review of literature on boost health food

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 Name: Pradeep M M

Date: Reg no: 04XQCM6066

GUIDE’S 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.

Place: Bangalore Dr. N. S. Viswanath Date :

PRINCIPAL’S 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 PARTICULARS PAGE NO

1 INTRODUCTION 1

2 CONCEPTS OF LOGISTICS MANAGEMENT

- Supply Chain Management

- Logistics

- Logistics Management

2 - 8

3 INDUSTRY SCENARIO

- Introduction

- SWOT Analysis

- Aviation Industry

9 - 15

4 COMPANY PROFILE - Introduction

- Blue Dart Overview

- Blue Dart Services

- Blue dart Technology

- E-commerce Initiatives

- Blue Dart Aviation Ltd

16 - 44

5 METHODOLOGY - Background

- Review of Literature

- Existing Logistic model in Blue Dart

- Problem statement

- Objectives of the study

- Limitations of the study

45 - 57

6 ANALYSIS AND SUGGESTED MODEL - Data analysis

- Suggested Model

- Major Findings

58 - 64

7 CONCLUSIONS AND RECOMMENDATIONS 65 - 75

8 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.

INTRODUCTION

In any market driven economy, supplying customers with what they want, when

they want it, is the bare minimum required of any serious business. But as product

development, diversity and accessibility has accelerated beyond all predictions, and as

the business world has become increasingly competitive, delivering that promise has

taken on a more challenging reality.

In today’s global market, competitive advantage is gained by offering customers

flexibility, supplying products and services 24 hours a day, 365 days a year, cutting

production lead times and call response times to a minimum, offering customized

solutions, securing global standards of consistency. Profitability has to be reinforced by

cost management, minimizing capital held in warehouse, eliminating wastage through

obsolete stock, maximizing economies of scale through global sourcing and supply.

For the world’s highest performing and successful companies, managing the

supply chain has become a critical success factor. The innovative, the pioneers of new

industries, as well as established market leaders are all focusing on this factor in their

path to success. It is a management challenge of how to achieve increased flexibility on

the one hand, and to maintain and build on profitability on the other.

Customer service is one important factor in service industry. Customer service is

concerned with making the product available to the customer. There are many aspects in

customer service such as consistency and reliability of delivery, ordering convenience,

delivery timing and flexibility, claims procedures, condition of goods, visit of the sales

people, status information etc. Thus the customer service should be examined under three

elements:

1. Pre-transaction elements

2. Transaction elements

3. Post-transaction elements

CONCEPTS OF LOGISTICS MANAGEMENT Supply chain management

SCM might be seen as a business philosophy that strives to integrate the dependent

activities between firms, e.g. logistics, purchasing, production, and marketing. The

Council of Logistics Management 16 defines logistics as: Logistics is that 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 in order to meet customers’ requirements. This definition implies that

logistics is a sub-set of SCM. The following are five basic components for supply chain

management.

1. Plan

2. Source

3. Make

4. Deliver

5. Return

Logistics

Logistics planning and management defines a unique network of suppliers,

producers and distributors to deliver a specific product set. Logistics management

configuration decisions involve decisions like where to locate new manufacturing and

distribution facilities, which supplier to rely on etc.

An industry should have the ability to quickly capitalize on emerging

opportunities, respond to new customer behavior and taste and adapt to new market

conditions.

An industry is faced with many challenges like,

Increase profitability

Reduce operating costs

Streamline processes

Increase the productivity

Network customers, vendors and distributors

Network inventory databases

Targeting wider market

Improve customer care

Increase brand awareness

The above challenges faced by industrialist should meet with some solutions that

include the following,

Faster response time

Shorter sales cycle

Order tracking- online

Reduce physical inventory

Customized reports-anytime, anywhere

Lessen cost for wider reach

Lower transactional cost

Complete security

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 Stanley’s 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 customer’s requirement.

The Logistics Players- From 1PL to 5PL By Morgan Stanley’s 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 manufacturer’s 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 client’s 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

manufacturer’s 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

Logistics management is the process of strategically managing the procurement,

movement and storage of materials, parts and finished inventory (and the related

information flows) through the organization and its marketing channels in such as way

that current and future profitability 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.

"Logistics Management is that part of Supply Chain Management that plans,

implements, and controls the efficient, effective forward and reverses flow and storage of

goods, services and related information between the point of origin and the point of

consumption in order to meet customers' requirements."

Logistics Management activities typically include inbound and outbound

transportation management, fleet management, warehousing, materials handling, order

fulfillment, logistics network design, inventory management, supply/demand planning,

and management of third party logistics services providers. To varying degrees, the

logistics function also includes sourcing and procurement, production planning and

scheduling, packaging and assembly, and customer service. It is involved in all levels of

planning and execution – strategic, operational and tactical. Logistics Management is an

integrating function, which coordinates and optimizes all logistics activities, as well as

integrates logistics activities with other functions including marketing, sales

manufacturing, finance and information technology

INDUSTRY SCENARIO

The courier industry globally is expecting a bullish trend in the near future. This

industry is expected to grow at least 8% year a year till 2015. Globally only 2% of the

express freight is currently carried on aircraft, this is expected to increase to 40% by

2015. The world cargo fleet is expected to treble by the year 2015.

The global trend towards outsourcing of non core activities has created

opportunities for courier companies. Privatization has also created opportunities. There’s

a general trend for companies to try to shorten their supply chain by reducing their stock

levels. Hence essentially freight companies have to play a much larger role in satisfying

the requirements and also in providing cost effective solutions to these companies.

