Escolar Documentos
Profissional Documentos
Cultura Documentos
ON
AN APPROACH TOWARDS EFFECTIVENESS &
EFFICIENCY OF LOGISTICS MANAGEMENT
AT
BANGALORE
M. M. PRADEEP
04XQCM6066
Dr. N. S. Viswanath
Kalappa B.C
STUDENT DECLARATION
I hereby declare that the project undertaken by me and the report titled
AN APPROACH TOWARDS EFFECTIVENESS & EFFICIENCY OF
LOGISTICS MANAGEMENT AT BLUE DART, BANGALORE
submitted to Bangalore University in partial fulfillment of the requirements
for the award of the degree of Masters of Business Administration, is my
original work and not submitted for the award of any other Degree/Diploma
of any University.
Place: Bangalore
Date:
Name: Pradeep M M
Reg no: 04XQCM6066
GUIDES CERTIFICATE
N.
S.
Vis
wan
ath
Place: Bangalore
Date :
D
r
.
PRINCIPALS CERTIFICATE
(principal)
ACKNOWLEDGEMENT
Blessed are those who give without remembering
and Blessed are those who take without
forgetting.
I am extremely grateful to MR Kalappa B.C, Sr. Branch Manager, for
giving me an opportunity to embark on this project and whose guidance was
significant in the successful completion of the project.
I would like to thank Mrs. Rose Francis, Human Resource department
for encouraging me which was significant in successful completion of
project.
I wish to thank our Dr. Nagesh Malavalli, Principal, M. P.Birla
Institute of Management for providing the means and encouragement and
Dr. N. S. Viswanath for their immense support and guidance.
I thank all the Departmental heads and employees of BLUE DART
for guiding me and extending their co-operation in completing this project
successfully.
Last but certainly not the least, my family and friends who co-operated in
completing this project successfully.
Bangalore: (M M PRADEEP)
Date: Reg No: 04XQCM6066
CONTENTS
SL NO
1
2
PARTICULARS
INTRODUCTION
CONCEPTS OF LOGISTICS MANAGEMENT
PAGE NO
1
2-8
Logistics Management
INDUSTRY SCENARIO
9 - 15
- Introduction
SWOT Analysis
Aviation Industry
COMPANY PROFILE
-
Introduction
E-commerce Initiatives
16 - 44
METHODOLOGY
-
Background
Review of Literature
45 - 57
Problem statement
Data analysis
Suggested Model
Major Findings
58 - 64
65 - 75
BIBLIOGRAPHY
76 -77
EXECUTIVE SUMMARY
The courier industry in India was born in 1979 with the entry of DHL into the
market. The industry soon saw the entry of ELBEE and BLUE DART to appropriate
value from the lucrative sector. The industry in India is divided into the organized, semi
organized and the unorganized segments. The industry is highly fragmented with over
2300 players in the market. The way forward is through tie ups between the players in the
organization segment and a few powerful ones in the semi-organized segment.
Efficiency, speed and flexibility in the delivery and distribution aspects of a
business, form the key to successful logistics solution. Logistics planning and
management defines a unique network of Suppliers, producers and distributors to deliver
a specific product set. Different type of product families and different customer segments
may necessitate several distinctly different supply chain configurations, which has to be
designed for flexibility and responsiveness.
The ideal supply chain for one set of conditions however, is not ideal for another,
since Conditions keep changing; Supply chain configuration will have to be continually
revised. The result will be the wireless solutions in order to integrate business for both the
local and global trade. The end-to-end solution will help the customer to manage the
business and mobile sales and delivery team enabling them to ensure superior customer
service and product availability without losing control of costs.
The solution also helps the merchant, the customer and the vendor to save the
ever decreasing commodity-resource both time and money by being mobile, whenever
required The solution enables the industry to set up and tightly integrate the customers,
financial accounting, order management, and other enterprise solutions to improve cycle
time by facilitating exchange of critical data, Such as product specifications, and by
streamlining ordering and approval processes, This solution allows you to reduce
purchasing, inventory, and overall management costs.
The final target, for most of business operations, is to reap profit. Thus as far as it has
been established, the logistic of an enterprise is an integrated effort aimed at helping
create customer value at the lowest cost level. At a strategic level, logistic managers
seek to achieve a previously agreed quality of customer service through state-of-the
art operating competency. The challenge is to balance service expectations and cost
expenditure in a manner that achieve business profitability. In the following Figure
the traditional Du-Pont model is revised according to logistic operational perspective.
To
measure
the
logistic
that
affect
its
performance
To have a full understanding of the three efficiency elements, one should not
consider them as isolated parameters without any interaction among each other. Actually,
the improvement of one parameter usually is on the sacrifices of the other two. For
example, if one wants to reduce the cost for transportation by using full truckload, then it
will keep larger volume in stock waiting for large enough shipment quantities. The final
consequences are increased inventory tied up capital and decreased customer service
level with lower shipment frequencies. Thus what we need to achieve is to make a good
balance among these three dimensions and optimize the total result.
