participate in smooth operations
across the nation.
 State of the art facility and IT networking system to continuously monitor and operate the
car carrying business through web based ITMS software.
 High quality standards to ensure customer satisfaction which has ensured that over the
years Glovis India has become a major automotive logistics company in India.
 Rail movement of finished cars.

 Container Freight Station

 29524 sq. of open container yard having stacking capacity of 966 FEU
 Manned 24*7
 Round the clock CCTV monitoring
 Our CFS is endowed with incomparable facilities and has adequate area for truck/trailer
movement and also dedicated area for reefer containers with adequate plug points.
 CFS campus secured with 10 feet high compound wall
 RCC flooring
 Full Container Load’(FCL)De-stuffing, loading and delivery services
 Less than container’(LCL) De-stuffing and storage facility
 Mechanical cargo handling
 On-Wheel Inspection
 Cargo carting and segregation
 Transportation of loaded and empty containers
 Cargo Inspection services
 Delivery service for loaded containers to the factory site
 Pick‐up service for the factory‐stuffed containers
 Forwarding

26
 One-stop service including Shipping, Customs clearance, Inland transportation and
Delivery etc. for any Export or Import cargo.
 Sea & Air transportation of exporting & importing service for majorly CKD, A/S parts,
general cargo, etc.
 Provides systematic information through Inbound & Outbound Logistics System
 FCL, LCL Console for international cargo.
 Fast and secured services for emergency cargos which are close to the due dates.

 Knock Down Warehouse

 ~ 250 containers dispatched per month.
 56656 sq. mts of warehouse area.
 100% Quality Check 
 Complete  packaging services for car parts that are optimized for the production line at
overseas factories
 Integrated service on CKD Logistics
 Fully equipped KD warehouse with advanced tools and machinery
 Unique knowledge and an understanding in maintaining highest quality, managing
security, economical efficiency, packaging optimization and loading rate
 Location of the shipped cargo can be monitored in real time through our web based CKD
system.

 General Cargo:
 24X7 GPS tracking of the vehicle
 Large pool of owned and attached vehicle of all major dimensions.
 Trained and experienced drivers.
 Strong presence in South India

 Warehousing

27
 More than 1, 00,000 Sq. Ft available on long term lease and partnership.
 Green field warehouse - Custom designed and built according to the need of the
customer.
 40000 SQ FT – existing warehouse – on Chennai -Bangalore Highway.

 Project cargo & Break Bulk

 Highly adaptable and customized service in the area of project cargo – import and
delivery
 We have already proved our mettle by coordinated delivery of the Hyderabad Metro.
 Glovis’ Project Cargo team boasts a strong presence pan India, and proven expertise in
handling Lengthy, Heavy and or Oversized cargo with the expertness gained from years
of experience.

CHAPTER 3

28
3.1. OPERATIONS

3.1.1. Basic Structure of Import and Export

CUSTOMER

FORWARDER/CHA

STEAMER/SHIPPING LINE

CUSTOMS

CHA/FORWARD
ER

STEAMER/SHIPPING LINE SHIPPER (EXPORTER)

3.1.2. Work Flow of Glovis India-Export Process

Receiving of Order

29
 Availability

Rate Quote

Booking of Container

Plot Permission

Movement of Container
(Plot-Plant-CFS)

Customs Clearance

Shipping Bill Submission

Obtaining Form 13

Movement of Container
(CFS –PORT)

30
 HBL Draft / Genisys Entry

Issuance of HBL

Releasing MBL

Sales Invoice

Purchase Invoice

Debit/Credit Note

Sending Pre-Alert Docs

Monthly Business Report

Close
of of Job FileBills
Scrutinize Overseas

3.1.2. Work Flow of Glovis India - IMPORT FLOW PROCESS

31
Pre-Alert Docs
 Job File

Genisys Entry

Track & Trace

FWD IGM Docs to Shipping lines

Collecting of IGM Details

Updation of shipment status

Weekly Report

Sales Invoice

Cargo Arrival notice

Purchase Invoice
32
 Debit/Credit Note

Delivery order Endorsement

Payment Follow up

Monthly Business Report

Scrutinize of overseas Bills

Close of Job File

3.2. Departments in Hyundai Glovis

 Air Freight
 Sea Freight
 Customs Clearance – Import & Export
 CFS
3.2.1. OCEAN FREIGHT SERVICES
 Reliable ocean-bound service for Full Container Loads (FCL).
 Direct and Multi country Consolidation to optimize your LCL Import and Export.
 Expertise in handling Temperature controlled and Perishables cargo.

