Lscm Assign....

7/25/2019 Lscm Assign....

1/13

S

upply chain management incourier industry

SUPPLY CHAIN MANAGEMENT:

A supply chain is a network of sub-suppliers, suppliers, internal operations, trade

customers, retail customers, and end users. Supply chain management is a loop that starts

with the customer and ends with the customer. It requires looking at your business as one

continuous process that absorbs such traditionally distinct functions as forecasting,

purchasing, manufacturing, distribution and sales, and marketing into a continuous flow of

business interaction. Under this the functional stoe pipes! of corporate actiity are replaced

by departments structured as a pipeline that stretches between a company!s suppliers and its

customers. Integrated supply chain management is a process-oriented, integrated approach to

procuring, producing and deliering products and serices to customers. IS"# has a broad

scope that includes sub-suppliers, internal operations, trade customers, retail customers and

end users. IS"# coers the management of material, information and funds flow. Supply

chain management is the logical progression of deelopments in logistics management.

$hysical distribution management integrated two functions, proiding inentory-reduction

benefits from the use of faster, more frequent and especially, more reliable transportation.

Second phase in S"#!s deelopment, the logistics stage saw the addition of the

manufacturing, procurement and order management functions. %his was aided by electronic

data interchange, worldwide communications, and the growing aailability of computers to

store data and perform analyses.

%he third and current stage is the integrated supply chain management stage. %o the

lengthening chain of functions being integrated, suppliers at one end and customers at the

other hae been added. %his has become a seen-function supply chain, astly more comple&

than the two-functions physical distribution chain. %o handle this comple&ity, we rely on

electronic data, electronic funds transfer, higher bandwidth communications, and

computeri'ed decision support systems for planning and for e&ecution. %raining is a key

component too.


2/13

%he ne&t phase of supply chain management, super supply chain management for want of a

better term will incorporate more functions such as product deelopment, marketing and

customer serice. It will be enabled by een more adanced communications, better and more

user-friendly computeri'ed decision support systems and increased training.

DESIGN OF SUPPLY CHAIN MANAGEMENT

(rom the many factors potentially inoled, it is belieed that si& business and economic

forces will most impact future supply chain management. %hese include the three e&ternal

factors) consumer demands, globalisation and information*communication. %hree additional

topics that will be critical to future supply chain design) competition,regulation and

enironmental concerns. %hough other factors, for e&ample, organi'ed labour and

transportation technology may play a role they will be secondary in defining supply chain


3/13

management!sfuture.

COURIER INDUSTRIES:

"ouriers are basically a serice for sending money or goods at some e&tra cost. It inoles a

person or a company engaged in transporting, dispatching and distributing letters, parcels and


4/13

mails. In a rather layman term, it can be said that, compared to normal mail serice, a courier

possess many added features. A courier is much faster, safer and secured than ordinary mail.

It is a speciali'ed serice with authenticated signatures. It has tracking serice with each

serice being treated as a specific indiidual case. +edicated timely delierance is its primary

hallmark.

%hese features do cost a bit e&tra but with so many features aailable, the cost gets leeraged.

%he courier industry speciali'es in time-definite, reliable transportation serices for

documents, packages and freight. %his is done ia a combination of transport networking that

includes road, rail, sea and air for door-to-door deliery. %his e&tensie distribution system is

supported by infrastructure that comprises hubs, warehouses, I% technology and human

resources, as well as offices in arious cities. #ore and more courier companies appear on a

regular basis, and you may hae noticed different courier logos and branding on ans andplanes across the world. #any of these courier companies operate independently, where as

others rely on some of the larger courier companies when it comes to proiding international

delieries. ne of the main reasons for the increase in courier companies is the boom in

global trade, probably largely down to the Internet. "ouriers hae to deal with all sorts of

requests from deliering simple mail documents to large electronic items like computers,

printers and teleisions. Simply put, the courier market has grown due to demand from

customers and businesses.

SALIENT FEATURES OF THE INDUSTRY

%he courier industry speciali'es in time-definite, reliable transportation serices for

documents, packages and freight.

