Customer Relationship Management Summary Essay Example

Customer Relationship Management: Summary Essay Definition CRM CRM is a core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit grounded on high-quality customer-related data and enabled by information technology (book) Types of CRM Strategic CRM: customer-centric business strategy Dedicated to winning and keeping customers by creating and developing better value than competitors. Reduce oriented: customer choose products with best quality, performance, design destruction oriented: low price products Sales oriented: customers are persuaded by advertisement and sales promotions Customer market oriented: uses customer and competitive information to develop better value propositions. is a learning firm that constantly adapts to customer requirements and competitive conditions. Operational CRM: automation of customer-facing processes Automates and improves customer facing and customer supporting business processes. Market automation: applies technology to marketing purposes. Sales force automation: applies the technology to the management of a companys selling activities (provides a standardized view of the sales cycle and a common language for concussion of sales issues). Service automation: allows companies to manage their service operations: call centers, contact centers, web or face-to-face. Enables efficiency of users Reducing service costs Partner relationship management: Allows partners to communicate with suppliers through a portal to: manage leads, sales orders, information, incentives Analytical CRM: intelligent mining of customer-related data Focuses on the intelligent mining of customer-related data for strategic or tactical purposes. Build on the foundation of customer related information Essential part of CRM implementations Helps makes decisions like: Which customer to target Focus of sales effort Relative priority for customers and what level of service to offer. Collaborative CRM: application of technology across organizational boundaries Strategic and tactical alignment of normally separate enterprises in the supply chain for the more profitable identification of customers. Enables separate organizations to align their effort to service customers more effectively. We will write a custom essay sample on Customer Relationship Management: Summary specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Customer Relationship Management: Summary specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Customer Relationship Management: Summary specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Service: The non-material equivalent of a good Economic activity that does not result in ownership The product is the act of delivery Special attributes that characterize services: Intangible (Services which cannot be seen), variable (mechanically reproduced to exact specifications an tolerances, services cannot), perishable (Services cannot be held in inventory for sale at a later time), inseparable (service are produced at the same time and place ), difficult to evaluate, based on experience and credence Traditional customer service = do to the customer vs.. Modern CRM = done with the customer Ongoing, cooperative and built for the long term 5 phases of CRM implementation CRM models DIG methodologies that companies should take four actions in order to build closer en-to-one relationships with customers. Identify who your customers are and build a deep understanding of them Differentiate your customers to identify which customers have most value now and which offer most for the future. Interact with customers to ensure that you understand customer expectations and their relationships with other suppliers or brands Customize the offer and communications to ensure that the expectations of customers are met. CRM Value Chain by Francis Buttes mode primary stages and 4 conditions which lead to the end goal of enhanced customer profitability. Settlers 8-step Change Model : Create Urgency change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. : Form a Powerful Coalitionists people that change is necessary. 3: Create a Vision for Changed you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. 4: Communicate the Visitation you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. : Remove Obstacles in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. 6: Create Short-term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame, youll want to have results that your Taft can see. Without this, critics and negative thinkers might hurt your progress. : Build on the Changeover argues that many change projects fail because victory is declared too early. Real change runs deep. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. 8: Anchor the Changes in Corporate Calculatingly, to make any change stick, it should become part of the core of your organization. Identify critical success factors (SF) for CRM projects CIFS are attributes and variables that can significantly impact business outcomes. SF most strongly association with CRM is an accurate and well developed knowledge management system. Critical success factor People Process Technology 1. Senior management commitment X 2. Creation off multi-disciplinary team XX 3. Objectives definition X 4. Interdepartmental integration XX 5. Communication of the CRM strategy to staff X X 6. Staff commitment X 7. Customer information management X 8. Customer service XX 9. Sales automation XX 10. Marketing automation XX 11. Support for operational management XX 12. Customer contact management X X 13. Information systems integration X Strategic: encountered at the beginning of the project (clear CRM vision, top management commitment and management expertise) Tactical: becomes important later on (trouble shooting skills, good communication, software configurations) Customer portfolio Management Market segmentation: dividing up the market in homogeneous subleases forecasting: 3 techniques = qualitative methods, time series methods, casual methodically based costing: see which customer are or will be profitabilitys value estimation: present day value of all net margins earned from a relationship tit a customer; enables to estimate companys valued mining: find pattern or relationships in large volumes of data (SEEMS, SPAS) Customer experience Formal: Customer experience is the cognitive and affective outcome of the customers exposure to, or interaction with, a companys people, processes, technologies, products, services and other outputs Informal: If you were to ask your customers, What is it like doing business with us? Their answers would be descriptions of their customer experience. Methods to understand customer experience Mystery shopping: paid shoppers report their superintendences mapping: focus groups, ace-to-face and telephone interviews with sample streptococcuss mapping: using blueprint (graphical representation of business processes)customer activity cycle: describes the processes customers go through in making and reviewing buying processes. Participant observation: senior management at front line customer service Sources of customer value (3 value disciplines) A value proposition is the explicit or implicit promise made by a company to its customers that it will deliver a particular bundle of value-creating benefits. (page 191, table 7. ) Operational excellence: A philosophy of the workplace where problem-solving, marrow, and leadership results in the ongoing improvement in an organization. The process involves focusing on the customers needs, keeping the employees positive and empowered, and continually improving the current activities in the workpla ce. Product leadership: Product leaders are companies that dominate their markets because they continuously offer the best and most innovative products or services in their industry. These companies display the ability and determination to make products that customers consider superior, products that deliver more benefits than others. Customer intimacy: A marketing strategy where a service supplier or product retailer gets close to their clients. The benefits of greater customer intimacy for a business might include improved highly tailored problem solving capabilities and greater adaptation of products to customer needs, as well as higher customer loyalty levels. Value from Service SURVIVAL model of service quality 5 core components of service qualitatively offers managers a systematic approach to measuring and managing service quality. It emphasizes the importance of understanding customer expectations, and of developing internal procedures that align company processes to customer expectations. Reliability Ability to perform the promised service dependably and accurately Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence Tangibles Appearance of physical facilities, equipment, personnel and communication materials Empathy Provision of caring, individualized attention to customers Responsiveness Willingness to help customers and to provide prompt service 3 stages of customer life cycle ; Key customer acquisition Acquiring new customers New customers: new-to-category (identified a new need or found new category of elution for existing need ; new-to-company (are won from competitors) Conversion model by Jan Hypertrophied customers Entrenched customers unlikely to switch in future Average customers unlikely to change in short but maybe in medium Uncommitted customers Shallow customers lower commitment than average; some already consider alternatives Convertible customers most likely to defect Prospecting Searching for opportunities tha t might generate additional value for the company. BOB Satisfied customers (Referrals from satisfied customers), Networking (Personal contacts with well-connected and co-operative people), Promotional activities (Exhibitions, seminars, trademarks and conferences, Delegate and attendee lists, Advertising response inquiries, Publicity), Web-sites, Lists and directories (SIC listings, telephone directories), Canvassing, Tell-marketing, E-mail BBC Advertising, Message, Media, Sales promotion, buzz or WOMB, Merchandising Retaining existing customers Keeping your customers to buy your productive measures of customer retention Raw customer retention rate: This is the number of customers doing business with a firm at the end of a training period expressed as percentage of those who were active customers a the beginning of the period Sales-adjustment retention rate: this is the value of sales achieved from the retained customer, expressed as a percentage of the sales achieved from all customers who were active at the beginning of the period P rofit-adjusted retention rate: This is the profit earned from the retained customers, expresses as a percentage of the profit earned from all customers who were active at the beginning of the period. Retention issues Not beneficial to maintain all relationships -; some are too costly to serve, others are strategic switchers in search of a better deal. Which customer to retain (strategic significant customers)? L . High future lifetime value: These customers will contribute significantly to the companys profitability in the future. 2. High volume: These customers might not generate much profit, but they are strategically significant because of their absorption of fixed costs, and the economies of scale they generate to keep unit cost low. 3. Benchmark customers: These are customers that other customers follow. 4. Inspirations: These are customers who bring about improvement in the business. They may identify new applications for a product, product improvement, or opportunities for cost reduction. They may complain loudly and make unreasonable demands, but in doing so, force change for the better 5. Door openers: These are customers that allow the business to gain access to a new market. This may be done for no initial profit, but with a view to proving credentials for further expansion. This may be particularly important for crossing cultural boundaries. Strategies for Customer Retention Positive: delight customers, create customer-perceived added value, create social and structural bonds, create customer engagement Negative: create exit barriers, enforce the contract, extract switching penalties Development customer value 3 ways to create customer-perceived added value loyalty schemes: rewarding customers for their potentiometers clubs: offers value-adding benefits exclusively to embarrasses promotions: in-pack or on-pack voucher, rebate or cash back, patronage awards, free premium for continuous purchase, collection schemes, Self-liquidation premium Two main strategies for customer developments-selling is selling additional products and services to an existing customer. Up-selling is selling higher priced or higher margin products and arrives to an existing customer. Of CRM technologies that are useful for customer development overcompensating management, Event-based marketing, Data mining, Customization, Channel integration, Integ rated customer communications, Marketing optimization Customer related database Is not Just a customer database and consists of all kinds of data related to the customer Secondary data: data have already been collected for other purpose than Criminal data: collected for the first time for CRM or other purpose 6 major steps in developing a customer-related database Define the database functions Databases support the four forms of CRM: Collaborative, Analytical, Operational, Strategic Define the information requirements A direct marketer might need general customer info, a senior manager might need bigger picture data like who are our customers, what do they buy, etc. Indemnify the information sources Internal data: acquired from marketing (market size, segmentation etc. ) sales (purchasing history, buyers names etc. ) Customer service (service histories and requirements, satisfaction levels, etc. ) finance (credit ratings, accounts receivable, etc) and the webmaster may have click-st ream data. Eternal data: from the outside world (market research companies) Select the database technology and hardware platform Customer-related data can be stored in a hierarchical, network or relational way. Relational databases are common nowadays Populate the database CRM databases need data that are appropriately accurate: the accuracy level depends on the databases function. Operational CRM applications need more accurate data than analytical ones. Maintain the database Make sure your database stays up to date . 2 major challenges of multinational CRM Multiple communication technology channels: all the devices that help an organization as well as customers to communicate with each other. Customers expect consistent dialogue. CRM technology lets you create and track a consistent dialogue that reflects the value of the customer. Multiple organizational touch points: not only the different technology channels of an organization, but also the different people within the organization. (Marketing sends out customer offers, sales reps call to negotiate terms and the customer calls the service desk for assistance. The marketing offer should be visible in order for the customer service agent to treat the customer correctly. Channel partners must be included in the communication loop if channel conflict over pricing, leads, and commissions is to be avoided. A customer portfolio is the collection of mutually customer groups that comprise a businesss entire customer base. It is used because not all customers can or should be managed in the same way. Customers have different needs, preferences and expectations. Customers have different revenue and cost profiles. The Customer Journey Stage 1 : Suspect Does the potential customer fit your target market profile? Stage 2: Prospect The potential customer does fit your profile and is being approached for the iris time Stage 3: First-time customer The customer made his first purchase Stage 4: Repeat customer Made additional purchases, your offer plays a minor role in the customer portfolio Stage 5: Majority customer Selects your company as supplier of choice Stage 6: Loyal customer Resistant to switching suppliers, shows positive attitude to your company Stage 7: Advocate The customer generates additional referral dollars through positive word-of-mouth. A company wants to have a relationship with its customers because companies that manage their customer base n order to identify, satisfy and retain profitable customers, enjoy better business performance. Value = Benefits/Sacrifices Sacrifices: Money (price, hidden cost) Search cost (time, effort) Psychic cost (stress, frustration, risk) Perceived risk is a psychic cost. How customers reduce perceived cost: Delay purchase Seek word-of-mouth endorsements Buy with credit-card Negotiate discounts Lifetime Value (L TV) or Customer Lifetime Value (CLC) = The lifetime value is the present day value of all net margins earned from a relationship with a customer, customer segment or cohort. Its also the measure of profit-generation for a company. Calculated by computing the present day value of all net margins (gross margins less cost to serve) earned from a relationship with a customer. The positive customer experience describes customer experience as it is. The normative customer experience describes customer experience as management or customers believe it ought to be. Touch point Touch points exist wherever customers come into virtual or concrete contact with a companys products, services, communications, places, people, processes or technologies. Moment-of-truth Moments of truth occur during customer interactions at touch-points. These are the endorsement customers form evaluative Judgments, positive or negative, about their experience. Engagement A customers emotional and rational response to an experience. Closing the Gaps: Examples Gap 1 Conduct primary research, learn from front-line staff Gap 2 Develop a standard documentation process; assess the feasibility of meeting customer expectations Gap 3 Invest in people, invest in technology, redesign workflow Gap 4 Train employees not to over-promise, excel at service recovery Gap 5 If gaps 1-4 are closed, gap 5 will also close! A successful complaints handling recess enables companies to capture customer complaints before customers start spreading negative word-of-mouth or take their business elsewhere. Why dont unhappy customers complain? They feel the company doesnt care. Perhaps the company or the industry has a reputation for treating customers poorly It takes too much time and effort They fear retribution. Many people are reluctant to complain about the police, for example They dont know how to complain. Three Stages of the Customer Lifestyle 1 . Customer acquisition 2. Customer retention aims to keep a high proportion of current customers by educing customer defections. 3. Customer development aims to increase the value of those retained customers to the company. Difference between customer retention and value retention is customer retention looks at the number of customers that stay with a company whereas value retention looks at the value customers bring and may force the company to look at the buying behavior and manage the value adders. Open non-customers Available non-customers prefer the alternative to their current offer though they have not yet switched, and are ready to switch. Ambivalent non-customers are as attracted to the alternative as they are to their current brand Unavailable non- Weakly unavailable non-customers prefer their current brands Strongly unavailable non-customers have a strong preference for their current brands Cognitive advertising = raising awareness, developing understanding, and generating knowledge. New customers generally need to be made aware of the product and to understand what benefits it can deliver. Affective advertising = developing a liking for the product, and generating preference. Why Focus on Newly Acquired Customers? New customers may have greater future life-time value potential than longer tenure customers. Evidence suggests that retention rates rise over time, so if defections can be prevented in the early stages of a relationship, there will be a pay-off in future revenue streams. Consumer delight: Perception ; Expectation Three Forms of Commitment Instrumental: customers are convinced that no other offer or company could do a better Job of meeting their needs. Relational: customer develops an emotional tie may be with an individual person, a work group or the generalized company as a whole. Values-based: customers values are aligned with those of the company.