The Logistics Players- From 1PL to 5PL As per Morgan Stanleys Logistics is the
part of the supply chain process that plans, implements and controls the efficient,
effective flow and storage of goods, services and related information from the point of
origin to the point of consumption to meet customers requirement.
The Logistics Players- From 1PL to 5PL By Morgan Stanleys The concepts of
3PL (the third party logistics), and 4PL (the fourth party logistics) reflect the evolving
demands of manufacturer essentially to own and handle all logistics functions, such as
trucking and warehousing.
Most small businesses buying and selling in the same location are 1PL. As the
business expands geographically, the manufacturers logistics border grows, a 2PL
provider is generally a commodity capacity provider, such as a trucking company or a
warehouse operator, and a 2PL provides service for a single or a small number of
functions in the supply chain. They face low returns, with high levels of asset intensity
but low barriers of entry. Next comes the distributors, who through a dense network or
legislative protection have achieved higher returns, albeit on a sizeable cost base.
Examples are the express parcel operators that charge premium pricing for timely
delivery, and the postal operators. With the increasing demand for one-stop solutions,
many 2PLs have evolved into 3PLs by adding new logistics capabilities and integrating
their operations. It may or may not involve asset ownership. 3PL is a broader term that is
frequently used to cover businesses in freight forwarding or contract logistics.
It performs all or a large portion of a clients supply chain logistics activities and
transportations service at the lowest cost. 3PL tends to be asset-light with high returns.
The 4PL provider is essentially a logistics integrator or a one-point contact for the
manufacturers logistics outsourcing requirements.
They are responsible for contracting various 2PL and 3PL providers, and for
assembling and managing those end-to-end solutions. The 4PL provider, with its
complete overview of the supply chain as well as strong logistics and IT capabilities, can
also offer high value added advisory services to the manufacturer.
Logistics Management
in such as way that
L
ogistics
managem
ent is the
process
current
lly
managing
the
procurem
ent,
movemen
t
and
storage of
materials,
parts and
finished
inventory
(and
the
on flows)
through
the
organizati
on and its
marketing
channels
are
of
Logistics
Management
(CLM),
controlling
the
and
related
for
the
purpose of conforming to
customer requirements.
related
informati
future
profitability
of
strategica
and
"Logistics
Management is that part
of
Supply
Chain
and
and
reverses
storage
of
goods,
services management,
and
warehousing,
related
handling,
materials
order
informati fulfillment,
logistics
network
on
between inventory
design,
management,
ion
order
procurement, production
meet
customers
'
requireme
nts."
L
ogistics
Managem
ent
activities
typically
include
inbound
and
outbound
transporta
planning
execution
and
strategic,
all
logistics
activities, as
well
integrates
logistics
activities
functions
marketing,
with
as
other
including
sales
technology
Receiving Goods
Collection
Transportation of goods
Transportation
Delivery
Delivery of goods
Customer
Relationship
Some of the value addition that is taking place within the industry is:
1 Pickup and delivery of the package at the customers premises.
2 Buying planes to ensure fastest mode of transport and not being dependent on
passenger airlines.
3 Giving a customer a wide variety of services to choose from an effort to cater to
consumers every demand.
4 Growth of importance of marketing personnel in maintaining relationship with
key account customers and keeping them happy.
Economies of scale This industry are volume driven and thrive on economies of scale.
The infrastructure and technology have to be set up irrespective of the amount of business
if the quality of service has to be world standard. Hence the business becomes profitable
only after a few years when there is a sizeable customer base.
Brand image The brand image of an existing company has been developed over the
years. People would prefer to continue dealing with companies they dealt with before.
This is because they would not necessarily trust some new company to deliver their
parcels safely. The other factor is the relations with govt. agencies (customs, octroi etc.),
which also have to be developed over a period of time.
Limited players the organized and high return segment is dominated by a few major
players which hold more than 90% of the market share.
Weakness
Dependent on economy scenario this industry is highly dependent on the overall
economic scenario. In the mid 80s the industry grew at a rapid pace at 30-35%. This
growth rate was sustained in the 90s. But due to the general slowdown of the world
economy, there was a slowdown in this industry and the growth rate was sluggish at 1015%. But with the revival of the economy and the greater reach of the major players in
this segment, the industry is expected to grow at an increasing rate.
Opportunities
Logistics the courier companies have all identified opportunities to take up integrated
logistics solutions for other companies. This outsourcing would enable manufacturing
companies to concentrate on production and marketing.
By outsourcing inventory management to courier companies, the companies can do
business in a new international market without an initial investment in facilities. This
means lower capital investment at an embryonic stage of the business, thus lowering the
associated risk.
E-commerce The development of e-commerce has given an opportunity to the
companies to enable customers to deal with them on the net.
Value added services The courier companies endeavor to add value to the products of
their customers to differentiate themselves from their competitors.
Backward integration The courier companies now cease to be reliant on others for the
services they need and have integrated backwards.
Threats
Economy slowdown the industry being driven by the general economic scenario there
is always the threat of it being affected by slowdown in the economy.