There are very small courier companies that serve niche market, and then there

are the large, integrated companies with global reach. Barriers of entry at one level have

been quite low on the one hand; investments in infrastructure for more sophisticated

players can be very high.

The courier industry is becoming increasingly competitive. It’s a volume business

and the smaller players soon realize that and then they begin to cut rates to survive.

Unfortunately, very few of the smaller players can back it up and they end up cutting

corners. They also invariably outsource much of the work to one of the bigger players.

High rate of inflation and ever increasing fuel prices as an ongoing challenge for the

industry are one of the challenges. Third and fourth party logistics too, present a

challenge for the country.

Delivering documents is no longer the mainstay of the courier industry.

Delivering documents is becoming a smaller part of their business. There’s a general

global trend for companies to reduce their inventory. Instead of having regional

warehouse, by deploying the services of a courier company, companies are able to do

their distribution from fewer warehouse.

Although IT raises the barriers to entry, this does not stop people from setting up

new businesses. As for the future, there will be fewer smaller companies, but more

medium to large players. There will be shrinkage in the number of players but industry,

as a whole would not shrink.

Key Activities The traditional view of the key activities is as given below. The companies looked

at the business as transporting goods from one place to another. They tried creating value

by doing it in the most efficient manner with no real focus on customers.

Value addition

However, with the rapid evolution of the industry and the changing market

scenario in terms of consumer demands, a re-look at the key activities is essential.

Efficient Transportation Fast delivery times

Transportation Collection

Delivery of goods Transportation of goods Receiving Goods

Delivery Customer Relationship

Overall Focus Customer Service

The key activities are now viewed from a point of view of value creation at every stage.

This is driven by the strategy of customer service and the support for this is mainly IT.

Some of the value addition that is taking place within the industry is:

Pickup and delivery of the package at the customer’s premises.

Buying planes to ensure fastest mode of transport and not being dependent on

passenger airlines.

Giving a customer a wide variety of services to choose from an effort to cater to

consumer’s every demand.

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.

A huge transport infrastructure now exists to move goods speedily

There has been a tremendous liberalization of the barriers to trade, encouraged by

economic groupings around the world.

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:

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 80’s the industry grew at a rapid pace at 30-35%. This

growth rate was sustained in the 90’s. But due to the general slowdown of the world

economy, there was a slowdown in this industry and the growth rate was sluggish at 10-

15%. 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.

Porter’s five force model Sl.No. Description Details

1 Supply 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.

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

the next few years.

3 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.

4 Barriers to exit Relatively high, as courier industry thrives on the

technology and transportation infrastructure. Initial

investments are very high.

5 Bargaining power of

Supplies

Relatively low due to less switching cost, less supplier’s

threat of forward integration.

6 Bargaining power of

buyers

High, as customers has choices to select the courier for

its dispatches. Also price competition among the courier

players gives him wide options

7 Threat from

substitutes

The substitutes are available in the form of different

mode of transportation viz, road, train.

8 Competition 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

Globally, the express industry is part of the aviation industry and a subset of the

air cargo industry, and is estimated at about $55 billion. The past year witnessed growing

consolidation globally, with the emergence of four major players worldwide. One of the

global majors currently controlling the industry would be Deutsche Post, the owner of

DHL. DHL, with the largest international coverage, is making inroads into the US

domestic market. There has been substantial press coverage on Deutsche Post acquiring

Airborne, the third largest player in the USA, after UPS and FedEx.

The industry has undergone a realignment of partnerships and a greater divide

between the premium and lower-end segments. Blue Dart has clearly staked out its sole

claim to the premium segment where it has established a stronghold, based on its unique

delivery capability reinforced by its aviation system and technology.

The negative economic impacts of the past year have had a particularly crippling

effect on the global aviation industry. Post 11th September 2001, there has been an

increase in security costs, doubling of insurance premium on air transportation, war

surcharges, and the escalation in the price of aviation turbine fuel and local ground

transportation costs. Aviation turbine fuel prices increased to US$ 35.98 per barrel (WTI

index) in February 2003, from a level of US$28.50 in September, 2002 and peaked at

near US$ 40 per barrel during the Iraqi conflict. The resultant Indian ATF costs, after

Central and State levies, are amongst the highest in the world. To mitigate the increase in

fuel cost, Blue Dart introduced an equitable hedge solution by implementing a `Fuel

Surcharge’ mechanism, based on the WTI Index of the previous month, with effect from

December 2002. A `Fuel Surcharge’ at the rate of 5% was made applicable in December

2002. As per `Fuel Surcharge’ mechanism, the surcharge would slide downwards by

2.5% when the price of oil declined to US$24 per barrel, and removed completely at a

price of US$20 per barrel. However, should the price of oil further escalate to US$33

per barrel, the surcharge would increase by a further 2.5%, and would subsequently

increase by 2.5% for every US$4 increase per barrel thereafter. Ground operating costs

have also risen sharply in the short term due to escalating costs of diesel and petrol

supplies to the market.