Free Essays on Cognitive Science And AI

Recently, the media has spent an increasing amount of broadcast time on new technology. The focus of high-tech media has been aimed at the flurry of advances concerning artificial intelligence (AI). What is artificial intelligence and what is the media talking about? Are these technologies beneficial to our society or mere novelties among business and marketing professionals? Medical facilities, police departments, and manufacturing plants have all been changed by AI but how? These questions and many others are the concern of the general public brought about by the lack of education concerning rapidly advancing computer technology. Artificial intelligence is defined as the ability of a machine to think for itself. Scientists and theorists continue to debate if computers will actually be able to think for themselves at one point (Patterson 7). The generally accepted theory is that computers do and will think more in the future. AI has grown rapidly in the last ten years chiefly because of the advances in computer architecture. The term artificial intelligence was actually coined in 1956 by a group of scientists having their first meeting on the topic (Patterson 6). Early attempts at AI were neural networks modeled after the ones in the human brain. Success was minimal at best because of the lack of computer technology needed to calculate such large equations. AI is achieved using a number of different methods. The more popular implementations comprise neural networks, chaos engineering, fuzzy logic, knowledge based systems, and expert systems. Using any one of the aforementioned design structures requires a specialized computer system. For example, Anderson Consulting applies a knowledge based system to commercial loan officers using multimedia (Hedburg 121). Their system requires a fast IBM desktop computer. Other systems may require even more horsepower using exotic computers or workstations. Even more exotic is the software that i... Free Essays on Cognitive Science And AI Free Essays on Cognitive Science And AI Recently, the media has spent an increasing amount of broadcast time on new technology. The focus of high-tech media has been aimed at the flurry of advances concerning artificial intelligence (AI). What is artificial intelligence and what is the media talking about? Are these technologies beneficial to our society or mere novelties among business and marketing professionals? Medical facilities, police departments, and manufacturing plants have all been changed by AI but how? These questions and many others are the concern of the general public brought about by the lack of education concerning rapidly advancing computer technology. Artificial intelligence is defined as the ability of a machine to think for itself. Scientists and theorists continue to debate if computers will actually be able to think for themselves at one point (Patterson 7). The generally accepted theory is that computers do and will think more in the future. AI has grown rapidly in the last ten years chiefly because of the advances in computer architecture. The term artificial intelligence was actually coined in 1956 by a group of scientists having their first meeting on the topic (Patterson 6). Early attempts at AI were neural networks modeled after the ones in the human brain. Success was minimal at best because of the lack of computer technology needed to calculate such large equations. AI is achieved using a number of different methods. The more popular implementations comprise neural networks, chaos engineering, fuzzy logic, knowledge based systems, and expert systems. Using any one of the aforementioned design structures requires a specialized computer system. For example, Anderson Consulting applies a knowledge based system to commercial loan officers using multimedia (Hedburg 121). Their system requires a fast IBM desktop computer. Other systems may require even more horsepower using exotic computers or workstations. Even more exotic is the software that i...

