The Joy and Pain of Raising a Child with Special Needs

The Joys and Pain Of Raising A Child With Special Needs Donna McFadden ENG121 English Composition I Mr. Jonathan Alexander, Instructor February 18, 2013 The Joys and Pain Of Raising A Child With Special Needs Even though I am not the only parent of a child of special needs this is my personal journey into the world of special needs. No one could have told me that at the age of forty three I would be experiencing motherhood again to a child born with Cerebral Palsy. In fact, I was just preparing to celebrate my 25th high school reunion when I got the news that I was pregnant.When faced with the complex challenges of single motherhood you will soon find out that love is all you need. Allow me to give my account of this life altering phenomenon that totally changed the course of my mindset and direction in life. After an extremely emotional pregnancy and delivery by C-section, my son Nathan took his first breaths into a world of chaos and confusion. Being rushed to the neo-natal intensi ve care unit weighing only 4 lbs 3 oz, being probed and pricked by doctors and nurses to help stabilize the very life he stepped into.The thoughts of what my little angel endured coming into this world shows me his strength and determination as he begins his fight on this journey to manhood. Life began for my son spending his first few weeks of life in a NICU as they call it in the hospital with incubators and feeding tubes combined with the constant care from doctors and nurses assigned to his care. How traumatic for both mother and child to experience the separation and disconnect that is being substituted by machines. I forced the hospital to allow me an opportunity to stay in a room so that I could be as close to my son as I could.I was there for every feeding, every diaper change, all the testing I would sit in the NICU beside his bed and sing to him to reassure him that I was there. I was determined to be with my child as much as I could through this torturous ordeal. The inst ructions that we had to follow when we got home were intense, because of his prematurity and low birth weight many important things were still developing. I had numerous classes and seminars that I had to attend and complete before leaving the hospital. I even had to purchase a new car seat because the one that I had was not sufficient for a premature child.We immediately began having to parade through doctors offices on a weekly basis to be tested and examined and this process required a lot of patience and dedication. At five months olds we were back in the hospital so that Nathan would have his first surgery to repair three hernias. Once he recuperated it was then time for the next round of surgeries and this rollercoaster ride seemed to go on for months. Throughout this process you’re trying to find those opportunities to enjoy your child, those memorable moments of accomplishments and milestones.During these months I had no idea my son has Cerebral Palsy, nor had I ever experienced anyone who had been diagnosed with this disability. When we got the diagnoses of Cerebral Palsy, Nathan was fourteen months old and a very happy, determined little toddler, actually to look at him you would never know that he had brain damage. For me, not really knowing what it meant to have Cerebral Palsy actually played to my advantage because I didn’t have an opportunity to get upset, but more of a determination to educate myself on what I needed to do to help this baby grow into a wonderful productive person.Just like when he was born we were thrown into the arena of occupational therapy, physical therapy, speech therapy more doctors and test after test after test. This process is extremely daunting, however necessary. I was just trying to tackle each obstacle as it came day-by-day with all the optimism I could muster. I had a determination to not think negatively or get in that place of despair or asking â€Å"why me? † How do you balance the range of emotions that not only go through your mind, but the minds of your family and friends about the hopes and fears of the destiny of your child?I am so grateful for my faith and belief system to help me sustain my strength and emotional well-being because I have no idea where I would be without it. This was truly one of the most difficult times of my life combined with an element of gratitude for the life and well-being of my son. Even though we are still on this journey a lot of progress has been made from that first day of life in July. My positive attitude about my son’s disability has been engraved in him and I am quite encouraged that through it all he will be such a positive example of how the challenges of Cerebral Palsy will not dictate his life.

Is evil really the nature of mankind Essay

Is evil really the nature of mankind? Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Man is assumed to have morals. Morality can be defined as the ability to come up with ruled and adhere to them to the letter coupled with the ability to discern right from wrong. This raises the question whether man does wrong on purpose. Is man born evil in nature? People will go to great lengths just to fulfill their personal desires even if it goes against all morality. This essay seeks to show the depravity of man as epitomized in the allegory Young Goodman Brown.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The allegorical tale was set in the Puritan setting of the early 17th century. The writer sought to expose human depravity through the main character. Human beings hide behind masks to cover up their tracks. In modern day society people engage in all sorts of activities and use their positions, family legacy and upbringing as cover up. Goodman is a symbolic representation of this. He embarks on a journey to the witches’ meeting while he proclaims an upbringing that condemns such acts.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The choice of diction, characters and colloquial expressions such as Faith and Young Goodman explicitly exemplify the paradoxical nature of man. During the setting of the novel, the Salem trials in which witches were executed were taking place. Man engages in practices that are biblically and morally evil. The minister, Deacon Gooking and Goody Cloyse are all involved in the cult. This exposes man’s folly evil nature since even those who are perceived as the righteous in society engage in questionable practices.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The story explicitly exposes follies in society. It is also a means in which the writer sympathizes with the beliefs and society in the Puritan religion. The church elders in the community take part in witchcraft. The story is arguably one of the best since it ridicules as well as exposes the evil nature of man. References Hawthorne, Nathaniel. Young Goodman Brown. Charlottesville, Va.: University of Virginia Library, 1996. Source document

