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A REPORT

ON
AN APPROACH TOWARDS EFFECTIVENESS &
EFFICIENCY OF LOGISTICS MANAGEMENT
AT

BANGALORE

Submitted in partial fulfillment of the requirements


Of the MBA Degree Course of Bangalore University
Submitted By

M. M. PRADEEP
04XQCM6066

Under the Guidance and Supervision


Of

Dr. N. S. Viswanath

Kalappa B.C

Resident Director Sr. Branch Manager


BVB-Marshall MBA Program
Blue Dart, Bangalore

M.P.BIRLA INSTITUTE OF MANAGEMENT


Associate Bharatiya Vidya Bhavan

# 43, Race Course Road


Bangalore-560001
2004 2006

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

This is to certify that this report is the result of project undergone by


Mr. Pradeep M M bearing the Register no: 04XQCM6066 at BLUE
DART, Bangalore, under my guidance and supervision. This has not formed
a basis for the award of any Degree/Diploma for any University.

N.
S.
Vis
wan
ath

Place: Bangalore
Date :

D
r
.

PRINCIPALS CERTIFICATE

This is to certify that this report is the result of project undergone by


Mr. Pradeep M M bearing the Register no: 04XQCM606 at BLUE DART,
Bangalore, under the guidance and supervision of Dr. N. S. Viswanath. this
has not formed a basis for the award of any Degree/Diploma of any
University.

Place: Bangalore Dr. Nagesh S Malavalli


Date :

(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

- Supply Chain Management


- Logistics
-

Logistics Management

INDUSTRY SCENARIO

9 - 15

- Introduction

SWOT Analysis

Aviation Industry

COMPANY PROFILE
-

Introduction

Blue Dart Overview

Blue Dart Services

Blue dart Technology

E-commerce Initiatives

16 - 44

- Blue Dart Aviation Ltd

METHODOLOGY
-

Background

Review of Literature

45 - 57

- Existing Logistic model in Blue Dart


-

Problem statement

- Objectives of the study

- Limitations of the study


6

ANALYSIS AND SUGGESTED MODEL


-

Data analysis

Suggested Model

Major Findings

58 - 64

CONCLUSIONS AND RECOMMENDATIONS

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

effectiveness, one must be aware of the


elements

that

affect

its

performance

profitability. According to Lumsden, the


logistic efficiency can be described in terms
of service, cost and tied up capital. Their
relations with yielding a profit return can
be illustrated by the following Figure

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

its value adding is based on information and knowledge versus a non-differentiated

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

maximized through the


cost-effective fulfillment
of orders.
According to the
Council

of

Logistics

Management

(CLM),

logistics is the process of


planning, implementing,
and

controlling

the

efficient effective flow


and storage of goods,
services,

and

related

information from point


of origin to point of
consumption

for

the

purpose of conforming to
customer requirements.

related
informati

future

profitability

of
strategica

and

"Logistics
Management is that part
of

Supply

Chain

Management that plans,


implements, and controls
the efficient, effective
forward
flow

and

and

reverses

storage

of

goods,

tion management, fleet

services management,
and

warehousing,

related

handling,

materials
order

informati fulfillment,

logistics

network

on

between inventory

design,
management,

the pointsupply/demand planning,


of originand management of third
theparty logistics services
point ofproviders. To varying
consumpt degrees, the logistics
and

infunction also includes


and
tosourcing

ion
order

procurement, production

meet
customers

planning and scheduling,


packaging and assembly,

'
requireme
nts."

and customer service. It


is involved in all levels
of

L
ogistics
Managem
ent
activities
typically
include
inbound
and
outbound
transporta

planning

execution

and
strategic,

operational and tactical.


Logistics Management is
an integrating function,
which coordinates and
optimizes

all

logistics

activities, as

well

integrates

logistics

activities
functions
marketing,

with

as

other

including
sales

manufact finance and information


uring,

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.

Drivers of Courier Industry


Today international trade is moving at a pace never anticipated when they first started
the business. The express distribution industry has been able to meet the corresponding
growth in customer demand because of a unique combination of factors.
1 A huge transport infrastructure now exists to move goods speedily
2 There has been a tremendous liberalization of the barriers to trade, encouraged by
economic groupings around the world.
3 The expansion in new technology has helped bring each component of the supply
chain together from order entry, to manufacturing, assembly and distribution.

SWOT Analysis of Industry


Strengths:
1

Non Regulated Industry There are no licenses needed to enter this


industry.

High Entry Barriers as courier companies have to make a lot of


investment in establishing a network and for it the requisite infrastructure and
technology has to be set up. This discourages new entrants to a large extent. For
instance the companies also require a lot of trained manpower within their fold.

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.

Porters five force model


Sl.No.