Company Profile

Blue Dart is South Asia's leading integrated air express carrier and premium

logistics-services provider. They have the most extensive Domestic network covering

over 3,880 locations, and service more than 220 countries and territories worldwide

through their Sales alliance with DHL, the premier global brand name in express

distribution services.

The company has been re-certified as one amongst a handful of Indian companies

to the new global ISO 9001 - 2000 standards for "Design, management and operations of

countrywide express transportation and distribution services within the Indian sub-

continent and to international destinations serviced through multinational express

companies".

The Company is South Asia's leading air express transportation company and

logistics service provider and offers a comprehensive range of services and products for

both domestic and international shippers. Blue Dart's continuous commitment towards

identifying and addressing the needs and concerns of the Customers has enabled it to

provide unmatched standards of service quality with over 99.95% reliability levels in the

express industry. Over the years, Blue Dart has continuously evolved to meet the growing

demands of business and customers, innovating new products and expanding its network

and infrastructure, thereby increasing its market share in the country.

During the year under review, the company achieved yet another milestone of

handling 100,000 shipments a day. Also, the company handled during the year over 28

million shipments, weighing over 76,000 tons.

Their vision is to establish continuing excellence in delivery capabilities focused

on the individual customer. In pursuit of sustainable leadership in quality services, they

have evolved an infrastructure unique in the country today.

State-of-the-art Technology, indigenously developed, for Track and Trace, MIS,

ERP, Customer Service, Space Control and Reservations.

Blue Dart Aviation, dedicated capacity to support our time-definite morning

deliveries through night freighter flight operations.

A countrywide Surface network to complement our air services

Warehouses at 14 locations across the country as well as bonded warehouses at

the 6 major metros of Bangalore, Chennai, Delhi, Mumbai, Kolkata and

Hyderabad

ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance

for our entire operations, products and services.

Ecommerce B2B and B2C initiatives including partnering with some of the prime

portals in the country.

Competitive Advantage lies in:

Vast and unparalleled Domestic Network

Linked by some of the most advanced communications systems and positioned to

offer a consistent, premium, standardized quality of service.

A spectrum of services to provide customized solutions

They are the only express carrier in the country today which offers an entire range

of services that extend from a document to a charter-load of shipments. Their services are

relentlessly monitored to deliver a net service level of 99.96% (as on July, 2005).

Customs and Regulatory expertise

They have a dedicated team of specialists who provide the expertise for customs

as well as regulatory clearances at all States within the country, to support seamless

service to the customer.

Technology

Designed to enhance the reliability of their operations and process efficiency,

and add value to the customer through time and cost savings.

Air Network

The only one of its kind in the country today that is focused on carriage of

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

dedicated aviation system to support Blue Dart's services is self-sustaining, with its own

bonded warehouses, ground handling and maintenance capability.

People force

Committed, diverse and over 3,900 strong are their most valued asset. All their

achievements have been possible because they have a team who believes in themselves

and their company, a team with a winning attitude. They are a learning organization, they

value self-development, and most of their managers are homegrown.

Vision

"To be the best and set the pace in the air express integrated transportation and

distribution industry, with a business and human conscience.

They commit to develop, reward and recognize their people who, through high

quality and professional service and use of sophisticated technology, will meet and

exceed customer and stakeholder expectations profitably.

Corporate Governance

Corporate Governance is the combination of voluntary practices and compliances

with laws and regulations leading to effective control and management of the

Organization. Good Corporate Governance leads to long term shareholders value and

enhances the interest of other stakeholders.

Blue Dart is fully committed to good Corporate Governance and has complied

with the Corporate Governance Code as stipulated under the provisions of Clause 49 of

the Listing Agreement with the Stock Exchanges. It believes in providing services

through transparency in all its dealings. It believes Corporate Governance is an important

instrument for shareholders’ returns and value enhancement.

Guiding Principles

They treat each other fairly and with respect and dignity

They encourage freedom in communication of thoughts and ideas in all our

interactions

They value integrity and we will be uncompromising in upholding it at all times

They ensure that our PSP (People Service Profit) philosophy serves as a driving

force behind the success of our organization

They encourage and inculcate in all a winning attitude.

They encourage learning, self-development and building effective leadership

They provide a work place where each and every employee is nurtured and who,

in turn, will nurture the organization, thereby creating wealth for stakeholders

They expect our people to be accountable for all their actions related to the

company

They drive the First Time Right concept to achieve 100% Quality and Customer

satisfaction

They encourage passion and enthusiasm for Work, Service Quality and Customer

Care

They project a positive, caring and professional image of us and our services at all

times.

