Projec On Bluedart
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Project on Logistics
Prakash Pohwani
64
Swapnil Raj
67
Kapil Sahitya
75
Jeetu Teckwani
85
Ranjit Singh Rhal
72
Sandeep Tulsiani
90
Project on Logistics
ACKNOWLEDGEMENT We would like to express our deep felt gratitude in the warmest manner possible towards
our
professor
PROF.
Rajwadhe
for
assigning us such a marvelous project. We have immense pleasure in presenting this PROJECT ON LOGISTICS. The topic was an interesting one. It gave us an opportunity to have a detailed study on the topic and showed how things work in the practical world. We came to understand and analyse the importance of LOGISTICS in the COMPANY. We had a great time working on the project and we have provided information to the fullest of our knowledge and our findings.
Project on Logistics
INDEX Sr. No. 1. 2.
Topic Service Industry Introduction & Importance of
Page No. 5-6 7-10
3. 4.
Transportation Modes of Transport Advantages & Disadvantages of
11-18 19
5. 6. 7. 8.
Different Modes of Transport 7 P’s of Transportation Swot Analysis Indian Transportation Sector National Highways Development
20-21 22-23 24-27 28
9. 10.
Project Golden Quadrilateral Challenges Faced by Transportation
29 32-33
11. 12. 13. 14.
Sector Key Government Strategies World Bank Support Transport Infrastructure Measuring Relative Importance Of Each
34-35 36-37 38 39
15. 16.
Mode Company Profile & Report Conclusion
40-47 48
Project on Logistics
INTRODUCTION What is LOGISTICS? Logistics is about moving materials, information and funds from one business to another or from a business to the consumer. It is a vital part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible. Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different. In the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination. Today, responsiveness to the customers' needs is the determining factor. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment. Logistics is an organized process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.
Project on Logistics Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction. Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics.
History of Logistics
The Greeks defined logistics as "the science of correct reasoning by means of mathematics". The first modern use of the term was in the military to identify the process of planning and coordinating the movement of army and weapon support systems. Good logistics brings out the ability to move faster and accurately to the battlefront. “If one applies the same to the business organisation, it is one's ability to reach the product to the consumer at the right time, right place, right quantity and at the lowest cost.” On similar lines, supply chain management will mean the network of organisations involved in the process by which goods are moved from producer to consumer and the counter flow of information, to manage the supply chain as a single entity. A prominent application of logistics was in World War II where weapon movements were coordinated to ensure success. A recent instance of massive logistics initiatives is in the Gulf war. With increasing competition in the market place, managements started focusing on customer services in the early 1950s in developed markets such as Europe and the U.S. In late 1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the concept of just in time in manufacturing customer-servicing standards were given more importance and new integrated logistics models and solutions were born. The emergence of organized distribution system by department stores and super fast courier service organisations gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless transaction systems to co-ordinate their information and material requirements along the value chain.
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At the micro level any manufacturing and marketing company spends 5 - 35 per cent of sales on logistics. The major cost components are transportation, warehousing and inventory carrying cost. Improvements in logistics get reflected in a reduction in inventory levels, shorter delivery schedules, and improved servicing standards with significant savings in total costs.
Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the
value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production planning systems, Machine scheduling system. Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. Before delving deep into logistics, a look at the current business scene will be great help.
Project on Logistics
Scenario of Logistics in India At present, companies specialising in logistics operations in India use traditional
technologies and cater to stand alone services like transportation, warehousing, clearing and forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply chain, improve productivity levels and bring down operating costs. Any technology that can improve productivity in transportation operations will be a great boom to the economy both directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the savings on downstream users of transport will be much higher and the cost multiplier effect on the economy will be reduced to that extent. Given the emerging business and technological trends there are possibilities for adoption of innovative logistics solutions specifically designed for India. In addition, there is a requirement for an integrated strategy towards developing logistics and its related IT infrastructure and also enhancing its industry base. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as eLogistics are taking shape. In fact, there are a dozen multinational logistics companies such as Exel, Bax Global and Menlo which have started operations in India during the last few years. Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea.
Project on Logistics A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion or Rs. 21,600 crores annually. Besides significant benefits can be reaped through the multiplier effect of better logistics on all economic sectors.
About Customer Service
According to LaLonde and Zinszer have researched various ways that customer service can be viewed: 1) as an activity, 2) in terms of performance levels, and 3) as a philosophy of management. Viewing customer service in terms of performance levels has relevancy providing it can accurately measured. The notion of customer service as a philosophy of management exemplifies the importance of customer-focused marketing. All three dimensions are important to understand what is involved in successful customer service. A broad definition of customer service should embody elements from all three perspectives. LaLonde and his associates offer the following definition: “Customer services are a process for providing significant value-added benefits to the supply chain in cost-effective way.” This definition illustrates the trend to think of customer service as a process-focused orientation that includes supply chain management concepts. It is clear that excellent customer service performance seems to add value for all members of the supply chain. Thus, a customer service program must identify and prioritize all activities important to accomplish operating objectives. A customer service program also needs to incorporate measures for evaluating performance. Performance needs to be measured in terms of goal attainment and relevancy. The critical question in planning a customer service strategy remains, does the cost associated with achieving the specified service goals represent a sound investment and, if so, for what customers? Finally, it is possible to offer key customers something more than high-levels basic service. Extra service beyond the basics is typically referred to as value- added. Value-
Project on Logistics added services, by definition, are unique to specific customers and represent extensions over and above a firm’s basic service program. The three fundamental dimensions of customer service were: Availability. Performance. Reliability.
About Logistics & Customer Service Logistics contributes to an organization’s success by providing customers
with timely and accurate product delivery. The key question is who is the customer? For logistics, the customer is any delivery destination. Typical destination range from consumers’ homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing plants and warehouses. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Regardless of the motivation and delivery purpose, the customer being serviced is the focal point and driving force in establishing logistical performance requirements. It is important to fully understand customer service deliverables when establishing logistical strategies. Whereas logistics is not capability that contributes to overall success, it is fundamental to servicing customers. In a typical marketing situation, the desired customer service performance changes over time. To plan marketing strategy in a dynamic will serve to illustrate how logistical customer service requirement related to a specific product/segment situation will change over time. The product life cycle structure offers a useful framework for viewing the dynamics associated with customer service requirements planning. In terms of overall logistical performance, the basic customer service platform or program should be the level of support provided to all customers.
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Project on Logistics
Corporate Profile About BLUE DART
BLUE DART is South Asia's leading integrated air express carrier and premium logistics-services provider. It has the most extensive domestic network covering over 13,880 locations, and service more than 220 countries and territories worldwide through its Sales alliance with DHL, the premier global brand name in express distribution services. BLUEDART’S vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, they have evolved an infrastructure unique in the country today. State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control and Reservations.
Project on Logistics
Blue Dart Aviation, dedicated capacity to support their time-definite morning deliveries through night freighter flight operations. Warehouses at 14 locations across the country as well as bonded warehouses at the 6 major metros of Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad. ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for their entire operations, products and services.