New technology the companies also need to be constantly in touch with the latest
technology to help them provide the best services possible. Today things like tracking and
tracing is fairly common and has become a norm.
Government Regulation To start operations in any given country, an operator wishing
to use its own aircraft must obtain landing, take off and other rights in that market. In
addition, govt owned competitors in the form of national postal services might pose a
barrier.
Description
Supply
Details
There is a saturation of players in the lower end of the
markets. However, there are few niche players in high
value added segments like logistics management.
Demand
Barriers to entry
Barriers to exit
Bargaining power of
Supplies
Bargaining power of
buyers
Threat from
substitutes
Competition
Aviation Industry
and is estimated
at
about
$55
major
on
ind Deutsche
ustr acquiring
Post
Airborne,
the
y,
greater
divide
larg between
the
est premium
and
play lower-end
er segments.
Blue
to
the
A, premium
afte segment where it
r
has established a
UP stronghold, based
S
on
its
unique
and delivery
Fed capability
Ex. reinforced by its
aviation
system
he and technology.
ind
The
ustr negative
y
economic
th
11
t ofSeptember 2001,
part there has been an
turbine
and
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sec ground
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costs.
Aviation
cost turbine
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prices increased
(WTI
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in
insu February
2003,
US$28.50
in
peaked
at
conflict.
tran The
resultant
the
in
the
hargworld.
To
es, mitigate
the
an
hedge
by
imp m
December
lem 2002.
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in
December
Sur 2002.
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price of US$20
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Description
Began Operations
November, 1983
Headquarters
Mumbai, India
Revenues
4,814
(FY 2004-2005)
Number of Shareholders
(As on 3rd March, 2006)
Domestic Locations
Serviced
International Destinations :
Serviced
Air Support
Ground Support
3,429 vehicles
Network
Number of shipments
Handled
(FY 2004-2005)
No. of computer
Terminals
(As on 15th Dec, 2005)
Technology
Cosmat II ,
TM
SMART ,
TM
ShopTrack ,
TM
PackTrack ,
TM
MobileDart ,
TM
TrackDart ,
TM
MailDart ,
TM
InternetDart ,
TM
ShipDart ,
TM
ImageDart
Schedule a Pick-up.,
SENTOR,
CARESS
SHIELD
People Force
Over 4,000
http://www.bluedart.com
TM
Services
under
E
x
p
r
e
s
s
S
e
r
v
i
c
e
s
32kgs
per
packa
ge.
The
specia
l
benefi
ts
of
this
servic
e are:
1 Deli
Domestic
ver
Priority:
y to
ove
The services
are
r
subject 13,8
to their
80
Terms loca and
Priority,tion The
s in
fastest, Indimost
reliable,a door2 Fre
to-door
delivery
e
service pick
within
India -up
and to
fro
Bangladesh,
m
Nepal you and
r
Bhutan loca for
tion and
documents
3shipments
Rea
small
l-
atio
ti
n on
ship
men
Tr
ts
ac
fro
ki
pick
-up
th
to
ro
deli
ver
4 Reg
th
ulat
ory
ne
Cle
t,
aran
pr
ces
for
vi
all
di
Stat
es
in
Indi
it
take
in
fo
care
of
by
ts.
ur 5 Fre
e
te
Co
a
mp
uter
m
ized
of
Pro
of
sp
of
ec
Deli
ver
ia
y
lis
Dart Apex:
ts,
to
re
to-door
so
lv
for
weighing
fastest,
ur
efficient
re
solution
commercial
ul
at
or
required to undergo
yregulatory
clearances,
re
or require
qspecial
handling.
ui
Dar
re
t
Apex
m
offers
an
en
economical
delivery
shipments
10kgs.
most
delivery
for
the
o the major
p airports of
ti Chennai,
o Bangalore,
n Mumbai,
o Delhi,
f Kolkata
a and
n Hyderabad
Ato all the
ir Dart Apex
p locations
o serviced.
rt One
may
- book space
t for
the
o shipments
- through the
DCustomer
o Service and
o deliver the
r shipments
s to the Blue
e Dart
r Aviation
v Office
at
icthe related
e airport.
fr
Dar
o t Apex also
moffers you a
f to-Airport
u service.
rt One
may
h book
the
e shipments
r at any of
e the
c locations
o serviced for
n this product
o to any of
mthe
major
icairports
almentioned
o above. The
p Consignee
ti would
be
o required to
n collect the
o shipment
f from
the
a Blue
Dart
DAviation
o office at the
o concerned
r- airport.
value-added benefits:
Time-bound Delivery
A fleet of vehicles run to pre-determined schedules to provide committed delivery.
Regulatory Clearances
The team of specialists will provide with the clearance support required to ensure a
smooth delivery.
Pick-up Convenience
One may Contact Blue Dart to schedule a pick-up, and your shipment will be pickedup, transported, cleared through regulatory channels and delivered to the consignee,
while you are able to receive updated information and proof of delivery on demand.
Secure Shipments
All the destinations serviced by Dart Surface line are supported by their own
warehouses, manned by trained professionals to ensure the safety and security of your
shipments.