Information Use Paper

Information in organization can be used in many different ways depending on the specific job you may have. Some information is used for the public and some is more private than others. Information is used for databases, business analytic s, business records, health records, fax, scanned and many more different ways information is used in an organization. Information is mostly used by sharing it though different levels of a business or sharing it because it is involved with more than just one specific business it’s usually a department. Information can also be used as a way of marketing or advertising.Even though marketing usually only collect certain information like name, address, telephone and maybe an email addresses for different things that benefits their company statistics. Some business ask for your information to send out coupons, special promotion or deal breakers that could get you to purchase products from them again. Database systems which are typically in every bu siness type and level use information to track specifics on what they need and use. Information is a valuable piece of data that can determine the outcome of something. Information flow in an organization can depend on how the organization is setup.The information can either flow up and down or side by side. Up and down is flowing through the different levels or managers. Side by side is flowing of information through departments. Both of their flow ways are common in most organization because it could be tracked by who have it or who had it. When I was active duty military, information flowed from the highest level down to the lowest and from the lowest to the highest depending on who was sending it. It was kind of like sending messaging through carriers to get it to the destination, which made the process slower than it really should be.In this case the information flowed through filters of people, the reason being is because they want you to try to get any situation solved at the lowest level if it is possible to do. The military have several database that stores information for different things for the purpose of tracking data. This different system record data that is inputted by different people depending on the level and skill type of the person. Sometimes we send information between specific departments depending on what the information contains. This way it doesn't get to department who doesn't benefit from it.When you apply for any type of loans this information is processed and sent to different departments and levels of the company. Once this process is started the application is sent to several different approvals to get them to say the big word. The concerns with properly controlling this flow is different information would be exposed to people who shouldn't see it, in other words have the clearance for it or have to correct training for it. When you send information like this it is not classified it is unclassified therefore anyone can see it, k eep it, or even give it to someone else without your authorization.In this particular case if the information is classified enough where certain eyes can only see it, the information would be encrypted for those who have the access to view it. I know for medical information, the doctors or receptionist have you sign a HIPAA (Health Insurance Portability and Accountability Act) statement for confidentiality and protection from other who should not be seeing it. Only those who are either on the HIPAA form or who have the right to view it such as doctors, nurse and you the patient. Another concern with information is being digital which means it is send over the internet for Wi-Fi technology.Many businesses either scan documents, fax them or email them which puts a big risk every time it is sent, because of cybercrime can occur. The military have several different filters and firewalls this information sent and received for this purpose of cyber-crimes. PlayStation network was hacked a nd all the information that was stored was compromised and some people might even have been a victim of identity theft, depending on how much information they kept of their file. How this happened was someone hacked their database and downloaded all the information was in it.

Information Security Essay Example | Topics and Well Written Essays - 3000 words

Information Security - Essay Example However the use of computer simulations has certain disadvantages or limitations as well since it cannot be used for optimization (Introduction to Computer Simulation, n.d.). It is a tool that is generally cost effective for any organization and assists in exploration of new systems before building them in real (Heidari, n.d., p.5). The present study has been undertaken on a case study and its evaluation considering an organization and its internal process improvement that is trying to involve the computer simulation measures thereby trying to evaluate the risks and the security factors associated with the new system improvement. Objectives of the Study: Considering the case study and the organization’s incorporation of new system of internal process improvement through computer simulation, the following objectives have been decided for the study: To identify the resource used in the design process which is currently held on the internal network and that may be affected by the change from an ‘internal-only’ network to a mix of internal and external networks. To discuss the risks of the integrity of the chosen resource, if this resource was to be provisioned from outside the corporate network. To identify a technology, or process, that would help to protect the integrity of your resource as it moves from the internal to the external network and back again. Internal Process Improvement and the Design Process: As the case study reflects, the Internal Process Improvement team of the organization concerned has plans to make certain changes in their processes of development that includes the incorporation of computer simulation programs. This has primarily arisen from a penalty that the company suffered from in the recent times owing to missing a delivery that was necessary before flights. In order to improve the current status of working, the team has considered using computer simulation of larger parts of engine that is used in their project com pletion. In the present times, the company makes use of CAD or Computer Aided Design that produce the drawings of the engine containing all the wiring and electrical features (Rouse, 2011). However the usefulness of the computer simulations have been determined and realized thereby the system being attracted for incorporation in the organization. With the computer simulation trying to be considered, there are two possible ways to use the system- either by purchasing the compute resources, or by renting them from outside the corporate organization. Thus bringing the compute resources from the external sources might affect the current system of working that is based on the internal sources and might also increase the risks of security that are the major concerns of this study. It can be understood that with the advancements of technology and their uses in the organizations, the internal operations of the organizations are affected particularly considering the case where the organizati on plans to incorporate computer simulation techniques that has an up-front cost for the company and it is not possible for the company to avoid these expenses. Although there are positive effects of such external resources and technologies being used in the organizations, however, there are certain factors that might affect the internal operations negatively as well. In this case, the risks of secu

Current event analysis Essay Example | Topics and Well Written Essays - 250 words

