Professional Documents
Culture Documents
INTRODUCTION
1
INTRODUCTION
What is LOGISTICS?
Logistics is one of the oldest and also the newest activities of business
management. It involves combining diverse functions and service providers
who may be culturally and objectively different.
2
In the past, quality of products and services was the key
differentiating factor for companies operating in the same market. In due
course, quality and low cost became the winning combination.
A recent US study found that logistics costs account for almost 10% of
the gross domestic product. The process itself covers a diverse number of
functional areas. Involved in logistics are transportation and traffic, as well
as shipping and receiving. It also covers storage and import/export
operations.
3
The concept of logistics can be applied to specific areas of business.
Acquisition logistics, for example, covers everything involved in acquiring
logistics support equipment and personnel for a new weapons system for the
military. This includes identifying, designing, defining, developing,
producing, delivering and installing the new weapons system.
Many businesses that deal with supply of goods or services have their
own logistics department. For example, a company supplying photocopying
paper around the world will have a logistics team. The manager will oversee
or delegate to his staff the process from the point of origin. The team will
deal with the acquisition of paper from the paper supplier all the way to the
customer who requests the paper. The supplier and buyer may be located in
different countries.
It is the logistics team who must make sure that products can be obtained
at a reasonable price. They then have to make sure the product is shipped on
time and will arrive when expected. The logistics team also has to deal with
importing and exporting contracts, and possibly also with the customs
department. The process at times can be a lengthy one, but once in place
should run smoothly.
4
History of Logistics
5
At the micro level any manufacturing and marketing company spends
5 - 35 per cent of sales on logistics. The major cost components are
transportation, warehousing and inventory carrying cost. Improvements in
logistics get reflected in a reduction in inventory levels, shorter delivery
schedules, and improved servicing standards with significant savings in total
costs.
Logistics Management
Software is used for logistics automation which helps the supply chain
industry in automating the work flow as well as management of the
system. There is very few generalized software available in the new
market in the said topology. This is because there is no rule to generalize
the system as well as work flow even though the practice is more or less
the same. Most of the commercial companies do use one or the other
custom solution.
6
Business logistics
Logistics as a business concept evolved only in the 1950s. This was mainly
due to the increasing complexity of supplying one's business with materials
and shipping out products in an increasingly globalized supply chain, calling
for experts in the field who are called Supply Chain Logisticians. This can
be defined as having the right item in the right quantity at the right time at
the right place for the right price and is the science of process and
incorporates all industry sectors. The goal of logistics work is to manage the
fruition of project life cycles, supply chains and resultant efficiencies.
7
Production logistics
The term is used for describing logistic processes within an industry. The
purpose of production logistics is to ensure that each machine and
workstation is being fed with the right product in the right quantity and
quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the
flow through the value adding processes and eliminates non-value adding
ones. Production logistics can be applied in existing as well as new plants.
Manufacturing in an existing plant is a constantly changing process.
Machines are exchanged and new ones added, which gives the opportunity
to improve the production logistics system accordingly. Production logistics
provides the means to achieve customer response and capital efficiency.
Production logistics is getting more and more important with the decreasing
batch sizes. In many industries (e.g. mobile phone) batch size one is the
short term aim. This way even a single customer demand can be fulfilled in
an efficient way. Track and tracing, which is an essential part of production
logistics - due to product safety and product reliability issues - is also
gaining importance especially in the automotive and the medical industry.
8
Logistics Management Process
The various processes and elements that are part of logistics as a discipline
are:
Before delving deep into logistics, a look at the current business scene will
be great help.
9
Scenario of Logistics in India
10
Today logistics management in India has become complex with about
ten million related outlets to cater to the needs of 1000 million people.
11
illustrates the trend to think of customer service as a process-focused
orientation that includes supply chain management concepts.
It is clear that excellent customer service performance seems to add
value for all members of the supply chain. Thus, a customer service program
must identify and prioritize all activities important to accomplish operating
objectives. A customer service program also needs to incorporate measures
for evaluating performance. Performance needs to be measured in terms of
goal attainment and relevancy. The critical question in planning a customer
service strategy remains, does the cost associated with achieving the
specified service goals represent a sound investment and, if so, for what
customers? Finally, it is possible to offer key customers something more
than high-levels basic service. Extra service beyond the basics is typically
referred to as value- added. Value-added services, by definition, are unique
to specific customers and represent extensions over and above a firm’s basic
service program.
12
businesses to the receiving docks of a firm’s manufacturing plants and
warehouses. In some cases the customer is a different organization or
individual who is taking ownership of the product or service being delivered.