It’s Competitive Advantage lies in: Blue dart’s vast and unparalleled Domestic Network Linked by some of the most advanced communications systems and positioned to offer a consistent, premium, standardized quality of service.
A spectrum of services to provide customized solutions. Blue dart is the only express carrier in the country today which offers an entire range of services that extend from a document to a charter-load of shipments. Its services are relentlessly monitored to deliver a net service level of 99.96% (as on February, 2005).
It’s Customs and Regulatory expertise Company had a dedicated team of specialists who provide the expertise for customs as well as regulatory clearances at all States within the country, to support seamless service to the customer.
It’s Technology
Project on Logistics Designed to enhance the reliability of our operations and process efficiency, and add value to the customer through time and cost savings.
It’s Air Network The only one of its kind in the country today, that is focused on carriage of packages as its prime business, rather than as a by-product of a passenger airline. A dedicated aviation system to support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling and maintenance capability.
Its financial credibility Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)"
[F one plus
(Ind)] rating for their short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one plus) Rating for their Commercial Paper Programme of Rs. 25 crores.
Its People force Committed, diverse and over 4,000 strong are company’s most valued asset. All company’s achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. Blue dart is a learning organization, valuing self-development, and most of company’s managers are homegrown.
MILESTONES
1983: Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart Courier Services with a capital base of Rs: 30,000. They forge ties with Gelco Express International U.K., and introduce India's first international air package express service.
Project on Logistics
1984: Blue Dart Courier Services becomes a Global Service Participant of FedEx with the acquisition of Gelco Express International by FedEx. Blue Dart Courier Services is the first carrier in India to provide domestic and international on-board couriers, a hub-andspoke system and a 10.30 a.m. delivery service.
1988: Blue Dart Courier Services establishes real-time, on-line tracking for all international shipments through COSMOS, the FedEx track and trace system.
1991: Blue Dart Express is registered as a private limited company, and introduces its economical logistics service option, Dart Surfaceline. It indigenously develops its domestic tracking system, COSMAT-ITM.
1992: Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network, and sets up its employee satisfaction programme - Survey Feedback Action (SFA).
1994: Blue Dart Express Ltd. goes public with an equity offer of 2.55 million shares, at a premium of 14 times, worth Rs: 382.5 million. Blue Dart Express Ltd. launches Dart Apex (Domestic Air Package Express), a multi-modal, premium package delivery service, and COSMAT-IITM, an advanced system which includes track and trace. Blue Dart Aviation is registered as a public limited company and becomes the first private company to receive government permission for operation of cargo aircraft in India.
1995:
Project on Logistics Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO permission. Blue Dart Express Ltd. develops its SMART (Space Management Allocation Reservations and Tracking) system for its aircraft, the first cargo management system in the country. Blue Dart Express Ltd. is awarded the "Global Service Participant Sales Award" by FedEx for outstanding sales performance.
Blue Dart, Calcutta is proud to have the office inaugurated by Mother Theresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.
1996: Blue Dart Aviation launches India's first jet express airline. Blue Dart Express Ltd's turnover crosses the Rs: 1 billion mark, as it expands its domestic network by entering into strategic alliances in North, South and West India. Blue Dart Express Ltd. is the first express company in India to receive an ISO 9001 certification, and post its website on the internet. Blue Dart Express Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., cooperate in bringing the world's largest airlift of charity to Kolkata.
1997: Blue Dart Express Ltd. signs agreements with leading international airlines for distribution of bonded cargo within its network. Blue Dart Aviation launches its domestic charter operations.
1998: Blue Dart Aviation develops India's first Load and Trim software for its B737F flights. Blue Dart Express Ltd. launches SMARTBOX, its economical, packaged door-to-door product, and extends its delivery to over 1000 locations.
1999:
Project on Logistics Blue Dart Express Ltd. moves to its state-of-the-art Administrative, Technology and Operations Super hub, the Blue Dart Centre, at Mumbai. At close proximity to both the international and domestic airports, encircled by four five-star hotels, and equipped with the latest technology, the Super hub has improved efficiency and increased load-handling capacity multifold. Blue Dart Express Ltd. Launches Power Dart 2000+, a software that provides customers free connectivity to its database, enabling customers to track and retrieve all information related to their shipments.
2000: Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is scheduled for operations on the Bangalore-Delhi-Bangalore sector. Blue Dart Express Ltd. also revamps its website replacing it with an interactive website to support e-trade and commerce and facilitate customer interface on the net.
2001: Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-Bangalore sector. The Civil Aviation Ministry requisitions Blue Dart aircrafts for relief operations into earthquake-battered Bhuj in Gujarat. Technology tools and customer software MobileDart, On-Line Pick Up and ShipDart - are developed in-house and launched. Blue Dart declares 1:1 bonus shares. Blue Dart, Kolkata moves into heritage building, Kanak, its new premises inaugurated by Sr. Nirmala of the Missionaries of Charity.
2002: Blue Dart is re-certified as one of a handful of Indian companies to the new global ISO 9001 - 2000 standards for "Design, management and operations of countrywide express transportation and distribution service within the Indian Subcontinent and to international destinations serviced through multinational express companies". Blue Dart ends its contract with Federal Express and signs a path-breaking Sales Alliance with the World's
Project on Logistics No. 1 international air express company, DHL Worldwide Express. Blue Dart crosses 100,000 shipments per day.
2003: 2003 - Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on strengthening infrastructure, Blue Dart establishes twelve of its own offices in the South, delivering to an additional 198 locations, expands its hub at Bhiwandi and sets up a bonded warehouse in Mumbai. The company is selected a Super brand from over 700 brands across 98 categories by a jury of eminent marketing and advertising professionals. The company celebrates its 20 years of service to the nation on 19th November 2003
2004: Blue Dart inducts its 4th aircraft into operation on 17th May 2004, connecting Hyderabad as its 6th Aviation Hub. Blue Dart also extends its brand into Sri Lanka through a Regional Service Alliance with Foster Agencies Pvt. Ltd., Member of the Hayleys Group, one of Sri Lanka's largest diversified multinationals. The Alliance will enable customers to use Blue Dart services between 400 locations in Sri Lanka and over 13,700 locations in India. Blue Dart acquires its fifth Boeing 737 freighter.
2005: DHL Express (Singapore) Pte. Ltd. completes the acquisition of 81.03% of the equity capital of Blue Dart Express Limited. Blue Dart continues to operate as an independent
Project on Logistics brand and provides a complete spectrum of domestic and international express services through synergies with DHL.
Company’s Vision: "To be the best and set the pace in the air express integrated transportation and distribution industry, with a business and human conscience. We commit to develop, reward and recognize our people who, through high quality and professional service and use of sophisticated technology, will meet and exceed customer and stakeholder expectations profitably."