They avoid waste by being conscious of the impact of all our actions on the

environment

They continue to be a law-abiding, apolitical and secular company

Blue Dart Overview

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

(FY 2004-2005)

Number of Shareholders : 4,814

(As on 3rd March, 2006)

Domestic Locations : Over 13,880 locations Serviced International Destinations : More than 220 countries and territories Serviced 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 : International: 0.53 million Handled (FY 2004-2005) Domestic: 42.02 million No. of computer Terminals : Over 2,240 E-mail at 114 locations accessed by (As on 15th Dec, 2005) over 2,450 users Technology : Cosmat IITM,

SMARTTM, ShopTrackTM, PackTrackTM, MobileDartTM, TrackDartTM, MailDartTM, InternetDartTM, ShipDartTM, ImageDartTM

Schedule a Pick-up., SENTOR, CARESS SHIELD

People Force : Over 4,000 World Wide Web : http://www.bluedart.com Address

Services

Express Services

Domestic Priority:

The services are subject to their Terms and Priority, The fastest, most

reliable, door-to-door delivery service within India and to Bangladesh,

Nepal and Bhutan for documents and small shipments under 32kgs per

package. The special benefits of this service are:

Delivery to over 13,880 locations in India

Free pick-up from your location

Real-time Tracking through the net, providing with information on shipments

from pick-up to delivery

Regulatory Clearances for all States in India taken care of by our team of

specialists, to resolve your regulatory requirements.

Free Computerized Proof of Delivery

Dart Apex:

Dart Apex is a door-to-door delivery service within India

for shipments weighing 10kgs. And above. It is the

fastest, most efficient delivery solution for the commercial

shipments that are time-bound and are required to undergo

regulatory clearances, or require special handling.

Dart Apex offers an economical option of an Airport-to-Door service from the

major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata and Hyderabad to all the

Dart Apex locations serviced. One may book space for the shipments through the

Customer Service and deliver the shipments to the Blue Dart Aviation Office at the

related airport.

Dart Apex also offers you a further economical option of a Door-to-Airport

service. One may book the shipments at any of the locations serviced for this product to

any of the major airports mentioned above. The Consignee would be required to collect

the shipment from the Blue Dart Aviation office at the concerned airport.

Dart Apex offers the following benefits:

Wide Market Reach

Single-window Clearance

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.

Time-Definite Delivery

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 picked-

up, 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:

A wide market reach

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 real-

time 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.

Régional 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.

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.

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:

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.

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.

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:

Express Document (DOX) :

DHL Express document is the fastest, trustworthy and most secure way to deliver non-

dutiable 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 Door to door one company control.

o World class packaging.

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:

o Door to door service.

o Simple documentation.

o Packaging range.

o Fastest for international express packages.

o State of the art information systems.

o Global customs clearance leader.

o Global market leader for international express packages.

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:

o Unique easy to assemble boxes.

o Step by step customs declarations.

o Full DHL express door to door service.

o Low flat fee for each kilo over flat fee limit.

o Strong packaging and simple documentation

Blue Dart Technology

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.

They have one of the largest private computer networks in India, with over 1,750

computer terminals connected by dedicated leased lines, VSATs and Microwave links.

Their E-mail is accessed at 89 locations daily by over 2,070 users. They also employ

wireless, mobile telephones, radio sets and pagers extensively to enhance the

communication speed and connectivity with their troops on the field. Their Customer

Service Cell is equipped with Automated Call Distribution Systems (ACDs) to provide

quick response and support to our customers.

They are the only Indian express company to have indigenously developed

COSMAT IITM, which includes an advanced state-of-the-art track and trace system for all

the consignments. Consignments are scanned from pick up to every transit point till

delivery, using bar coding and laser scanner technology, transmitting updates

automatically to the Oracle database. This enables the customers to receive real-time,

complete and accurate information about their consignments.

Some of the technology-based business offerings on our site are as follows :

TrackDartTM MailDartTM

MobileDartTM InternetDartTM

ShopTrackTM PackTrackTM

ShipDartTM Billing

Schedule a pickup Waybill Generation

Location Finder Transit Time Finder

Price Finder COSMAT II

SMART 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 picked-

up, 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

[email protected] 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:

InternetDartTM:

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:

Waybill details and status of all shipments sent during a given period

Details of all delivered shipments

Status of all undelivered shipments

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.

ShopTrackTM :

ShopTrackTM 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.

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

customers with a competitive edge.

PackTrackTM:

PackTrackTM 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. PackTrackTM 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.

MobileDartTM:

Mobile DartTM - 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 on-

line 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.

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

over SMS (Short Messaging Service).

ShipDartTM:

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 customer’s 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.

ImageDartTM:

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

E-vision:

To enable global connectivity to Blue Dart's present and future interactive

technology strengths, for value added solutions.

To facilitate seamless integrated transportation, distribution and supply chain

management, from, to and within the region, thereby increasing value to our customers

and shareholders.