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

The demand is expected to grow at a CAGR of 8% over


the next few years.

Barriers to entry

Economies of scale, very high service differentiation,


high brand identity, huge capital requirements,
infrastructure, technology, well entrenched distribution
networks discourage new entrant to come in the market.

Barriers to exit

Relatively high, as courier industry thrives on the


technology and transportation infrastructure. Initial
investments are very high.

Bargaining power of
Supplies

Relatively low due to less switching cost, less suppliers


threat of forward integration.

Bargaining power of

High, as customers has choices to select the courier for

buyers

its dispatches. Also price competition among the courier


players gives him wide options

Threat from
substitutes

Competition

The substitutes are available in the form of different


mode of transportation viz, road, train.
High, the industry is very fragmented with the presence
of big players like Fedex, UPS, DHL etc and numerous
regional organized as well as unorganized players.

Aviation Industry
and is estimated
at

about

$55

loba billion. The past


lly, year witnessed
the growing
exp consolidation
ress globally, with the
of
ind emergence
ustr four
y isplayers

major

part worldwide. One


of of the global
the majors currently
the
avia controlling
tion industry would
ind be Deutsche Post,
ustr the owner of
y DHL. DHL, with
largest
and the
a international
is
sub coverage,
set making inroads
the
US
of into
the domestic market.
air There has been
carg substantial press
coverage

on

ind Deutsche
ustr acquiring

Post

Airborne,

the

y,

thir nerships and a


d

greater

divide

larg between

the

est premium

and

play lower-end
er segments.

Blue

in Dart has clearly


the staked out its sole
US claim

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

has impacts of the


und past year have
ergohad a particularly
ne acrippling effect
real on the global
ign aviation industry.
men Post

th

11

t ofSeptember 2001,
part there has been an

incr in the price of


ease aviation
in fuel

turbine

and

local

sec ground
urit transportation
y

costs.

Aviation

cost turbine
s,

fuel

prices increased

dou to US$ 35.98 per


blin barrel

(WTI

g ofindex)

in

insu February

2003,

ranc from a level of


e

US$28.50

in

pre September, 2002


miu and

peaked

at

m near US$ 40 per


on barrel during the
air Iraqi

conflict.

tran The

resultant

spor Indian ATF costs,


tati after Central and
on, State levies, are
war amongst
surc highest

the
in

the

hargworld.

To

es, mitigate

the

and increase in fuel


the cost, Blue Dart
esca introduced
lati equitable
on solution

an
hedge
by

imp m

December

lem 2002.

`Fuel

enti Surcharge at the


ng arate of 5% was
`Fu made applicable
el

in

December

Sur 2002.

As

per

char `Fuel Surcharge


ge mechanism,

the

mec surcharge would


hani slide downwards
sm, by 2.5% when
bas the price of oil
ed declined

to

on US$24 per barrel,


the and

removed

WT completely at a
I

price of US$20

Ind per

barrel.

ex However, should
of the price of oil
the further
pre to

escalate

US$33

vio barrel,

per
the

us surcharge would
mo increase

by

nth, further 2.5%, and


wit would
h

subsequently

effe increase by 2.5%


ct

for every US$4

fro increase

per

barr rating costs have


el

also risen sharply

ther in the short term


eaft due to escalating
er. costs of diesel
Gro and

petrol

und supplies to the


ope market.

Description

South Asia's premier courier and integrated air


Express Package Distribution Company

Began Operations

November, 1983

Headquarters

Mumbai, India

Revenues

Rs. 4,621 million

4,814

Over 13,880 locations

(FY 2004-2005)
Number of Shareholders
(As on 3rd March, 2006)
Domestic Locations
Serviced

International Destinations :
Serviced

More than 220 countries and territories


Worldwide through sales alliance with DHL

Air Support

5 Boeing 737 freighters

Ground Support

3,429 vehicles

Network

Domestic hubs: Mumbai, Delhi, Bangalore,


Chennai, Erode, Hyderabad, Kolkata, Ahmedabad
and Guwahati
International Outbound Gateways:
Mumbai, Delhi and Chennai to Dubai, London,
Frankfurt, Bahrain, Hong Kong and Singapore.

Number of shipments
Handled
(FY 2004-2005)

International: 0.53 million


Domestic: 42.02 million

No. of computer
Terminals
(As on 15th Dec, 2005)

Over 2,240 E-mail at 114 locations accessed by


over 2,450 users

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

World Wide Web


Address

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

Dart Apex is a door-

re

to-door

so

service within India

lv

for

weighing

And above. It is the

fastest,

ur

efficient

re

solution

commercial

ul

shipments that are

at

time-bound and are

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.