Current event analysis - Essay Example ates that the state of Florida announced they are facing a $3 billion dollar deficit and as a result the mental health programs could be cut by as much as thirty to fifty percent by the Florida House and the Florida Senate. Jacque Henderson, director of Tri-County Human Services residential programs in Lakeland spoke about the potential cuts and said that almost every significant advance in the last thirty-years, including drug court, mental health court, and miscellaneous treatment services, are all at risk of being cut. The current House plan is to cut over $172 million, while the Senate has a proposal for $205 million in cuts. Expressing similar sentiments to Jacque Henderson, Partners in Crisis was also highly concerned about the potential of losing drug court and mental health court programs. The article states that the Peace River staff has already taken 5% pay cuts, and only through a large private donation were they able to remain a viable institution. While the article does mention research that states recent statistical analysis states that the programs that might be cut have demonstrated significant preventative value, it doesn’t elucidate on these findings. While mental health programs should be of the utmost concern and valued as highly as other medical programs, one would hope to see some fiscal responsibility and proof of

Andrew Jackson vs. Henry Clay Essay Example | Topics and Well Written Essays - 750 words

Andrew Jackson vs. Henry Clay - Essay Example Both men also served in the War of 1812, with Andrew Jackson commanding forces at New Orleans and Henry Clay acting as a War Hawk from Kentucky (Davidson, and Stoff 333). However, it was through their political sparring and verbal fencing that Jackson and Clay would gain historical fame, each man trying to defend their views of what they thought best for the country. Clay supported a strong federal government with what he called the â€Å"American System†, a system of proposals that would have meant a national bank and high tariffs, along with using sale proceeds from public lands to finance improved roadways and canals, while Andrew Jackson supported the opposite, calling for a federal government with limited powers, lower tariffs, and a banking system that would be controlled by gold and silver, not paper banknotes, but most importantly, it would belong to the states. Henry Clay, in short, advocated a path for the development of America that would have kept power in the hand s of the federal government, with very little of that power belonging to any state, while Jackson advocated for the rights of states and their citizens. Both Clay and Jackson are remembered for what is commonly known as the Bank War. Henry Clay was a staunch supporter for the Bank of the United States, and he incorporated the bank into his American System, by â€Å"interlocking† it with all stages of the proposals, including high tariffs and land sales (Watson 83). Andrew Jackson, however, did not only hate the bank, he loathed the bank. First and foremost, he thought that the bank was far too powerful, as well as undemocratic, as it was controlled by private bankers (Davidson, and Stoff 335). Even after Congress renewed the charter, Jackson vetoed it harshly, stating that only states should charter banks, not the federal government (Davidson, and Stoff 335). With the power of the presidential office behind Jackson, Henry Clay had lost a great proposal piece of his American S ystem, and Jackson had asserted his authority to keep power in the hands of the states. Jackson and Clay both waged another type of war, over tariffs, which caused both men political agony. Clay was in favor of high tariffs, especially on imported goods, using those tariffs to protect domestic, or American-made, products and manufacturers (Watson 21). American manufacturers were considered to be a profitable competition for British manufacturers, and Clay wanted nothing more than to see America produce all of the goods that it needed on its own (Heidler, and Heidler 125).  

Kanban Systems Research Paper Example | Topics and Well Written Essays - 1250 words

Kanban Systems - Research Paper Example This system was introduced in Toyota car plant in Japan as a means through which the company would smooth their produce throughout their production process. Through this system the company aimed at improving productivity of their system. This system will also ensure that the company secures its involvement and participation in realizing its aim of high productivity by acting as a better means of keeping on check flow of products through the production system. Kanban therefore provides highly visible means of keeping on track the build-up of inventory levels with a production system. The system is made up of cards with all the information of what is required to be done on a product at each stage of production. The cards also explain what parts should be inserted in the subsequent process. Through this cards a firm can therefore control a work in progress, its production and smooth flow of its inventory. Through Kanban system therefore a firm can achieve the following objectives among others Kanban systems was invented twenty years ago by the vice president of Japanese car giant Toyota. The main aim was to smoothen the flow of products in the car plants throughout the production system of the firm. Since then the system has gone through vary many modifications as a means of production activity control. As a measure of activity control Kanban system have helps firms to achieve goals of Just-in-time and manage operations of the same. Further, Kanban system helps in relaying crucial information for monitoring and controlling the quantities required by the firm according to its production plans. An effective Kanban system provides a better way for employees of firm to understand how the management want their time to be spent (Louis, 2006). This means a firm can identify where idle time lie easily and make further adjustment as fast as possible. This may come interns of