As a technology leader in the business of supply-chain management in the

country, Blue Dart Express Limited recognized the far-reaching scope of the internet in

1996, and has been exploring web-based solutions to extend the range of services

available to its customers and integrate them into its core products. It has evolved an e-

strategy.

This e-strategy encompasses E-Solutions to deliver additional process

efficiencies to business by allowing them access to Blue Dart’s e-shipping tools and

integration with its e-business tools. An individual solution is available for each business,

big or small, transacting off the internet or on the internet, and ranging from a stand-alone

to a fully integrated one.

Shipping

Uses the following tools to simplify the shipping process:

Location Finder: Find the service locations of Blue Dart as well as the Blue Dart

counter located closest to you. You may search by city, or pin code to find one of

over 13,880 locations serviced in India, Nepal, Bangladesh or Bhutan or in more

than 220 countries and territories worldwide.

Transit Time Finder: Check the transit times for your domestic and international

shipments, and for the various services offered by Blue Dart to help you identify

the service that meets your requirements

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.

Schedule a pickup on-line from anywhere in the world.

Ship DartTM: 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

Blue Dart Aviation Ltd. was incorporated in May 1994 as a 100% subsidiary of

Blue Dart Express Limited, and launched its operations with a fleet of 2 Boeing 737-200

freighters on the 17th June 1996. Blue Dart Aviation Ltd. was created primarily to

support the growing demands of Blue Dart Express Ltd. In an express industry where

growth, year over year, consistently exceeded 35%, the management viewed the delivery

capabilities of the domestic airlines inadequate and a limitation to the explosive growth

of air express.

The restricted day flights and capacities oriented to passenger requirements were

not consonant with the demands of the express market, which is committed to morning

deliveries that rely on guaranteed space and late night operations. Taking a cue from the

enormous success of the U.S. express industry, which started with a 4% share in 1977,

averaged a compounded annual growth rate of 25% and progressed to claim close to 60%

of the U.S. market, Blue Dart Express Ltd. made a path-breaking decision to create its

own infrastructure and buy its own aircraft. It set up the first and, till date, only domestic

freighter operations in India.

The night operations were designed to meet the specific needs of the business

community as they focused on late night cut-offs and early morning deliveries.

Shipments originating from a city at the end of the business day could arrive before the

start of the next business day at their destinations. Customers could now rely on air

capacity that was focused to service business needs and not passenger travel schedules.

Demand for express package services surged, spurring capacity addition and Blue Dart

added a fifth aircraft to its fleet in 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:

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:

- SALIM (System for Aircraft Logistics Inventory Management

- FUSION (Flight Updating, Scheduling, Inquiries and Operational

Notes)

- SODA (System of Digital Flight Data Recorder Analysis)

- 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 cooling-

period 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 non-

destructive 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, Non-

destructive 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 DARTFlight Schedule

FLT. SECTOR ETD ETA DAYS OF OPS MAA BLR 2255 2340 1,2,3,4,5 2355 2355 6 BLR BOM 25 200 2,3,4,5,6 125 300 7 BZ102 BOM DEL 245 445 2,3,4,5,6 345 545 7 DEL CCU 530 735 2,3,4,5,6 630 835 7 CCU DEL 2230 45 1,2,3,4,5 2330 145 6 DEL BOM 150 350 2,3,4,5,6 250 450 7 BZ201 BOM BLR 435 610 2,3,4,5,6 535 710 7 BLR MAA 715 800 2,3,4,5,6 815 900 7 MAA BOM 2250 35 1,2,3,4,5 2350 135 6 BZ103 BOM DEL 120 320 2,3,4,5,6 220 420 7 DEL BLR 405 645 2,3,4,5,6 505 745 7 BLR DEL 20 300 2,3,4,5,6 120 400 7 DEL BOM 345 545 2,3,4,5,6 445 645 7 BZ301 BOM HYD 630 745 2,3,4,5,6 730 845 7 HYD MAA 830 930 2,3,4,5,6 930 1030 7

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

Methodology

Background Logistics in Blue Dart

With organizations moving towards close to perfect standards like Six Sigma,

interaction with logistics suppliers has taken on a critical role moving up sometimes to

the level of the CEO of the organization.

Blue Dart Express Limited applied and found solutions to these critical demands

much before other players could even recognize their need. Through its exceptional

people processes, superior technology, and stress on quality systems over the last, almost

two decades now, Blue Dart was quick to fulfill these needs.

Blue Dart Express Limited applied and found solutions to these critical demands

much before other players could even recognize their need. Through its exceptional

people processes, superior technology, and stress on quality systems over the last, almost

two decades now, Blue Dart was quick to fulfill these needs.

Blue Dart offers the country's most comprehensive communications technology

and customer software to support critical supply-chain distribution demands. The

country's only express service provider with a dedicated fleet of five Boeing 737s ensures

that packages are flown to their destinations overnight. These freighters offer capacity

and volumes not available with any other carrier in the domestic air space. Retrieval of

signed delivery records posed the industry's most intriguing problem. Blue Dart was

quick to understand this requirement and put in place a 100% retrieval system.