Dart Apex offers the following benefits:


1 Wide Market Reach
2 Single-window Clearance
Shipments are picked-up from your location, transported to their destination,
processed through the regulatory channels and delivered to the consignee.
Real-time Information
On the status of the ship ment at all stages of transportation, through the advanced
tracking system. One may Track the shipment through the net, or Contact Blue Dart.
1 Time-Definite Delivery
2 Free Proof of Delivery on Demand
One may use Tracking or Contact Blue Dart for information on date and time
of delivery as well as name of recipient. One can also view, download and print
copies of Proof of Deliveries and Delivery challans of Dart Apex shipments.
Speed
Backed by the air network night operations focused on carriage on freight,
shipments are uplifted the same night for early morning deliveries at major metros.
Flexibility
Dart Apex offers options of Airport-to-Door and Door-to-Airport delivery
services, apart from a Door-to-Door service
Economical
Dart Apex offers a cost-effective logistics solution with time-bound deliveries
that provide cost-savings in warehousing and inventory. Price Finder will provide
with the applicable tariff for your shipment.
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
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

Blue Dart Aviation between the 5 metro airports of

Chennai, Bangalore, Mumbai, Delhi and Kolkata. The advantages of an airport-to-airport


service are:
No 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.
1 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.
Interline:
Interline

agreements

with

20

international

airlines.

Facilitates transshipment of customs-bonded freight from


these airlines' gateways, enhancing marketing possibilities
in offline cities within India.
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.
The bonded warehouses with customs personnel facilitate efficient transshipment
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 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

reliable, time-definite, 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 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

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.
You can rely on this international service
Features:
o

Priority financial industry services. o

State of the art information systems. o


Specialized fast handling facilities.
o

90% of international banks' first choice.

o
o

Door to door one company control.


World class packaging.

1 Worldwide Package Express (WPX) :


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:
15 Door to door service.
15 Simple documentation.
15 Packaging range.
15 Fastest for international express packages.
15 State of the art information systems.
15 Global customs clearance leader.
15 Global market leader for international express packages.
2 The Jumbo Box & Jumbo Junior Box :
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:
15 Unique easy to assemble boxes.
o

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

Blue Dart Technology


customer.
B
lue Dart
has been

They have one of


the

largest

private

computer networks in

India, with over 1,750


the only
computer
terminals
Indian
connected by dedicated
Air
leased lines, VSATs and
Express
Microwave links. Their
Compan
E-mail is accessed at 89
y that has
locations daily by over
invested
2,070 users. They also
extensive
employ wireless, mobile
ly
in
telephones, radio sets
Technolo
and pagers extensively
gy
to
enhance
the
infrastruc
communication
speed
ture
to
and connectivity with
create
their troops on the field.
differenti
Their Customer Service
ated
Cell is equipped with
delivery
Automated
Call
capabiliti
Distribution
Systems
es,
(ACDs) to provide quick
quality
response and support to
services
our customers.
and
They are the
customiz
only Indian express
ed
company
to
have
solutions
indigenously developed
for the

COSMA scanner
T

II

technology,

,transmitting
automatically

TM

which

updates
to

the

includes Oracle database. This


enables the customers to
an
real-time,
advanced receive
state-of- complete and accurate
the-art

information about their

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

(Space Management Allocation Reservations and Tracking): India's first indigenous


Cargo Reservations System. Allows real-time space and revenue management on the
aviation network. Space reservations made on SMART ensure that shipments are pickedup, transported and tracked until delivery
SENTOR

TM

(Status Entry Offline for Regional service participants/Remote locations):


An application designed to provide Blue Dart channel partners and Blue Dart offices in
far-flung areas access to information and updates. Enables tracking updates from some of
the remotest corners of the country
WMS (WAREHOUSE MANAGEMENT SYSTEM)
Developed indigenously to global standards. Designed to manage storage, inventory,
maintenance, order fulfillment, generation of reports and all other logistics activities.
Aimed at further integrating the supply chain.
WEB BASED TOOLS
TRACKDART

TM

Is accessible through the internet and provides real-time, simultaneous tracking of


multiple shipments by interfacing with Blue Dart's systems.
MAILDART

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

flexibility and convenience.

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

is an API (Applications Program Interface) designed specifically to support

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

provides an effortless, customized solution. Customers no longer have to

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

is another time and cost-saving tool created to arm Blue Dart's

customers with a competitive edge.


PackTrack
PackTrack

TM

TM

is an API (Applications Program Interface) designed for any client involved

in logistics, distribution and inventory control. It has been designed to streamline and
integrate shipping processes. PackTrack

TM

can be integrated into the client's systems and

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

- SMS works on any mobile phone or device which supports sending

email over SMS (Short Messaging Service).