Economical Tariff
All these benefits are available at charges that support value-pricing
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:
1 A wide market reach
2 Speedy Delivery
Carriage of the Smart Box is supported by an integrated air and surface network to
provide the fastest, most reliable delivery service for packages
Free pick-up
From the location. Contact Blue Dart to schedule a pick-up and supply of Smart Box
Real-time Tracking
Through the net, providing with information on the shipments from pick-up to
delivery. One may also Contact Blue Dart for information on the status of your
shipments.
Regulatory Clearances
For all States in India taken care of by team of specialists, to resolve the regulatory
requirements.
Proof of Delivery
Confirming the date and time of delivery as well as the name of the recipient. One
can also view, download and print copies of Proof of Deliveries and Delivery challans
of Smart Box shipments.
Trouble Free Service
Smart Box provides packaging, a door-to-door, trouble-free delivery service and realtime information on the status of the shipment.
Regional Services
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.
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 upto 500gms.
Rgional Priority: Non Documents (RPDT)
Fast reliable and safe door deliveries for samples and non-commerical shipments.
Currently available between India and Nepal only.
FREIGHT SERVICES
Domestic Airport-to-Airport: Early morning deliveries.
Late cut-offs. Security checked at Blue Dart's warehouses
equipped with x-ray machines. No cooling period
(otherwise mandatory on passenger airlines). Flown by
agreements
with
20
international
airlines.
Currently, Blue Dart has interline agreements signed with 25 international airlines
- Air Canada, Air France, Air India, Air Mauritius, Alitalia, Asiana, British Airways,
Cargolux, Cathay Pacific, China Airlines, 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, Qatar
Airways, Kenya Airways, BMI and Etihad Airways.
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 company-owned 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 deliveries of sensitive equipment or large loads are 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.
International Services:
For international documents and packages. Available to 228 countries worldwide.
International services are subject to the DHL - Terms and Conditions of Carriage, and the
liability terms incorporated.
1 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
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 your Urgent, International Documents & Shipments
Documents and packages will be picked-up from your location, cleared through
customs and delivered to your consignee.
2 Customs Clearance Expertise
Specialists conversant with customs formalities in India as well as in 228 countries
world-wide, and pre-clearance for shipments in transit available for most destinations,
ensure efficient delivery.
Real-time Tracking
Through the net at www.bluedart.com, for information on your shipments at all stages
of transportation
A Cost-effective Option
The door-to-door service eliminates the need to retain a clearing agent and arrange
transportation at destination for delivery to the Consignee.
1 Packaging
DHL has innovated a wide range of unique packaging to protect and secure your
documents and shipments, and enhance the brand value of your products.
DHL offers:
1
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.
You can rely on this international service
Features:
o
o
o
Low flat fee for each kilo over flat fee limit.
largest
private
computer networks in
COSMA scanner
T
II
technology,
,transmitting
automatically
TM
which
updates
to
the
track andconsignments.
Some of the
trace
technologysystem
based business
offerings on our
for
all
site are as
the
follows :
consign
TM
TrackDart
ments.
MailDartTM
Consign MobileDartTM
TM
ments
InternetDart
TM
are
ShopTrack
scanned
from
PackTrackTM
ShipDart
TM
Billing
pick
upSchedule a pickup
Waybill
to every
Generation
transit
Location Finder
point till
Transit Time
Finder
delivery,
using barPrice Finder COSMAT
II
coding
and laserSMART
ImageDart
STAND-ALONE TOOLS
COSMAT II
TM
Blue Dart's own, complete ERP system. Covers all the complex processes of the
organization. Enables real-time tracking of shipments. Provides complete, accurate status
of shipments.
SMART
TM
TM
TM
TM
Shipments can be tracked via e-mail using MailDart. E-mails sent to track@bluedart.com
with the waybill numbers will receive an automated response providing the latest status
of the shipments.
PICKUP-ONLINE
Allows registration of pick-up online for shipments requiring door pick-ups, to provide
LOCATION FINDER
Provides details of the Blue Dart offices closest to the customer. Can be found by city,
street name or pin code.
TRANSIT TIME FINDER
Provides transit-times taken for delivery for both, domestic and international locations
from a point of origin in India. Also provides service updates.
PRICE FINDER
Calculates the shipping costs for domestic and international shipments. It also has an
automated volume-weight calculator.
E-business Solutions
These tools may be efficiently integrated with your systems to provide you with a
convenient and cost-effective solution to the shipping requirements. Blue Dart has been
the only Indian Air Express Company that has invested extensively in Technology
infrastructure to create differentiated delivery capabilities, quality services and
customized solutions for the customer.
Some of the technology-based business offerings are as follows:
InternetDart
TM
Track on-line the status update of the shipments sent over the last 45 days. One
may track by a range of dates, origin, and destination, delivered or undelivered shipments
or service used, on-line. One may generate a series of reports, at a pre-determined
frequency, and sort the results on-line.