33
  Specialists in handling project cargo- ODC and Heavy Lift.
 RORO, Break Bulk, Part and Full Charter services.
 Combined Air and Ocean freight services.
 Competitive pricing.
3.2.2. Sea export flow

Rate enquiry

Buying rate Update in rate Selling rate

Document for shipper

LCL Customer’s declaration FCL

Nominated

Approved from agent

Vessel scheduled Booking with liner

Cargo movement
(LCL) (FCL)

34
 Customs clearance Vessel planning

Container movement

Stuffing

Form 13

Stuffing report
Bill of lading
process Container offloaded at
port

Post shipment documents Document submitted to

liner
Removal of cargo from manufacturer
(Door of consignor)

Survey
(By CHA and Port Authority

Destination Port

Import General Manifest (IGM)

(Filed at destination
35 Port by steamer agent or shipper)
 Pay off duty and submit bill of exchange
(CHA does)

Unloading at destination Port

(Appointed by Steamer Agent)

Survey
(At destination port by CHA)
3.2.3. Air Freight
Air Freight Shipments is handled by Hyundai Glovis carefully and selected strategic air partners
DPD- (Direct Port Delivery)
to provide worldwide coverage for shipmentsOr that need to meet
Warehousing at CFStight deadlines focusing on
speed, flexibility, creativity and sensitivity to ensure that their customer priority shipments. It has
established and sustained its industry leadership position in air freight logistics. This is made
possible due to the dedicated infrastructure, committed workforce, and nationwide logistics
network. A regular shipment or small or critical air freight challenge, their presence at every
major gateway and airport in India enables to move air freight cargo both efficiently and
professionally. They connect all the major global markets with focus on transit efficiency and
limiting costs. Air freight shipments are scheduled by determining the most effective and
efficient routing, which ensures service delivery both on time and cost.
 Presence in major airports.
 Door-to-door and airport-to-airport pick-up and delivery.
 Prompt customs clearance throughput and error-free document processing.
 Full as well as partial air freight charters.
 Best-in-class air carriers providing seamless connectivity.
 Service delivery through strategically chosen air partners and highly experienced in
house personnel on all populated continents.
 Consolidation of imports and exports.
 Specialist in handling temperature-controlled pharma and perishable cargo.

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  Specialist in handling automobile transport projects.

3.2.4. Air import flow

Receipt of invoice from

Consignee Agent

Check for the approval with the

consignee

Check for the agent for the cargo Confir

Yes No
status matio

Cargo ready Cargo not

ready

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 Organize for pick up Check readiness date & inform
consignee

Cargo arrival at the agent Inform consignee

Track the schedule & Check flight detail with Inform consignee
monitor agent

Receipt pre alert documents Check the pre alert

from agent document

Send pre alert to consignee Any discrepancy,

and CHA recheck with agent

Departure from origin Offloading

of cargo

Inform
consignee

Transshipment point Offloading

of cargo

Arrival at destination

Check for part/short

shipment

Inform consignee
No Yes

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 Update arrival & IGM Check for arrival
details to consignee/CHA status of part/short

Update arrival & IGM details of

part/short shipment to consignee/CHA

3.2.5. Air export flow

Removal of cargo from manufacturer

(Door of consignor)

Export General Manifest (EGM)

(Filed at destination Port by steamer agent or shipper)

Survey at
(By CHA and Port Authority)

Destination Port

Pay off duty and submit bill of exchange

(CHA does)

Unloading at destination Port

(Appointed
39 by Steamer Agent)
 Survey
(At destination port by CHA)

DPD- (Direct Port Delivery)

Or Warehousing at CFS
3.3. Learning from the organization

The primary objective of the internship was to acquire better understanding of the different
departments of the company, all four departments of export and import as mentioned.

 Sea export
 Sea import
 Air export
 Air import

3.4. Choose the right Inco terms rules – it helps to handle risks, liability & cost
easily
Selecting the right Inco terms rules is essential in providing the best freight forwarding solutions.
International commercial terms are widely used in the global freight network. It comprises of a
set of rules that clearly define and stipulate the responsibilities of the consignor and consignee.
The Inco terms specify the risks borne by both the importers and exporters in the shipping
procedure. Expert freight forwarders have got vast knowledge and understanding of the proper
Inco terms for the clients.