ShipDart

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

and within the region,


To thereby increasing value
enable

to our customers and

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-

reaching scope of the

technolog internet in 1996, and has


been

exploring

web-

strengths, based solutions to extend


for valuethe range of services
available to its customers

added
solutions.

and integrate them into


its core products. It has

To evolved an e-strategy.
This e-strategy

facilitate

seamless encompasses E-Solutions


integrated to

deliver

additional

transporta process efficiencies to


tion,

business

distributio them
n

by

access

allowing
to

Blue

andDarts e-shipping tools

and
integratio
n with its

simplify the shipping


process:
1 Location Finder:

e-

Find the service

business

locations of Blue

tools. An

Dart as well as

individual

the

solution is

counter

available

closest

for

You may search

each

Blue

Dart
located

to

you.

business,

by city, or pin

big

code to find one

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

the transit times

integrated

for your domestic

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

service that meets

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

: A complete downloadable package for all Shipping and Tracking

needs of frequent, high-volume users and e-shops.


Billing
The Bills and Payments tool enables credit customers to receive invoices online. You may
view your out standings and download and print the invoice. You have the option to pay
on-line, either through internet banking or credit card.
You will receive the following on request:
Invoice
Debit Note

Schedule a pickup (only for registered users)


Online "Schedule-a-pickup" service is designed for added speed, convenience and
flexibility in logging your pickup requirements. Schedule-a-pickup service allows you to
register a pickup online for all services that require a door pickup. This service is
available for locations serviced by Blue Dart. Currently, this service is only available
from Kolkata, Delhi, Mumbai, Bangalore and Chennai - Mondays to Saturdays.

Blue Dart-DHL Relationship


On the 12th September 2002, Blue Dart and DHL signed a Sales Alliance
Agreement which came into effect from the 1st October 2002. The Agreement is for
duration of five years on a principal to principal basis.
Blue Dart chose to ally with DHL as it is the #1 international air express company
in the world, with superior hi-tech on-ground infrastructure, unmatched cross-border
specialization, greater flexibility of its network and the strongest brand recognition in
India and in the world. The coming together of the world's No. 1 international air express
service provider and India's No. 1 domestic express services provider is a logical step in a
win-win relationship to benefit all the parties involved, the customer and the stakeholders
of both organizations. Blue Dart believes that the alliance would bring the DHL
advantage to Blue Dart's customers, resulting in greater customer satisfaction.
DHL is the world's leading express and logistics company offering customers
innovative and customized solutions from a single source. With global expertise in
solutions, express, air and ocean freight and overland transport DHL combines worldwide
coverage with an in-depth understanding of local markets. DHL's harmonized
international network links more than 220 countries and territories worldwide.
DHL continues to be at the forefront of technology and, with more than 150,000
dedicated employees, guarantees fast and reliable services aimed at exceeding customers'
expectations.
Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post World Net. In
addition, the alliance provides both organizations with the flexibility to grow
their individual businesses unhindered. Blue Dart has a unique domestic infrastructure
and is the only domestic cargo airline in the SAARC region, with a fleet of 3 Boeing 737
freighters. Blue Dart operates over 50 night and 8 day missions per week, carrying and
distributing via its aircraft over 600 tones of time-sensitive, express packages each week,
besides an additional 1000 tones per week through other modes. Further, its aircraft are
strategically positioned in Kolkata, Chennai and Bangalore, in close proximity to the
countries of Bangladesh, Sri Lanka and the Maldives. Blue Dart can now offer its
services to any customer, including any multi-national air express operator, who wishes
to avail of quality distribution within the country and the region.

Blue Dart Aviation Ltd


freighters on the 17th
June 1996. Blue Dart
Aviation

Ltd.

was

created

primarily

support

the

to

growing

demands of Blue Dart


Express
B
lue Dart
Aviation

Ltd.

In

an

express industry where


growth, year over year,
consistently

exceeded

35%, the management


Ltd. was
viewed the delivery
incorpora
capabilities
of
the
ted
in
domestic
airlines
May
inadequate
and
a
1994 as a
limitation
to
the
100%
explosive growth of air
subsidiar
express.
y of Blue
The
restricted
Dart
day
flights
and
Express
capacities oriented to
Limited,
passenger requirements
and
were not consonant with
launched
the demands of the
its
express market, which is
operation
committed to morning
s with a
deliveries that rely on
fleet of 2
guaranteed space and
Boeing
late night operations.
737-200
Taking a cue from the

enormou breaking

decision

s successcreate

its

of

to
own

theinfrastructure and buy its

U.S.

own aircraft. It set up the

express first and, till date, only


industry, domestic

freighter

which

operations in India.

started

The

with

aoperations

night
were

4% sharedesigned to meet the


in 1977,specific needs of the
averaged business community as
a

they focused on late

compoun night cut-offs and early


ded

morning

deliveries.

annual

Shipments

originating

growth

from a city at the end of

rate

ofthe business day could

25% andarrive before the start of


progresse the next business day at
d

totheir

destinations.

claim

Customers could now

close

torely on air capacity that


ofwas focused to service

60%

the U.S.business needs and not


market, passenger
travel
Blue Dartschedules. Demand for
Express express package services
Ltd.
surged, spurring capacity
made

aaddition and Blue Dart

path-

added a fifth aircraft to

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.