Company’s future plans: Focus on our core domestic products to expand our market share and
consolidate our unique and premium position in the Indian market, and expansion into the near Mid-East and Far East markets and the SAARC (South Asian Association of Regional Co-operation) countries. Blue Dart would also leverage its vast customer base for global distribution through its alliance with DHL. We plan to leverage our established infrastructure to continue adding value and customised solutions to the changing and evolving demands of the customer. We would also provide global logistics
Project on Logistics customers with access to our quality domestic and regional distribution. Our domestic network will continue to differentiate itself in all areas of our core competencies - supply chain management, logistics and Ecommerce. Position ourselves as the preferred, seamless link to a country projected to be an economic superpower of the 21st Century. Through our technology development, premium services, quality network and strategic alliances, we plan to carve for ourselves a leadership position in the industry as India's and the region's link to the world. Continue to deliver value to our stakeholders through our People Philosophy and Corporate Governance based on distinctive Customer Service, Business Ethics and Accountability, and Profitability.
LOGISTICS IN BLUE DART The Information Technology industry is, perhaps, typical of the
changing and escalating logistic demands of various industries today, irrespective of their category as 'old' or 'new' economy. In the IT industry, the difference between success and failure is closely linked to the supply/value chain integration, of which there are two distinct processes: 1. The delivery of goods to the customer in the most reliable transit period (and preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed transit time for packages to reach customers or the response that organisations need in the event of any exceptions.
Project on Logistics 2. The reverse flow of acknowledged signed delivery records without which, in many cases, recovery of bills are virtually impossible. Especially so in the case of companies placing multi-location orders that could cover hundreds of cities. The task for the supplier is staggering - plan logistics for deliveries to all these locations, and hope for 100% of the delivery records to be returned before bills can be submitted to the customer. In most IT companies, the role of 'logistics' or 'fulfillment' is key. With organisations moving towards close to perfect standards like Six Sigma, interaction with logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the organization. Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Through its exceptional people processes, superior technology, and stress on quality systems over the last, almost two decades now, Blue Dart was quick to fulfill these needs: The country's most reliable air and surface network offer a predetermined delivery schedule with close to 100% accuracy. The IT industry could plan its production with precision and avoid expensive inventory build-up. Blue Dart offers the country's most comprehensive communications technology. Much before the internet was prevalent; Blue Dart customers could dial into the network through Power Dart 2000 and track their
Project on Logistics packages. As an added option, Fax dart could fax a copy of the delivery record the minute the Blue Dart system was updated. The country's only express airline with a fleet of three Boeing 737s ensured that packages were flown to their destinations overnight. Another tremendous advantage was that the individual size of packages that could be carried multiplied manifold. Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was quick to understand this requirement and put in place a 100% retrieval system. Blue Dart not only handles large volumes and oversize packages overnight - it also provides the industry with status of their shipments and retrieves such records as are necessary for billing. The entire cycle has been considerably shortened, enabling the industry to achieve healthy bottomline.
Project on Logistics
Logistics software solutions Vendor Solution
Features Application program offered to Blue Dart offices and
SENTOR (Status Blue
Entry Offline for
Dart
Regional Service participants)
its channel partners in remote areas via the Internet. Users receive detailed information on inbound packages for delivery. Upon delivery, proof of delivery details are entered offline and updated on Blue Dart's Web server within three hours. The earlier time lag was 24 to 48 hours. A PC-based solution aimed specifically at SMBs. It
TNT
ExpressShipper (to be launched)
improves the business efficiency of customers by helping them send more than fifteen consignments a day. Customers can track consignments and obtain price quotations directly from their PCs. Online consultancy on customs-related paperwork for SMBs that helps determine which customs documents
FedEx
Global Trade Manager
should accompany their (customer's) international shipments. Lets customers print and fill them up thereby helping them save time on potential border delays.
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SERVICES OF BLUE DART
REGIONAL SERVICES IN SAARC AREA Between India, Bangladesh, Bhutan and Nepal. Blue Dart offers the fastest, most reliable, door-to-door express deliveries for your documents and packages to countries in the SAARC region through Regional Priority. The service offers access to over 13,700 locations in India, and over 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coverage in the region through a quality network, an integrated air and ground infrastructure dedicated to express transportation and innovative technology support.
Regional Priority: Documents (RPDX) The most dependable and secure delivery for non-dutiable, critical and important shipments such as legal documents and tenders. The Blue Dart Envelope provides secure and attractive packaging for your documents, brochures and reports up to 500gms.
Regional Priority: Non-Documents (RPDT) Fast reliable and safe door deliveries for samples and non-commerical shipments. Currently available between India and Nepal only.
Project on Logistics
Let see different type of regional services: DOMESTIC PRIORITY
The fastest, most reliable, door-to-door delivery service within India and to Bangladesh, Nepal and Bhutan for documents and small shipments under 32kgs per package. The special benefits of this service are:
Delivery to over 13,700 locations in India
Free pick-up from your location
Real-time Tracking
Regulatory Clearances
Free Computerized Proof of Delivery
DART APEX Dart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. And above. It is the fastest, most efficient delivery solution for commercial shipments that are time-bound and are required to undergo regulatory clearances, or require special handling.
Project on Logistics Dart Apex offers you an economical option of an Airport-to-Door service from the major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata and Hyderabad to all the Dart Apex locations serviced. A customer may book space for their shipments through company’s Customer Service and deliver customer shipments to Blue Dart Aviation Office at the related airport. Dart Apex also offers a further economical option of a Door-to-Airport service. A customer may book their shipments at any of company’s locations serviced for this product to any of the major airports. Consignee would be required to collect the shipment from the Blue Dart Aviation office at the concerned airport.
Dart Apex offers the following benefits:
Wide Market Reach
Single-window Clearance
Real-time Information
Time-Definite Delivery
Free Proof of Delivery on Demand
Speed
Flexibility
Economical
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DART SURFACELINE Dart Surfaceline is an economical, door-to-door, ground distribution service within India for shipments weighing 10 kgs and above. It offers a cost-effective logistics option for your less time-sensitive shipments, with the following value-added benefits:
Time-bound Delivery
Track your Shipment
Regulatory Clearances
Pick-up Convenience
Secure Shipments
Economical Tariff
SMART BOX
Smart Box is a convenient, economic, packaging unit priced to include a door-to-door delivery service within India. The units come in 2 sizes, 10kgs and 25 kgs, and are designed to accommodate a variety of products. The special benefits of using Smart Box are:
Project on Logistics
A wide market reach
Speedy Delivery
Free pick-up
Real-time Tracking
Regulatory Clearances
Proof of Delivery
Trouble Free Service
INTERNATIONAL SERVICE
Project on Logistics International services of Blue dart are taken over DHL EXPRESS in 2002. Blue Dart Express Limited, through its International Sales alliance with DHL, the premier global brand name in express distribution services, offers DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10 kgs.), a one-stop shipping process for reliable, timedefinite, door to door delivery of international documents and packages. The service offers access to 220 countries and territories worldwide and the extensive, quality network of Blue Dart and DHL. The special benefits of the International Services are: 1) A Convenient Solution for Urgent, International Documents & Shipments. 2) Documents and packages will be picked-up from location, cleared through customs and delivered to consignee.
3) Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries worldwide, and pre-clearance for shipments in transit available for most destinations, ensure efficient delivery. 4) Real-time Tracking.
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5) A Cost-effective Option. 6) Packaging.