%he industry has e&hibited a growth of about / oer the past four years and is

e&pected to grow at 01/ for the ne&t two to three years, making it one of the fastest

growing segments in the transportation of cargo.

International e&press cargo holds 2/ of the e&press cargo industry, but iS

forecasted to reach 3/ by 045.

%he domestic courier industry with a turnoer of 6s 0 bn is still at a nascent stage

as compared to deeloping countries like "hina where the industry is fie to si&

times bigger.

"urrently there are about 0 courier companies in India, but four ma7or players

in the premium organi'ed segment dominate the industry.

COURIER SERVICES IN INDIA:

%he courier industry has world oer been recogni'ed as an essential and indispensable part

of any economy. In India, arious factors like growth of the industrial segment, growth in

e&ports and imports and oerall economic scenario of the country hae contributed to the

growth of the courier industry. +omestic courier industry with a turnoer in e&cess of I86


5/13

00 bn is still in a nascent stage. India has more than 0, courier companies. It is a highly

disintegrated industry with nearly 0 players in the organi'ed sector, 0, in the semi

organi'ed sector, and the rest in the unorgani'ed sector. %here are a few ma7or players in the

organi'ed sector who hae a combined market share of 9/. Indian courier industry was

initially limited to all the four metros. %he reason was the airport connection these metros

were haing. %he industry had its start some 41-0 years ago. :ut with changing economy

and technical adancement seen on a daily basis, the industry has e&tended fast to seeral

metropolis, township and een rural areas. %rain, bus, motorcycle and een bicycle hae

helped the industry in this regard. Industry has traeled a long way and now it has become a

ery common sight to see an office of "ourier "ompany in the nearby locality. wing to the

growing demand for reduced transit time and early delieries the industry is forecast to grow

at 01/ for the ne&t two to three years, making this one of the fastest growing segments in thetransportation of cargo. International e&press cargo holds 2/ of the e&press cargo industry,

but is forecasted to reach 3/ by 045.

These are some key players in Indian Courier Indusries!

4. :lue +art

0. +;< India

. (ed=& India

3. (irst (light "ouriers

1. A(ati

5. =lbee =&press

?. ernite =&press

9. %8% India

4. U$S India

:lue +art =&press


6/13

handles.

BLUE DART: CORPORATE PROFILE

:lue +art, South AsiaBs premier number one e&press air and integrated transportation,

distribution and old Award, three years in a row. It has been listed twice in the +un C

:radstreet top 1 companies in India. :lue +art has been awarded with the Asia :rand

"ongress :rand


7/13

It!s "ustoms and 6egulatory e&pertise) "ompany had a dedicated team of specialists who

proide the e&pertise for customs as well as regulatory clearances at all States within the

country, to support seamless serice to the customer.

It!s %echnology) +esigned to enhance the reliability of our operations and process efficiency,

and add alue to the customer through time and cost saings. It!s Air 8etwork) %he only one of its kind in the country today, that is focused on carriage of

packages as its prime business, rather than as a by-product of a passenger airline. A dedicated

aiation system to support :lue +artBs serices is self-sustaining, with its own bonded

warehouses, ground handling and maintenance capability.

Its $eople force) "ommitted, dierse and oer 3, strong are company!s most alued asset.

All company!s achieements hae been possible because they hae a team who beliees in

themseles and their company, a team with a winning attitude. :lue dart is a learning

organi'ation, aluing self-deelopment, and most of company!s managers are homegrown.

LOGISTICS IN BLUE DART

%he Information %echnology industry is, perhaps, typical of the changing and escalating

logistic demands of arious industries today, irrespectie of their category as BoldB or BnewB

economy. In the I% industry, the difference between success and failure is closely linked to

the supply*alue chain integration, of which there are two distinct processes)


8/13

%he deliery of goods to the customer in the most reliable transit period @and

preferably the shortest possible. B6eliableB alludes to a certain guaranteed transit time for

packages to reach customers or the response that organisations need in the eent of any

e&ceptions.