Bonded warehouses with customs personnel to enable transshipment of cargo


within India. Established at substantial initial investment to the company, this
facility has enabled distribution of imports within the country, has provided exports

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

Blue Dart, a Public Company registered


under the Indian Companies Act, 1956 situated
at Chennai, India, operates B737-200 freighter
version modified aircraft. Blue Dart operates the
aircraft at night ex - Chennai and Calcutta
connecting enroute Bangalore, Bombay and Delhi for overnight next day delivery of
Express and Cargo loads.
Blue Dart has in-house Engineering, Quality Control, Ground Handling, Security
facilities to meet the business of carriage of Express and Cargo loads on the above
sectors. Blue Dart is the only jet cargo airline in India who offer various services
including Air Cargo Movement (Charters), Engineering, Software Development, Aviation
Projects and Flight Handling Services.

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.

Aviation Project Consultancy


Blue Dart offers aviation project consultancy relating to Flight Operations, Training,
Aircraft Maintenance, Quality Control, including set up of an aviation operation in India
and has a dedicated team of experienced professionals to meet customer requirements.
Flight Handling
Blue Dart possesses trained personnel and equipment including main deck loaders, pallet
movement trolleys, and pallet builds up facilities, X-ray screening and security facilities,
suitable for B727/ 737 aircraft. Blue Dart can provide services to customers at Chennai,
Bangalore, Bombay, Delhi and Calcutta
Maintenance Services
Blue Dart can provide Engineering Services including C and D checks, modifications
including STCs and Corrosion Prevention and Control Programmed, Structural
Inspection. Besides scheduled checks specific services for work on engines, airframes,
avionics, sheet metal, painting, structural repairs, and heavy maintenance services can
provide at most competitive rates. Even though Blue Dart does not possess the Hangar,
we can make suitable arrangements at reasonable rentals.
ENGINEERING MANPOWER
The in-house team of Engineers is led by the Chief Engineering Manager credited with
20 C checks, 12 D Checks (Check II), duly assisted by experienced licensed
engineers and technicians capable of NDT, Boroscope inspection, structural inspection
and others, besides modifications such as TCAS, MODE "S" SB 1080 etc.
QUALITY CONTROL
Blue Dart further has Quality Control Department, to meet the QC requirements of the
customer.

EQUIPMENT & TOOLS


Blue Dart possesses complete range of tools, test equipment, ground support
equipment and general purpose tools including specific test equipment and nondestructive testing equipment for B737-200 maintenance and D Checks as also engine
change equipment.
INVENTORY
Blue Dart possesses adequate Inventory for B737-200 spares (in excess of 7000
line items) to meet Customer requirements arising out of Maintenance orders. Blue Dart
has long term established relationships with overseas reputed suppliers from USA to meet
urgent maintenance requirements.
LOCAL REGULATORY (DGCA) APPROVALS
Blue Dart has approval for servicing B737-200 aircraft, battery shop, brake
assembly shop, wheel shop, NDT shop, SSFDR/CVR Readout, VHF Tx Rx shop,
Electrical repair shop, pipeline fabrication shop, sheet metal shop. Blue Dart has approval
for servicing B727-200 wheel and brake assemblies.
THIRD PARTY MAINTENANCE ASSIGNMENTS
Blue Dart has successfully completed various jobs on Third Party aircraft of
customers like PLM, GECAS, AER LINGUS, Sahara India, and Lufthansa Cargo. The
assignments successfully completed for the above parties include engine change and trim
run, fitment of major components like undercarriage flaps, DGCA callouts, retrieval after
prolong grounding, flight release certification, C of A renewal, Export C of A, Nondestructive testing on aircraft, overhaul of brakes, wheels etc. Blue Dart can arrange
customer representative review of our facilities i.e., tools, equipment and stores on
request.