Week 2 Individual Paper Essay Example | Topics and Well Written Essays - 750 words

Week 2 Individual Paper - Essay Example The formulas of financial ratios combine the variables of the financial statements. For example the return of equity formula is calculated in the following manner: net income / shareholders equity. Net income is a variable that is found in the income statement, while shareholders equity is an element from the balance sheet. Two financial statements whose elements interact with each other are the income statement and the statement of retained earnings. The total net income illustrated at the bottom of the income statement is a figure that is added to the initial retained earnings balance. Another relationship of interaction among the elements of the statements is between the statement of retained earnings and the balance sheet. The ending retained earnings balance illustrated at the bottom of statement of retained earnings is the same figure that is shown in the equity section of the balance sheet. Changes in one financial statement can affect the other financial statement in certain circumstances. The net income total is used in the statement of retained earnings as a variable that is added to the initial retained earnings balance. For example if a company ended with a year-end net losses that figure would set off a chain reaction which affects other financial statements. The losses are moved to the statement of retained earnings where they are subtracted from the initial retained earnings balance. The final retained earnings balance is then transferred to the balance sheet. Not all changes to accounts in one financial statement affect the other. For instance a change in the debt total in the balance sheet does not affect the income statement in any way. It is important for business professionals to understand the relationship between the four financial statements. The statements together provide a picture of the financial health of an enterprise. A person can make an error analyzing a

Benefits of College Essay Example | Topics and Well Written Essays - 1000 words

Benefits of College - Essay Example â€Å"The median earnings of full-time workers with bachelor’s degrees were $55,700 in 2008 — $21,900 more than those of workers who finished only high school.† (Lewin, New York Times). While it cannot be denied that a college degree confers unequivocal advantages in terms of career prospects and financial remuneration, opponents argue that a college education is not essential for skill development and the steep costs are not justified by its benefits. On the contrary, the benefits of a college education are not only economical but also encompass tangible benefits involving health, society, family and personality. A college education contributes several health benefits. According to recent data from the Center for Disease Control and Prevention, people with a college education have an average life expectancy of 9.3 years more than those who are less educated. The percentage of women above the age of 25 who are obese is 39-43 percent for those who have not attende d college, in comparison with 25 percent for those with a bachelor’s degree. Similarly, 31 percent of adults in the age group 25 – 64 years, who hold only a High School diploma, are smokers, while only 9 percent of adults with a college degree smoke (Griesmer, College Insider). College graduates are also likely to make other healthier lifestyle choices, such as exercising. Research from the BMC Health Services shows that a higher level of education is also linked to lower blood pressure. College graduates are also at a lower risk of developing colorectal, prostate, lung and breast cancer, according to a 2008 study published in the  Journal of the National Cancer Institute (Hardy, Yahoo Education). Their higher paying jobs also ensure that graduates have better access to preventive health care. This also contributes to better health. The societal benefits of a college education are substantial. The higher income earned by graduates translates into higher taxes. The he alth benefits listed above, combined with the fact that graduates are more likely to have jobs that offer health insurance and retirement benefits, means that graduates are less dependent on government social programs, such as unemployment compensation, Medicare and Medicaid, food programs, and welfare. This results in substantial public savings. The incarceration rate for graduates is only a quarter that of those with a High School diploma, or less. Prison costs are thus reduced. Another emphatic societal benefit stems from the fact that the mission statement of all universities includes civic education. As a consequence, graduates are more likely to participate in community services. 2004 statistics show that 36 percent of graduates performed voluntary community service, in comparison with only 21 percent of High School diploma holders. Similarly, 76 percent of graduates voted in the 2000 election, while only 56 percent of High School diploma holders voted. Educational attainment stimulates public awareness and interest in community issues (Cunningham, John Carroll University). ). The multicultural and multiethnic university world also promotes racial understanding and tolerance, and encourages the belief in common values across racial divides. As such, graduates are more likely to be free of social prejudices and stereotypes than their less-educated peers. A college education benefits the family structure. Studies show that college graduates a

Discovering Management Thought Leaders - Andrew Kakabadse Essay

Discovering Management Thought Leaders - Andrew Kakabadse - Essay Example ict approach to governance practice, boardroom effectiveness and research work has contributed widely to his success, achievements and excellent reputation. According to Wall Street Journal, in support of the Harvard Business Review, Kakabadse features in the top fifty executive researchers and educators, who specializes in interpersonal skills, particularly on issues related to governance practices, international relations and leadership (Kakabadse, Bank & Vinnicombe 2004). According to Kakabadse, Bank & Vinnicombe (2004), what separate Kakabadse from other instructors, educators or professors are based on priority, interest and the mode with which he disseminate his services, which inherently include teaching, writing and proper research on top teams and boards. In addition, much as other instructors would be over emphasizing on payment before delivering their services to their clients, for instance charging the clients according to duration and amount of service they provide to the clients, Kakabadse would put his results before the payment (Kakabadse & Korac, 1998). This implies that he would not ask for payment if he has not registered a positive impact or result to his clients. Another feature, distinguishing Kakabades from other thinkers, is his peculiar understanding of the issues related to board research and the concept surrounding the international practices and the governance practices. Unlike other educators, Kakabadse view research and international relation not as a brief interaction but rather as a lasting obligation to generate exemplary results to the boards and their team, and to establish how the boards are viewed, including positive feedback, which can be assimilated into his more than 20 global databases. Moreover, Kakabadse, through out his working, has maintained hyperactive and relentlessly positive character, a trait which has made him outsmart other thinkers in the same line of activity (Kakabadse, Bank & Vinnicombe 2004). This