Written Business Communication (Assignment #1A) Assignment

Written Business Communication ( #1A) - Assignment Example Moreover, after 3:30 p.m., swing-shift employees may park in any empty space except those marked Tandem, Handicapped, Van Pool, Car Pool, or Management. The day shift employees may loan their spaces to other employees upon making prior arrangements if they would not be using their parking spaces. One serious problem that has come to our attention is lack of registration (as evidenced by white stickers). Please be advised that any car that would be found with a sticker would be ticketed. The Employee Relations department has the prerogative to register the vehicles and the following dates have been set aside for this exercise in the cafeteria: October 1st and 2nd from 11:30 a.m. to 1:30 p.m. and from 3:00-5:00 p.m. we kindly ask you to treat this issue seriously in order to avoid any inconveniences. The purpose of the memo is to inform or remind the employees about the parking guidelines in the company. This is specifically meant to ensure that there is smooth movement of traffic as well as people in the organization. This also helps to minimise any inconvenience that may be caused by disorderly parking in the company. The reader positively responds if there is official communication such as written memos. I strongly believe that the readers abide by the company policies hence they are likely to follow the parking guidelines once they read the above email. The reader is likely to be reluctant at first by they will positively respond after realising that this is official communication. All employees are bound by official documents hence they should abide by all the contents presented to them. The strategy appropriate for this message/reader response should be group focused. The company should particularly address this message to the group rather than individuals. This will have a positive impact since there is likely to be collective

The effective usage of HRM principles Essay Example | Topics and Well Written Essays - 2000 words

The effective usage of HRM principles - Essay Example The importance of HRM has already been recognised by virtually any company which follows western standards of business. It is clear that its performance depends not only on hard and attenuating work of its personnel, but also on the "human side" of the employees, their competence, motivation, attitudes, communication and other variables: "HRM is the core of company's general efficiency and the basis for effective management" (Gunnigle et al, 2002: 12). In a similar vein Beardwell (2003: 15) believes that despite the visible simplicity, the area of HRM is exceptionally complex due to potentially unpredictable nature of human resources. If a company fails to properly and effectively manage its human resources in the right areas of the business, at the right time and at the right cost, serious inefficiencies are likely to arise creating considerable operational difficulties and likely business failure (Beardwell, 2003). Originally emerged in 1960s, the paradigm of HRM relied, however, on previous researches and findings of organizational scientists. As Alan Price (2000: 62) states the concept of HRM "...hasn't come out of nowhere" as there is a long history of attempts to achieve an understanding of human behaviour in the workplace. Throughout the whole XX century and even earlier both practitioners and scholars attempted to design the theories explaining human behaviour at work and the ways to raise its effectiveness. A number of organizational theories brought to life the principles of HRM in 1960s-1970s. Though many of modern HRM principles have been already developed by this time, the year of HRM "official birth" is 1981 when Harvard Business School introduced a course that served a blueprint for global spread of human resource planning and management (Price, 2000: 64). A good insight into the value of HR related programs is provided by Schuler (1990: 52-54). He emphasizes that the HR function had an opportunity to shift from being an "employee advocate" (associated with personnel management) to a "member of the management team". Schuler's (1990) view was that this required HR professionals to be concerned with the bottom line, profits, organizational effectiveness and business survival. In other words, human resource issues should be addressed as business issues. It is noteworthy that emergence of HRM chimed with decay of heavy industry and development of sophisticated IT business. Storey (2001: 18-34) believes that emergence of HRM contributed greatly to an ever-greatest since industrial revolution shift in the principles of management. HRM encouraged both managers and employees to get rid of traditional patterns of interaction, outdated ideas of motivation, stereotypes, assessment and appraisal. Managers as well stop being the mentors and executioners and turned to be the members of business teams. Introduction of HRM principle has made modern companies more competitive, dynamic and people-friendly that consequently influenced their efficiency and marketability. Storey (2001: 18) argues that HRM caused what was later called "a new managerialism" - a new look on organization, the ways it functions and succeeds and the way its employees work. Regardless of global recognition of HRM, many managers are still