Inco terms can be applied to all modes of transport – air, sea, road or rail. Simply choosing the
right Inco terms since they will help you to:

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  It help to understand the obligations of buyer and seller like who organizes carriage or
insurance of the goods or who obtains shipping documents and export or import licenses.
 It also help to understand where the risk passes from the seller to the buyer and
Understand which party is responsible for which costs.

3.4.1. There are 11 Inco terms rules from in the latest Inco terms 2020 version.

EXW (Ex Works)

The goods and invoice are at the importer’s disposal, at the exporter’s premises. All expenses
and any losses or damages after delivery of the goods, including shipping of the goods overseas,
are the responsibility of the importer. When requested, exporter must provide assistance to the
importer in obtaining documents necessary for shipping the goods. This modality may be used
for any mode of transportation.

FCA (Free Carrier)

Here the exporter delivers the goods, cleared for export, into custody of the transporter, at a
location indicated by the importer, whereupon all responsibilities of the exporter cease. This may
apply to any type of transportation, including multimodal.

FAS (Free Along Ship)

Here, obligations of the exporter cease upon loading of the goods, cleared for export, on the
dock, free, alongside the ship. As of this moment, the importer assumes all risks, and bears all
expenses relating to loading of the goods on board the ship. The term is used for sea and inland
waterway transportation.

FOB (Free on Board)

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The exporter must deliver the goods, cleared for export, on board the ship indicated by the
importer, at the port of embarkation. This modality is used for sea and inland waterway
transportation. All expenses, up until the loading of the goods on the transport vehicle, are born
by of the exporter. The importer is responsible for expenses and risks of loss or damage to the
goods, once delivered on board the ship.

CFR (Cost and Freight)

The exporter must deliver the goods at the port of destination selected by the importer. Transport
expenses are thus the responsibility of the exporter. The importer bears the expenses of insurance
and unloading of the goods. Utilization of this term obliges the exporter to offload the goods for
export, and to use only sea and inland waterway transportation.

CIF (Cost, Insurance and Freight)

Modality equivalent to CFR, except that the insurance costs are born by the exporter. The
exporter must deliver the goods aboard ship, at the port of embarkation, with freight and
insurance paid. The responsibility of the exporter ceases when the product is offloaded from the
ship at the port of destination. This modality may only be used for sea and inland waterway
transportation.

CPT (Carriage Paid to...)

Similarly to CFR, this condition stipulates that the exporter must pay expenses relating to the
shipment of the goods and international freight to the designated destination. Thus, the risk of
loss or damage to the goods, and any increase in costs, are transferred to the exporter by the
importer, when the goods are delivered into custody of the transporter. This Inco term may be
used for any mode of transportation.

CIP (Carriage and Insurance Paid to...)

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Adopts a principle similar to CPT. The exporter, aside from bearing expenses for shipment of the
goods and freight to the destination, must also bear expenses of insurance for transport of the
goods to the destination indicated. CIP may be used for any mode of transportation, including
multimodal.

DAP (Delivered at Place)

Seller pays for carriage to the named place, except for costs related to import clearance, and
assumes all risks prior to the point that the goods are ready for unloading by the buyer. Import
clearance = import duty and VAT and not the Import Customs Clearance.

DAT (Delivered at Terminal)

Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes
all risks up to the point that the goods are unloaded at the terminal.

DDP (Delivered Duty Paid)

Seller is responsible for delivering the goods to the named place in the country of the buyer, and
pays all costs in bringing the goods to the destination including import duties and taxes. The
seller is not responsible for unloading. This term is often used in place of the non-Inco term
"Free in Store (FIS)". This term places the maximum obligations on the seller and minimum
obligations on the buyer.
INCOTERM

43
 CHAPTER 4

4.1. SWOT ANALYSIS

SWOT analysis is a strategic tool that can help companies analyze their situation and conditions
they are faced with, summarize for their past and make a developing strategy and plan for future
life and evaluate. “S” stands for strengths, “W” stands for weaknesses, “O” stands for
opportunities, ”T” stands for threats. Strengths and weaknesses belong to internal factors and
opportunities and threats are external factors. It was firstly introduced by Learned and other
famous experts in 1965 and widely used in strategic management field.

4.1.1. Internal factors and considerable questions before analysis

Internal factors analyze the company functions and activities and include strengths and
weaknesses. When we analyze them, we can think about such questions as a start. Internal
strengths and weaknesses usually mean the internal factors that the organization can control. For
example, the organizational mission, financial resources, technological resources, organizational
culture, human resource, product feature and so on.