Impact of Freight Forwarders in the Shipping Industry

Impact of Freight Forwarders in the Shipping Industry 1. INTRODUCTION 1.1. Introduction The basic ideology of this thesis is to determine the impact of freight forwarders in the shipping industry of Pakistan. This chapter briefly describes an introduction of the thesis. Being the introductory chapter of the thesis, the present chapter includes the introductory outline of the research as it will lay an emphasis on the background of the research and clearly identify the rationale for undertaking this research. Liner shipping is characterized by a range of economies of scale and scope suggesting that low cost supply is likely to require some form of industry combination and concentration or cooperation; this could be achieved by a comparatively small number of large global operators. There are many reasons behind it including bad economic situation of Pakistan, Shippers interests in relation to shipping services coincide with the public interest and shippers as profit maximizes generally will have a strong incentive to obtain the best possible service for the lowest possible price Contextual Frame: The shipping business plays a vital function in the international economy because it carries a large portion of world trade The Industry trends towards expansion of liner shipping and needs developments in Containerization because they cover scale of economics. With the passage of time the shipping liner industry has moved into an era of affluence, and containerships have been moving require for other Ship types, the demand growth is generally and also several other factors have been putting force on smaller carriers, including upsizing and route network developments. Currently the trends become visible into independent process over vessel allocation and rising profitability suggests that carriers will seek to own additional of their own assets. Shipping lines is an essential part of Pakistans trade, which provides intermediate service input for Pakistans merchandise trade merchandise. According to bulk shipping where each vessel carries one commodity on a charter basis, the demand for liner shipping is diverse. The costs of coordinating these diverse demands virtually rule out ship leasing as an efficient form of service delivery. The supply of regular and scheduled liner services provides a means of reducing transactions costs so that exporters with diverse demands are able to access liner shipping services. The trend to larger ships has been accompanied by strong growth in available liner capacity. The reason of significant development in shipping liner business because of its cheap freight rate and the large volume of freight transported. Compared with the other modes of transport, for example air, water transportation offers the cheapest freight rates The idea third party logistics providers are as basic as deficient to have somebody else do the work for you instead of exporters who facilitate according to maintain their transportation or distribution and as so on. Supply chain management applications have a small amount of capabilities in ordinary. The data must be available to a user anyplace in the world; it must be exact, flexible, visible, and fast. With the help of supply chain software they can attain inventory effectiveness, faster information flow more exact determinations of when and how much material/capacity must be purchased, manufacture or moved and watchful monitoring of events and inventory within and external the venture and electronic enterprise linkage, which replaces manual linkage . These systems can help companies to incorporate similar process spread over different place and limit needless activities, enhancing their skill to cope with consumer requirements and meet goods quality standards The use of supply chain applications varies in diverse parts of the world. In 2003, North Americas top five 3PL-centric data technologies were applications for†¦.. Warehouse management Shipment tracking and trace/event management Export/import/forwarding/customs clearance Web-enabled communications Transport management The dilemma of supply and demand is the driving force of people history, and it is directly connected to carry, Normally we cannot produce all the food or goods but we want to consume or use that goods so the requirement to consume we must transport. In the age of trade between farms and villages, today the products we consume travel long distance along global supply chains to reach us. Product, inventory control, transport, and delivery, and particular handling and management are all division of these supply chains. As supply chains become more geographically elaborate, their success depends additional and more on the expertise of competent transport intermediaries (Freight forwarder, or Freight logistic providers). Supply chains engage lots of groups of trading partners, and logistics is the key to holding them jointly. Logistics is the function of planning, implementing, and controlling the well-organized flow and storage of goods and their associated information. As global logistics become more challenging, and as the savings accessible through supply chain efficiency become more striking The international freight forwarding business emerged in Pakistan in the early 1980s. originally, the industry comprised a only some organization and focusing on the niche market that focus on the shipment of plants and equipment for the increasing weaving segment of the textile industry, household stuffing companies support families re-locating overseas and multilateral agencies providing food supplies under aid or crisis programs The job of the International freight forward is to move the supplies from one place to another place on the given time frame and make sure that the delivery will be on time and economical as well. Particularly freight forwarding companies arrange transport from shippers factories or storehouse to ports, stuffing or consolidation of cargo if necessary according to the clients needs, documentation, customs clearance, shipping (land, sea and air or combination thereof), unpacking or deconsolidation if necessary and delivery at customer selected location International freight forwarding firms in Pakistan can be segmented according to figure no 1.1 Primary service providers classification themselves as freight forwarders but efficiently working as brokers offering aggressive tariffs to little and average shippers for LCL cargoes, negotiate highest margins from consolidators search for lesser consignments to full container loads and arrange customs clearance, documentation and payment of customs levies. Middle order firms providing main services provided by primary services acting as selected agents for abroad buyers. Total solution providers contribution full range of services with access to worldwide networks through abroad associates. In Pakistan Freight Forwarding companies provide services as intermediaries and made become part of international trade activity, actually the Pakistanis exporters faced many difficulty if it does not take into description how the goods will be deliver to the market .The matter of freight forwarding must be careful at an early stage of the growth of the export marketing plan as it raise more than a few concerns that require to be address rapidly not only does the exporter require to recognize which to specify and work to, but the method of transport also requirements to be careful ( road, rail, sea, air). Packaging is also another issue that requirements to be considered, as is insurance. Much of the hassle can be taken out of the exporters hands by using an efficient freight forwarder, but as with any supplier care requirements to be taken to ensure that the supplier meets the requirements of the organization Problem Identification/ Statement:The research aim is to analyze the factors that are impact freight forwarders in shipping industry and also analyze the relationship of freight forwarders with shipping lines. In the modern world the trend has been changed in shipping industry now the Forwarding agent is playing a vital role in shipping industry as a middle man with the name of Fright Forwarder between the shipping line and exporters. Freight Forwarder has strong negotiating power to shipping lines due large numbers cargo velum because of the exporters preference that do exports through freight forwarder. They take an advantage with the bulk of cargo from the shipper (exporters) and play a role of big intermediaries among the shipping lines, buyer and exporters, and they provide a full of supply chains management and transportation, from the exporters where house to buyer door which is called pin to point service or door to door delivery. Therefore the Pakistani shipping sector and p articularly the leading position of Freight Forwarder act as intermediaries between the shipping lines and exporters. Although this research, the researcher will try to find out the reason of impact of freight forwarders in shipping industry, serious emphasis on the relation of freight forwarders and shipping lines, currently major problems b/w Freight Forwarders and Shipping Lines. 1.2.Purpose of Study This research will provide you better understanding and benefits of Freight Forwarders to the Shipping Lines and the Customers (Importer / Exporter). With respect to Shipping Lines Decrease the Shipping Lines risk Increase of cargo volume from single customer No pain for warehousing delivery With respect to Customers Accessibility from any location Reduce in transportation cost Convenience of logistic Pin to point delivery (Warehousing) 1.3. Research Objectives It will only consist of shipping lines and freight forwarders in Pakistan, specially with concept and practicing of how they doing a business and facilitate to customer no other fields will be considered. This research will only focus the factors which are impact the shipping lines business which may cause an increase in trade, profitability and reduce shipping line risk or any other. Thats why this will not include the all operations and other activities, which raise the revenue of shipping lines. It will only consist of those forwarding companies of Pakistan, which are directly involved with the international forwarders and involve the shipping line business. Research Questions: What are the influencing factors of shipping lines versus Freight Forwarders for Exporters and buyers? What are the major problems of freight forwarders presently with the shipping lines? What are the major problems of shipping line presently due to involvement of freight forwarders? What are the relationship between the Freight forwarders and Shipping lines, how they will grow and build up? Justification / Scope: We are a developing country under foreign investment and internal market. We do not have enough resources to meet even our consumption so to meet our own usage we need export and import world wide, for doing export and import we have two sources world wide which is called shipping lines and air lines which connect to world wide in every destination due to which we are able to consume internationally products and trade our local product world wide for generating revenue. This thesis is aimed at providing better conceptualization of freight forwarders and shipping lines business. This research will give clear image of the benefits and relationship of freight forwarder for the shipping lines and exporters lines. The findings of this study will help to understand the importance of freight forwarder in shipping industry and how they can use effectively. International Freight Forwarder:The job of the International freight forward is to move the supplies from one place to another place on the given time frame and make sure that the delivery will be on time and economical as well. They arrange the resources according the needs and requirements of the customer like Transportation from shippers factories to ports Packing or consolidation of cargo documentation Customs clearance Shipping (land, sea and air or combination thereof) Unpacking or deconsolidation is required Customs Clearing Agent: An agent certified by the Central Board of Revenue through the Customs authorities to complete documentation official procedure and assemble, on behalf of the merchant, disbursement of custom duties, taxes etc Shipping Agent: An agent licensed by the Central Board of Revenue through the Customs authorities for servicing vessels calling at Pakistans ports. The agent represents interest of the vessel/carrier and arranges payment of port dues. Shipper: Merchant or manufacturer or Supplier whos selling goods to overseas buyers Consignee: Merchant or manufacturer buying goods form overseas suppliers SCM: Supply chain management TEU: Twenty-foot equivalent unit a standard measurement of volume in container shipping. The bulk of containers are either 20 in length, or 40 in length. A 20Container is one TEU, a 40 container is two TEUs LCL: Less than container load cargo FCL: Full container load cargo SIZE: Freight forwarding companies have been classified according to annual TEUs handled as under: Small = 360 TEUs Medium + 1200 TEUs Large = 4800 TEUs POL: Port of load POD: Port of discharge We are a developing country under foreign investment and internal market. We do not have enough resources to meet even our consumption so to meet our own usage we need export and import world wide, for doing export and import we have two sources world wide which is called shipping lines and air lines which connect to world wide in every destination due to which we are able to consume internationally products and trade our local product world wide for generating revenue. This thesis is aimed at providing better conceptualization of freight forwarders and shipping lines business. This research will give clear image of the benefits and relationship of freight forwarder for the shipping lines and exporters lines. The findings of this study will help to understand the importance of freight forwarder in shipping industry and how they can use effectively CHAPTER # 2 LITERATURE REVIEW 2.LITERATURE REVIEW The previous chapter describes the background and the problem area of the study. In this chapter we discuss the literature related to the research topic. In this Literature Review, an attempt has been made to develop the conceptual framework of impact of Freight Forwarder in Shipping Industry. This chapter will review the literature on Shipping Line and Freight Forwarder. It will include material obtained from books, journals, academic journals and internet articles. The shipping industry is very important in the international economy because it carries a large portion of world trade. The Liner shipping is characterized by a range of economies of scale and scope signifying that low cost supply is likely to require some form of industry assimilation and hence concentration or cooperation, this could be achieved by a relatively small number of large global operators .The Industry trend to expansion of liner shipping and need to developments in Containerization which cover scale of economics. With the passage of time the liner business has optimistic into an age of affluence, and containerships have been moving require for other Ship types, the demand growth is generally but several other factors have been putting force on smaller carriers, including upsizing and route network developments. Currently the trends become visible into self-determining process over vessel allocation and rising profitability suggest that carriers will search for to more o f their own resources. Rivalry from logistics providers will gradually more dictate how the industry