Comparing the depiction of Men throughout Charles Dickens Essay Example for Free

Comparing the depiction of Men throughout Charles Dickens Essay Great Expectations is a pre twentieth century book with Cider with Rosie is a twentieth century book. Great Expectations is about a boy Pip which the book revolves around his life from a young child in the marshy land of Kent to a grown man where he meets Estella the love of his life, which he has not seen for years. This book has a storyline which has leaves you in suspense at the end of chapters. An example of this is at the end of chapter 0ne on page 5, I looked round for the horrible young man, and I could see no signs of him. But, now I was frightened again, and I ran home without stopping. This leaves suspense and you want to read on. Where as Cider with Rosie follows all the happenings of a young boy, Laurie Lee. Really it is a autobiography of Laurie Lee till he is about 14, 15 years of age. Cider with Rosie is a very descriptive book, which will describe things in great detail and in big long lists of running commentary. An example of this great description is on page 11 chapter one I crawled about among the ornaments on the unfamiliar floor-the glass fishes, china dogs, shepherdesses, bronze horsemen, stopped clocks, barometers, and photographs of bearded men. In Great Expectations the main Men I am going to look at are Mr Joe, Mr Wemmick, Herbit Pocket and Magwitch the convict. Magwitch is an escaped convict from the local prison near where pip lives. The first man described in this book is on page 2 of chapter 1, it is Magwitch the convict. Pip meats him in the church yard looking at his mothers tomb stone this is the first encounter of Magwitch for Pip it would be terrifying for the young boy. Magwitch is described in this scene as A fearful man, all in coarse grey, with a great iron on his leg. A man with no hat, broken shoes and with an old rag tied round his head. This shows the first description of a male in Great Expectations. It gives the reader a very clear image of what this convict would have looked like and been like to meet in person. The next description is one of Joe Gargery on page 6 chapter 2 of Great Expectations. Joe is married to Pips sister so he is Pips Brother-in-law but Pips looks up to him as his father as he does not have one. They are very good friends and spend a lot of time together. This is the description of him, Joe was a fair man, with curls of flaxen hair on each side of his smooth face, and with eyes of such a very undecided blue that they seemed to have some how got mixed with their whites. This is from Pips point of view and shows you what Pip thought and sees of his brother-in-law. Joe is Pips father figure, a kind of replacement for Pips Dad, which Pip looks up too. The next male I am going to describe is Mr Wemmick. He is Mr Jaggers clerk and lives and works in the London area. He is a poor man but is happy as he have his small castle to get away from the world and his old Dad who is dependent of him. In Great Expectations Mr Wemmick is frequently is involved in helping Pip in London. A description of Mr Wemmick is on page 165 chapter 21. Casting my eyes on Mr Wemmick as we went along, to see what he was like in the light of day, I found him to be a dry man, rather short in stature, with a square wooden face, whose expression seemed to have imperfectly chipped out with a dull-edged chisel. There were some marks in it that might have been dimples, if the material had been softer and instrument finer, but which, as it was, were only dints. This shows what Pip thinks of Mr Wemmick when he first sees him in Mr Jaggers office in London. It is a very depictive description of Mr Wemmick and you can vividly imagine what Mr Wemmick would look like to meet in person. Mr Wemmick is closely involved in what Pip does in London and helps him financially and none-financially. The last male I am going to look at in Great Expectations is Herbert Pocket. Pip first encounter with Herbert Pocket in Great Expectations is when they meet at Mrs Havishams after Pip has been round Mrs Havishams playing. When Pip leaves her house he runs into Herbert Pocket in which they have a play fight. This is in chapter 11 page 87, after playing at Mrs Havishams. When Pip sees Herbert Pocket he is described as a pale young gentleman. Which is what he is described as for a while longer. After the fight Herbert is described as not very healthy-having pimples on his face and breaking out of his mouth, these dreadful preparation appalled me. The next time pip meats Herbert is in London when they a older and about to share a flat together in London. Herbert is now described as still a pale young gentleman. He had not a handsome face, but it was better than handsome: but extremely amiable and cheerful. His figure was a little ungainly. This description of Herbert is more descriptive and is described in a grown-up way instead of the way he was described earlier in the book. This is on page 172 chapter 22. In Cider with Rosie there are not many men in the book as it is a female dominated book and there are very few males in the book as his father deserted him and the rest of his family at an early age of so he dose not have many males in his life. The only males he really sees in his life at an early age is at school, his brothers and men around the village he lives in. described main men that I am going to look at that are involved someway with Laurie Lees life are mostly in the chapter The Uncles.