DHL OFFERS:
1. Express Document (DOX): DHL Express document is the fastest, trustworthy and most secure way to deliver nondutiable shipments such as banking and legal documents, reports, proposals, tenders, etc.
Project on Logistics Features:
Priority financial industry services.
State
of
the
art
information
systems.
Specialised fast handling facilities.
90% of international banks' first
choice.
Door to door one company control.
World class packaging.
The best possible service to the
Benefits:
company.
The leading edge for financial
services.
Track status online door to door.
Highest
level of control and
security.
One
point
accountability.
Peace of mind.
2. Worldwide Package Express (WPX):
of
contact
and
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DHL Express Package is the fastest most secure way to deliver a dutiable international shipment. For commercial shipments like electrical goods and components, garments, manufactured items & non-commercial shipments.
Features:
Door to door service.
Simple documentation.
Packaging range.
Fastest for international expresss packages.
State of the art information systems.
Global customs clearance leader.
Global market leader for international express
packages. Benefits:
Fastest transit time.
Greater security and control.
Simplified and convenient process.
No hunting for packaging.
Detailed online tracking.
One company control.
Single Invoice.
Door to door peace of mind.
3. The Jumbo Box & Jumbo Junior Box:
Project on Logistics DHL Jumbo Box and Jumbo Junior are the original market innovations for value priced, flat fee international express. All the benefits of the Worldwide Package Express plus. They offer low flat fees for shipments up to 10kg and 25kg and convenient uniquely designed packaging to all destinations worldwide.
Features:
Unique easy to assemble boxes.
Step by step customs declarations.
Full DHL express door to door service.
Low flat fee for each kilo over flat fee limit.
Strong packaging and simple documentation.
Maximum convenience.
Low price.
Exporting documentation made easy.
Fastest transit time.
Door to door service.
Track status online door to door.
No hunting for packaging or paperwork.
Benefits:
Different types of international services: -
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AIRPORT TO AIRPORT The airport-to-airport service is an air freight service available on the flights operated by Blue Dart Aviation between the airports of Kolkata, Delhi,
Mumbai,
Bangalore,
Chennai
and
Hyderabad. The advantages of an airport-to-airport service are:
Cooling-Period All the Blue Dart Aviation warehouses are equipped with X-ray
machines, which eliminate the necessity of the mandatory 24 hour cooling-period required for security reasons for all air freight transported within India.
Late Night Cut-off & Early Morning Deliveries With
Blue
Dart
Aviation's
night
operations,
shipments
manufactured during the day can connect the night flights and be delivered at destination the next morning.
Capacity Blue Dart Aviation is the only cargo operator with scheduled
B737-200 freighter services within India and can offer a larger capacity than other domestic airline.
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CHARTERS Blue Dart Aviation operates the only Boeing 737 freighters in India. The freighters have an 8-pallet configuration, and operations are supported by an in-house ground-handling and maintenance capability, as well as bonded warehouses at all the on-line stations, and companyowned cargo handling assets. With qualified, professionally-trained personnel, Blue Dart Aviation is positioned to offer the most superior quality of service in the country today. Charters are operated on an ad-hoc basis. Normally, charters have been used where timely delivery of sensitive equipment or large loads is required. In the past, Blue Dart Aviation has operated charters for carriage of TV Equipment for the Miss World Contest, high-value TV and Broadcasting equipment for Cricket Matches around the country, perishable Aquaculture, Computer peripherals and Electronics, Emergency Equipment and large inventory for JIT plants.
INTERLINE Blue Dart Aviation operates the only Boeing 737 freighters in India. The freighters have an 8-pallet configuration, and operations are supported by an in-house ground-handling and maintenance capability, as well as bonded warehouses at all the online stations, and company-owned cargo handling assets. With qualified, professionallytrained personnel, Blue Dart Aviation is positioned to offer the most superior quality of service in the country today.
Project on Logistics The bonded warehouses with customs personnel facilitate efficient transhipment of cargo within India. This facility has enabled distribution of imports within the country and has provided exports access to and from the gateways of international airlines. This provides international airlines with a cost-effective option to restrict their on-line stations within India, and enhance their marketing possibilities at off-line locations by utilizing the distribution capabilities of Blue Dart Aviation. Currently, Blue Dart has interline agreements signed with 23 international airlines - Air Canada, Air France, Air India, Air Mauritius, Alitalia, Asiana, British Airways, Cargolux, Cathay Pacific, China Airlines, Cross Air, Das Air, El Al Israel Airlines, Emirates Sky Cargo, KLM Royal Dutch Airlines, Kuwait Airways, Polar Air, Saudi Arabian Airlines, Singapore Airlines, Sri Lankan Airlines, Swiss Air, South African Airways, and Qatar Airways.
VALUE ADDED SERVICES Value added services on the rise. Blue Dart has started providing value-added services like “logistics management, supply chain management and warehousing facilities to its clients. Going forward demand for such services from corporates is likely to grow at a fast clip. This is because by outsourcing such services to third party service providers they would be able to cut down on costs and improve their efficiency levels. For the courier companies such services would be part of the overall value proposition they would be offering their clients apart from the normal pick up and delivery. Such services have the potential for enhancing the margins of courier companies like Blue Dart. We believe that Blue Dart is best equipped to capitalize on the growing opportunities in the emerging areas of warehousing and supply chain management.
Project on Logistics
BLUE DART INITIATES CUSTOMER SATISFACTION BENCHMARK As a business entity customer have dispatched an important package that contains some confidential business documents. Customers do not know the status of the documents shipped. Customer’s end up making endless calls to the courier service office asking them when the 'Proof of Delivery' (POD) will come their way since company need to be assured that everything that was sent has reached the destination. Now, Blue Dart Express Ltd promises to cure customer’s conventional woes. Termed 'net service levels', the initiative is all internal benchmarking exercise by which the organisation evolves an action plan to examine the areas where the customer satisfaction levels have not matched up to the standards that have been established internally by the enterprise. The company also evolves marketing strategics that can enable its business to effectively retain customers. Blue Dart Express Ltd senior vice-president (marketing & projects) Tulsi Mirchandaney says that- "The express service Industry does not have any external benchmark to look up to. Company’s therefore, decided to look into some of the operations that successfully institutionalised internally, and use those as benchmark to efficiently address various customer needs." This implies that every day professionals from Blue Dart will monitor the exact status of various shipments of its clients, specially air cargo services which is one of the
Project on Logistics core offerings where the company generates substantial business volumes. In this business, the company may encounter imperatives like flight delays to bad weather conditions or some other peculiar circumstances which may lead to considerable worry and anxiety for the target customers. This is more so because the delivery of these shipments would be crucial to effectively run their own independent end-businesses. The team within the company, in such instances will track the specific geographical areas where the problem persists through Internal technology tool and other aligned systems that have been initiated by the enterprise. The company will also personally interact with customers and explain to them the exact reasons for the delay along with the time when the cargo will be delivered. Further, the moment the company discovers that there are certain areas where customer service delivery is not in sync with the standards that have been set by the organisation, the entire team gets down to analysing the problem. This is done to determine where exactly the company needs to gear up further.
Prakash Pohwani
64
Swapnil Raj
67
Kapil Sahitya
75
Jeetu Teckwani
85
Ranjit Singh Rhal
72
Sandeep Tulsiani
90
Project on Logistics
ACKNOWLEDGEMENT We would like to express our deep felt gratitude in the warmest manner possible towards
our
professor
PROF.
Rajwadhe
for
assigning us such a marvelous project. We have immense pleasure in presenting this PROJECT ON LOGISTICS. The topic was an interesting one. It gave us an opportunity to have a detailed study on the topic and showed how things work in the practical world. We came to understand and analyse the importance of LOGISTICS in the COMPANY. We had a great time working on the project and we have provided information to the fullest of our knowledge and our findings.
Project on Logistics
INDEX Sr. No. 1. 2.
Topic Service Industry Introduction & Importance of
Page No. 5-6 7-10
3. 4.
Transportation Modes of Transport Advantages & Disadvantages of
11-18 19
5. 6. 7. 8.
Different Modes of Transport 7 P’s of Transportation Swot Analysis Indian Transportation Sector National Highways Development
20-21 22-23 24-27 28
9. 10.
Project Golden Quadrilateral Challenges Faced by Transportation
29 32-33
11. 12. 13. 14.
Sector Key Government Strategies World Bank Support Transport Infrastructure Measuring Relative Importance Of Each
34-35 36-37 38 39
15. 16.
Mode Company Profile & Report Conclusion
40-47 48
Project on Logistics
INTRODUCTION What is LOGISTICS? Logistics is about moving materials, information and funds from one business to another or from a business to the consumer. It is a vital part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible. Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different. In the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination. Today, responsiveness to the customers' needs is the determining factor. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment. Logistics is an organized process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.
Project on Logistics Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction. Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics.
History of Logistics
The Greeks defined logistics as "the science of correct reasoning by means of mathematics". The first modern use of the term was in the military to identify the process of planning and coordinating the movement of army and weapon support systems. Good logistics brings out the ability to move faster and accurately to the battlefront. “If one applies the same to the business organisation, it is one's ability to reach the product to the consumer at the right time, right place, right quantity and at the lowest cost.” On similar lines, supply chain management will mean the network of organisations involved in the process by which goods are moved from producer to consumer and the counter flow of information, to manage the supply chain as a single entity. A prominent application of logistics was in World War II where weapon movements were coordinated to ensure success. A recent instance of massive logistics initiatives is in the Gulf war. With increasing competition in the market place, managements started focusing on customer services in the early 1950s in developed markets such as Europe and the U.S. In late 1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the concept of just in time in manufacturing customer-servicing standards were given more importance and new integrated logistics models and solutions were born. The emergence of organized distribution system by department stores and super fast courier service organisations gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless transaction systems to co-ordinate their information and material requirements along the value chain.
Project on Logistics
At the micro level any manufacturing and marketing company spends 5 - 35 per cent of sales on logistics. The major cost components are transportation, warehousing and inventory carrying cost. Improvements in logistics get reflected in a reduction in inventory levels, shorter delivery schedules, and improved servicing standards with significant savings in total costs.
Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the
value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production planning systems, Machine scheduling system. Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. Before delving deep into logistics, a look at the current business scene will be great help.
Project on Logistics
Scenario of Logistics in India At present, companies specialising in logistics operations in India use traditional
technologies and cater to stand alone services like transportation, warehousing, clearing and forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply chain, improve productivity levels and bring down operating costs. Any technology that can improve productivity in transportation operations will be a great boom to the economy both directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the savings on downstream users of transport will be much higher and the cost multiplier effect on the economy will be reduced to that extent. Given the emerging business and technological trends there are possibilities for adoption of innovative logistics solutions specifically designed for India. In addition, there is a requirement for an integrated strategy towards developing logistics and its related IT infrastructure and also enhancing its industry base. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as eLogistics are taking shape. In fact, there are a dozen multinational logistics companies such as Exel, Bax Global and Menlo which have started operations in India during the last few years. Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea.
Project on Logistics A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion or Rs. 21,600 crores annually. Besides significant benefits can be reaped through the multiplier effect of better logistics on all economic sectors.
About Customer Service
According to LaLonde and Zinszer have researched various ways that customer service can be viewed: 1) as an activity, 2) in terms of performance levels, and 3) as a philosophy of management. Viewing customer service in terms of performance levels has relevancy providing it can accurately measured. The notion of customer service as a philosophy of management exemplifies the importance of customer-focused marketing. All three dimensions are important to understand what is involved in successful customer service. A broad definition of customer service should embody elements from all three perspectives. LaLonde and his associates offer the following definition: “Customer services are a process for providing significant value-added benefits to the supply chain in cost-effective way.” This definition illustrates the trend to think of customer service as a process-focused orientation that includes supply chain management concepts. It is clear that excellent customer service performance seems to add value for all members of the supply chain. Thus, a customer service program must identify and prioritize all activities important to accomplish operating objectives. A customer service program also needs to incorporate measures for evaluating performance. Performance needs to be measured in terms of goal attainment and relevancy. The critical question in planning a customer service strategy remains, does the cost associated with achieving the specified service goals represent a sound investment and, if so, for what customers? Finally, it is possible to offer key customers something more than high-levels basic service. Extra service beyond the basics is typically referred to as value- added. Value-
Project on Logistics added services, by definition, are unique to specific customers and represent extensions over and above a firm’s basic service program. The three fundamental dimensions of customer service were: Availability. Performance. Reliability.
About Logistics & Customer Service Logistics contributes to an organization’s success by providing customers
with timely and accurate product delivery. The key question is who is the customer? For logistics, the customer is any delivery destination. Typical destination range from consumers’ homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing plants and warehouses. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Regardless of the motivation and delivery purpose, the customer being serviced is the focal point and driving force in establishing logistical performance requirements. It is important to fully understand customer service deliverables when establishing logistical strategies. Whereas logistics is not capability that contributes to overall success, it is fundamental to servicing customers. In a typical marketing situation, the desired customer service performance changes over time. To plan marketing strategy in a dynamic will serve to illustrate how logistical customer service requirement related to a specific product/segment situation will change over time. The product life cycle structure offers a useful framework for viewing the dynamics associated with customer service requirements planning. In terms of overall logistical performance, the basic customer service platform or program should be the level of support provided to all customers.
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Project on Logistics
Corporate Profile About BLUE DART
BLUE DART is South Asia's leading integrated air express carrier and premium logistics-services provider. It has the most extensive domestic network covering over 13,880 locations, and service more than 220 countries and territories worldwide through its Sales alliance with DHL, the premier global brand name in express distribution services. BLUEDART’S vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, they have evolved an infrastructure unique in the country today. State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control and Reservations.
Project on Logistics
Blue Dart Aviation, dedicated capacity to support their time-definite morning deliveries through night freighter flight operations. Warehouses at 14 locations across the country as well as bonded warehouses at the 6 major metros of Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad. ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for their entire operations, products and services.