%he reerse flow of acknowledged signed deliery records without which, in many

cases, recoery of bills are irtually impossible. =specially so in the case of companies

placing multi-location orders that could coer hundreds of cities. %he task for the supplier is

staggering - plan logistics for delieries to all these locations, and hope for 4/ of the

deliery records to be returned before bills can be submitted to the customer. In most I%

companies, the role of BlogisticsB or BfulfillmentB is key. Dith organisations moing towards

close to perfect standards like Si& Sigma, interaction with logistics suppliers has taken on a

critical role moing up sometimes to the leel of the "= of the organi'ation. :lue +art=&press


9/13

:lue +art offers the fastest, most reliable, door-to-door e&press delieries for your

documents and packages to countries in the SAA6" region through 6egional $riority. %he

serice offers access to oer 4,5 locations in India, and oer ? locations in :angladesh,

:hutan and 8epal, proiding the widest coerage in the region through a quality network, an

integrated air and ground infrastructure dedicated to e&press transportation and innoatie

technology support.

different type of regional serices) -

DO$ESTIC &RIORITY

%he fastest, most reliable, door-to-door deliery serice within India and to

:angladesh, 8epal and :hutan for documents and small shipments under 0kgs per package.

%he special benefits of this serice are)

+eliery to oer 4,5 locations in India (ree pick-up from your location

6eal-time %racking

6egulatory "learances

(ree "omputeri'ed $roof of +eliery

DART A&E0

+art Ape& is a door-to-door deliery serice within India for shipments weighing

4kgs. And aboe. It is the fastest, most efficient deliery solution for commercial shipments

that are time-bound and are required to undergo regulatory clearances, or require special

handling. +art Ape& offers you an economical option of an Airport-to-+oor serice from the

ma7or airports of "hennai, :angalore, #umbai, +elhi, Eolkata and ;yderabad to all the +art

Ape& locations sericed. A customer may book space for their shipments through company!s

"ustomer Serice and delier customer shipments to :lue +art Aiation ffice at the related

airport. +art Ape& also offers a further economical option of a +oor-to-Airport serice. A

customer may book their shipments at any of company!s locations sericed for thisproduct toany of the ma7or airports. "onsignee would be required to collect the shipment from the :lue

+art Aiation office at the concerned airport.

Dar Ape1 o##ers he #ollo.in, )ene#is!

Dide #arket 6each

Single-window "learance 6eal-time Information


10/13

%ime-+efinite +eliery

(ree $roof of +eliery on +emand

Speed

(le&ibility

=conomical

DART SURFACELINE

+art Surfaceline is an economical, door-to-door, ground distribution serice within

India for shipments weighing 4 kgs and aboe. It offers a cost-effectie logistics option for

your less time-sensitie shipments, with the following alue-added benefits)

%ime-bound +eliery

%rack your Shipment


$ick-up "onenience

Secure Shipments

=conomical %ariff

S$ART -O0

Smart :o& is a conenient, economic, packaging unit priced to include a door-to-door

deliery serice within India. %he units come in 0 si'es, 4kgs and 01 kgs, and are designed

to accommodate a ariety of products. %he special benefits of using Smart :o& are)

A wide market reach

Speedy +eliery

(ree pick-up

6eal-time %racking


$roof of +eliery

%rouble (ree Serice

INTERNATIONAL SERVICE

International serices of :lue dart are taken oer +;< =H$6=SS in 00. :lue +art

=&press


11/13

A "onenient Solution for Urgent, International +ocuments C Shipments.

+ocuments and packages will be picked-up from location, cleared through customs

and deliered to consignee.

"ustoms "learance =&pertise Specialists conersant with customs formalities in India

as well as in 00? countries worldwide, and pre-clearance for shipments in transit

aailable for most destinations, ensure efficient deliery.

6eal-time %racking.

A "ost-effectie ption.

$ackaging.

VALUE ADDED SERVICES

Jalue added serices on the rise. :lue +art has started proiding alue-added serices like

Klogistics management, supply chain management and warehousing facilities to its clients.

