Asia-Pacific Institute of Management

30% of Winter Project

Titled
Supply Cain Management and Competiti!e mar"eting strategy of
major courier companies in India#
Su$mitted to%
&r# A# '# Sar"ar(Area Cair person I)*
Su$mitted $y%
Arun +umar Su"la
,"-./I)/00
123)A2 231ISTICS SC4'A5I3%
In a move to cut down costs, producers are exploring around the globe in search for the lowest
cost exporters/suppliers. Lured towards developing countries in south-east Asian region for
lower-wages, transportation industry is stretching its reach longer than ever before. Maor
players are focusing overseas mar!ets for outsourcing cheap manufacturing as well as expanding
their businesses. "his result in outbound logistics. And acceleration in manufacturing capacity is
driving many producers to shutter superfluous plants. "he rest of the plants are gaining the
developing rhythm, but must export overseas now to sustain their positions in the mar!et.
#oom in the Internet based services made overseas suppliers capable to match foot with local
suppliers. $eb-based sales, services and supplies are emerging vertically. "he expanding reach
has compelled logistic industry to spur cross-border trade. %egardless-of this outbrea! of activity,
it is commonplace also for expert managers of local logistics to get ac&uainted with the
complexity of international trade logistics. 'lobal transportation and relevant services includes
much complex documentation than for domestic shipments. It almost includes longer delivery
times. (valuation of the arrival times of international shipments is ust a magic than solid fact.
"he business players always loo! for ust-in-time shipments, thus it aspires enhanced build to
order model and lot-si)e-of-one shipments, which results more pressure on logistics industry.
Logistics industry has usually been old-fashioned traditions. *sually, the shipping personals
would decide for carriers, customs agents and so on. +ormally, their search doesn,t go beyond
the initial service providers who cover all the minimum re&uirements. -nce the shipment !ic!s
off its ourney towards its destination, it is really hard to assume reaching time.
6or e7ample, a ship that started its ourney from Asia could meet harsh weather, which may
delay its reaching on the $est .oast for three days. -n the other hand, the truc!s at the $est
.oast would have to wait and sat empty and ideal for the three days, which would certainly result
in big loss. "hese !ind of unpredictable losses are usual in international logistics. "hus, even the
largest multi-national companies avoided logistic services on a worldwide basis. "hey opt to
establish their operations in each country and let them to manage logistics individually. "he
boom in Internet services changed international logistics rapidly.
At present, vendors can cater massive numbers of global shipments. .omplying with this, they
create and uphold substantial databases, which cover country-specific laws and regulations.
/actually, thousands of combinations of containers, ports, and so on are li!ely counted for
moving a shipment.
International logistics vendors also maintains cost and route information on hundreds of
hundreds carriers, which are operational in do)ens of regions, which offers both lower freight
bills and cutting of delivery times.
A biggest disadvantage in international logistics is the vagueness in arrival times. Materials
managers have had modest choice, so they had get around by adding more safety stoc!s.
"hus, the costs of inventory management in the overseas parts are naturally higher. "he
uncertainty of delivery time is due to not tapping of international shipments closely and step by-
step. "his is easier said than done. 0owever vendors are now offering trac!ing system, which is
necessary in continuous trac!ing of both international logistics networ!, and electronic visibility
in each yard and carrier. Although there is much to be done to achieve this stage, the pieces of
the pu))le are gradually coming together. (ven though vendors are offering a worldwide
networ!, significantly added and dedicated, e&uipment is still re&uired. /or example, trac!ing
completed products needs a yard management system, which recogni)es each container in the
yard and its placement.
"he radio fre&uency Identification 1%/I23 tags in containers, whose place is detected by
antennas located in the yard. Maintaining the clear vision also needs trac!ing the containers as
soon as they leave the yard. "his trac!ing is possible by 'lobal 4ositioning 1'453 systems and
satellites, however, use of these systems are not usual at present. As a result, the industry does
not provide step-by-step trac!ing of container.
An important trend among logistics services providers would aid the industry. Logistics industry
veterans unveil that logistics service providers are extending reach worldwide and expanding
their services too. %egardless of understandable limitation, global logistics should obviously
improve. $eb-based companies and technically ground-brea!ing carriers such as *45 Logistics,
%yder, and others will carry on showing the way. 'lobal logistics in near future should be distant
more faultless and reasonably priced than ever.
Si8e of te glo$al logistics industry%
.urrently the annual logistics cost of the world is about *52 6.7 trillion. /or any country, the
annual logistics cost varies between 89 and :;9 of the '24, the figure for the *5 being about
89. *5-based Armstrong < Associates, Inc. trac!s the issues and trends in the world logistics
mar!et and in the *5 logistics mar!et, in particular, in their annual surveys of top :7 global
L54s. According to the firm, the global logistics mar!et si)es in =88:, =88> and :;;; were *52
=; billion, *52 :7 billion and *52 7> billion, respectively. In :;;6 and :;;?, the
corresponding figures were *52:@; billion and *52 666 billion, registering high growth rates.