For on-line queries and reports: on providing the input of range of pickup dates, origin,
destination and services used, you can check any of the following, on-line:
1 Waybill details and status of all shipments sent during a given period
2 Details of all delivered shipments
3 Status of all undelivered shipments
4 Details of all RTO (Return to Origin) shipments
One may download the tracking and status data. This tool will benefit most medium
to large businesses in managing their tracking processes and integrating them with their
back-end systems. This tool is available only to registered customers of Blue Dart.
ShopTrack
ShopTrack
TM
TM
and enhance the services provided by a portal or any e-business. Research indicated that,
while etailers provided an entire gamut of product services and information, e-shoppers
invariably had to leave the website or use manual means to track their purchases. The result less eyeball time on their pages. Portals that sought to resolve this dilemma were faced with
the unattractive alternative of database maintenance and call centers.
ShopTrack
TM
leave the Portal site to track their purchases. They just need to enter the order-number of
their purchase and the shipping and delivery details are displayed on the same page. The
Portal can decide how to display the data elements and may even store them in their
database. ShopTrack
TM
TM
TM
in logistics, distribution and inventory control. It has been designed to streamline and
integrate shipping processes. PackTrack
TM
enables him to keep track of the entire distribution status of all his customers. It is simple,
easy-to-use and can be easily integrated with any windows-based application or any Java
compliant machine. Queries are fetched immediately from Blue Dart's database,
providing a seamless service for the client and his customers, and bringing the entire
chain within his domain. The client may store this data in his database, providing him
with an effective CRM tool. These e-business tools, the first of their kind in the country,
bring increased efficiencies to most B2C, B2B and C2C transactions.
MobileDart
TM
Mobile Dart
TM
:
- WAP works on any mobile phone or device which supports Wireless
Application Protocol.
Using Mobile Dart-WAP, the customer can check the current status of his shipments online by entering the waybill number. In the case of an undelivered shipment, he can
choose to receive delivery details by email or SMS. The customer can also access the
Location Finder which provides details about all locations service by Blue Dart, based on
a pincode. Information about all the Service product offerings as well as the company is
also available on the WAP site (wap.bluedart.com). This enables the customer to make a
shipping decision on the run.
TM
MobileDart
TM
Ship Dart is a Blue Dart proprietary solution especially created for the convenience of
regular customers. Ship Dart enables user control over the entire shipping and tracking
processes. Ship Dart needs to be installed at the customers premises in order to interface
with their own system for the pre-shipping and post-tracking activities, thereby playing a
major role in bridging the existing gap in any package movement. A set of Master Files
which controls the Ship Dart system has to be downloaded from the site.
ImageDart
TM
Image Dart will enable users of Blue Dart's Apex (Air Package Express) and Surface line
services to download Proof Of Delivery (POD) and Delivery Challans (DC) online, from
the Blue Dart website. The image has complete delivery details including the consignee's
signature and comments and will be made available on Blue Dart's website 48 hours after
delivery of the shipment. With Image Dart, Blue Dart customers will now be able to
realise their collections from their own customers much faster, saving them interest costs
and making their billing and recovery cycle, and supply chain more efficient.
E-commerce Initiatives
supply
chain
E-vision: management,
from,
to
global
shareholders.
connectiv
ity
to
Blue
As a technology
leader in the business of
supply-chain
Dart's
management
present
country,
Blue
and futureExpress
interactiv recognized
e
in
the
Dart
Limited
the
far-
exploring
web-
added
solutions.
To evolved an e-strategy.
This e-strategy
facilitate
deliver
additional
business
distributio them
n
by
access
allowing
to
Blue
and
integratio
n with its
e-
business
locations of Blue
tools. An
Dart as well as
individual
the
solution is
counter
available
closest
for
each
Blue
Dart
located
to
you.
business,
by city, or pin
big
or
small,
of over 13,880
transactin
locations serviced
g off the
in India, Nepal,
internet or
Bangladesh
on
Bhutan or in more
the
or
internet,
than
220
and
countries
and
ranging
territories
from
worldwide.
2 Transit
Time
alone to a
Finder:
Check
fully
integrated
one.
and international
stand-
Shipping
Uses the
following
tools to
shipments,
and
for the
various
services
offered
by Blue Dart to
he
identify
the
lp
yo
your requirements
1 Price Finder: Calculate your shipping costs for your domestic and international
shipments by using our Price Finder. If you are a regular customer in need of
customized pricing.
2 Schedule a pickup on-line from anywhere in the world.
3 Ship Dart
TM
Ltd.
was
created
primarily
support
the
to
growing
Ltd.
In
an
exceeded
enormou breaking
decision
s successcreate
its
of
to
own
U.S.
freighter
which
operations in India.
started
The
with
aoperations
night
were
morning
deliveries.
annual
Shipments
originating
growth
rate
totheir
destinations.
claim
close
60%
path-
its
fleetin 2004.
Blue Dart Express Limited has divested 60% of its shareholding in Blue Dart
Aviation Ltd. on 11th March 2005, and Blue Dart Aviation has since been contracted to
provide dedicated services to Blue Dart Express Limited.