It’s Competitive Advantage lies in: Blue dart’s vast and unparalleled Domestic Network Linked by some of the most advanced communications systems and positioned to offer a consistent, premium, standardized quality of service.
A spectrum of services to provide customized solutions. Blue dart is the only express carrier in the country today which offers an entire range of services that extend from a document to a charter-load of shipments. Its services are relentlessly monitored to deliver a net service level of 99.96% (as on February, 2005).
It’s Customs and Regulatory expertise Company had a dedicated team of specialists who provide the expertise for customs as well as regulatory clearances at all States within the country, to support seamless service to the customer.
It’s Technology
Project on Logistics Designed to enhance the reliability of our operations and process efficiency, and add value to the customer through time and cost savings.
It’s Air Network The only one of its kind in the country today, that is focused on carriage of packages as its prime business, rather than as a by-product of a passenger airline. A dedicated aviation system to support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling and maintenance capability.
Its financial credibility Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)"
[F one plus
(Ind)] rating for their short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one plus) Rating for their Commercial Paper Programme of Rs. 25 crores.
Its People force Committed, diverse and over 4,000 strong are company’s most valued asset. All company’s achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. Blue dart is a learning organization, valuing self-development, and most of company’s managers are homegrown.
MILESTONES
1983: Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart Courier Services with a capital base of Rs: 30,000. They forge ties with Gelco Express International U.K., and introduce India's first international air package express service.
Project on Logistics
1984: Blue Dart Courier Services becomes a Global Service Participant of FedEx with the acquisition of Gelco Express International by FedEx. Blue Dart Courier Services is the first carrier in India to provide domestic and international on-board couriers, a hub-andspoke system and a 10.30 a.m. delivery service.
1988: Blue Dart Courier Services establishes real-time, on-line tracking for all international shipments through COSMOS, the FedEx track and trace system.
1991: Blue Dart Express is registered as a private limited company, and introduces its economical logistics service option, Dart Surfaceline. It indigenously develops its domestic tracking system, COSMAT-ITM.
1992: Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network, and sets up its employee satisfaction programme - Survey Feedback Action (SFA).
1994: Blue Dart Express Ltd. goes public with an equity offer of 2.55 million shares, at a premium of 14 times, worth Rs: 382.5 million. Blue Dart Express Ltd. launches Dart Apex (Domestic Air Package Express), a multi-modal, premium package delivery service, and COSMAT-IITM, an advanced system which includes track and trace. Blue Dart Aviation is registered as a public limited company and becomes the first private company to receive government permission for operation of cargo aircraft in India.
1995:
Project on Logistics Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO permission. Blue Dart Express Ltd. develops its SMART (Space Management Allocation Reservations and Tracking) system for its aircraft, the first cargo management system in the country. Blue Dart Express Ltd. is awarded the "Global Service Participant Sales Award" by FedEx for outstanding sales performance.
Blue Dart, Calcutta is proud to have the office inaugurated by Mother Theresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.
1996: Blue Dart Aviation launches India's first jet express airline. Blue Dart Express Ltd's turnover crosses the Rs: 1 billion mark, as it expands its domestic network by entering into strategic alliances in North, South and West India. Blue Dart Express Ltd. is the first express company in India to receive an ISO 9001 certification, and post its website on the internet. Blue Dart Express Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., cooperate in bringing the world's largest airlift of charity to Kolkata.
1997: Blue Dart Express Ltd. signs agreements with leading international airlines for distribution of bonded cargo within its network. Blue Dart Aviation launches its domestic charter operations.
1998: Blue Dart Aviation develops India's first Load and Trim software for its B737F flights. Blue Dart Express Ltd. launches SMARTBOX, its economical, packaged door-to-door product, and extends its delivery to over 1000 locations.
1999:
Project on Logistics Blue Dart Express Ltd. moves to its state-of-the-art Administrative, Technology and Operations Super hub, the Blue Dart Centre, at Mumbai. At close proximity to both the international and domestic airports, encircled by four five-star hotels, and equipped with the latest technology, the Super hub has improved efficiency and increased load-handling capacity multifold. Blue Dart Express Ltd. Launches Power Dart 2000+, a software that provides customers free connectivity to its database, enabling customers to track and retrieve all information related to their shipments.
2000: Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is scheduled for operations on the Bangalore-Delhi-Bangalore sector. Blue Dart Express Ltd. also revamps its website replacing it with an interactive website to support e-trade and commerce and facilitate customer interface on the net.
2001: Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-Bangalore sector. The Civil Aviation Ministry requisitions Blue Dart aircrafts for relief operations into earthquake-battered Bhuj in Gujarat. Technology tools and customer software MobileDart, On-Line Pick Up and ShipDart - are developed in-house and launched. Blue Dart declares 1:1 bonus shares. Blue Dart, Kolkata moves into heritage building, Kanak, its new premises inaugurated by Sr. Nirmala of the Missionaries of Charity.
2002: Blue Dart is re-certified as one of a handful of Indian companies to the new global ISO 9001 - 2000 standards for "Design, management and operations of countrywide express transportation and distribution service within the Indian Subcontinent and to international destinations serviced through multinational express companies". Blue Dart ends its contract with Federal Express and signs a path-breaking Sales Alliance with the World's
Project on Logistics No. 1 international air express company, DHL Worldwide Express. Blue Dart crosses 100,000 shipments per day.
2003: 2003 - Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on strengthening infrastructure, Blue Dart establishes twelve of its own offices in the South, delivering to an additional 198 locations, expands its hub at Bhiwandi and sets up a bonded warehouse in Mumbai. The company is selected a Super brand from over 700 brands across 98 categories by a jury of eminent marketing and advertising professionals. The company celebrates its 20 years of service to the nation on 19th November 2003
2004: Blue Dart inducts its 4th aircraft into operation on 17th May 2004, connecting Hyderabad as its 6th Aviation Hub. Blue Dart also extends its brand into Sri Lanka through a Regional Service Alliance with Foster Agencies Pvt. Ltd., Member of the Hayleys Group, one of Sri Lanka's largest diversified multinationals. The Alliance will enable customers to use Blue Dart services between 400 locations in Sri Lanka and over 13,700 locations in India. Blue Dart acquires its fifth Boeing 737 freighter.
2005: DHL Express (Singapore) Pte. Ltd. completes the acquisition of 81.03% of the equity capital of Blue Dart Express Limited. Blue Dart continues to operate as an independent
Project on Logistics brand and provides a complete spectrum of domestic and international express services through synergies with DHL.
Company’s Vision: "To be the best and set the pace in the air express integrated transportation and distribution industry, with a business and human conscience. We commit to develop, reward and recognize our people who, through high quality and professional service and use of sophisticated technology, will meet and exceed customer and stakeholder expectations profitably."