Effectiveness and Efficiency of Distribution Channels In FMCG

Effectiveness and Efficiency of Distribution Channels In FMCG Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most demanded products in the market. It includes everything from food items like flour, biscuits, ice creams, etc to body products soaps, face creams to cigarettes to beverages, etc. consumers need these things in their everyday life so they invests a good portion of there income in these things. There are so many companies which are dealing in FMCG products like HUL, Dabur, Cavin Care, AMUL dealing in dairy products, etc. By the vary nature of the product the companies are seeing this as a great source of income. As large number of companies are looking this sector as a profitable venture, so for sustaining there position and gain new market they have to bring some thing unique in their products or services to gain position in the market or to sustain there. In modern business distribution network has a great impact on the success of any business. In the FMCG segment the role of a excellent distribution channel becomes even more crucial because the delivery of FMCG Product is confined to day to day basic. Hence in order to survive and thrive in a highly competitive market you have to have a distribution channel which has no problem at any point of the distribution channel. The factor which is of crucial importance to survive in any business is the understanding of the mind of the individual consumers. What are main characteristics which consumer consider while making a purchasing decision regarding FMCG Product. In order to make right decision regarding all these aspects the company requires a complete knowledge of the problems faced in distribution channel and what should be done in order to overcome all these problems. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. Table of Contents Introduction A Distribution Channel is a set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user. Channel decisions are among the most important decisions that management faces and will directly affect every other marketing decision. Functions of Distribution Channel All Use Up Scarce Resources All May Often Be Performed Better Through Specialization All Can Often Be Shifted Among Channel Members Types of Distribution Channel A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers or industrial users. In other words, it is the distribution network through which a producer puts his product in the hands of actual users. The channel of distribution includes the original producer, the final buyer and any middlemen-either wholesaler or retailer. The term middleman refers to any institution or individual in the channel which either acquires title to the goods or negotiates or sells in the capacity of an agent or broker. But facilitating agencies that perform or assist in marketing function are not included as middlemen in the channel of distribution. This is because they neither acquire title to the goods nor negotiate purchase or sale. Such facilitating agencies include banks, railways, roadways, warehouses, insurance companies, advertising agencies, etc. The following diagram (chart) is illustrative of the channel of distribution which may exist in a market: The above chart indicates that the number of middlemen may vary. If there is direct sale by the produce to the consumers then there is no middleman. But that is very rare. As the chart shows the producer may sell goods to retailer who may then sell the same to consumers. The producer may sell goods to wholesalers who may inturn sell to retailers and the retailer may sell to consumers. The fourth alternative channel of distribution is when any agent/dealer intervenes between the producer and retailers and acts as a middlemen. The agent is appointed by the producer for the sale of goods to the retailers. Another alternative channel is there when producers agent sells goods to wholesalers who sell to retailers. Agent/dealer is an independent person/firm buying goods and selling them to retailers. Agent/dealer may also sell to wholesalers who may then sell to retailers and goods are thus made available to consumers. In the channel of distribution there may be more than one agent/dealer and wholesaler. A brief explanation of different channels of distribution is given below: Manufacturer Æ’Â  Customer: This is also known as direct selling because no middlemen are involved. A producer may sell directly through his own retail stores, for example, Bata. This is the simplest and the shortest channel. It is fast and economical. Small producers and producers of perishable commodities also sell directly to the local consumers. Big firms adopt direct selling in order to cut distribution cost and because they have sufficient facilities to sell directly to the consumers. The producer or the entrepreneur himself performs all the marketing activities. Manufacturer Æ’Â  RetailerÆ’Â  Customer: This is one stage distribution channel having one middleman, i.e., retailer. In this channel, the producer sells to big retailers like departmental stores and chain stores who in turn sell to customer. This channel is very popular in the distribution of consumer durables such as refrigerators, T V sets, washing machines, typewriters, etc. This channel of distribution is very popular these days because of emergence of departmental stores, super markets and other big retail stores. The retailers purchase in large quantities from the producer and perform certain marketing activities in order to sell the product to the ultimate consumers. Manufacturer Æ’Â  WholesalerÆ’Â  RetailerÆ’Â  Customer: This is the traditional channel of distribution. There are two middlemen in this channel of distribution, namely, wholesaler and retailer. This channel is most suitable for the products with widely scattered market. It is used in the distribution of consumer products like groceries, drugs, cosmetics, etc. It is quite suitable for small scale producers whose product line is narrow and who require the expert services and promotional support of wholesalers. Selection Criteria of a Distribution Channel While selecting a distribution channel, the entrepreneur should compare the costs, sales volume and profits expected from alternative channels of distribution. In order to select the right channel for distributing his product, a small-scale manufacturer should keep in mind the following considerations: Market Considerations: The nature of the market is a key factor influencing the choice of channels of distribution. The following features of the market should be considered to determine the channels: Consumer or Industrial Market: If the product is meant for industrial users, the channel of distribution will be a short one. This is because industrial users buy in a large quantity and the producer can easily establish a direct contact with them. But in case for goods meant for consumers, retailers may have to be included in the channels of distribution. Number and location of buyers: When the number of potential customers is small or the market is geographically located in a limited area, direct selling is easy and economical. In case of large number of customers, use of wholesalers and retailers becomes necessary. Size of order: Direct selling is convenient and economical where customers place order in big lots as in case of industrial goods. But where the product is sold in small quantities, middlemen are used to distribute such products. A manufacturer may use different channels for different types of buyers. He may sell directly to big retail stores and may use wholesalers to sell to small retailers. Customers buying habits: The customer buying habits like the time he is willing to spend, the desire for credit, the preference of personal attention and one stop shopping significantly affect the choice of distribution channels. Product Considerations: The type and nature of the product influence the number and type of middlemen to be chosen for distributing the product. The important factors with respect to the product are as follows: Unit value: Products of low unit value and common use are generally