In many other situations the customer is different facility of the same firm or
a business partner at some other location in the supply chain. Regardless of
the motivation and delivery purpose, the customer being serviced is the focal
point and driving force in establishing logistical performance requirements.
It is important to fully understand customer service deliverables when
establishing logistical strategies.
Whereas logistics is not capability that contributes to overall success,
it is fundamental to servicing customers. In a typical marketing situation, the
desired customer service performance changes over time. To plan marketing
strategy in a dynamic will serve to illustrate how logistical customer service
requirement related to a specific product/segment situation will change over
time. The product life cycle structure offers a useful framework for viewing
the dynamics associated with customer service requirements planning.
In terms of overall logistical performance, the basic customer service
platform or program should be the level of support provided to all
customers.
13
CH- 2
OBJECTIVES
OF
THE STUDIES
14
OBJECTIVES
The objective was to have a complete knowledge the logistics of goods,
information and other resources, including energy and people. Alongside
this, the objective was to study the functioning of BLUE DART as an
example of typical logistics company.
The study was done primarily with the following objective in mind:-
The main objective of the study to learn about the logistics along with
the functioning of BLUE DART .
15
CH- 3
ANALYTICAL
RESEARCH
OF
BLUE DART
16
17
Corporate Profile
About BLUE DART
18
Blue Dart Aviation, dedicated capacity to support their time-definite
morning deliveries through night freighter flight operations.
19
Company had a dedicated team of specialists who provide the
expertise for customs as well as regulatory clearances at all States within the
country, to support seamless service to the customer.
It’s Technology
Designed to enhance the reliability of our operations and process
efficiency, and add value to the customer through time and cost savings.
20
attitude. Blue dart is a learning organization, valuing self-development, and
most of company’s managers are homegrown.
MILESTONES
1983:
Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart
Courier Services with a capital base of Rs: 30,000. They forge ties with
Gelco Express International U.K., and introduce India's first international air
package express service.
1984:
Blue Dart Courier Services becomes a Global Service Participant of FedEx
with the acquisition of Gelco Express International by FedEx. Blue Dart
Courier Services is the first carrier in India to provide domestic and
international on-board couriers, a hub-and-spoke system and a 10.30 a.m.
delivery service.
1988:
Blue Dart Courier Services establishes real-time, on-line tracking for all
21
international shipments through COSMOS, the FedEx track and trace
system.
1991:
Blue Dart Express is registered as a private limited company, and introduces
its economical logistics service option, Dart Surfaceline. It indigenously
develops its domestic tracking system, COSMAT-ITM.
1992:
Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network,
and sets up its employee satisfaction programme - Survey Feedback Action
(SFA).
1994:
Blue Dart Express Ltd. goes public with an equity offer of 2.55 million
shares, at a premium of 14 times, worth Rs: 382.5 million. Blue Dart
Express Ltd. launches Dart Apex (Domestic Air Package Express), a multi-
modal, premium package delivery service, and COSMAT-IITM, an advanced
system which includes track and trace. Blue Dart Aviation is registered as a
public limited company and becomes the first private company to receive
government permission for operation of cargo aircraft in India.
1995:
Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO
permission. Blue Dart Express Ltd. develops its SMART (Space
Management Allocation Reservations and Tracking) system for its aircraft,
22
the first cargo management system in the country. Blue Dart Express Ltd. is
awarded the "Global Service Participant Sales Award" by FedEx for
outstanding sales performance.
1996:
Blue Dart Aviation launches India's first jet express airline. Blue Dart
Express Ltd's turnover crosses the Rs: 1 billion mark, as it expands its
domestic network by entering into strategic alliances in North, South and
West India. Blue Dart Express Ltd. is the first express company in India to
receive an ISO 9001 certification, and post its website on the internet. Blue
Dart Express Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., co-
operate in bringing the world's largest airlift of charity to Kolkata.
1997:
Blue Dart Express Ltd. signs agreements with leading international airlines
for distribution of bonded cargo within its network. Blue Dart Aviation
launches its domestic charter operations.
1998:
Blue Dart Aviation develops India's first Load and Trim software for its
B737F flights. Blue Dart Express Ltd. launches SMARTBOX, its
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economical, packaged door-to-door product, and extends its delivery to over
1000 locations.
1999:
Blue Dart Express Ltd. moves to its state-of-the-art Administrative,
Technology and Operations Super hub, the Blue Dart Centre, at Mumbai. At
close proximity to both the international and domestic airports, encircled by
four five-star hotels, and equipped with the latest technology, the Super hub
has improved efficiency and increased load-handling capacity multifold.