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

Note: 1 = Mon, 2 = Tue, 3 = Wed, 4 = Thur, 5 = Fri, 6 = Sat,7= Sun

Develop costs for the


proposed system

Develop logistics
management system

Operate

Model & simulate the


logistics network

Implement

Develop logistics
organization

LOGISTIC MODEL FOLLOWED BY BLUE DART (Operations)

Shipper gets package ready and calls


for pick up

Courier receives order and arrives


at shipper
A courier boy picks up package

Order
received
and
entered

Carrier transport to outbound stations


Package sorted, scanned and placed
in container
Container transported to hub by air or
road
Container unloaded at hub

Packages sorted, scanned and


reloaded Into containers

Station
outbo
und
packa
ge
scan
(sops
)
COS
MAT

Container transported to
inbound Station by air
or road

Container unloaded and packages


are sorted and scanned

Packages sorted, scanned and loaded


into vans

Hub
o
ut
b
o
u

nd package scan (hops)


Station
inbound
package
Scan (sips)

Packages transported to destination,


scanned and delivered

CO
SM
AT

CURRENT MODEL EXISTING WITH IN KARNATAKA


Blue Dart offers the country's most comprehensive communications technology
and customer software to support critical supply-chain distribution demands. Blue dart
mainly has two operations
INBOUND OPERATION:
The inbound operation starts with receiving the packages or the goods from the
out bound station and comes in to HUB and in hub the Dart apex and the Dart surface are
handled by the Blue Dart Aviation dept. Dart apex and the Dart surface are scanned and
by the Blue Dart Aviation dept.
Dart Apex is reaching directly to the specified destination any where in Karnataka
through road ways or air ways and will reach the respective destination and gets delivered
by the Blue Dart Aviation dept
Dart surface is specifically through road ways and from hub it goes to the warehouses
and then it routed according to the specified destination through vans or trains or by
buses by the Blue Dart Aviation dept through out Karnataka
Domestic Priority (DP) are handled by the Blue Dart express and Blue Dart Aviation
dept will scan it (x-ray) and handle the shipment to Blue Dart express then the Blue Dart
express will further scan each and every document (i.e. in scan and out scan) and then
segregate it according to the route and are put in to the canvas bag according to the
destination and through vans are delivered to the various service centers in Bangalore and
to other parts of Karnataka.
Thus the inbound operation in Blue Dart is carried out at the fast phase. Blue Dart
Aviation dept will clear all the shipment with in 45 -50 min after the shipment is arrived
and they load the shipments in to the service centers. Blue Dart express is responsible for
the Domestic Priority (DP) and they in scan it and out scan it and then load it to the vans
and sends to destination and again they in scan it and out scan it and delivery boys deliver
the goods to the end customer thus the whole process is carried out in the inbound
operations in the Blue Dart

The following figures shows the model they follow in Karnataka for various operations

INBOUND OPERATIONS IN DOMESTIC SERVICES


Domestic Priority
INBOUND OPERATION

Container received in inbound Station by


air or road (HUB)

Container unloaded and packages are


sorted and scanned (x-ray scan)
Packages transported to various service
centers (Domestic Priority)

ITPL

ULS

PNY

CGM

JNR

Container and packages are sorted and scanned,


loaded into vans or to motor cycle

Packages transported to destination specified

Delivered to customer

APT

..

Nth

COSMAT

DART APEX

INBOUND OPERATION

Container received in inbound Station


by air or road (HUB)

Container unloaded and packages are


sorted and scanned
Packages transported directly from HUB
to destination (Dart Apex) via road/air

Container and packages are sorted and


scanned, loaded into vans

Delivered to customer

COSMAT

..

Nth

DART SURFACE

INBOUND OPERATION

Container received in inbound Station by


air or road (HUB)

Container unloaded and packages are


sorted and scanned
Packages transported directly from HUB to
service centers (Dart Surface) via road/air

Transported to ware houses and then


to different service centers

..

Container and packages are sorted and


scanned, loaded into vans

Packages transported to destination

Nth

COSMAT

Delivered to customer

OUT BOUND OPERATION:


In the outbound operation starts with the carrier receiving the order and arrives at
the shipper and than take the shipment to the respective service center. Than they will in
scan the document and further they segregate the shipment and out scan the shipment,
than load it to the hub. Again in the hub it is scanned (x-ray) and further loaded to the
destination.
Dart Apex is reaching directly picked up through road ways or air ways and will
reach the hub and gets scanned, than to the respective destination and gets delivered by
the Blue Dart Aviation dept
Dart surface is specifically through road ways and from the pick up point, it directly
goes to the warehouses and then it is transferred to the hub for the routing according to
the specified destination through vans or trains or by buses by the Blue Dart Aviation dept
through out Karnataka
Domestic Priority (DP) are handled by the Blue Dart express .The Blue Dart express
will first in scan the document and than out scan each and every document and then
segregate it according to the route and are put in to the canvas bag according to the
destination and through vans are delivered to the hub and then it is routed accordingly by
specified destination

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 OPERATIONS IN DOMESTIC SERVICES

OUTBOUND OPERATION

Courier receives order and arrives at shipper

Carrier transport to outbound service centers

Package sorted, scanned and placed in container


In the service centers

COSMAT

Container transported to HUB by road through


vans
Container unloaded at hub Packages sorted,
scanned and reloaded into containers