sold through middlemen, as they cannot bear the cost of direct selling. On the other hand, expensive consumer goods and industrial products are sold directly by the producers. Perishability: Perishable products like vegetables, fruits and bakery items have relatively short channels, as they cannot withstand repeated handling. Goods, which are subject to frequent changes in fashion and style, are generally distributed through short channels, as the producer has to maintain close and continuous touch with the market. Bulk and weight: Heavy and bulky products are distributed directly to minimize handling costs. Coal, bricks, stones, etc., are some examples. Standardisation: Custom-made and non-standardised products usually pass through short channels due to the need for direct contact between the producer and the consumers. Standardized and mass-made goods can be distributed through middlemen. Technical nature: Industrial products requiring demonstration, installation and aftersale service are often sold directly. The consumer products of technical nature are generally sold through retailers. Product line: An entrepreneur producing a wide range of products may find it economical to set up its own retail outlets. On the other hand, firms with one or two products find it profitable to distribute through wholesalers and retailers. Age of the product: A new product needs greater promotional effort and few middlemen may like to handle it. As the product gains acceptance in the market, more middlemen may be employed for its distribution. Middlemen Considerations: The cost and efficiency of distribution depend largely upon the nature and type of middlemen as given in the following factors: Availability: When middlemen as desired are not available, an entrepreneur may have to establish his own distribution network. Non-availability of middlemen may arise when they are handling competitive products, as they do not like to handle more brands. Attitudes: Middlemen who do not like a firms marketing policies may refuse to handle its products. For instance, some wholesalers and retailers demand sole selling rights or a guarantee against fall in prices. Services: Use of those middlemen is profitable who provide financing, storage, promotion and aftersale services. Sale Potential: An entrepreneur generally prefers a dealer who offers the greatest potential volume of sales. Costs: Choice of a channel should be made after comparing the costs of distribution through alternative channels. Company Considerations: The nature, size and objectives of the business firm also play an important role in the selection of distribution channel. It includes financial resources, market standing, volume of production, desire for control of channel, services provided by manufacturers, etc. For example a company with substantial financial resources need not rely too much on the middlemen and can afford to reduce the levels of distribution. Similarly a company desiring to exercise greater control over channel will prefer a shorter channel. After deciding the number of middlemen, an entrepreneur has to select the particular dealers through whom he will distribute his products. While selecting a particular wholesaler or retailer, the following factors should be taken into consideration: a. Location of dealers business premises; b. Financial position and credit standing of the dealer; c. Knowledge and experience of the dealer; d. Storage and showroom facilities of the dealer e. Ability of the dealer to secure adequate business and to cover the market; f. Capacity of the dealer to provide aftersale service; g. General reputation of the dealer and his sales force; h. Willingness of the dealer to handle the entrepreneurs products; i. Degree of co-operation and promotion service he is willing to provide; j. Nature of other products, if any handled by the dealer. Need for Distribution Channel Why are all these layers needed in distribution ? Why cant a producer simply sell to a retailer, who sells to a consumer? Its a fair question, and in some cases, that is exactly how it happens. But the fact is that many producers are either too small or too large to handle all the necessary functions themselves to get their products to market. Consider the small, specialty manufacturer who is terrific at making fine leather handbags but may not have the expertise to market its products as well as it makes them, or they may not have the money to hire a team of full-time salespeople to court the customers and secure the orders. An intermediary who works for several small, noncompeting firms can easily handle those functions cost-effectively. An intermediary who specializes in importing and exporting can handle the intricacies of customs paperwork, overseas shipping, and foreign markets, too. Conversely, large companies need intermediaries because they are also in the business of manufacturing, not marketing. Turning out tens of thousands of cases of soft drinks, for instance, do you think Pepsi has time to take and fill individual orders from households? Channel members like wholesalers and retailers are useful because they are best at specific aspects of sales in their markets, leaving the manufacturers to do what they do best-which is turn out the best possible product. Having a distribution channel breaks the whole buying and selling process and all its related negotiations into manageable tasks, each performed by companies that specialize in certain skills. Using an import wholesaler, for example, can be handy because they know the laws and customs of the suppliers nations; and they generally offer their own lines of credit so the retailer wont have to deal with currency exchange or negotiate payment terms with a bank in another country. Another advantage of the distribution channel is its ability to even out the natural ebbs and flows of a supply chain. This comes from the ability of some channel members to store excess goods until they are needed, and to stockpile goods in anticipation of seasonal sales peaks. Depending on how close their relationships, channel members may also work together to purchase goods or services in greater quantity at discounts, passing the savings on to customers. Even for consumers, the distribution chain is handy-beyond handy, in fact! It has become a necessity in our society. What if there were no supermarkets, for instance? Can you imagine how much more time and money you would spend having to buy every item at its source? How practical would it be to run out to the nearest farm to pick up a quart of milk and some salad ingredients on your way home from work? FMCG Sector Overview FMCG is an acronym for  Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. These types of goods are required frequently by consumers and so a large part of the monthly salary or income will be spent on buying all the goods listed on the consumers shopping list. New players keep joining the FMCG circles but find the going tough unless they have a well planned strategy along with large cash reserves for their product promotion. A particular FMCG company might be a strong urban market leader, but will still find it tough to enter the rural markets or a new Indian state or area. Although FMCG companies generate a large volume of sales and money, they are always under pressure as they keep facing a lot of competition from their fellow competitors. Due to this, the FMCG companies try to do their level best in maintaining a fine balance in their profits and the product price. Thus they keep facing new challenges on their margins month after month. One of the key factors for an FMCG company to do well is a proper distribution network. If a distribution network of a particular FMCG company is well oiled, then that particular FMCG Company will definitely find the going much easier in the market. But companies have to allot a large chunk of their finances in developing and fine tuning their distribution networks. The promotion of a product of an FMCG company too is considered very crucial for its success. The market has many players. Every FMCG company has to fight for its space and audience in the Indian market. Thus, when a