Blue Dart Express Ltd. Launches Power Dart 2000+, a software that
provides customers free connectivity to its database, enabling customers to
track and retrieve all information related to their shipments.
2000:
Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is
scheduled for operations on the Bangalore-Delhi-Bangalore sector. Blue
Dart Express Ltd. also revamps its website replacing it with an interactive
website to support e-trade and commerce and facilitate customer interface on
the net.
2001:
Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-
Bangalore sector. The Civil Aviation Ministry requisitions Blue Dart
aircrafts for relief operations into earthquake-battered Bhuj in Gujarat.
Technology tools and customer software - MobileDart, On-Line Pick Up and
ShipDart - are developed in-house and launched. Blue Dart declares 1:1
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bonus shares. Blue Dart, Kolkata moves into heritage building, Kanak, its
new premises inaugurated by Sr. Nirmala of the Missionaries of Charity.
2002:
Blue Dart is re-certified as one of a handful of Indian companies to the new
global ISO 9001 - 2000 standards for "Design, management and operations
of countrywide express transportation and distribution service within the
Indian Subcontinent and to international destinations serviced through
multinational express companies". Blue Dart ends its contract with Federal
Express and signs a path-breaking Sales Alliance with the World's No. 1
international air express company, DHL Worldwide Express. Blue Dart
crosses 100,000 shipments per day.
2003:
2003 - Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on
strengthening infrastructure, Blue Dart establishes twelve of its own offices
in the South, delivering to an additional 198 locations, expands its hub at
Bhiwandi and sets up a bonded warehouse in Mumbai. The company is
selected a Super brand from over 700 brands across 98 categories by a jury
of eminent marketing and advertising professionals. The company celebrates
its 20 years of service to the nation on 19th November 2003
2004:
Blue Dart inducts its 4th aircraft into operation on 17th May 2004,
connecting Hyderabad as its 6th Aviation Hub. Blue Dart also extends its
brand into Sri Lanka through a Regional Service Alliance with Foster
25
Agencies Pvt. Ltd., Member of the Hayleys Group, one of Sri Lanka's
largest diversified multinationals. The Alliance will enable customers to use
Blue Dart services between 400 locations in Sri Lanka and over 13,700
locations in India. Blue Dart acquires its fifth Boeing 737 freighter.
2005:
DHL Express (Singapore) Pvt. Ltd. completes the acquisition of 81.03% of
the equity capital of Blue Dart Express Limited. Blue Dart continues to
operate as an independent brand and provides a complete spectrum of
domestic and international express services through synergies with DHL.
26
COMPANY’S VISION
&
FUTURE PLANS
27
Company’s Vision:
"To be the best and set the pace in the air express integrated transportation
and distribution industry, with a business and human conscience. We
commit to develop, reward and recognize our people who, through high
quality and professional service and use of sophisticated technology, will
meet and exceed customer and stakeholder expectations profitably."
Focus on our core domestic products to expand our market share and
consolidate our unique and premium position in the Indian market, and
expansion into the near Mid-East and Far East markets and the SAARC
(South Asian Association of Regional Co-operation) countries. Blue Dart
would also leverage its vast customer base for global distribution through its
alliance with DHL. We plan to leverage our established infrastructure to
continue adding value and customised solutions to the changing and
evolving demands of the customer. We would also provide global logistics
28
customers with access to our quality domestic and regional distribution. Our
domestic network will continue to differentiate itself in all areas of our core
competencies - supply chain management, logistics and Ecommerce.
29
LOGISTICS
IN
BLUE DART
30
LOGISTICS IN BLUE DART
1. The delivery of goods to the customer in the most reliable transit period
(and preferably the shortest) possible. 'Reliable' alludes to a certain
guaranteed transit time for packages to reach customers or the response that
organisations need in the event of any exceptions.
31
returned before bills can be submitted to the customer. In most IT
companies, the role of 'logistics' or 'fulfillment' is key.
The country's most reliable air and surface network offer a pre-
determined delivery schedule with close to 100% accuracy. The IT industry
could plan its production with precision and avoid expensive inventory
build-up.
The country's only express airline with a fleet of three Boeing 737s
ensured that packages were flown to their destinations overnight. Another
32
tremendous advantage was that the individual size of packages that could be
carried multiplied manifold.
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-
line.
33
34
Logistics software solutions
35
SERVICES
OF
BLUE DART
36
REGIONAL SERVICES IN SAARC AREA
Between India, Bangladesh, Bhutan and Nepal.