Blue Dart not only handles large volumes and oversize packages overnight - it

also provides the industry with status of their shipments and retrieves such records as are

necessary for billing. The entire cycle has been considerably shortened, enabling the

industry to achieve healthy bottom lines.

Review of the literature

In order to understand the concepts behind the topic, “logistics management”, a

review of the following literature was done.

Fundamentals of Logistics Management (McGraw-Hill Series in Marketing)

by Douglas Lambert, James R Stock, Lisa M. Ellram, 2003

Roadmap for logistics excellence: need to break the unholy equilibrium

by Raghuram and Janath shah , 2004

LOGISTICS AND DISTRIBUTION SYSTEM DESIGN METHODOLOGY

Through out the application of the methodology, several types of activities are

necessary and need to be taken into consideration.

Data consolidation: to determine the best grouping of customers and suppliers.

Sales forecasts: based ohm mathematical projections of historical data, on market

research, on other statistical techniques.

Transportation costs : based on the actual data

Warehousing costs: based on public warehousing cost database, or estimated from

construction and labour cost databases.

Data development

The first step in developing a logistics strategy is to define the specific data

requirement to formulate the problem in an efficient and realistic manner

Data requirement include –Data consolidation, sales forecasts, transportation costs,

transportation times, inventorying costs

Modeling and Simulation Once the basic data has been assembled, it must be integrated into a

mathematical logical model, which must faithfully represent all the characteristics of the

problem.

The state of the art approach in modeling is to generate automatically a custom

made model of a specific problem using artificial intelligence techniques.

Describe the current

system

Establish requirement & constraints for the

proposed system

Develop logistics organization

Develop costs for the proposed system

Audit

Operate

Implement

Develop logistics management system

Model & simulate the logistics network

Fig: Logistics and Distribution System Design Methodology

Development of recommendations

The findings from the optimum simulation must then be complied into a series of

specific, practical recommendations which can be implemented in the real world. The

best approach is to organize them in the form an action plan, showing the recommended

implementation sequence, milestones, deadlines and major resource requirement.

Develop an implementation

Conduct financial analysis

LOGISTIC MODEL FOLLOWED BY BLUE DART (Operations)

Shipper gets package ready and calls for pick up

A courier boy picks up package Order received and entered

Container transported to hub by air or road

Container unloaded at hub

Packages sorted, scanned and reloaded Into containers

Container transported to inbound Station by air or road

Container unloaded and packages are sorted and scanned

Station inbound package Scan (sips) COSMAT

Package sorted, scanned and placed in container

Station outbound package scan (sops) COSMAT

Hub out bound package scan (hops)

Packages sorted, scanned and loaded into vans

Carrier transport to outbound stations

Courier receives order and arrives at shipper

Proofs of delivery scan

Packages transported to destination, scanned and delivered

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 APT Nth

COSMAT Container and packages are sorted and scanned, loaded into vans or to motor cycle

Delivered to customer

Packages transported to destination specified

DART APEX

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

INBOUND OPERATION

Container unloaded and packages are sorted and scanned

Container and packages are sorted and scanned, loaded into vans COSMAT

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

………..

A B C D E F Nth

Delivered to customer

DART SURFACE ……..

Container unloaded and packages are sorted and scanned

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

A B C F D E

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

Nth

INBOUND OPERATION

Container and packages are sorted and scanned, loaded into vans

Packages transported to destination

COSMAT

Delivered to customer

Transported to ware houses and then to different service centers

COSMAT

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

COSMAT Package sorted, scanned and placed in container In the service centers

Container transported to HUB by road through vans

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

Container unloaded in service centers and packages are sorted and scanned, loaded into vans

Packages transported to destination and delivered

COSMAT

Container transported to specified service centers by air or road

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

Courier receives order and arrives at shipper

OUTBOUND OPERATION

Container transported to destination by air till a center in India

COSMAT Package sorted, scanned and placed in container In the service centers

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

Container transported to HUB by road through vans

Then taken over by DHL and Packages are transported to destination and delivered

Package sorted, scanned and placed in container In the service centers

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 To give suggestions to improve effectiveness and efficiency of logistics

management at Blue Dart.

Optimize the time taken to reach the destination in the Route.

Maximize the number of delivery points for sharing the load.

Purpose of the Study o 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: Information from the operations Department about the existing process followed

and the time associated with the existing process.

Logistics department provided information on pricing, customer database, service

centers, warehouses, means of transportation means etc.

Information from the service centre with respect to space requirements, routing,

delivery points and timing detail.

Information required being collected from Finance Department for knowing the

Investment pattern.

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: Since this study is company-specific and confined only to Karnataka.

Findings of the study and the conclusion are drawn on the basis of observation

and interviews

Generation of new hypothetical datasheets was feasible but not revealing. As such

the study needs to be undertaken by generating datasheet under hypothetical

condition.

Investment pattern to the implementation of new model cannot be estimated

accurately because of lack of data and analysis.