"hough most of the large L54s are head&uartered in (urope, the *5 logistics mar!et is the
largest in the world capturing one-third of the world logistics mar!et. In :;;6, it was about *52
A; billion.
In :;;?, it grew to *52 A8 billion, and in :;;7, it registered an impressive growth rate of =>9
to cross the *52 =;; billion mar! for the first time and reach *52 =;6.@ billion 1/oster and
Armstrong, :;;?, :;;7, :;;>3. 0owever, considering the fact that the logistics mar!et in the *5
is about =;9 of its annual logistics cost 1/oster and Armstrong, :;;>3, there is still immense
potential for growth of 64L in the *5 in particular, and in the world in general.
SI94 36 T:4 231ISTICS MA5+4T I' I'&IA%
Indian 5upply .hain and Logistics Industry is more than *52 =;; #illion in si)e and is the
bac!bone of Indian (conomy. -ur industry is growing at a rate of A-=;9 annually and has been
a crucial contributor in the growth and development of the Indian economy. In the near future,
"raditional Logistics services li!e "ransportation and $arehousing would continue to growth at
a good rate. 0owever, the big tic!et growth would come from the Balue Added Logistics services
in the near future.
At present, -utsourced Logistics accounts for only one-third of the total Logistics mar!et in
India, which is a significantly lower proportion vis-a-vis the developed mar!ets. 'rowth in this
industry is currently being driven in India by over *52 6;; billion worth of infrastructure
investments, the phased introduction of BA", the development of organi)ed %etail and Agro-
processing industries, along with a strong manufacturing growth. In addition, we expect strong
/oreign 2irect Investment inflows in the Indian mar!ets, which would lead to increased mar!et
opportunities for providers of "hird-4arty Logistics in India. "herefore, India possesses
substantial opportunities for growth in the 5upply .hain < Logistics industry in the coming
years, notwithstanding the temporary olt due to the economic slowdown.
Courier Industries%
.ouriers are basically a service for sending money or goods at some extra cost. It involves a
person or a company engaged in transporting, dispatching and distributing letters, parcels and
mails. In a rather layman term, it can be said that, compared to normal mail service, a courier
possess many added features. A courier is much faster, safer and secured than ordinary mail. It is
a speciali)ed service with authenticated signatures. It has trac!ing service with each service
being treated as a specific individual case. 2edicated timely deliverance is its primary hallmar!.
"hese features do cost a bit extra but with so many features available, the cost gets leveraged.
"he courier industry speciali)es in time-definite, reliable transportation services for documents,
pac!ages and freight. "his is done via a combination of transport networ!ing that includes road,
rail, sea and air for door-to-door delivery. "his extensive distribution system is supported by
infrastructure that comprises hubs, warehouses, I" technology and human resources, as well as
offices in various cities.
More and more courier companies appear on a regular basis, and you may have noticed different
courier logos and branding on vans and planes across the world. Many of these courier
companies operate independently, where as others rely on some of the larger courier companies
when it comes to providing international deliveries.
-ne of the main reasons for the increase in courier companies is the boom in global trade,
probably largely down to the Internet. .ouriers have to deal with all sorts of re&uests from
delivering simple mail documents to large electronic items li!e computers, printers and
televisions. 5imply put, the courier mar!et has grown due to demand from customers and
businesses.
SA2I4'T 64AT;54S 36 T:4 I'&;ST5<

"he courier industry speciali)es in time-definite, reliable transportation services for
documents, pac!ages and freight.
"he industry has exhibited a growth of about 6;9 over the past four years and is
expected to grow at :79 for the next two to three years, ma!ing it one of the fastest
growing segments in the transportation of cargo.
International express cargo holds >9 of the express cargo industry, but is forecasted
to reach ?;9 by :;=@.
"he domestic courier industry with a turnover of %s :; bn is still at a nascent stage
as compared to developing countries li!e .hina where the industry is five to six
times bigger.
.urrently there are about :6;; courier companies in India, but four maor players
in the premium organi)ed segment dominate the industry.
C3;5I45 S45=IC4S I' I'&IA%
"he courier industry has world over been recogni)ed as an essential and indispensable part
of any economy. In India, various factors li!e growth of the industrial segment, growth in
exports and imports and overall economic scenario of the country have contributed to the
growth of the courier industry. 2omestic courier industry with a turnover in excess of I+%
:: bn is still in a nascent stage. India has more than :,6;; courier companies. It is a highly
disintegrated industry with nearly :; players in the organi)ed sector, :,;;; in the semi
organi)ed sector, and the rest in the unorgani)ed sector. "here are a few maor players in
the organi)ed sector who have a combined mar!et share of 8;9.