Company’s future plans: Focus on our core domestic products to expand our market share and
consolidate our unique and premium position in the Indian market, and expansion into the near Mid-East and Far East markets and the SAARC (South Asian Association of Regional Co-operation) countries. Blue Dart would also leverage its vast customer base for global distribution through its alliance with DHL. We plan to leverage our established infrastructure to continue adding value and customised solutions to the changing and evolving demands of the customer. We would also provide global logistics
Project on Logistics customers with access to our quality domestic and regional distribution. Our domestic network will continue to differentiate itself in all areas of our core competencies - supply chain management, logistics and Ecommerce. Position ourselves as the preferred, seamless link to a country projected to be an economic superpower of the 21st Century. Through our technology development, premium services, quality network and strategic alliances, we plan to carve for ourselves a leadership position in the industry as India's and the region's link to the world. Continue to deliver value to our stakeholders through our People Philosophy and Corporate Governance based on distinctive Customer Service, Business Ethics and Accountability, and Profitability.
LOGISTICS IN BLUE DART The Information Technology industry is, perhaps, typical of the
changing and escalating logistic demands of various industries today, irrespective of their category as 'old' or 'new' economy. In the IT industry, the difference between success and failure is closely linked to the supply/value chain integration, of which there are two distinct processes: 1. The delivery of goods to the customer in the most reliable transit period (and preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed transit time for packages to reach customers or the response that organisations need in the event of any exceptions.
Project on Logistics 2. The reverse flow of acknowledged signed delivery records without which, in many cases, recovery of bills are virtually impossible. Especially so in the case of companies placing multi-location orders that could cover hundreds of cities. The task for the supplier is staggering - plan logistics for deliveries to all these locations, and hope for 100% of the delivery records to be returned before bills can be submitted to the customer. In most IT companies, the role of 'logistics' or 'fulfillment' is key. With organisations moving towards close to perfect standards like Six Sigma, interaction with logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the organization. Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Through its exceptional people processes, superior technology, and stress on quality systems over the last, almost two decades now, Blue Dart was quick to fulfill these needs: The country's most reliable air and surface network offer a predetermined delivery schedule with close to 100% accuracy. The IT industry could plan its production with precision and avoid expensive inventory build-up. Blue Dart offers the country's most comprehensive communications technology. Much before the internet was prevalent; Blue Dart customers could dial into the network through Power Dart 2000 and track their
Project on Logistics packages. As an added option, Fax dart could fax a copy of the delivery record the minute the Blue Dart system was updated. The country's only express airline with a fleet of three Boeing 737s ensured that packages were flown to their destinations overnight. Another tremendous advantage was that the individual size of packages that could be carried multiplied manifold. Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was quick to understand this requirement and put in place a 100% retrieval system. Blue Dart not only handles large volumes and oversize packages overnight - it also provides the industry with status of their shipments and retrieves such records as are necessary for billing. The entire cycle has been considerably shortened, enabling the industry to achieve healthy bottomline.
Project on Logistics
Logistics software solutions Vendor Solution
Features Application program offered to Blue Dart offices and
SENTOR (Status Blue
Entry Offline for
Dart
Regional Service participants)
its channel partners in remote areas via the Internet. Users receive detailed information on inbound packages for delivery. Upon delivery, proof of delivery details are entered offline and updated on Blue Dart's Web server within three hours. The earlier time lag was 24 to 48 hours. A PC-based solution aimed specifically at SMBs. It
TNT
ExpressShipper (to be launched)
improves the business efficiency of customers by helping them send more than fifteen consignments a day. Customers can track consignments and obtain price quotations directly from their PCs. Online consultancy on customs-related paperwork for SMBs that helps determine which customs documents
FedEx
Global Trade Manager
should accompany their (customer's) international shipments. Lets customers print and fill them up thereby helping them save time on potential border delays.
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SERVICES OF BLUE DART
REGIONAL SERVICES IN SAARC AREA Between India, Bangladesh, Bhutan and Nepal. Blue Dart offers the fastest, most reliable, door-to-door express deliveries for your documents and packages to countries in the SAARC region through Regional Priority. The service offers access to over 13,700 locations in India, and over 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coverage in the region through a quality network, an integrated air and ground infrastructure dedicated to express transportation and innovative technology support.
Regional Priority: Documents (RPDX) The most dependable and secure delivery for non-dutiable, critical and important shipments such as legal documents and tenders. The Blue Dart Envelope provides secure and attractive packaging for your documents, brochures and reports up to 500gms.
Regional Priority: Non-Documents (RPDT) Fast reliable and safe door deliveries for samples and non-commerical shipments. Currently available between India and Nepal only.
Project on Logistics
Let see different type of regional services: DOMESTIC PRIORITY
The fastest, most reliable, door-to-door delivery service within India and to Bangladesh, Nepal and Bhutan for documents and small shipments under 32kgs per package. The special benefits of this service are:
Delivery to over 13,700 locations in India
Free pick-up from your location
Real-time Tracking
Regulatory Clearances
Free Computerized Proof of Delivery
DART APEX Dart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. And above. It is the fastest, most efficient delivery solution for commercial shipments that are time-bound and are required to undergo regulatory clearances, or require special handling.
Project on Logistics Dart Apex offers you an economical option of an Airport-to-Door service from the major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata and Hyderabad to all the Dart Apex locations serviced. A customer may book space for their shipments through company’s Customer Service and deliver customer shipments to Blue Dart Aviation Office at the related airport. Dart Apex also offers a further economical option of a Door-to-Airport service. A customer may book their shipments at any of company’s locations serviced for this product to any of the major airports. Consignee would be required to collect the shipment from the Blue Dart Aviation office at the concerned airport.
Dart Apex offers the following benefits:
Wide Market Reach
Single-window Clearance
Real-time Information
Time-Definite Delivery
Free Proof of Delivery on Demand
Speed
Flexibility
Economical
Project on Logistics
DART SURFACELINE Dart Surfaceline is an economical, door-to-door, ground distribution service within India for shipments weighing 10 kgs and above. It offers a cost-effective logistics option for your less time-sensitive shipments, with the following value-added benefits:
Time-bound Delivery
Track your Shipment
Regulatory Clearances
Pick-up Convenience
Secure Shipments
Economical Tariff
SMART BOX
Smart Box is a convenient, economic, packaging unit priced to include a door-to-door delivery service within India. The units come in 2 sizes, 10kgs and 25 kgs, and are designed to accommodate a variety of products. The special benefits of using Smart Box are:
Project on Logistics
A wide market reach
Speedy Delivery
Free pick-up
Real-time Tracking
Regulatory Clearances
Proof of Delivery
Trouble Free Service
INTERNATIONAL SERVICE
Project on Logistics International services of Blue dart are taken over DHL EXPRESS in 2002. Blue Dart Express Limited, through its International Sales alliance with DHL, the premier global brand name in express distribution services, offers DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10 kgs.), a one-stop shipping process for reliable, timedefinite, door to door delivery of international documents and packages. The service offers access to 220 countries and territories worldwide and the extensive, quality network of Blue Dart and DHL. The special benefits of the International Services are: 1) A Convenient Solution for Urgent, International Documents & Shipments. 2) Documents and packages will be picked-up from location, cleared through customs and delivered to consignee.
3) Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries worldwide, and pre-clearance for shipments in transit available for most destinations, ensure efficient delivery. 4) Real-time Tracking.
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5) A Cost-effective Option. 6) Packaging.