37
REGIONAL SERVICES
Real-time Tracking
Regulatory Clearances
DART APEX
Single-window Clearance
Real-time Information
Time-Definite Delivery
Speed
40
Flexibility
Economical
DART SURFACELINE
Time-bound Delivery
Regulatory Clearances
Pick-up Convenience
Secure Shipments
Economical Tariff
41
SMART BOX
Speedy Delivery
Free pick-up
Real-time Tracking
Regulatory Clearances
Proof of Delivery
42
INTERNATIONAL
SERVICE
43
INTERNATIONAL SERVICE
44
International services of Blue dart are taken over DHL EXPRESS in
2002.
Blue Dart Express Limited, through its International Sales alliance
with DHL, the premier global brand name in express distribution services,
offers DHL Document Express (DOX), DHL Worldwide Package Express
(WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10
kgs.), a one-stop shipping process for reliable, 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.
45
3) Customs Clearance Expertise Specialists conversant with customs
formalities in India as well as in 228 countries worldwide, and pre-
clearance for shipments in transit available for most destinations,
ensure efficient delivery.
4) Real-time Tracking.
5) A Cost-effective Option.
6) Packaging.
46
DHL
OFFERS
DHL OFFERS:
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.
Features:
47
Priority financial industry services.
State of the art information
systems.
Specialised fast handling facilities.
90% of international banks' first
choice.
Door to door one company control.
World class packaging.
Benefits:
48
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:
Benefits:
Fastest transit time.
Greater security and control.
Simplified and convenient process.
No hunting for packaging.
Detailed online tracking.
One company control.
Single Invoice.
49
Door to door peace of mind.
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:
Benefits:
Maximum convenience.
Low price.
Exporting documentation made easy.
Fastest transit time.
Door to door service.
Track status online door to door.
No hunting for packaging or paperwork.
50
Different types of international services: -
AIRPORT TO AIRPORT
Cooling-Period
Capacity
51
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.
CHARTERS
INTERLINE
52
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.
53
VALUE
ADDED SERVICES
54
VALUE ADDED SERVICES
Value added services on the rise. Blue Dart has started providing
value-added services like “logistics management, supply chain management
and warehousing facilities to its clients. Going forward demand for such
services from corporates is likely to grow at a fast clip. This is because by
outsourcing such services to third party service providers they would be able
to cut down on costs and improve their efficiency levels. For the courier
companies such services would be part of the overall value proposition they
would be offering their clients apart from the normal pick up and delivery.
Such services have the potential for enhancing the margins of courier
companies like Blue Dart. We believe that Blue Dart is best equipped to
capitalize on the growing opportunities in the emerging areas of
warehousing and supply chain management.
55
E-COMMERCE
INITIATIVE
56
E-commerce Initiatives
57
E-vision:-
58
track their shipments, through single or multiple waybills, on-line.
Customers can check the status of their shipments using a waybill number or
a reference their shipments using e-mail.
59
E-Shipping Tools:-
Blue Dart provides some convenient tools to aids to its customer’s shipping
management processes.
TrackDartTM
MailDartTM
Location Finder
Price Finder
Billing
Schedule a pickup
Image Dart
Waybill Generation
60
Stand-alone Tools
COSMAT II
SMART
CaressTM
(Complaint Appreciation, Resolution and Evaluation to Satisfaction System),
ShieldTM
ShipDartTM
Customised Solutions
61
E-Business Tools:-
InternetDartTM
62
Track on-line the status update of your shipments sent over the last 45
days. You may track by a range of dates, origin, destination, delivered
or undelivered shipments or service used, on-line. You may generate a
series of reports, at a pre-determined frequency, and sort the results
on-line.
ShopTrackTM
PackTrackTM
MobileDartTM
63
customer can check the current status of his shipments on-line by
entering the waybill number.
64
BLUE DART
INITIATES
CUSTOMER
SATISFACTION
BENCHMARK
65
the status of the documents shipped. Customer’s end up making endless
calls to the courier service office asking them when the 'Proof of Delivery'
(POD) will come their way since company need to be assured that
everything that was sent has reached the destination. Now, Blue Dart
Express Ltd promises to cure customer’s conventional woes.
This implies that every day professionals from Blue Dart will monitor
the exact status of various shipments of its clients, especially air cargo
services which is one of the core offerings where the company generates
substantial business volumes. In this business, the company may encounter
imperatives like flight delays to bad weather conditions or some other
peculiar circumstances which may lead to considerable worry and anxiety
for the target customers. This is more so because the delivery of these
66
shipments would be crucial to effectively run their own independent end-
businesses. The team within the company, in such instances will track the
specific geographical areas where the problem persists through Internal
technology tool and other aligned systems that have been initiated by the
enterprise. The company will also personally interact with customers and
explain to them the exact reasons for the delay along with the time when the
cargo will be delivered.