4.1.2. External factors and considerable questions before analysis

External factors include opportunities and threats, which indicate the factors in the business
environment that the organization usually can’t control in the business environment. For

44
example, it includes demand, competition, economy, politics, law, society, culture, technology,
population environment and so on. These external factors usually can’t be controlled by the
organization but have significant effects on organizational operation.

4.1.3. SWOT ANALYSIS of Hyundai Glovis analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In Hyundai Glovis SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Hyundai Glovis
to benchmark its business & performance as compared to the competitors and industry. Hyundai
Glovis is one of the leading brands in the transport and logistics sector

Below are the Strengths, Weaknesses, and Opportunities & Threats (SWOT) Analysis of
Hyundai Glovis.
4.1.4. Strengths
 Its supply chain is present globally in 37 countries

 The company has a very strong brand name

 Financial stability and year on year consistent returns have made it a strong brand
 Divers customer portfolios:  Caters to a wide spectrum of the client from various
industries such as automotive, chemicals, defense, consumer goods, industrial, oil and gas
and government.
 Expertise in emerging economies: Focuses primarily on the emerging markets since
they are of the opinion that after the recession there is a lot of demand and supply gaps in
emerging economies which has increased the need for logistics services there.
 End to end logistics services: Provided end to end logistics services through air, rail,
road, and sea. Some of their services include supply chain management, transportation,
and warehousing, project logistics, chemical logistics, logistics for events and exhibitions
and management of household goods.
 Series of acquisitions: In order to grow to become the largest logistics company in the
had been involved in more than 40 logistics brands from various part of the world.

45
  Wide network: Is currently the biggest logistics services network in the world with
operations in more than 30 plus countries and over 7000 plus employees. The company
has positioned themselves as an integrated logistics service provider since they work
across multiple industries offering end to end logistics services.

4.1.5. Weakness

 Lesser known outside Korea as compared to leading brands

 No presence in emerging industries like retail etc.

4.1.6. Opportunities

 Rising demand of transportation

 It can go for other sectors also like retail, fashion etc.

 Arrival of new technologies

Failure to monitor and address advances in technology may negatively impact the position in
the market. Areas to watch include government spending on technology, big new discoveries
or products, speed of technology transfer, and changes in business processes as a result of
technology. Latest technologies in logistics are Robotics, Block chain technology and
Artificial intelligence.

 Partnership with other companies can be utilized for expansion.

Making alliance with the different company throughout the globe will help to gain control
over the different regions of the world and also help to understand the competition of the

46
 market. It will help to expand all over the world. Strong presence in all key markets will also
allow offering comprehensive services.

 An unfulfilled customer need

Identifying and solving important unmet needs of the customer is very important to an
organization. The identified "need gaps" highlight opportunities for future strategy
development process. Through customer needs research, organizations can satisfy the most
important unmet needs of their target audience by enabling them to accomplish their desired
outcomes more effectively, with less effort, and with greater enjoyment.

4.1.7. Threats
 Big players with better technologies
 Different tax structure in different countries
 Rising fuel prices would affect the operations
 Customer satisfaction:

Satisfying the customer will become a huge threat for logistics companies since customers
today have very specific needs. This may call for a need for technologies like robotics to
improve last mile delivery and to also increased customization of logistics services. This
factor may shifts the consumer tastes away from the firm's products and services.

 Different laws in different countries

For an organisation it is one of the most important factor about which they should know,
before entering to a new country for the business or else it may lead towards the huge loss or
even shutdown of the business in the particular country.
 Increasing fuel rates results in increasing transportation costs.
Now a day’s fuel rate is becoming the major factor to decide the price of the consignment as
the rate of fuel goes up or down it gives a direct impact over the consignment. It is becoming
a biggest threat for all the companies all over the world.

4.2. Competitors

47
  Below are the top 4 Hyundai Glovis competitors:
 DHL

 Kuehne + Nagel
 DB Schenker
 DSV

4.3. COMPETITIVE ANALYSIS

Competitor analysis in marketing and strategic management is an assessment of the strengths and
weaknesses of current and potential competitors, This analysis provides both an offensive and defensive
strategic context to identify opportunities and threats, Profiling coalesces all of the relevant sources of
competitor analysis into one framework in the support of efficient and effective strategy formulation,
implementation, monitoring and adjustment. Competitor analysis is an essential component of corporate
strategy. It is argued that most firms do not conduct this type of analysis systematically enough. Instead,
many enterprises operate on what is called "informal impressions, conjectures, and intuition gained
through the tidbits of information about competitors every manager continually receives." As a result,
traditional environmental scanning places many firms at risk or dangerous competitive blind spots due to a
lack of robust competitor analysis. As an international freight forwarding company, Hyundai Glovis have
lots of competitors in the same market as well as globally. A foreign freight forwarders also competitor
because the company is doing business globally. As freight forwarders can access business from the
domestic market as well as foreign market because it involves international trade.