Blue Dart Aviation Ltd. has many firsts to its credit:
1
The first Indian-manufactured main deck loaders at all its 5 on-line stations Chennai, Bangalore, Mumbai, Delhi and Kolkata. The specs were provided by Blue
Dart Aviation, and design and manufacture undertaken by a Coimbatore-based
manufacturer, MAK Control, in a 4-month period at less than 20% of the cost of the
international equivalent.
In collaboration with the Madras Institute of Technology, it has developed the only
Indian software for handling of the Load and Trim Sheet, STAB (System of
Trimming and Balancing), curtailing handling time by 80%. It has also developed
the following software applications, in-house, that have resulted in improved safety
standards, enhanced efficiency in daily operations, better time-management, lower
manpower costs, and cost-savings in operations because of increased fuel
efficiency:
1- SALIM (System for Aircraft Logistics Inventory Management
2- FUSION (Flight Updating, Scheduling, Inquiries and Operational
Notes)
3- SODA (System of Digital Flight Data Recorder Analysis)
4- VINDAS (Voice Integrated Data Analysis System) - integrating the
cockpit voice recorder in real-time with the Digital Flight Data
Recorder.
Its own maintenance capability to clear aircraft through the D-Check level.
Warehouses at all the 6 airports are equipped with X-ray machines, making it the
only private operator capable of accepting freight without the requisite coolingperiod for security.
access to and from the gateways of international airlines, and resulted in returns for
the organization. Given the high operating costs and decreasing yields, this facility
provides international airlines a cost-effective option to restrict their on-line stations
and enhance their marketing possibilities by utilizing the distribution capabilities of
Blue Dart Aviation
A third aircraft was inducted into the network in February 2001, to meet increased
customer demand. A fourth aircraft was acquired in June 2003 to augment capacity and
connect a sixth aviation hub, Hyderabad, and a fifth aircraft has been inducted in
December 2004, to support Blue Dart's future expansion plans.
Blue Dart Aviation Limited,
The only Jet Cargo Aviation Company possessing B737-200 freighters in India,
operating and connecting the metro cities of Chennai, Bangalore, Mumbai, Delhi and
Calcutta.
Profile
SERVICES
Air cargo Movement
Blue Dart is established with a commitment to grow and meet the requirement of
movement of Express and Cargo loads within the country and also support the interline
movement of Cargo. Blue Dart has planned to specialize in domestic Charter to meet the
growing needs of quick and reliable movement of cargo.
Maintenance and Engineering
Blue Dart has established captive consumption, maintenance facilities for servicing,
rectification and repair of B737-200 aircraft including modification. The established
facilities are equipped to undertake D Check, SSID, and CPCP. Service bays for radio,
electrical, wheels & brakes are also established. Blue Dart continuously and
progressively strives to enhance the above capabilities.
Third Party Jobs
Blue Dart has in-built capacity to undertake third party maintenance, repairs,
modification on airframe, including modification of component in service bays. The
above facilities have been availed by various airlines in the course of thirty months from
inception.
Software Development
Blue Dart has developed in - house various packages to meet the requirements; Flight
Updating Scheduling Inquiries and Operational Notes - FUSION, System for Aircraft
Logistics Inventory Management - SALIM, System for DFDR Analysis for Crew
Performance Monitoring - SODA, System of Aircraft Trimming and Balancing - STAB.
The above systems are in use by Blue Dart and can be modified for specific customer
needs.
BLUE DART
Flight Schedule
FLT.
SECTOR
MAA
BLR
ETD
2255
2355
ETA
2340
2355
DAYS OF OPS
1,2,3,4,5
6
BLR
BOM
25
125
200
300
2,3,4,5,6
7
BOM
DEL
245
345
445
545
2,3,4,5,6
7
DEL
CCU
530
630
735
835
2,3,4,5,6
7
CCU
DEL
2230
2330
45
145
1,2,3,4,5
6
DEL
BOM
150
250
350
450
2,3,4,5,6
7
BOM
BLR
435
535
610
710
2,3,4,5,6
7
BLR
MAA
715
815
800
900
2,3,4,5,6
7
MAA
BOM
2250
2350
35
135
1,2,3,4,5
6
BOM
DEL
120
220
320
420
2,3,4,5,6
7
DEL
BLR
405
505
645
745
2,3,4,5,6
7
BLR
DEL
20
120
300
400
2,3,4,5,6
7
DEL
BOM
345
445
545
645
2,3,4,5,6
7
BOM
HYD
630
730
745
845
2,3,4,5,6
7
HYD
MAA
830
930
930
1030
2,3,4,5,6
7
BZ102
BZ201
BZ103
BZ301
Develop logistics
management system
Operate
Implement
Develop logistics
organization
Order
received
and
entered
Station
outbo
und
packa
ge
scan
(sops
)
COS
MAT
Container transported to
inbound Station by air
or road
Hub
o
ut
b
o
u
CO
SM
AT
The following figures shows the model they follow in Karnataka for various operations
ITPL
ULS
PNY
CGM
JNR
Delivered to customer
APT
..