Further, the moment the company discovers that there are certain
areas where customer service delivery is not in sync with the standards that
have been set by the organisation, the entire team gets down to analysing the
problem. This is done to determine where exactly the company needs to gear
up further.
67
CH –4
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
68
To gather the relevant information regarding the project, the following
method has been used.
A: Research Design
The research design is exploratory research design. In the exploratory
research design literature survey was conduct.
A research design is purely and simply the framework or plan for a study
that guides the collection and analysis of data.
Literature survey:
One of the most economical and quickest ways to discover hypotheses is
through a literature search. For this purpose, large volumes of published and
unpublished data are available.
Research Design
Literature Survey
69
• Data Type
There are mainly two types of data are available; Primary data and
Secondary data,
I conducted my study mainly based on the secondary data. That is collected
by the –
Secondary Data:
Secondary data is that data which are collected for some earlier research
work and are applicable in the study the research has presently undertaken.
Depending upon the gathering sources, secondary data can be divided iinto
two categories-
i. Internal data:
Internal data is procured by the research in normal operations within
his own premises.
• Companies websites
• Company catalogue
70
Secondary Data
C: Sample Design
Collecting data from where only a few units of population under study are
considered for analysis is called sampling method.
• Sample Size:
A sample size of 1 Company was taken.
• Sample Type:
There are two main categories; Probability sampling and Non –
probability sampling.
The sample type was Non-probability sampling.
Non-probability sampling:
In non-probability sampling, the chance of any particular unit in the
population being selected is unknown.
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• Sample Technique:
There are mainly three non – probability designs; Judgment sampling
Convenience sampling and Quota sampling.
Judgment sampling technique was used.
Sample Design
Non-Probability
Judgment
D: Tools
It was secondary data that I have used in my project.
72
CH-5
RESULT & ANALYSIS
73
RESULT & ANALYSIS
Logistics is defined as a business planning framework for the management
of material, service, information and capital flows. It includes the
increasingly complex information, communication and control systems
required in today's business environment.
A recent US study found that logistics costs account for almost 10% of the
gross domestic product. The process itself covers a diverse number of
functional areas. Involved in logistics are transportation and traffic, as well
as shipping and receiving. It also covers storage and import/export
operations.
In business, logistics may have either internal focus (inbound logistics), or
external focus (outbound logistics) covering the flow and storage of
materials from point of origin to point of consumption. The main functions
of a qualified logistician include inventory management, purchasing,
transportation, warehousing, consultation and the organizing and planning of
these activities.
The issue is not the transportation itself, but to streamline and control the
flow through the value adding processes and eliminates non-value adding
ones.
As a technology leader in the business of supply-chain management in the
country, Blue Dart Express Limited recognised the far-reaching scope of
logistics in the country as well as outside the country.
The techniques and procedure used by the Blue Dart are very effective that
is keeping pace with time and requirement of the customers.
74
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 their customers and shareholders.
The delivery of goods to the customer in the most reliable transit period (and
preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed
transit time for packages to reach customers or the response that
organisations need in the event of any exceptions.
The country's only express service provider with a dedicated fleet of seven
freighters (two Boeing 757s and four 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.
The company will also personally interact with customers and explain to
them the exact reasons for the delay along with the time when the cargo will
be delivered.
Blue Dart is mainly focuses on the international services. Blue Dart does not
have very well connection with the national airports. The national airport
services are limited to certain airports and are very expensive. At national
level transportation of goods is done via road that makes delay in the
service.
Though it always try to fulfill all the requirement of its customers but it is
lacking in the case of domestic services. It must pay equal attention on the
domestic services so that more and more people can take the advantages of
its ultimate services.
75
CH - 6
FINDINGS
OF
THE STUDIES
76
FINDINGS
77
At national level transportation of goods is done via road that makes
delay in the service.
CH - 7
RECOMMENDATIONS
78
79
RECOMMENDATIONS
Blue Dart does not have very well connection with the national
airports so Blue Dart must make good connection with the national
airports.
The national airport services are limited to certain airports and are
80
CH - 8
CONCLUSIONS
81
CONCLUSIONS
82
BIBLIOGRAPHY
83
BIBLIOGRAPHY
Secondary Data:
1. Webiliography:
• www.bluedart.com
• www.google.com
• www.rediff.com
• www.yahoo.com
• www.clm1.org/mission.html
• http://searchlogistics.techtarget.com
• www.calm.org/calm/AboutCALM/AboutCALM.htm
l
2. Books:
84