Indian courier industry was initially limited to all the four metros. "he reason was the
airport connection these metros were having. "he industry had its start some =7-:; years
ago. #ut with changing economy and technical advancement seen on a daily basis, the
industry has extended fast to several metropolis, township and even rural areas. "rain, bus,
motorcycle and even bicycle have helped the industry in this regard. Industry has traveled
a long way and now it has become a very common sight to see an office of .ourier
.ompany in the nearby locality. -wing to the growing demand for reduced transit time and
early deliveries the industry is forecast to grow at :79 for the next two to three years,
ma!ing this one of the fastest growing segments in the transportation of cargo.
International express cargo holds >9 of the express cargo industry, but is forecasted to
reach ?;9 by :;=@.
Tese are some "ey players in Indian Courier Industries%
=. #lue 2art
:. 20L India
6. /ed(x India
?. A/L
7. 'ati
>. (lbee (xpress
@. -vernite (xpress
A. "+" India
8. *45 India
#lue 2art (xpress Ltd. 1#lue 2art3 is the mar!et leader, with a 6>9 mar!et share in the
domestic mar!et, and (lbee 5ervices Ltd., the second largest player, has a :;9 mar!et
share. A/L-20L is primarily focused on the international segment, where it is the mar!et
leader, whereas 'ati .orporation Ltd. 1'ati3 is the mar!et leader in the domestic pac!ages,
ground distribution segment. In the domestic air pac!ages segment, #lue 2art, having
developed its own air networ! and aircraft operations, is currently the mar!et leader.
5e!enues of Major Player in te Indian Mar"et (5s# $n*%
"he organi)ed segment dominates the pac!age and the premium document business since it
re&uires a strong infrastructure and resources, while the low-yield document business is the
domain of the unorgani)ed sector. 0owever in value terms the share of the organi)ed sector is
>?9 and of the semi-organi)ed and unorgani)ed sector is 6>9 inspite of the large volumes it
handles.
5e!enue &istri$ution%
5ationale $eind doing tis project%
In the transport segment, courier companies are playing maor role to provide services in
India. "here are three crucial elements which are involved in the supply chain management
of the courier companies. =. 4rocurement :. 4rocess and 6. 2elivery. In a comparative
business environment the companies will have to manage these things with lo>-cost?
customer satisfaction and just-in-time# If any company fulfils customer satisfaction with
low cost strategy and ust in time, the company will be effectively more competitive. 5o at
the managerial point of view, it is very good opportunity for me to learn that how the
courier companies manage the above things.
"he proect report is useful to courier agencies in relation to improving the operational
efficiency, timeliness of the delivery scheduling and overall customer satisfaction. "he
courier companies can analy)e the efficiency and time management through this proect.
And they will also well aware about their strength and wea!nesses in comparison to other
courier companies.
3$jecti!es and scope of study%
=. In-depth study of the supply chain structure, operation lin!ages and process
integration.
:. "esting of the mar!eting strategy based on @just in timeA concept of the supply
chain.
6. Mar!eting and growth strategy of the courier companies with focus on cargo
operation and improving service &uality.
?. .omparison of 5ervice &uality the companies for customer satisfaction.
54S4A5C: M4T:3&3231<%
"he obective of the present study can be accomplished by conducting a systematic mar!et
research. Mar!et research is the systematic design, collection, analysis and reporting of
data and findings that are relevant to different mar!eting situations facing the company.
"he mar!eting research process that is adopted in the present study consists of the
following stagesC
=. &efining te pro$lem and te researc o$jecti!e %
"he research obective states what information is needed to solve the problem. "he
obective of the research is to study the Indian Logistics industry growth drivers and its
comparison with the other countries.
:. &e!eloping te researc plan%
-nce the problem is identified, the next step is to prepare a plan for getting the
information needed for the research. "he present study adopted the descriptive approach
wherein there was a need to gather large amount of information before ma!ing a
conclusion.
6. Collection and Sources of data%
Primary &ata%
Primary data will be collected from the customers through the questionnaire.
The sample size will be 200 from the fve representative courier companies.
Secondary &ata%
Secondary data will be collected from the authorized agents of the companies
magazines newspapers and internet.
?. Analy8e te collected information%
"his involves converting raw data into useful information. It involves tabulation of
data, using statistical measures.
Statistical Tools%
#ar 2iagrams
.olumn 2iagram etc.
7. 5eport researc findings%
"his phase mar!s the culmination of the mar!eting research effort. "he report with the
research findings is a formal written document.
)2;4 &A5T%

#lue 2art is 5outh AsiaDs leading integrated air express carrier and premium logistics-
services provider. It has the most extensive domestic networ! covering over =6,AA;
locations, and service more than ::; countries and territories worldwide through its 5ales
alliance with 20L, the premier global brand name in express distribution services.