DATA ANALYSIS

DATA MINING

The term data mining describes the concept of discovering knowledge from

databases. The idea behind data mining is the process of identifying valid, novel, useful,

and ultimately understandable pattern in data. Similar to traditional mining where we

search beneath the surface for valuable ore, data mining searches large databases for

indispensable information for managing an organization.

DATA MINING PROCESS

a. SAMPLE & EXPLORE

As mentioned in the previously that with respect to this project it’s very essential

to understand the effect and patters of each and every step in whole process because the

data is not too large whole of the population can be used for the inference so sampling

should not be done.

b. Modify

Based on the data obtained in the exploration phase the new model design is

difficult, the process they follow is quit efficient and can yield good result, but the major

problem in the existing model is that they need to fast enough in scanning the documents

and in loading the goods and minimize the human interface. They should try to adopt

auto scan or the super tracker in place of the bar code scanner.

c. Model

On the basis of the obtained data the model is constructed which helps in

improving the efficiency of the current model. Following is the step-by-step process of

tailored logistics, which is used for the process of decision making in this project.

Demand Flow chart for the process of program

Estimate the time required for the each service

Spilt and group in terms of services

Collect the data

If not for Individual, check for combination feasible

If no

If yes Accept the model if feasible

Estimate the time required to reach the hub

Estimate the number required for transportation

Compare and check economically feasible

Revise the model to desired level

Thus according to the above specified flow chart it is observed and estimated that

there is delay in the getting the materials and processing it from the pick up point to the

hub to destination. Further it is identified that the major part of the time is delayed by the

employees in getting the shipment from the pick point to the service centers and there is

delay in entering the details of the customer because of the wired bar code scanner. Bar

code scanner does not perform all the functions, and these data are feed manually

Thus the new models which are developed are as follows which may be more efficient

and effective than the pervious model.

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 APT Nth

Auto scan Container and packages are sorted and scanned, loaded into vans or to motor cycle

Delivered to customer

Packages transported to destination specified

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 Auto scan

………..

A B C D E F Nth

Delivered to customer

DART SURFACE

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

INBOUND OPERATION

Container unloaded and packages are sorted and scanned

Packages transported directly from HUB to

service centers (Dart Surface) via road/air

Scanning Transported to ware houses and then to different service centers

……..

A B C D E F Nth

Container and packages are sorted and scanned, loaded into vans Auto scan

Packages transported to destination

Delivered to customer

Model for Out Bound Operation

Courier receives order and arrives at shipper and the Package is scanned and transport to service centers Super Tracker

OUTBOUND OPERATION

Packages are sorted and placed in container in the service centers

Container transported to HUB by road through vans or other means

Container unloaded at hub Packages sorted,

scanned and reloaded into containers (x-ray)

Container transported to specified service centers by air or road

Container unloaded in service centers and packages are sorted and scanned, loaded into vans

Auto scan

Packages transported to destination and delivered

d. Assessment

As the model is ready the next step being assessment, which could indicate the

superiority of this model over the previous model.

MAJOR FINDINGS OF PROJECT

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

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

inefficient use of technology.

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

to scan each and every document.

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

will take more time.

Blue Dart is not much dedicated front end employees and they are not properly

trained.

Hub is too away from the service centers which in turn makes shipments to be

delivered gets delayed.

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.

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.

Blue Dart is not focusing much on the late delivery

Blue Dart have quiet efficient 3PL,over night transportation, next day delivery

Blue Dart has created a good brand in the minds of the customer

Blue Dart is utilizing all the 7 P’s of services marketing mix to full extent

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

shipper’s location, tracking the shipments etc.

CONCLUSIONS AND RECOMMENDATIONS CONCLUSION Purpose

The basic objective of this study is finding:

Improving Effectiveness and Efficiency of logistics management and checking the

feasibility of cutting the process for shipments of services from HUB to the service

centers and to the delivery to the customer

Two Strategies Alternative one

If there is no change in the information available for Blue dart they will have to

adjust their business through internal changes. After getting an idea about how Blue dart

new transportation model will affect, Blue dart will be able to make internal changes

towards a more effective logistics. Where in all shipments can directly scan from the

HUB .This way of going towards a more effective logistics is the simplest solution for the

present situation since it does not include any much technical investments. The only

requirement will be increase speed of the shipments in HUB and in the service centers

with some new technical modification. Following this alternative Blue dart have to adjust

its transportation according to Model suggested, so as to make the shipments reach the

destination in an cost effective manner and with high speed

Alternative two The model suggested on logistics aspects though is superior to existing Model but

when we focus on the shipments from the hub to the service centers with auto scan there

may be a chance of risk associated with it, it shows that its not a feasible option as the

cost is concerned because of loading and unloading will be higher when there is a multi

point delivery. But if there is an increase in demand to reach the destinations soon within

Karnataka then Blue dart should shift to new Model where in shipments can be scanned

directly and time is minimized and with less time it can reach the destination from Blue

dart. It is feasible to directly scan the shipments from service centers and forward it to

destinations instead of wasting time in entering the data and delaying.