 DHL

DHL Supply Chain (DSC) is by far the world's largest 3PL and contract logistician. Gross Revenues
($m) (28120)2019. DHL has operations of virtually every kind on every continent. Current major
initiatives involve expansion in pharmaceuticals and Sustainability. DHL Global Forwarding (DGF) grew

48
 through the acquisition of highly respected companies. DHL and Danzas are strong branches in Europe
and Asia. DGF currently has 31 global carrier partners with 81 contracts on a multitude of trade lanes and
more than 330 gateway facilities. Its annual volume is 2150000 TEUs and its LCL is 2,000,000 cubic
meters. There are more than 45,000 weekly point pairs for LCL globally. DGF handles 2,200,000
shipments annually. DHL's scope allows customers to more easily adjust vendor supply chains.

 Kuehne + Nagel
Kuenhe and Nagel is the largest ocean freight forwarding operation handling over 4,690,000
Ocean teu. It is also the 2nd largest airfreight forwarder. With the addition of the ACR group,
contract logistics operation more than doubled in 2006 and are now 52% of net revenues. The
industry breakdown for its Contract logistics operations is: Retail 35%, Healthcare 22%,
Technological/Telecom 18%, Chemicals 7%, locomotive 6%, Fulfillment 5%, Misc. 5% and
Services 2%. Kuehne + Nagel has developed its own land transport Management and trucking
network for Europe.
Sea freight:
 Number 1 global sea freight forwarder
 Sustained year-on-year double digit growth in managed freight
 Solid partnerships with an extensive range of preferred ocean carriers

 DB Schenker

DB Schenker is the world’s leading global logistics provider — support industry and trade in the
global exchange of goods through land transport, worldwide air and ocean freight, contract
logistics and supply chain management. Integrated logistics resides at the world’s most important
intersections, where the flow of goods creates an effective link between carriers. The value-
added services ensure the flow of goods continues seamlessly and supply chains stay lean and
optimized for success. Business holds top positions in automotive, technology, consumer goods,
trade fair logistics, special transports, and special events logistics.
 DSV - Global Transport and Logistics

DSV is organized into three divisions offering the complete range of services to support our
customers’ entire supply chain: Air & Sea – transportation by air and sea Road – transportation

49
by road Solutions – warehousing and logistics services .As a freight forwarder, DSV does not
own or operate transport equipment; actual transportation of goods is carried out via our global
network of partners and subcontractors (carriers and hauliers).More than 1,500 offices, terminals
and warehouses across the world enable us to be close to our local markets while taking
advantage of a global perspective and network to secure the best possible service at highly
competitive rates. Whatever you need, whenever and where ever you need it, we move it.

CHAPTER 5
5.1. CONCLUSION

The freight forwarder plays an integral part in the transportation process. Freight forwarders act
on behalf of the exporter in arranging ocean or air transport services. They are familiar with the
import rules and regulations of foreign countries, methods of shipping, and documents connected
with foreign trade.

Freight forwarders can provide a number of services. During the initial planning phases, they can
help choose the carrier and the most economical shipment size. At the beginning of the sale, the
freight forwarder can provide an exporter with quotations on a number of costs. This information
can be used in preparing an accurate price quotation to foreign customers. Choosing the right
freight forwarding company is very important if you want maximum efficiency and reasonable
costs. Freight forwarders in India have not taken extra care in retaining the customers. So, should
formulate and implement strategies to retain customers effectively.
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.
International Transportation frequently requires ocean or airfreight modes, which many
corporations only rarely use domestically. In addition, combinations such as land bridges or sea
bridges may permit the transfer of freight among various modes of transportations; resulting in

50
intermodal movements the international logistics manager must understand the specific
properties of the different modes to be able to use them intelligently.
Introduction of web based tracking (e-tracking) will help minimize mistakes and improve
transparency of operations.
Online payment can be introduced to ratify the default in payment implementation of EDI
strengthened by the freight forwarders.

6. BIBLIOGRAPHY
 WEBSITE : https://www.glovis.net/Eng/main/index.do
 WIKI : https://en.wikipedia.org/wiki/Hyundai_Glovis
 https://www.thebalancesmb.com/freight-forwarding-2221040

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