Nth
COSMAT
DART APEX
INBOUND OPERATION
Delivered to customer
COSMAT
..
Nth
DART SURFACE
INBOUND OPERATION
..
Nth
COSMAT
Delivered to customer
Thus the out bound operation happens to be in the evening and the shipment will
be cleared by the night and shipped to the destination by various modes of transportation
and thus will be delivered to the customer with in one day in metros and two days to
other parts of the Karnataka. Thus the operation is carried over night and they are quick
enough to deliver to the customer with high speed
OUTBOUND OPERATION
COSMAT
INTERNATIONAL SERVICES:
In international logistics systems, there is need to determine the best ports of
loading and unloading, and the best border customs points. Another very important
consideration in international logistics systems is that of optimal transfer prices. The
logistics network must be designed in such a way that it takes maximum advantage of tax
differentials and other national factors in arriving at the optimal structure. DHL is
responsible for the International services has it has the strategic alliance with Blue Dart,
the model is shown below:
OUTBOUND OPERATION
COSMA
Container
unloaded at
hub Packages
sorted,
scanned and
reloaded into
containers
destination
Container transported to
Problem Statement
A change in the lifestyle of consumer and increase in competition generate issues
like customer loyalty, pricing and quality of products and services offered taking
prominence. The logistics management for changing business environment is the main
area of consideration in the project.
Data Source
The sources of data are mainly the primary data by obtaining the customer or
industry information by interviewing the personnel. This project solely focuses on the
secondary data source that can be classified on the basis of sources as internal data as
extracted from companies Data Bases.
Data Collection:
Observational Studies
The data is collected by regular observation at Hubs & Service Centers. The
model is designed by involving in the fields and observation done on the various process
in the Hubs and different service centers in Bangalore
Research Type:
Descriptive Research
As the research is based on the objective of evaluating the effectiveness of the logistics
and requires recommendation for improving its efficiency, requirement is to give a
precise model that will remove the flaws in the existing model. This required an in depth
study of current model
Research Limitations:
1 Since this study is company-specific and confined only to Karnataka.
2 Findings of the study and the conclusion are drawn on the basis of observation
and interviews
3 Generation of new hypothetical datasheets was feasible but not revealing. As such
the study needs to be undertaken by generating datasheet under hypothetical
condition.
4 Investment pattern to the implementation of new model cannot be estimated
accurately because of lack of data and analysis.
If yes
If no
Domestic Priority
INBOUND OPERATION
ITPL
ULS
PNY
CGM
JNR
Delivered to customer
APT
..
Nth
Auto scan
DART APEX
INBOUND OPERATION
Delivered to customer
Auto scan
..
Nth
DART SURFACE
INBOUND OPERATION
Container received in inbound Station by
air or road (HUB)
Scanning
..
Nth
Auto scan
Delivered to customer
Packa
ges
are
sorted
and
place
d in
contai
ner in
the
servic
e
center
s
Container
transported
to specified
service
centers by
air or road
Container
unloaded in
service
centers and
packages
are sorted
and
scanned,
loaded into
vans
Packa
g
e
s
t
r
a
n
s
p
o
r
t
e
d
t
o
d
e
s
t
i
n
a
t
i
o
n
a
n
d
d
e
l
i
v
e
r
e
d
Super Tracker
Auto
scan
model is
ready the
d.
Asses next step
sment
being
A
assessment co model.
s the
Blue Dart has the efficient model with them but they are delayed due to
Blue Dart is delayed in entering the data as they make use of the bar code
Blue Dart is scanning for two times one is in scan and the other is out scan
Blue Dart is not much dedicated front end employees and they are not
properly trained.
5
Hub is too away from the service centers which in turn makes shipments
Blue Dart have traditional logistics model and they should try to adopt
new technology which gives them better result and increase efficiency in delivery.
8
Blue Dart is delivering the shipments to metro cities with in one day but to
other parts of Karnataka they take two days to deliver the goods.
9
10
Blue Dart have quiet efficient 3PL,over night transportation, next day
delivery
11
Blue Dart has created a good brand in the minds of the customer
12
Blue Dart is utilizing all the 7 Ps of services marketing mix to full extent
13
There is no much alteration done in the model but should adopt new technology to
speed the process with super tracker, auto scan.
RECOMMENDATIONS
Integration of the supply chain has, for many years, been a powerful and
compelling enabler across a wide range of industries. As a result, many of the core supply
chain concepts and principles have been put into practice in a much more effective way.
These concepts include: information sharing, multi-party collaboration, design for supply
chain management, postponement for mass customization, outsourcing and partnerships,
and extended or joint performance measures. The information technology has allowed
companies to come up with highly innovative solutions that accelerated the adoption of
these core supply chain principles. The recommendation can be done in improving the
technology and try to motivate the employees to be efficient and provide proper training
to under stand the customer and increase the sales
The company should examine the mechanism to add value through logistics. The
following chart is quite helpful
NO
Ensure increase in
customer value
Replenishes documents so
as to lower their inventories
Monitor employees
performance
YES
YES
Ensure employees
profitability
with them?