There is no much alteration done in the model but should adopt new technology to

speed the process with super tracker, auto scan.

RECOMMENDATIONS

Integration of the supply chain has, for many years, been a powerful and

compelling enabler across a wide range of industries. As a result, many of the core supply

chain concepts and principles have been put into practice in a much more effective way.

These concepts include: information sharing, multi-party collaboration, design for supply

chain management, postponement for mass customization, outsourcing and partnerships,

and extended or joint performance measures. The information technology has allowed

companies to come up with highly innovative solutions that accelerated the adoption of

these core supply chain principles. The recommendation can be done in improving the

technology and try to motivate the employees to be efficient and provide proper training

to under stand the customer and increase the sales

The company should examine the mechanism to add value through logistics. The

following chart is quite helpful

NO YES

YES NO

Under stand the customer needs

Monitor the inflow and out flow

Replenishes documents so as to lower their inventories

Are you networked with them?

Ensure employees profitability Monitor employee’s

performance

Are you networked with them?

Ensure increase in customer value

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

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

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

• Complement core business

• Build global brand

• Lower the costs

• expand geographic presence and managerial expertise

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. E-

business, 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.

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

More business- to-business (B2B) solutions

Blue dart should continue to develop more e-business tools and provide more

solutions to address customers need in the whole chain

Creating Information Visibility

Supply chain integration must be accomplished not only within one enterprise but

also within those of its customers and employers (and often their customers' as well).

Processes within all of these organizations must be evaluated and updated or even

overhauled to meet efficiency and logistical expectations. Information visibility will help

company’s to include more dynamic, collaborative communication networks in their

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

beyond the transactional supply chain.

• Use of Information Technology yields the following

• Prevents Inventory Buildup

• Customize the logistics according to customer segments need

• Service the customers according to their needs

• Provides fast delivery time

Choice of transport

Transport selection should follow the following steps

• Identify those factors affecting the choice transport selection

• Categorize the significant factors and identify potential risks

• Determine the distribution network in terms of number of service centers and the

size

• Apply matrix analysis to select the most appropriate transport method

• Measure operational success

Thus factors affecting the choice of transport selection are

o Customer charteristics

o Product charteristics

o Environmental charteristics

o Company charteristics

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:

• Home operations –The functional aspects of company’s logistics have to be very

efficient than those of its competitors.

• Channel company’s resources according to the configurations of the delivery

system.

• Serve the end user.

• Attack the Inventories by linking the logistics Management to financials pay-offs

in other parts of value chain

• Apply vertical solutions – Strategic logistics will look beyond its own parish to

check for optimization at the other nodes on the company’s value chain.

• The company should focus on “Reverse Logistics”

• 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 government’s 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 organization’s 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 Transportation providers Shipment & capacity brokers

3 party logistics providers

Application services

Virtual logistics

Info-mediary

Dynamic Trade

Fulfillment management

Logistics Management

Network design

Strategic sourcing

Ware house integration

Transportation e-market

Shipment tracking

Notified service

Billing &payments Claims

integration

Import/ export integration

Matching optimization

Contract generation

Demand and capacity agg Auctions Exchanges

Electronics billing

EFT Yield m/g Revenue m/g

Tracking

Core integration

Interaction m/g Campaign m/g Customer value

analysis

Virtual Logistics:

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 client’s 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

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.

The system should have wireless Bar Code scanner with front-end application

and RFID integration with front-end application.

The system should try to use the AUTO SCAN process 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:

Manual trolleys

Roll pallets

Motorized trolleys

Toe trains

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;

Straddle truck

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

• Belts, Rollers, Wheels, Chains.

BIBILOGRAPHY

References: • Supply chain management by Logistics management by ERP by

Alexis Leon……………………………published by Tata McGraw Hill,2003

• From Jeff Ashcroft……. “You’re Guide to Logistics / Supply Chain”, article 2005

• Strategic logistics management by Stock, James R & Lambert, Douglas

• Fundamentals of Logistics Management (McGraw-Hill Series in Marketing)

by Douglas Lambert, James R Stock, Lisa M. Ellram, 2001

• The Management of Business Logistics: A Supply Chain Perspective (7th

Edition) John J. Coyle, Edward J. Bardi, and C. John Langley, Jr., South-

Western/Thomson Learning, Mason, OH, 2003.

• Supply Chain Logistics Management by Donald J. Bowersox, David J. Closs, and

M. Bixby Cooper, McGraw-Hill, New York, NY, 2002.

• Supply Chain Logistics Management by Donald Bowersox, David Closs, M.

Bixby Cooper, McGraw-Hill,2002

• Modern Logistics Management - by John F. Magee, William F. Capacino,2004

Web sites: www.google.com

www.onlylogistic.com

www.logismarket.co.uk www.total-logistics.co.uk

Database:

Blue Dart database

Journal:

ICFAI Journal of Marketing ICFAI Marketing Mastermind. Business World. Business Today

Business Magazines:

Economic Times. Business Standard