multinational company enters the Indian market, it creates an even bigger challenge to the existing players on the FMCG scene. If the promotion is done well, then the manufacturing of the product can even be outsourced. This can save valuable finance for a company. This in turn will help the company to utilize their energies on other aspects of their product. Some of the top players on the FMCG scene in India are Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestlà © India and Dabur India. So, we can say that FMCG are the products which are: Sold quickly at relatively low cost Sold in large quantities Have low absolute profit but high cumulative profit Sector Performance FMCG is one of the few sectors that has been unscratched and has shown consistent growth despite economic recession and this can be proved by some of the leading magazines articles like: According to Business Standard-FMCG resilient to the economic slowdown and dip in consumer sentiment. According to Economic times it is one of the very few sectors undergoing MA in recent times. Economic times also comment that Indian rural market in untapped and unpenetrated. The growth in this sector is also evident from the fact that many FMCG companies are planning to foray into West Asia, South Africa and Egypt. FMCG industry  provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). Some of the merits of FMCG industry, which made this industry as a potential one are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry. Some of the well known FMCG companies are : Sara Lee Nestlà © Reckitt Benckiser Unilever Procter Gamble Coca-Cola Carlsberg Kleenex General Mills Pepsi Mars etc. FMCG industry  creates a wide range of job opportunities. This industry is a stable, diverse, challenging and high profile industry providing a wide range of job categories like sales, supply chain, finance, marketing, operations, purchasing, human resources, product development, and general management. Indian FMCG Sector FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India. The FMCG sector in India is a sector which is dominated by a high level competition between all the players. This particular sector includes MNCs as well as local Indian companies. Certain companies are leaders in a particular state or area. While some of the companies are very strong in the rural areas compared to the urban areas. Some of the most powerful companies in the FMCG sector are: Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestlà © India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury India, Britannia Industries, Procter Gamble Hygiene and Health Care and Marico Industries. All these companies have a proper distribution network along with proper product promotion tools which have helped them to regularly increase their sales and visibility on the Indian scene. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands. Hindustan Unilever Limited has been operating in India from a long time. They are Indias largest FMCG Company and are also one of Indias largest exporters. The list of their popular products is a very large one. Some of their popular products are Lifebuoy, Rexona, Lux, Liril, Lipton Tea, Brooke Bond Tea, Bru Coffee, Pepsodent, Surf, Rin, Wheel Laundry Detergent and Kissan. The company has an excellent research centre which was established in 1958 and has a strong team of highly qualified scientists. Recently they have launched new projects like Ayush Ayurvedic Products Services and Pureit Water Purifiers. ITC which was set up in 1910 in India was earlier known as Imperial Tobacco Company of India Limited. ITC has a vast presence in wide array of products and some of them are greeting cards, cigarettes, paperboards, packaging, branded apparel, foods confectionery and FMCG products. ITC has proved its worth by being one of Indias biggest foreign exchange earners. Although it already has many leading products from a long time, it is recently wooing over successfully new customers in its businesses of branded apparel, packaged foods confectionery and greeting cards stationery. Nestlà © first made its presence in India in 1912. It has always managed to get itself listed in Indias Most Respected Companies. This has been possible due to its practice of producing products of a global standard in India. It has also been able to provide customer satisfaction to the consumers of its products. The success of Gujarat Cooperative Milk Marketing Federation (GCMMF) has proved that a cooperative too can grow into a top class company if it is backed by proper vision, hard work and a quality product. This has helped it to become the largest food product marketing organization in India. Some of its popular products are Amul Ice cream, Amul Milk, Amul Butter, Amul Shrikhand, Amul Milk Powder, Amul Ghee and Amul Cheese. Thus the above four examples show a variety of factors which are responsible for turning a company into a leading FMCG company. The top 10 companies in India are as follows: The FMCG sector can be sub classified into: Personal Care: The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds.   There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. Foods: The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, Indias largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. Household care: In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitts Mortein at Rs 149 crore. In the shampoo category, HLLs Clinic and Sunsilk make it to the top 100, although PGs Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk. Herbal care: Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Paint: Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is Indias largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World Chocolates/Confectionary: Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadburys Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space. Outlook for FMCG Sector: There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumers mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. Its the quality, promotion and innovation of products, which can drive many sectors. Methodology Exploratory research: The exploratory research design is appropriate for any any problems in which a very little knowledge is available. An Exploratory study is in the nature of a preliminary phase and is absolutely essential in order to obtain a proper definition of problem in hand. So it is helpful in breaking broad and vague problems into smaller, more precise sub problem statements, hopefully, in the form of specific hypothesis. In this study the exploratory research has been used to frame structure questionnaires, individuals with knowledge and ideas have been interviewed to get the idea to frame structure questionnaire. A part from books and journals has been used to gather information about the insurance and the insurance industry. Data Collection: In this study internal and external source for data collection had been used. In the internal and external sources of data collection these two types of data comes into picture: Primary Data Secondary Data Primary Data All the primary data for the purpose of the study were obtained by interviewing the retailers with the help of a questionnaire. Questionnaires were framed on the basis of product its competition. The questions were designed in such a way as to elicit maximum information and data. Secondary Data Secondary data has been collected from books and websites. Internet websites: www.google.com, www.Coca-Cola.com, www.wikipedia.com, www.coca-colaindia.com Magazines Business World Management and Technology Questionnaire There can be two types of questionnaire. Questionnaire for Whole sellers: Name: Age: .. Area: . Years in the Business:. .. Date. http://2.bp.blogspot.com/_STNJ3qjC9Nk/SX30qf_Ve3I/AAAAAAAAAcU/P3nV5aXUBdY/s320/Coca-Cola_logo5.jpg Q1. Which coca cola cold drink brand sells the most? Coke b. ThumsUp c.Limca d. Sprite e. Fanta f. Maaza g.Others Q2. Which mineral water sells the most? Kinley b. Aquafina c. Bisleri d. Local brands Q3. What type of package cold drinks sells the most? 300ml bottle b. 600 ml pet bottle c.

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