#L*(2A%",5 vision is to establish continuing excellence in delivery capabilities focused
on the individual customer. In pursuit of sustainable leadership in &uality services, they
have evolved an infrastructure uni&ue in the country today.
ItAs Competiti!e Ad!antage lies in%
)lue dartAs !ast and unparalleled &omestic 'et>or"%
Lin!ed by some of the most advanced communications systems and positioned to offer a
consistent, premium, standardi)ed &uality of service.
A spectrum of ser!ices to pro!ide customi8ed solutions#
#lue dart is 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. Its services are
relentlessly monitored to deliver a net service level of 88.8>9 1as on /ebruary, :;;73.
ItAs Customs and 5egulatory e7pertise
.ompany had a dedicated team of specialists who provide the expertise for customs as well as
regulatory clearances at all 5tates within the country, to support seamless service to the
customer.
ItAs Tecnology
2esigned to enhance the reliability of our operations and process efficiency, and add value to
the customer through time and cost savings.
ItAs Air 'et>or"
"he only one of its !ind in the country today, that is focused on carriage of pac!ages as its
prime business, rather than as a by-product of a passenger airline. A dedicated aviation system
to support #lue 2artDs services is self-sustaining, with its own bonded warehouses, ground
handling and maintenance capability.
Its financial credi$ility
/itch %atings India 4vt. Ltd. has assigned the highest E/=F 1Ind3E G/ one plus 1Ind3H rating for
their short term debt programme of %s. 6; crores. /urther, I.%A Ltd. has also assigned the
highest EA=FE 1pronounced A one plus3 %ating for their .ommercial 4aper 4rogramme of %s.
:7 crores.
Its People force
.ommitted, diverse and over ?,;;; strong are company,s most valued asset. All company,s
achievements have been possible because they have a team who believes in themselves and
their company, a team with a winning attitude. #lue dart is a learning organi)ation, valuing
self-development, and most of company,s managers are homegrown.
&T&C%
&T&C is IndiaAs 2argest &omestic &eli!ery 'et>or" Company offering various
custom made services ranging from 2omestic to International. 2"2. delivers to the
remotest places in India with the help of ?,;;; business partners spread across the length
and breadth of India.
&T&C Courier B Cargo 2td# (&T&C* was incorporated in =88;. $ithin a span of =@
years, through its business associates 2"2. expanded its delivery networ! across the
length < breadth of the country, thereby creating the nationDs Largest 2omestic 2elivery
+etwor!. "oday 2"2. is one of the largest Indian company in the (xpress industry.
2"2. can also be credited with pioneering the franchisee concept for the courier industry
in India, and today has the largest franchisee networ!.
Its head&uarter is at #angalore, with ? of its Ional -ffices at 2elhi, Jol!ata, .hennai <
Mumbai, 2"2. currently serves around =;,;;; pincode areas and has over ?,;;;
/ranchised outlets, supported by =@> offices, which includes its #ranch offices, %egional
offices, Area offices, 0ubs and 5ub-offices. It handles =; million consignments every
month. 2"2. serves over :?; international destinations.
6irst 6ligt%
/irst /light .ouriers came into being on Monday, =@th +ovember =8A>. It all began with
the setting up of three offices at Jol!ata, Mumbai and 2elhi.
"he overwhelming response from customers, was not ust a dream come true, but the fruits
of an early reali)ation and recognition of the tremendous potential that the Indian
subcontinent offered in terms of mar!et si)e.
It was the foresight and dynamism of the /ounder .hairman and Managing 2irector, -. 4.
5aboo which created a spring board for the organi)ation to catapult into what it is today K
India,s Largest 2omestic .ourier .ompany.
86; /irst /light -ffices across India
::;A Authori)ed .ollection .enters
?7: /ranchisee Locations
5erving over 7;;; 4incode 2estinations across India
2edicated $orforce of over =;;;; plus employees
5trategically located A own International -ffices
5erving over ::; countries globally
"he fast paced growth and widening networ! is the outcome of four basic beliefsC
5peed
5afety
%eliability
(conomy
As a natural corollary to its growth endeavor, /irst /light is in the process of setting up a
large scale integrated Logistics 2ivision to offer an entire gamut of $arehousing,
Inventory Management, 5upply .hain 5ervices and 2istribution .hannels, thereby
providing total end-to-end solutions to customers.
In !eeping with times, /irst /light continues to invest substantial effort in building a 5tate-
of-the-Art 5uper Information "echnology highway.
/irst /light,s commitment to corporate excellence and its yearning for ma!ing it a common
household name opens floodgates of opportunities and challenges and to meet it head on,
shall be the corner stone of its philosophy.
6ed47 India%