Generic Aspect:
Implementing Effective logistics
For effective logistics, solutions need to be provided in order to improve response
time, shorter sales cycles, order tracking done online, reduce physical inventory,
customized reports which can be done anytime and anywhere, lessen cost for wider
reach, lower transactional cost, and with complete security.
Following are some of the major points which is helpful in creating the Effective
logistics
1
The strategy should be to increase core domestic revenues through cross selling of the
existing and new service to their large and diverse customer base and to employ
technology-driven efficiencies to increase operating profit
1
Many companies have decided to out source the part of their logistics to cut cost and
to improve service.
Blue dart should redesign and operate supply chains for major companies in the India
They should focus on the technology and the management-based solutions for their
customers rather than the more traditional logistics
1
Creating
Information
Visibility
those of its as
all
of
theseexpectations.
and
logistical
Information
collaborative communicationnetworks
in their
Choice of transport
Product charteristics
o Environmental charteristics
o Company charteristics
1 Sharing Benefits
Sharing benefits is an important success factor for many companies. Although there
are a lot of challenges to the implementation, the gains to be realized with the supply
chain outweigh the concerns and hence more and more organizations are moving towards
automating their supply chain. The benefits should be equally shared within supply chain
members; it is not good to sacrifice others benefit for gaining more, and this kind of
relationship will not last long.
The solutions provided by using state of art technology which enable to setup and
tightly integrate the accounting, order management, HR, 3 party logistics providers and
other enterprise solutions to improve cycle times by facilitating exchange of critical data,
by 10 to 15 percent if the virtual logistics model is implemented by all the agencies in its
totality.
The approach for virtual logistics network is comprised of solutions, which are built
on services, which are, in turn, comprised of competencies.
Competencies:
These are the building blocks that enable an organizations service offerings. Typically, a
given competency plays a role in more than one service but, in some instances, a
competency may also be a service in its own right.
Services:
Services are the market needs. These are the comprehensive capabilities that customers
want and understand. Shipper includes third party logistics providers, freight forwarders,
demand aggregators and any party who needs to ship goods. Carrier represents truck load
carriers, less than truck load carriers, intercontinental carriers/ocean liners, small package
carriers, cargo airlines, and rail.
Fig: Markets Services Competencies Solution Framework for Virtual Logistics Network
E- Market makers
Suppliers, Distributors
Virtual
logistics
Application
services
Info-mediary
Transportation providers
Shipment & capacity brokers
3 party logistics providers
Dynamic
Trade
Ware house
integration
Demand and
capacity agg
Fulfillment
management
Logistics
Management
Billing
Claims
integration
&payments
Network
design
Notified
Shipment
service
tracking
Exchanges
optimization
Electronics
Tracking
Strategic
sourcing
Matching
Auctions
Yield m/g
Interaction m/g
Virtual Logistics:
Revenue m/g
Campaign m/g
Import/
export
integration
Transportation
e-market
Contract
generation
EFT
billing
Customer value
analysis
Core integration
This solution is intended for organization that is willing to have a third party manage their
entire transportation, logistics and fulfillment needs. The primary customers for this
organization are the ones who desire to focus on their core competencies and let the
expert handle the rest.
Conclusions:
The virtual logistics network framework addresses services in the areas such as asset
management, logistics productivity, global reach, inventory chain optimization,
distribution management, reverse logistics, warehouse management, transport capacity
matching, transport brokerage and real time interface with federal agencies for speedy
document clearance. The brokers/agents could make use of this portal and in turn advice
their clients i.e. individual truck owners/operators to increase the utilization of trucks at
least in the return trips. In addition, if all the check posts are linked with concerned
government agencies the delay could be considerably reduced. These processes in turn
increase the productivity of the truck and enhance the profitability of operators.
MATERIAL HANDLING
In the last several years materials handling has become a new, complex, rapidly
evolving science. A huge range of new techniques, devices and machines has been
introduced and different methods have been developed for handling different products.
Any type of goods movement that is performed more than a few times per hour is worth
mechanizing.
Trolleys:
Hand trolleys are relatively small and slow so they are really only efficient with small
volumes over short distances. Motorized trolleys like tow trains, conveyor towed trolleys
and automated guided vehicles can carry multiple unit loads over long distance with a
relatively low labour costs. Various trolleys are:
1 Manual trolleys
2 Roll pallets
3 Motorized trolleys
4 Toe trains
5 Driverless trolleys
Forklift trucks
The main advantage of this machine is that, as well as transporting material, they can
load and unload other vehicles and lift pallet loads up high for storage. Major types of
trucks are;
6 Straddle truck
7 Reach truck
Counterbalanced truck
Conveyors
Conveyors excel at straightforward transportation because they eliminate rehandling
before and after each function. These days they can also be loaded and unloaded
automatically. They have the advantage of being able to take away a carton, a work tote
or a unit load as it becomes available. No extra labour is needed.
Conveyors of various types
1 Belts, Rollers, Wheels, Chains.