develops. The lower costs of condition of services require the various economies of scale and scope to be capture, a single shipping line may be unwilling to commit several large vessels in order to provide an inclusive, regular, scheduled service where demand is uncertain and where that uncertainty is exacerbate by the possibility of rivals encroaching on the trade. According to DELTAS, SERFES, SICOTTE the Agents of the various Lines meet and discuss the conditions which are changing from time to time, and which are affected by the competition of vagrant Vessels and decide on the policy to be pursued by all the Lines named with reference to the maintenance of stable rates of freight and to prevent demoralization. The liner shipping is becoming more concentrated via mergers and acquisitions, while average vessel size continues to grow as carriers attempt to capture scale economies. Rationalization is being driven by technological change and intense competition in most trades which has seen freight rates fall significantly in real terms and profitability decline, according to the researcher the expansion of global shipping companies has increased competition on individual routes. The constitute the total shipping demand of a particular market. The density of demand is then defined as the trade volume per kilometer of coast. This affords an admittedly imperfect demarcation of the system, unless there happen to be clear-cut geographical boundaries. The picture emerging is of a global liner shipping industry experiencing significant, and rapidly change, the trend towards greater industry concentration via mergers and acquisitions does not appear to have reduced competition. Appears the expansion of global shipping companies has increased competition on individual routes. The Hoffmann said that Asian lines have entered the North Atlantic trade, east-west lines are incoming north-south markets and the feeder services of big carriers are competing with traditional regional lines. In shipping liner service the growth in alternative types and the growing role of freight forwarders has placed increasing competitive pressure on carriers. To a minor extent potential competition in transporting general cargo exists in the form of alternative modes of transport such as air transport and tramp shipping. Market power is sustainable only where entry barriers to entry or exit is high, the Potential barriers to entry include regulatory and other essentially man-made or institutional barriers or economic barriers driven by characteristics of the market .when the barrier are low for entry and exit the competition will increase and the profitability will minimum accordingly Shipping liner business mean the process of transporting goods from one place to another that process of transportation may take place through sea, land or water, further more the process have been done underway of buyer and the seller with the negotiate and entering into an agreement/contract based on the mutually agreed upon terms .Their terms would include the description and the quantity of goods, the time by which the merchandise require to be delivered, the price and the documentary requirements. After the agreement is struck, the seller usually contacts the forwarding agents who are responsible for moving the goods from the sellers location to the ship. The Shippers interests in relation to shipping services agree with the public interest and shippers need to required profit-maximizes generally and the shipping lines offer the best-possible service for the lowest-possible price. In this era the shipper might play the role of the Forwarding agent too if it has the necessary expertise in the area, the following Forwarding agent contacts the shipping line and based on the terms and conditions mutually agreed upon, an agreement is reached for the goods to be transported from the port of origin to the destination port to the shipping line. A custom clearing agent is then assigned by the shipper for the handling of the custom related documentation or even this may be taken care of by the forwarding agent, thereafter the goods are moved by the forwarding agent to the port of origin or the shipping line. The goods can be picked from the shippers factory or may have already been moved from the shippers premises to the forwarding agents premises in which case they are further moved from the agents premises to the port of origin of shipping line. Once the goods are loaded on the ship, they are transported to the destination port where a similar process happens while th e goods make their way to the buyers premises The cargoes mostly were carried from country of origin to country of destination on a direct service or through involvement of transshipment port. Today shippers have a choice between a direct service and via transshipment port, but due to longer transit times and the possibility of cargo being damaged during transshipment or however, the quality of transshipment services often is comparable to that of direct services. It is likely to be at least in part to the trade imbalance, which means exporters are competing with increased volume with the involvement of supply liner efficient service. Freight rates are most major element for the liner shipping services, the requirement of competitive control of liner freight play a major roll in liner business, these general trends are illustrated by various freight rates cited in industry publications .Initially the first task is to identify the relevant markets which will clear define the density of demand for a particular transport service. International trade in bulk agricultural commodities recently has become more important to the world economy. Economists have devoted little attention to international shipping. Transport costs between countries can pose a formidable barrier to trade, similar in effect to tariffs and institutional constraints. Ocean transportation changes can affect the domestic grain transport system of major exporters. The shipping lines base on service provider from one place to another place according to the requirement of their customer, the nature of shipment which follow of cargoes very frequency. The involvement of transit time, ports of call, and reliability are all important characteristics of service quality, which can, in certain circumstances (for example, ‘just-in-time manufacturing or consumable cargoes), be more important than simple price considerations. An increase in service frequency does not of itself indicate that service levels have improved, For example, if average vessel sizes declined significantly so the level of service may be reduced even though the frequency of service has increased, since the monthly capacity available to shippers would be less and voyage duration would be longer. Capacity of itself is not an indicator of service levels, it provides an indication of the carriers ability to meet shippers demand which is important to note that vessel capacities presented here are optimum capacities and do not take into account weight limitations and the fact that some of this capacity may be used for cargo from other countries such as New Zealand. Ocean liner are illustrious from other suppliers of sea transport because they are committed to regular schedule of service between particular port at a price which fixed in the short run more over the shipping line agree to satisfy all reasonable needs of the respective shipper in both quantity and quality of service. The Globalization of business and the departure of ‘just-in-time inventory management has increased shipper preference for intermodal or door-to-door transport services, although facts given to suggests that this trend has been less marked in Australia than in the United States or Europe. While a single transport provider usually coordinates the intermodal service (so that the shipper has a single point of contact and receives a single bill of lading), the physical transport service may be provided by several land and sea carriers so Liner shipping operators have responded to shipper preferences by offering shippers a range of transport options, including door-to-door and terminal-to-terminal services. The liner industry is necessarily responsive to trends, and nobody appreciated. What changes were going to occur in the second half of the twentieth century? In the late 1940s and 1950s, liner companies were thinking primarily in terms of replacements for those conventional ships that had been lost in the Second World War But reconstruction and returning servicemen with significant back pay to dispose of, created a post-war boom, and wages rose sharply, reflecting labor shortages as well as being partly intended to stave off the expansion of Communist ideology. That situation affected the previously labor intensive liner industry, pushing up crew and shore labor costs and squeezing liner company profitability. After the Eighteen years the Second World War, Carrefour opened the worlds first hypermarket in outside Paris. Five years later the first fully cellular container service started operations, although carriers, who otherwise faced the prospect of block obsolescence and the requi rement for simultaneous replacement of the by now 25-year-old replacement fleets that had been introduced after the war, were nervous about introducing a system that, by very specifically defining the way cargo had to be shipped, reduced cargo owners ability to call the shots, and particularly affected the sorts of cargo in which British and American liner cargo exporters were strongest modified shipments to specific importers. Acceptance of containerization by smaller and niche liner operators, labor, port authorities and other vested interest was slow, but cargo-owner enthusiastic participation came much quicker than the liner companies had expected. The surprising growth of demand for container services over the last almost 40 years has been both an annoyance and a lucky thing to the industry. It has put great pressure on carriers balance sheets as a result of the unchangeable demand for capital, aggravated by the steady decline in freight rates that has so often been consequence of technical innovation. The worlds growing dependence on container liner services and the size of profits recorded by carriers in the middle years of the first decade of the twenty-first. As shipping companies adjust to a dynamic and rapidly changing environment so do the financial methods and instruments available to rise funding and materialize vital investment budgets. The core business strategy of shipping companies in recent days is gradually shifting from simple profit maximization to an increase in firm market value.The following achievement of shipping firms should consistently focus on promote investment plans that bear growth potential and have positive returns which outperform more than requirement of costs undertaken. The intermediaries to provide the funds required to financing new investment projects and sustain business growth, fresh funds are channeled to shipping firms in need through the issuance of securities One significant path to economic development is shipping and this is because of their offer cheap freight rate and the large volume of freight transported and according to compared with the other modes of transport, for example air, water transportation offers the cheapest freight rates Adam Smith, â€Å"writing in the last quarter of the eighteenth century (1776), noted that shipping is instrumental to economic development†. In his book The Wealth of Nations he argues that the key economic power in capitalist societies is the division of labor, and the scope of the market determines the extent to which this can be practiced because the limited nature of the business will equally limit the degree of specialization. Shipping as a source of cheap transport, Smith pointed out, opens wider markets to specialization. The idea third party logistics providers are as basic as deficient to have someone else perform the job for you instead of exporters who facilitate according to maintain their transportation or distribution and as so on. 2007).Supply chain management applications have a small number of capabilities in general. The data must be available to a user anyplace in the world; it should be correct and flexible, visible, and fast. With the help of supply chain software they can attain inventory efficiency, quicker information flow additional accurate determinations of when and how much resources should be purchased, manufactures, or moved and careful monitoring of events and inventory within and outside the venture and electronic enterprise association, which replaces manual linkage .These systems can assist companies integrate similar process spread over different areas and limit unnecessary activities, enhancing their ability to manage with customer needs and meet product quality principles . The requirement of marketing and customer service exploitation organizations that work together to create and retain potential market positions for end products .Unlike the case of supply chain management, there is no well-established approach to design chain management or marketing chain management, It should be noted, how ever, that through the ideas and practices of concurrent engineering, design for manufacturability, design for logistics, and mass customization, the discipline of supply chain management has already been concerned with its own integration with design chain management. It is evident that in the current business environment of keep competition, of fast technological and market changes, and of demanding customers, the successful delivery of end products and services to the right markets at the correct time requires integrated operations of the marketing chain, the design chain, and the supply chain, In order for the supply chain, design chain, and marketing chain to be integrated, the resulting integrated system may be characterized by a network of knowledge and competence in manufacturing and distribution, and in design and marketing that the companies bring to the table., it seems reasonable to call such integrated systems knowledge supply networks. The Researcher defines the â€Å"Big Middle† as the market space in which the bulk of suppliers compete for the majority of respondent and the preponderance of expenditures occur. It is the space in which retailers wish to exist in their quest for increased revenues, scale economies, and profits, the Big Middle appears in any economy in which huge scale retailing has develop, it is a mind space that lies between other competitive arena, with the help of low-price fringe and the innovative fringe. Low price fringe retailers use basic merchandise and low prices to compete though other elements of the retailing mix are present, they are not the primary reason people shop at these stores. Although a retailer does not have to be in the Big Middle to be successful in the short run, those that become the largest and, by implication, the most successful, are inexorably drawn there over time in their search for scale economies, increased revenues, and incremental profits The Supply Chain is an integrated process from raw from of material to Finish goods reaches to consumer, the supply chain mainly involves the following process/functions: Procurement Production Planning Ware house and Distribution Logistic Its all a function of the â€Å"core competency† plan that has producers concentrating on developing and creation their goods, and then hire an external firm direct exactly how those goods will get to the customer The Brief identifies intermediaries as commonly independent 3rd party that play an essential part in collaborativ Impact of Freight Forwarders in the Shipping Industry Impact of Freight Forwarders in the Shipping Industry 1. INTRODUCTION 1.1. Introduction The basic ideology of this thesis is to determine the impact of freight forwarders in the shipping industry of Pakistan. This chapter briefly describes an introduction of the thesis. Being the introductory chapter of the thesis, the present chapter includes the introductory outline of the research as it will lay an emphasis on the background of the research and clearly identify the rationale for undertaking this research. Liner shipping is characterized by a range of economies of scale and scope suggesting that low cost supply is likely to require some form of industry combination and concentration or cooperation; this could be achieved by a comparatively small number of large global operators. There are many reasons behind it including bad economic situation of Pakistan, Shippers interests in relation to shipping services coincide with the public interest and shippers as profit maximizes generally will have a strong incentive to obtain the best possible service for the lowest possible price Contextual Frame: The shipping business plays a vital function in the international economy because it carries a large portion of world trade The Industry trends towards expansion of liner shipping and needs developments in Containerization because they cover scale of economics. With the passage of time the shipping liner industry has moved into an era of affluence, and containerships have been moving require for other Ship types, the demand growth is generally and also several other factors have been putting force on smaller carriers, including upsizing and route network developments. Currently the trends become visible into independent process over vessel allocation and rising profitability suggests that carriers will seek to own additional of their own assets. Shipping lines is an essential part of Pakistans trade, which provides intermediate service input for Pakistans merchandise trade merchandise. According to bulk shipping where each vessel carries one commodity on a charter basis, the demand for liner shipping is diverse. The costs of coordinating these diverse demands virtually rule out ship leasing as an efficient form of service delivery. The supply of regular and scheduled liner services provides a means of reducing transactions costs so that exporters with diverse demands are able to access liner shipping services. The trend to larger ships has been accompanied by strong growth in available liner capacity. The reason of significant development in shipping liner business because of its cheap freight rate and the large volume of freight transported. Compared with the other modes of transport, for example air, water transportation offers the cheapest freight rates The idea third party logistics providers are as basic as deficient to have somebody else do the work for you instead of exporters who facilitate according to maintain their transportation or distribution and as so on. Supply chain management applications have a small amount of capabilities in ordinary. The data must be available to a user anyplace in the world; it must be exact, flexible, visible, and fast. With the help of supply chain software they can attain inventory effectiveness, faster information flow more exact determinations of when and how much material/capacity must be purchased, manufacture or moved and watchful monitoring of events and inventory within and external the venture and electronic enterprise linkage, which replaces manual linkage . These systems can help companies to incorporate similar process spread over different place and limit needless activities, enhancing their skill to cope with consumer requirements and meet goods quality standards The use of supply chain applications varies in diverse parts of the world. In 2003, North Americas top five 3PL-centric data technologies were applications for†¦.. Warehouse management Shipment tracking and trace/event management Export/import/forwarding/customs clearance Web-enabled communications Transport management The dilemma of supply and demand is the driving force of people history, and it is directly connected to carry, Normally we cannot produce all the food or goods but we want to consume or use that goods so the requirement to consume we must transport. In the age of trade between farms and villages, today the products we consume travel long distance along global supply chains to reach us. Product, inventory control, transport, and delivery, and particular handling and management are all division of these supply chains. As supply chains become more geographically elaborate, their success depends additional and more on the expertise of competent transport intermediaries (Freight forwarder, or Freight logistic providers). Supply chains engage lots of groups of trading partners, and logistics is the key to holding them jointly. Logistics is the function of planning, implementing, and controlling the well-organized flow and storage of goods and their associated information. As global logistics become more challenging, and as the savings accessible through supply chain efficiency become more striking The international freight forwarding business emerged in Pakistan in the early 1980s. originally, the industry comprised a only some organization and focusing on the niche market that focus on the shipment of plants and equipment for the increasing weaving segment of the textile industry, household stuffing companies support families re-locating overseas and multilateral agencies providing food supplies under aid or crisis programs The job of the International freight forward is to move the supplies from one place to another place on the given time frame and make sure that the delivery will be on time and economical as well. Particularly freight forwarding companies arrange transport from shippers factories or storehouse to ports, stuffing or consolidation of cargo if necessary according to the clients needs, documentation, customs clearance, shipping (land, sea and air or combination thereof), unpacking or deconsolidation if necessary and delivery at customer selected location International freight forwarding firms in Pakistan can be segmented according to figure no 1.1 Primary service providers classification themselves as freight forwarders but efficiently working as brokers offering aggressive tariffs to little and average shippers for LCL cargoes, negotiate highest margins from consolidators search for lesser consignments to full container loads and arrange customs clearance, documentation and payment of customs levies. Middle order firms providing main services provided by primary services acting as selected agents for abroad buyers. Total solution providers contribution full range of services with access to worldwide networks through abroad associates. In Pakistan Freight Forwarding companies provide services as intermediaries and made become part of international trade activity, actually the Pakistanis exporters faced many difficulty if it does not take into description how the goods will be deliver to the market .The matter of freight forwarding must be careful at an early stage of the growth of the export marketing plan as it raise more than a few concerns that require to be address rapidly not only does the exporter require to recognize which to specify and work to, but the method of transport also requirements to be careful ( road, rail, sea, air). Packaging is also another issue that requirements to be considered, as is insurance. Much of the hassle can be taken out of the exporters hands by using an efficient freight forwarder, but as with any supplier care requirements to be taken to ensure that the supplier meets the requirements of the organization Problem Identification/ Statement:The research aim is to analyze the factors that are impact freight forwarders in shipping industry and also analyze the relationship of freight forwarders with shipping lines. In the modern world the trend has been changed in shipping industry now the Forwarding agent is playing a vital role in shipping industry as a middle man with the name of Fright Forwarder between the shipping line and exporters. Freight Forwarder has strong negotiating power to shipping lines due large numbers cargo velum because of the exporters preference that do exports through freight forwarder. They take an advantage with the bulk of cargo from the shipper (exporters) and play a role of big intermediaries among the shipping lines, buyer and exporters, and they provide a full of supply chains management and transportation, from the exporters where house to buyer door which is called pin to point service or door to door delivery. Therefore the Pakistani shipping sector and p articularly the leading position of Freight Forwarder act as intermediaries between the shipping lines and exporters. Although this research, the researcher will try to find out the reason of impact of freight forwarders in shipping industry, serious emphasis on the relation of freight forwarders and shipping lines, currently major problems b/w Freight Forwarders and Shipping Lines. 1.2.Purpose of Study This research will provide you better understanding and benefits of Freight Forwarders to the Shipping Lines and the Customers (Importer / Exporter). With respect to Shipping Lines Decrease the Shipping Lines risk Increase of cargo volume from single customer No pain for warehousing delivery With respect to Customers Accessibility from any location Reduce in transportation cost Convenience of logistic Pin to point delivery (Warehousing) 1.3. Research Objectives It will only consist of shipping lines and freight forwarders in Pakistan, specially with concept and practicing of how they doing a business and facilitate to customer no other fields will be considered. This research will only focus the factors which are impact the shipping lines business which may cause an increase in trade, profitability and reduce shipping line risk or any other. Thats why this will not include the all operations and other activities, which raise the revenue of shipping lines. It will only consist of those forwarding companies of Pakistan, which are directly involved with the international forwarders and involve the shipping line business. Research Questions: What are the influencing factors of shipping lines versus Freight Forwarders for Exporters and buyers? What are the major problems of freight forwarders presently with the shipping lines? What are the major problems of shipping line presently due to involvement of freight forwarders? What are the relationship between the Freight forwarders and Shipping lines, how they will grow and build up? Justification / Scope: We are a developing country under foreign investment and internal market. We do not have enough resources to meet even our consumption so to meet our own usage we need export and import world wide, for doing export and import we have two sources world wide which is called shipping lines and air lines which connect to world wide in every destination due to which we are able to consume internationally products and trade our local product world wide for generating revenue. This thesis is aimed at providing better conceptualization of freight forwarders and shipping lines business. This research will give clear image of the benefits and relationship of freight forwarder for the shipping lines and exporters lines. The findings of this study will help to understand the importance of freight forwarder in shipping industry and how they can use effectively. International Freight Forwarder:The job of the International freight forward is to move the supplies from one place to another place on the given time frame and make sure that the delivery will be on time and economical as well. They arrange the resources according the needs and requirements of the customer like Transportation from shippers factories to ports Packing or consolidation of cargo documentation Customs clearance Shipping (land, sea and air or combination thereof) Unpacking or deconsolidation is required Customs Clearing Agent: An agent certified by the Central Board of Revenue through the Customs authorities to complete documentation official procedure and assemble, on behalf of the merchant, disbursement of custom duties, taxes etc Shipping Agent: An agent licensed by the Central Board of Revenue through the Customs authorities for servicing vessels calling at Pakistans ports. The agent represents interest of the vessel/carrier and arranges payment of port dues. Shipper: Merchant or manufacturer or Supplier whos selling goods to overseas buyers Consignee: Merchant or manufacturer buying goods form overseas suppliers SCM: Supply chain management TEU: Twenty-foot equivalent unit a standard measurement of volume in container shipping. The bulk of containers are either 20 in length, or 40 in length. A 20Container is one TEU, a 40 container is two TEUs LCL: Less than container load cargo FCL: Full container load cargo SIZE: Freight forwarding companies have been classified according to annual TEUs handled as under: Small = 360 TEUs Medium + 1200 TEUs Large = 4800 TEUs POL: Port of load POD: Port of discharge We are a developing country under foreign investment and internal market. We do not have enough resources to meet even our consumption so to meet our own usage we need export and import world wide, for doing export and import we have two sources world wide which is called shipping lines and air lines which connect to world wide in every destination due to which we are able to consume internationally products and trade our local product world wide for generating revenue. This thesis is aimed at providing better conceptualization of freight forwarders and shipping lines business. This research will give clear image of the benefits and relationship of freight forwarder for the shipping lines and exporters lines. The findings of this study will help to understand the importance of freight forwarder in shipping industry and how they can use effectively CHAPTER # 2 LITERATURE REVIEW 2.LITERATURE REVIEW The previous chapter describes the background and the problem area of the study. In this chapter we discuss the literature related to the research topic. In this Literature Review, an attempt has been made to develop the conceptual framework of impact of Freight Forwarder in Shipping Industry. This chapter will review the literature on Shipping Line and Freight Forwarder. It will include material obtained from books, journals, academic journals and internet articles. The shipping industry is very important in the international economy because it carries a large portion of world trade. The Liner shipping is characterized by a range of economies of scale and scope signifying that low cost supply is likely to require some form of industry assimilation and hence concentration or cooperation, this could be achieved by a relatively small number of large global operators .The Industry trend to expansion of liner shipping and need to developments in Containerization which cover scale of economics. With the passage of time the liner business has optimistic into an age of affluence, and containerships have been moving require for other Ship types, the demand growth is generally but several other factors have been putting force on smaller carriers, including upsizing and route network developments. Currently the trends become visible into self-determining process over vessel allocation and rising profitability suggest that carriers will search for to more o f their own resources. Rivalry from logistics providers will gradually more dictate how the industry