Container transported to specified service centers


by air or road
COSMAT
Container unloaded in service centers and
packages are sorted and scanned, loaded into vans

Packages transported to destination and


delivered

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 IN INTERNATIONAL SERVICES

OUTBOUND OPERATION

Courier receives order and arrives at shipper

Package sorted, scanned and placed in container


In the service centers

Package sorted, scanned and placed in container


In the service centers
transporte
d
to
destinatio
Container transported to HUB by road
n
and
through vans
delivered

Then taken over by DHL and Packages are

COSMA

Container
unloaded at
hub Packages
sorted,
scanned and
reloaded into
containers

destination
Container transported to

by air till a center in India

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.

Objectives of the study


1 To give suggestions to improve effectiveness and efficiency of logistics
management at Blue Dart.
2 Optimize the time taken to reach the destination in the Route.
3 Maximize the number of delivery points for sharing the load.

Purpose of the Study


15 To Evaluate the effectiveness/efficiency of logistics at Blue Dart from HUB or
Clearing point and Forwarding to end customers and to recommend methods of
improving its efficiency.
o

To make analysis and recommend on logistics management

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

The required details:


1 Information from the operations Department about the existing process followed
and the time associated with the existing process.
2 Logistics department provided information on pricing, customer database, service
centers, warehouses, means of transportation means etc.
3 Information from the service centre with respect to space requirements, routing,
delivery points and timing detail.
4 Information required being collected from Finance Department for knowing the
Investment pattern.
5 And on the basis of the collected information, inferences were drawn explaining
the effect of suggested logistic model.

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.

Collect the data

Compare and check


economically feasible

If not for Individual, check for


combination feasible

Spilt and group in terms


of services

Estimate the number


required for transportation

If yes

Estimate the time required


for the each service

Estimate the time required to


reach the hub

Accept the model if


feasible

If no

Revise the mod


to desired level

SUGGESTED MODEL FOR OPERATIONS IN BLUE DART


Model for the Inbound Operations

Domestic Priority
INBOUND OPERATION

Container received in inbound Station by


air or road (HUB)

Container unloaded and packages are


sorted and scanned (x-ray scan)
Packages transported to various service
centers (Domestic Priority)

ITPL

ULS

PNY

CGM

JNR

Container and packages are sorted and scanned,


loaded into vans or to motor cycle

Packages transported to destination specified

Delivered to customer

APT

..

Nth

Auto scan

DART APEX

INBOUND OPERATION

Container received in inbound Station by


air or road (HUB)

Container unloaded and packages are


sorted and scanned

Packages transported directly from HUB to


service centers (Dart Apex) via road/air

Container and packages are sorted and


scanned, loaded into vans

Delivered to customer

Auto scan

..

Nth

DART SURFACE

INBOUND OPERATION
Container received in inbound Station by
air or road (HUB)

Container unloaded and packages are


sorted and scanned

Packages transported directly from HUB to


service centers (Dart Surface) via road/air

Transported to ware houses and then to


different service centers

Scanning

..

Container and packages are sorted and


scanned, loaded into vans

Packages transported to destination

Nth

Auto scan

Delivered to customer

Model for Out Bound Operation


Container
transported
to HUB by
OU road
TBO through
UN
D vans or
OPE other means
RAT
ION
Container
unloaded at
hub
Courier
Packages
receives
sorted,
order
and
scanned and
arrives
at
reloaded
shipper and
into
the Package
containers
is
scanned
and transport(x-ray)
to
service
centers

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

, uld indicate the


w superiority of
hi this model over
ch the previous

A
assessment co model.
s the

MAJOR FINDINGS OF PROJECT


The major findings in Blue Dart are pointed out as follows:
1

Blue Dart has the efficient model with them but they are delayed due to

the inefficient use of technology.


2

Blue Dart is delayed in entering the data as they make use of the bar code

scanner to scan each and every document.


3

Blue Dart is scanning for two times one is in scan and the other is out scan

which will take more time.


4

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

to be delivered gets delayed.


6

Blue Dart has lower number of service centers.

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

Blue Dart is not focusing much on the late delivery

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

Blue Dart provides taking orders over telephone, picking up packages at

the shippers location, tracking the shipments etc.

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

Under stand the


customer needs

NO

Ensure increase in
customer value

Monitor the inflow


and out flow

Replenishes documents so
as to lower their inventories

Are you networked


with them?