>oing forward demand for such serices from corporates is likely to grow at a fast clip. %his

is because by outsourcing such serices to third party serice proiders they would be able to

cut down on costs and improe their efficiency leels. (or the courier companies such

serices would be part of the oerall alue proposition they would be offering their clients

apart from the normal pick up and deliery. Such serices hae the potential for enhancing

the margins of courier companies like :lue +art. De beliee that :lue +art is best equipped

to capitali'e on the growing opportunities in the emerging areas of warehousing and supply

chain management.

BLUE DART INITIATES CUSTOMER SATISFACTION

BENCHMARK:

As a business entity customer hae dispatched an important package that contains some

confidential business documents. "ustomers do not know the status of the documents

shipped. "ustomer!s end up making endless calls to the courier serice office asking them

when the B$roof of +elieryB @$+ will come their way since company need to be assured

that eerything that was sent has reached the destination. 8ow, :lue +art =&press


12/13

are reali'ing the importance of deeloping and implementing a comprehensie logistics and

supply chain strategy L and then linking this strategy to the oerall business goals. Adopting

these initiaties first and foremost requires taking a long-term iew and haing an e&tensie

focus on all the channels in the total transformation process to create a productie and

reliable supply chain. %echnology, which was earlier taken to be a drier for doing business in

a particular fashion, has become a Knecessary enablerM for aligning business to consumer

demand. It can change the way we capture and analy'e information, differentiate products

and serices, configure and sell e&isting products, crash order cycle times, introduce new

products and so on. I"% can thus achiee breakthroughs in the area of supply chain design,

configuration and planning, which otherwise can neer be thought about. %here!s a concerted

moe to use I"% for data collection and forecasting.

=fforts to e&tend a common information system platform between partners will assist

in the transferring of information. Ideally one system should span all functions throughout a

supply chain. (irms in India are preparing themseles to harness power of I"% to improe

supply chains. %he si'e of the firm now matters less as the cost of these technologies has been

reducing continuously so that een smaller firm can afford them. %he goal should be to

implement a system that can make a decision more quickly and with better accuracy. #any

firms hae gone for =6$. 6eady access to transactional data does not automatically lead to

improed decision making. %hese transactional data must be analy'ed through effectie

models to support fact based decision-making. Analytical information technologies should be

helpful in achieing this purpose through the descriptie and normatie models for effectie

decision-making within and outside the firm. Since forecasting inoles sharing competition-

sensitie data beforehand, this practice hasn!t taken off. If one probes deeper, it appears that

forecasting of customers themseles is uncertain, fluid and based on incomplete

understanding of trends and patterns, which, in turn, passes on the comple&ity to the endors.

"ompanies in electronics, auto, auto ancillaries and I% sectors are using the collaboratieforecast practice widely.Dith India becoming the factory of the world, establishment of hubs

and spokes with quick international connections will only increase. :lue +art and +;< hae

already set up seen hubs. %he proliferation of global ma7ors in ma7or industry erticals has

heralded the arrial of international supply chain serice proiders into the country. At the

same time many of the Indian business ma7ors hae shown inclination to manage the group

logistics in a unified manner to reali'e the benefits of consolidation efficiencies. %hese

logistics arm are set up to serice the captie requirements of the parent company andsubsequently e&ploit the market demand.


13/13

CONCLUSION!

De e&amine the state of logistics and supply chain management practices in India

coering a wide spectrum of firms with at least one field isit and substantiate on-site

obserations and informal discussions and interiews with data and information from

secondary sources. logistics and S"# practices are influenced by conte&tual factors such as

the type of industry, firm si'e, its position in the supply chain, supply chain length and the

type of supply chain. %hey are also influenced by regulatory and economic enironment,

aailable infrastructure and competition with other supply chains. De identify the logistics

and S"# practices of these firms and discern arious emerging trends as well as areas of

concern. De also suggest opportunities for improements. Indian firms need to act fast to

capitali'e on these opportunities to be competitie with the world market. %he findings from

this study proide the type of information on logistics and supply chain management

practices in India that may help the Indian industry to benchmark these practices is-N-is

corresponding practices in other countries.

Lscm Assign....

Documents