DHL OFFERS:
1. Express Document (DOX): DHL Express document is the fastest, trustworthy and most secure way to deliver nondutiable shipments such as banking and legal documents, reports, proposals, tenders, etc.
Project on Logistics Features:
Priority financial industry services.
State
of
the
art
information
systems.
Specialised fast handling facilities.
90% of international banks' first
choice.
Door to door one company control.
World class packaging.
The best possible service to the
Benefits:
company.
The leading edge for financial
services.
Track status online door to door.
Highest
level of control and
security.
One
point
accountability.
Peace of mind.
2. Worldwide Package Express (WPX):
of
contact
and
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DHL Express Package is the fastest most secure way to deliver a dutiable international shipment. For commercial shipments like electrical goods and components, garments, manufactured items & non-commercial shipments.
Features:
Door to door service.
Simple documentation.
Packaging range.
Fastest for international expresss packages.
State of the art information systems.
Global customs clearance leader.
Global market leader for international express
packages. Benefits:
Fastest transit time.
Greater security and control.
Simplified and convenient process.
No hunting for packaging.
Detailed online tracking.
One company control.
Single Invoice.
Door to door peace of mind.
3. The Jumbo Box & Jumbo Junior Box:
Project on Logistics DHL Jumbo Box and Jumbo Junior are the original market innovations for value priced, flat fee international express. All the benefits of the Worldwide Package Express plus. They offer low flat fees for shipments up to 10kg and 25kg and convenient uniquely designed packaging to all destinations worldwide.
Features:
Unique easy to assemble boxes.
Step by step customs declarations.
Full DHL express door to door service.
Low flat fee for each kilo over flat fee limit.
Strong packaging and simple documentation.
Maximum convenience.
Low price.
Exporting documentation made easy.
Fastest transit time.
Door to door service.
Track status online door to door.
No hunting for packaging or paperwork.
Benefits:
Different types of international services: -
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AIRPORT TO AIRPORT The airport-to-airport service is an air freight service available on the flights operated by Blue Dart Aviation between the airports of Kolkata, Delhi,
Mumbai,
Bangalore,
Chennai
and
Hyderabad. The advantages of an airport-to-airport service are:
Cooling-Period All the Blue Dart Aviation warehouses are equipped with X-ray
machines, which eliminate the necessity of the mandatory 24 hour cooling-period required for security reasons for all air freight transported within India.
Late Night Cut-off & Early Morning Deliveries With
Blue
Dart
Aviation's
night
operations,
shipments
manufactured during the day can connect the night flights and be delivered at destination the next morning.
Capacity Blue Dart Aviation is the only cargo operator with scheduled
B737-200 freighter services within India and can offer a larger capacity than other domestic airline.
Project on Logistics
CHARTERS Blue Dart Aviation operates the only Boeing 737 freighters in India. The freighters have an 8-pallet configuration, and operations are supported by an in-house ground-handling and maintenance capability, as well as bonded warehouses at all the on-line stations, and companyowned cargo handling assets. With qualified, professionally-trained personnel, Blue Dart Aviation is positioned to offer the most superior quality of service in the country today. Charters are operated on an ad-hoc basis. Normally, charters have been used where timely delivery of sensitive equipment or large loads is required. In the past, Blue Dart Aviation has operated charters for carriage of TV Equipment for the Miss World Contest, high-value TV and Broadcasting equipment for Cricket Matches around the country, perishable Aquaculture, Computer peripherals and Electronics, Emergency Equipment and large inventory for JIT plants.
INTERLINE Blue Dart Aviation operates the only Boeing 737 freighters in India. The freighters have an 8-pallet configuration, and operations are supported by an in-house ground-handling and maintenance capability, as well as bonded warehouses at all the online stations, and company-owned cargo handling assets. With qualified, professionallytrained personnel, Blue Dart Aviation is positioned to offer the most superior quality of service in the country today.
Project on Logistics The bonded warehouses with customs personnel facilitate efficient transhipment of cargo within India. This facility has enabled distribution of imports within the country and has provided exports access to and from the gateways of international airlines. This provides international airlines with a cost-effective option to restrict their on-line stations within India, and enhance their marketing possibilities at off-line locations by utilizing the distribution capabilities of Blue Dart Aviation. Currently, Blue Dart has interline agreements signed with 23 international airlines - Air Canada, Air France, Air India, Air Mauritius, Alitalia, Asiana, British Airways, Cargolux, Cathay Pacific, China Airlines, Cross Air, Das Air, El Al Israel Airlines, Emirates Sky Cargo, KLM Royal Dutch Airlines, Kuwait Airways, Polar Air, Saudi Arabian Airlines, Singapore Airlines, Sri Lankan Airlines, Swiss Air, South African Airways, and Qatar Airways.
VALUE ADDED SERVICES Value added services on the rise. Blue Dart has started providing value-added services like “logistics management, supply chain management and warehousing facilities to its clients. Going forward demand for such services from corporates is likely to grow at a fast clip. This is because by outsourcing such services to third party service providers they would be able to cut down on costs and improve their efficiency levels. For the courier companies such services would be part of the overall value proposition they would be offering their clients apart from the normal pick up and delivery. Such services have the potential for enhancing the margins of courier companies like Blue Dart. We believe that Blue Dart is best equipped to capitalize on the growing opportunities in the emerging areas of warehousing and supply chain management.
Project on Logistics
BLUE DART INITIATES CUSTOMER SATISFACTION BENCHMARK As a business entity customer have dispatched an important package that contains some confidential business documents. Customers do not know the status of the documents shipped. Customer’s end up making endless calls to the courier service office asking them when the 'Proof of Delivery' (POD) will come their way since company need to be assured that everything that was sent has reached the destination. Now, Blue Dart Express Ltd promises to cure customer’s conventional woes. Termed 'net service levels', the initiative is all internal benchmarking exercise by which the organisation evolves an action plan to examine the areas where the customer satisfaction levels have not matched up to the standards that have been established internally by the enterprise. The company also evolves marketing strategics that can enable its business to effectively retain customers. Blue Dart Express Ltd senior vice-president (marketing & projects) Tulsi Mirchandaney says that- "The express service Industry does not have any external benchmark to look up to. Company’s therefore, decided to look into some of the operations that successfully institutionalised internally, and use those as benchmark to efficiently address various customer needs." This implies that every day professionals from Blue Dart will monitor the exact status of various shipments of its clients, specially air cargo services which is one of the
Project on Logistics core offerings where the company generates substantial business volumes. In this business, the company may encounter imperatives like flight delays to bad weather conditions or some other peculiar circumstances which may lead to considerable worry and anxiety for the target customers. This is more so because the delivery of these shipments would be crucial to effectively run their own independent end-businesses. The team within the company, in such instances will track the specific geographical areas where the problem persists through Internal technology tool and other aligned systems that have been initiated by the enterprise. The company will also personally interact with customers and explain to them the exact reasons for the delay along with the time when the cargo will be delivered. Further, the moment the company discovers that there are certain areas where customer service delivery is not in sync with the standards that have been set by the organisation, the entire team gets down to analysing the problem. This is done to determine where exactly the company needs to gear up further.
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