Monitor employees
performance

YES

YES

Ensure employees
profitability

Are you net

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

Maintain leader ship position in core domestic business

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

Establish strategic partnerships and strategic acquisition

It is important to establish strategic partnerships with other companies for a


successful supply chain. They have to make strategic acquisition and enter into global
alliance that can
1 Complement core business
2 Build global brand
3 Lower the costs
4 expand geographic presence and managerial expertise
1

Increase customer responsiveness

To remain competitive, firms focus on improved supply chain efforts to Creating


Collaboration and Trust in the Supply Chain There are challenges in managing logistics.
The problem that greatly hinders the implementation is the relationship between customer
and the employees

Developing New Technology and the Solution

When developing a logistics, it should begin by evaluating how the links in a


Supply chain fit together. Logistics management does not so much require the
employment of a specific technology or solution as it demands an understanding of the
business processes that must work together. Information technology has long been a
major factor, new innovation generated day by day with new possibilities provided. Ebusiness, or the Internet computing model, such as the simulation tools which has been
developed in have now emerged as perhaps the most enabling integration tools. Because
opening, standards-based and virtually ubiquitous, businesses can gain global visibility
across their extended network of trading partners and help they respond quickly to
changing business conditions such as customer demand and resource availability.
1

Provide comprehensive logistics and financial solutions

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

More business- to-business (B2B) solutions


develop more e- and provide more in the
Blue dart should continue to solutions to
business tools
whole chain
address customers need
also within their customers'evaluated and updated or
1

Creating
Information
Visibility

those of its as

well).even overhauled to meet

customers Processes withinefficiency

Supply chain integrationand

all

of

theseexpectations.

must be accomplished notemployers organizations


only within one enterprise but(and often must

and

logistical
Information

visibility will help companys


beto include more dynamic,

collaborative communicationnetworks

in their

offerings, giving birth to collaborative commerce and helping to improve communication


beyond the transactional supply chain.
1 Use of Information Technology yields the following
2 Prevents Inventory Buildup
3 Customize the logistics according to customer segments need
4 Service the customers according to their needs
5 Provides fast delivery time
1

Choice of transport

Transport selection should follow the following steps


1 Identify those factors affecting the choice transport selection
2 Categorize the significant factors and identify potential risks
3 Determine the distribution network in terms of number of service centers and the
size
4 Apply matrix analysis to select the most appropriate transport method
5 Measure operational success
Thus factors affecting the choice of transport selection are
o Customer charteristics
o

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.

EFFECTIVE LOGISTICS MANAGEMENT


The effective logistics management involves providing solutions to specific
industries using latest technologies at various segments of the supply chain. It also
involves the strategies in logistics to provide for better implementation of technology. 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.
In order to provide with the above solutions for the challenges faced, the solution
provider has to analyze and design supply chains for the static conditions, forecast
demand, current costs, etc. The ideal supply chain for one set of conditions is almost
surely not ideal for another. As conditions are certain to change, hence supply chain
should be continuously be revised. End-to-end solutions are to be provided to help
manage the business and mobile sales and delivery team enabling and ensuring superior
customer service and product availability without losing control of costs.

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,

such as product specifications, forecasts and by streamlining ordering and approval


processes, reduce inventory and overall management costs.
The company can follow the following cardinal laws of logistics:
1 Home operations The functional aspects of companys logistics have to be very
efficient than those of its competitors.
2 Channel companys resources according to the configurations of the delivery
system.
3 Serve the end user.
4 Attack the Inventories by linking the logistics Management to financials pay-offs
in other parts of value chain
5 Apply vertical solutions Strategic logistics will look beyond its own parish to
check for optimization at the other nodes on the companys value chain.
6 The company should focus on Reverse Logistics
7 Virtual integrated logistics :One stop shop for all logistical requirements
o

Take a holistic view of the logistics as operations in the following chart

INTEGRATED VIRTUAL LOGISTICS NETWORK FOR QUICK


RESPONSE
Developing a framework for Integrated virtual logistics network for quick
response which would factor in the existing processes, systems and organizations roles
and the governments proposed investments in the e-commerce and e-governance
infrastructure, and designing a technology transformation road map.
Need for Integrated Logistics Model and Applications
Mobile transaction processing capability coupled with a proper combined
electronic business management model helps in integrating the manufacturers, transport
service providers, financial institutions along with government agencies like regional
transport department, central excise and customs, warehousing. Interviews with truck
drivers/fleet operators reveal that the losses at check posts for larger trip lengths of more
than 1500 km. constitute 30 to 35 percent of the total journey time. This could be reduced

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.

TECHNOLOGIES TO BE USED AT BOTH FRONT END AND BACK


END
1 The system should make use of GPRS and GPS technology for wired and
wireless communication between front and backend and for location tracking of
delivery vans.
2 The system should have wireless Bar Code scanner with front-end application
and RFID integration with front-end application.
3 The system should try to use the AUTO SCAN process
4 They should also provide SUPER TRACKER to increase efficiency and reduce
time

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.

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