develops. The lower costs of condition of services require the various economies of scale and scope to be capture, a single shipping line may be unwilling to commit several large vessels in order to provide an inclusive, regular, scheduled service where demand is uncertain and where that uncertainty is exacerbate by the possibility of rivals encroaching on the trade. According to DELTAS, SERFES, SICOTTE the Agents of the various Lines meet and discuss the conditions which are changing from time to time, and which are affected by the competition of vagrant Vessels and decide on the policy to be pursued by all the Lines named with reference to the maintenance of stable rates of freight and to prevent demoralization. The liner shipping is becoming more concentrated via mergers and acquisitions, while average vessel size continues to grow as carriers attempt to capture scale economies. Rationalization is being driven by technological change and intense competition in most trades which has seen freight rates fall significantly in real terms and profitability decline, according to the researcher the expansion of global shipping companies has increased competition on individual routes. The constitute the total shipping demand of a particular market. The density of demand is then defined as the trade volume per kilometer of coast. This affords an admittedly imperfect demarcation of the system, unless there happen to be clear-cut geographical boundaries. The picture emerging is of a global liner shipping industry experiencing significant, and rapidly change, the trend towards greater industry concentration via mergers and acquisitions does not appear to have reduced competition. Appears the expansion of global shipping companies has increased competition on individual routes. The Hoffmann said that Asian lines have entered the North Atlantic trade, east-west lines are incoming north-south markets and the feeder services of big carriers are competing with traditional regional lines. In shipping liner service the growth in alternative types and the growing role of freight forwarders has placed increasing competitive pressure on carriers. To a minor extent potential competition in transporting general cargo exists in the form of alternative modes of transport such as air transport and tramp shipping. Market power is sustainable only where entry barriers to entry or exit is high, the Potential barriers to entry include regulatory and other essentially man-made or institutional barriers or economic barriers driven by characteristics of the market .when the barrier are low for entry and exit the competition will increase and the profitability will minimum accordingly Shipping liner business mean the process of transporting goods from one place to another that process of transportation may take place through sea, land or water, further more the process have been done underway of buyer and the seller with the negotiate and entering into an agreement/contract based on the mutually agreed upon terms .Their terms would include the description and the quantity of goods, the time by which the merchandise require to be delivered, the price and the documentary requirements. After the agreement is struck, the seller usually contacts the forwarding agents who are responsible for moving the goods from the sellers location to the ship. The Shippers interests in relation to shipping services agree with the public interest and shippers need to required profit-maximizes generally and the shipping lines offer the best-possible service for the lowest-possible price. In this era the shipper might play the role of the Forwarding agent too if it has the necessary expertise in the area, the following Forwarding agent contacts the shipping line and based on the terms and conditions mutually agreed upon, an agreement is reached for the goods to be transported from the port of origin to the destination port to the shipping line. A custom clearing agent is then assigned by the shipper for the handling of the custom related documentation or even this may be taken care of by the forwarding agent, thereafter the goods are moved by the forwarding agent to the port of origin or the shipping line. The goods can be picked from the shippers factory or may have already been moved from the shippers premises to the forwarding agents premises in which case they are further moved from the agents premises to the port of origin of shipping line. Once the goods are loaded on the ship, they are transported to the destination port where a similar process happens while th e goods make their way to the buyers premises The cargoes mostly were carried from country of origin to country of destination on a direct service or through involvement of transshipment port. Today shippers have a choice between a direct service and via transshipment port, but due to longer transit times and the possibility of cargo being damaged during transshipment or however, the quality of transshipment services often is comparable to that of direct services. It is likely to be at least in part to the trade imbalance, which means exporters are competing with increased volume with the involvement of supply liner efficient service. Freight rates are most major element for the liner shipping services, the requirement of competitive control of liner freight play a major roll in liner business, these general trends are illustrated by various freight rates cited in industry publications .Initially the first task is to identify the relevant markets which will clear define the density of demand for a particular transport service. International trade in bulk agricultural commodities recently has become more important to the world economy. Economists have devoted little attention to international shipping. Transport costs between countries can pose a formidable barrier to trade, similar in effect to tariffs and institutional constraints. Ocean transportation changes can affect the domestic grain transport system of major exporters. The shipping lines base on service provider from one place to another place according to the requirement of their customer, the nature of shipment which follow of cargoes very frequency. The involvement of transit time, ports of call, and reliability are all important characteristics of service quality, which can, in certain circumstances (for example, ‘just-in-time manufacturing or consumable cargoes), be more important than simple price considerations. An increase in service frequency does not of itself indicate that service levels have improved, For example, if average vessel sizes declined significantly so the level of service may be reduced even though the frequency of service has increased, since the monthly capacity available to shippers would be less and voyage duration would be longer. Capacity of itself is not an indicator of service levels, it provides an indication of the carriers ability to meet shippers demand which is important to note that vessel capacities presented here are optimum capacities and do not take into account weight limitations and the fact that some of this capacity may be used for cargo from other countries such as New Zealand. Ocean liner are illustrious from other suppliers of sea transport because they are committed to regular schedule of service between particular port at a price which fixed in the short run more over the shipping line agree to satisfy all reasonable needs of the respective shipper in both quantity and quality of service. The Globalization of business and the departure of ‘just-in-time inventory management has increased shipper preference for intermodal or door-to-door transport services, although facts given to suggests that this trend has been less marked in Australia than in the United States or Europe. While a single transport provider usually coordinates the intermodal service (so that the shipper has a single point of contact and receives a single bill of lading), the physical transport service may be provided by several land and sea carriers so Liner shipping operators have responded to shipper preferences by offering shippers a range of transport options, including door-to-door and terminal-to-terminal services. The liner industry is necessarily responsive to trends, and nobody appreciated. What changes were going to occur in the second half of the twentieth century? In the late 1940s and 1950s, liner companies were thinking primarily in terms of replacements for those conventional ships that had been lost in the Second World War But reconstruction and returning servicemen with significant back pay to dispose of, created a post-war boom, and wages rose sharply, reflecting labor shortages as well as being partly intended to stave off the expansion of Communist ideology. That situation affected the previously labor intensive liner industry, pushing up crew and shore labor costs and squeezing liner company profitability. After the Eighteen years the Second World War, Carrefour opened the worlds first hypermarket in outside Paris. Five years later the first fully cellular container service started operations, although carriers, who otherwise faced the prospect of block obsolescence and the requi rement for simultaneous replacement of the by now 25-year-old replacement fleets that had been introduced after the war, were nervous about introducing a system that, by very specifically defining the way cargo had to be shipped, reduced cargo owners ability to call the shots, and particularly affected the sorts of cargo in which British and American liner cargo exporters were strongest modified shipments to specific importers. Acceptance of containerization by smaller and niche liner operators, labor, port authorities and other vested interest was slow, but cargo-owner enthusiastic participation came much quicker than the liner companies had expected. The surprising growth of demand for container services over the last almost 40 years has been both an annoyance and a lucky thing to the industry. It has put great pressure on carriers balance sheets as a result of the unchangeable demand for capital, aggravated by the steady decline in freight rates that has so often been consequence of technical innovation. The worlds growing dependence on container liner services and the size of profits recorded by carriers in the middle years of the first decade of the twenty-first. As shipping companies adjust to a dynamic and rapidly changing environment so do the financial methods and instruments available to rise funding and materialize vital investment budgets. The core business strategy of shipping companies in recent days is gradually shifting from simple profit maximization to an increase in firm market value.The following achievement of shipping firms should consistently focus on promote investment plans that bear growth potential and have positive returns which outperform more than requirement of costs undertaken. The intermediaries to provide the funds required to financing new investment projects and sustain business growth, fresh funds are channeled to shipping firms in need through the issuance of securities One significant path to economic development is shipping and this is because of their offer cheap freight rate and the large volume of freight transported and according to compared with the other modes of transport, for example air, water transportation offers the cheapest freight rates Adam Smith, â€Å"writing in the last quarter of the eighteenth century (1776), noted that shipping is instrumental to economic development†. In his book The Wealth of Nations he argues that the key economic power in capitalist societies is the division of labor, and the scope of the market determines the extent to which this can be practiced because the limited nature of the business will equally limit the degree of specialization. Shipping as a source of cheap transport, Smith pointed out, opens wider markets to specialization. The idea third party logistics providers are as basic as deficient to have someone else perform the job for you instead of exporters who facilitate according to maintain their transportation or distribution and as so on. 2007).Supply chain management applications have a small number of capabilities in general. The data must be available to a user anyplace in the world; it should be correct and flexible, visible, and fast. With the help of supply chain software they can attain inventory efficiency, quicker information flow additional accurate determinations of when and how much resources should be purchased, manufactures, or moved and careful monitoring of events and inventory within and outside the venture and electronic enterprise association, which replaces manual linkage .These systems can assist companies integrate similar process spread over different areas and limit unnecessary activities, enhancing their ability to manage with customer needs and meet product quality principles . The requirement of marketing and customer service exploitation organizations that work together to create and retain potential market positions for end products .Unlike the case of supply chain management, there is no well-established approach to design chain management or marketing chain management, It should be noted, how ever, that through the ideas and practices of concurrent engineering, design for manufacturability, design for logistics, and mass customization, the discipline of supply chain management has already been concerned with its own integration with design chain management. It is evident that in the current business environment of keep competition, of fast technological and market changes, and of demanding customers, the successful delivery of end products and services to the right markets at the correct time requires integrated operations of the marketing chain, the design chain, and the supply chain, In order for the supply chain, design chain, and marketing chain to be integrated, the resulting integrated system may be characterized by a network of knowledge and competence in manufacturing and distribution, and in design and marketing that the companies bring to the table., it seems reasonable to call such integrated systems knowledge supply networks. The Researcher defines the â€Å"Big Middle† as the market space in which the bulk of suppliers compete for the majority of respondent and the preponderance of expenditures occur. It is the space in which retailers wish to exist in their quest for increased revenues, scale economies, and profits, the Big Middle appears in any economy in which huge scale retailing has develop, it is a mind space that lies between other competitive arena, with the help of low-price fringe and the innovative fringe. Low price fringe retailers use basic merchandise and low prices to compete though other elements of the retailing mix are present, they are not the primary reason people shop at these stores. Although a retailer does not have to be in the Big Middle to be successful in the short run, those that become the largest and, by implication, the most successful, are inexorably drawn there over time in their search for scale economies, increased revenues, and incremental profits The Supply Chain is an integrated process from raw from of material to Finish goods reaches to consumer, the supply chain mainly involves the following process/functions: Procurement Production Planning Ware house and Distribution Logistic Its all a function of the â€Å"core competency† plan that has producers concentrating on developing and creation their goods, and then hire an external firm direct exactly how those goods will get to the customer The Brief identifies intermediaries as commonly independent 3rd party that play an essential part in collaborativ

Psychological Analysis of Lee Harvey Oswald Essay -- Psychological Cap

On November 22nd, 1963 President John F. Kennedy was assassinated. It was concluded by The Warren Commission that the man who assassinated President Kennedy was 24 year old, Lee Harvey Oswald. Less than 48 hours after Kennedy was shot, while Oswald was being transferred to the county jail, he was assassinated. Lee Harvey Oswald was killed before he could undergo any psychological or psychiatric analysis, so it is impossible to know for certain what his mental state was at the time of President Kennedy's assassination. The Warren Commission states that they were unable â€Å"to reach any definite conclusions as to whether or not he (Lee Harvey Oswald) was ‘sane’ under prevailing legal standards (Warren et al., 1964, p. 375).† I do not believe that human behavior can ever fully be predicted. However, an analysis of Oswald’s childhood, as well as, his actions leading up to the assassination help us to understand the type of person Lee Harvey Oswald w as and give us an insight into his psychological state. Oswald had a troubling childhood to say the least. His father died two months before he was born in 1939 leaving him with no father figure in his life. Not only did the death of Oswald’s father leave him with without a father-figure, it â€Å"robbed him of a home and family life with constant parental figures (Abrahamsen, 1967, p. 869).† The death of Oswald’s father forced his mother to go to work, essentially leaving him without a mother as well. His mother sent Oswald, his older brother, Robert Oswald, and his older half-brother, John Pic, to an orphanage. Oswald stayed at the orphanage for thirteen months, until his mother married her third husband (Ewing & McCann, 2006, p. 22). Now that Oswald’s mother was remarried there w... ...brahamsen, David. (1967). A Study of Lee Harvey Oswald: Psychological Capability of Murder. Bulletin of The New York Academy of Medicine, 43, 861-888. Ewing, C.P., & McCann J.T. (2006). Minds on Trial: Great Cases in Law and Psychology. New York, NY: Oxford University Press. McAdams, John. (1995). Lee Harvey Oswald: Troubled Youth - Oswald Assessed by Psychiatrist Renatus Hartogs. Retrived from http://mcadams.posc.mu.edu/ hartogs.htm. Simon, Jonathan. (1998). Ghosts of the Disciplinary Machine: Lee Harvey Oswald, Life-History, and the Truth of Crime. Yale Journal of Law and Humanities, 10, 75-113. Warren, E., Russell, R. B., Ford, G. R., Cooper, J. S., Dulles, A. W., Boggs, A., McCloy, J. J. (1964). The Warren Commission Report: Reports of the President’s Commission on the Assassination of President John F. Kennedy. New York, NY: St. Martin’s Press.

Personal factors Essay

Factors that affect the personal influences will be the age and stage at the life cycle, lifestyle, occupation, economic status, and personality (Bowens,et al, 2003). Marketers usually target a certain lifecycle stage or a certain age bracket for their products. Like Disney – movies, merchandise, television shows – which are usually targeting children and teenagers. However as the individual mature so are the buying preferences. Once a person acquires a job some purchases are shaped by that job like clothing, personal articles like bags and shoes. Also these purchases will be further fashioned by the income the person gets from the job. Some companies make their product income-sensitive by offering the same product in a different packaging or smaller size – budget packs – to be able to fit in certain income brackets (Marketing – Consumer 2008). Marketers are also concerned with how money and time are used by consumers or their lifestyle. This is to be able to know how to favorably present their product to their target consumers. Moreover, the personality of the person also comes into play in purchasing products. Usually, personality is how others perceive the person in socialization with them. However individuas also have their own version of personality called self-concept. This self-concept could be the same or different from the opinion of others. Advertisers use this idea in selling high-end cars to middle class consumers who wanted to project luxury (Principles of Marketing 2008). 2. 5. 4 Psychological Factors Motivation, perception, learning and attitude are the psychological factors that marketers look into to be able to develop better advertisements for their target consumers. Every person has needs that need to be fulfilled. These needs will transform into motives when the need becomes a powerful force that will compel a person to act (Consumer Behavior 2008). There are several theories about human needs but the most common is Maslow’s hierarchy of needs theory. Figure 3. Maslow’s Hierarchy of Needs Source: Chapman, 1995 According to this theory each need is hierarchical. One must fulfill the lower need before moving to the higher level. In addition if the reason for fulfillment of the lower need is gone the individual will not have the reason to satisfy the higher needs. For instance, a worker who is sick (safety needs) is not expected to perform well (esteem needs) (Chapman 1995). Now that the consumer is motivated to act upon the need his/her perception how he/she will act. Through perception a person creates an image of the world in his/her mind. This concept is essential to face-face transactions (Bowens, et al. 2003). Take for instance a salesman who speaks slowly and stutter, he could be perceive by the customer as someone is not an authority to the product and could lose the sale. Through our actions we experience the world and through these actions we learn. A person learns from past experiences or through thinking and things that we learn could modify our behavior or actions (Consumer Behavior 2008). Actions with positive outcome are usually repeated – repeat purchases – while actions with negative outcome are not (Marketing – Consumer). As this process cycle, doing and learning, individuals develop beliefs and attitudes. Beliefs are ideas about something that an individual holds as the truth (Marketing – Consumer 2008). While attitude is the constant position of an individual about a certain object or idea (Bowens, et al 2003). Companies use these concepts to be able to develop brand images based on consumers’ beliefs toward the company. Then try to fit the product to the consumer’s attitude rather than changing it.