Logistics

Introduction
Logistics is about moving materials, information and funds
from one business to another or from a business to the
consumer.
It is a vital part of the business economic system and is a
major global economic activity.
In fact 10-15 per cent of product costs are logistics related.
Worldwide, logistics constitutes about $2 trillion a year. For
any country, the logistics cost is estimated between 9 and 20
per cent of its GDP.

Logistics Management
Process
Inbound logistics: Purchasing, Inbound transportation,
Inventory Management.
Manufacturing: Production planning systems, Machine
scheduling system.
Outbound logistics: Order booking process, Distribution
management, outbound transportation, and Warehouse
management systems

Indian Courier Industry

Indian
Indian Courier
CourierIndustry
Industry
(Rs
(Rs35
35 bn)
bn)
Domestic
Domestic(Rs
(Rs 17.5
17.5bn)
bn)

International
International(Rs
(Rs 17.5
17.5 bn)
bn)
Organised
Organised(Rs
(Rs 10.5
10.5 bn)
bn)

Unorganised
Unorganised (Rs
(Rs 77bn)
bn)

Organised
Organised(Rs
(Rs 13
13 bn)
bn)

Inorganised
Inorganised (Rs
(Rs 4.4
4.4 bn)
bn)

Industry Overview
1) Demand growth linked to general domestic markets &
- Leading service providers include Blue Dart, DHL, AHL, Fedex etc.
- Blue dart leads the domestic market with 38% market share.
- Salient features of the industry;
i. Door to Door Service
ii. Time definiteness
iii. Reliability
iv. Tracing & tracking

2) International Express markets

- Indian subcontinent constitutes approx 3.9% of the of the worlds
airfreight

Industry Characteristics
& Drivers
Characteristics
1) Demand growth linked to general economic prospects
2) High Fixed Cost structure
3)Continuous investment in Fixed asset is required
4) The ability to provide time definite service wuth the competence
to offer clients information about the status of shipments and supply
chains crucial
5) Close control is required over all shipments with attendant need
for sophisticated information system.
Industry Drivers
1) General growth in the domestic industry and the imports/ exports
2) Increasing need of reliable and time definite services from the
industry
3) Growth in volumes of consignments and the revenue realization

SWOT Analysis:
Indian Courier Industry
Strengths
1) Non Regulated Industry : No licenses required to enter the Industry.
2) Limited players at national level
3)High growth industry : expected to grow @ 30% in coming years
4) Presence of huge entry barriers;
- Enormous set up of national networks. Offices, air lines tie-ups
- International tie-ups required
Weakness
1) High dependence on economic scenario
2) Poor infrastructural support, inadequate & inefficient airports, bad roads
etc.
Opportunities
1) Integrated Logistics solutions for companies.
2) Development of e-commerce enables customers to stay online for any
queries
Threats
1) Government regulations.

About BLUE DART

Blue Dart Express Ltd. was incorporated on 5th April 1991.
The company was converted into a public limited company on
June 15th, 1994 and the certificate of incorporation on change
of name was issued on June 17th, 1994.
The Company is engaged in the courier business for carriage
and door-to-door delivery of commercial documents, samples,
panels and printed matter in India and throughout the world.
The Company was promoted by Tushar Jani, Clyde Cooper and
Khushroo Dubash. - The name of the firm was changed to Blue
Dart Express on October 1st, 1990 and the firm was registered
as a private limited company on April 5th 1991.

Corporate Profile
BLUE DART is South Asia's leading integrated air express
carrier
and premium logistics-services provider. It has the most
extensive domestic network covering over 25,498 locations,
and service more than 220countries and territories
worldwide through its Sales alliance with DHL, the premier
global brand name in express distribution services
Blue Dart has 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.
It has ISO 9001 - 2000 countrywide certification by Lloyd's
Register Quality Assurance for their entire operations,
products and services.

BLUE DART - DHL

NOVEMBER 8, 2004 US courier giant DHL had acquired a 68.2 per
cent stake in a deal worth Rs 600 crore in Blue Dart Express.
Blue Darts Indian promoters and Newfields Holdings have entered
into separate definitive sale/purchase agreements to sell their
equity shares, collectively constituting 68.21 pc of the total current
post issue paid up equity share capital, at Rs 350 per share to DHL
Express (Singapore) Pte. The price of the acquisition is at a 9.4 per
cent premium to the current ruling market price of Blue Dart, of Rs
319.70. DHL will make an open offer for acquisition of additional 20
pc shares in Blue Dart as per Sebi guidelines on takeovers.
Blue Dart already has a sales alliance with DHL. With a 39 pc market
share in South Asia, it operates in India, Bangladesh, Bhutan, Nepal,
and Sri Lanka.

Business Statements
Vision Statement : "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."
Mission Statement : We commit to develop, reward, and
recognize our people, who through high quality and
professional services and use of sophisticated technology will
meet and exceed customer and stakeholder satisfaction
profitably.

BLUE DART
Products/ Services

The services offered by Blue Dart Express are as follows Air freight
Ocean freight
Supply chain solutions
Freight forwarding
Customs clearance
Project handling
Charters

BLUE DART Products/

Some of the New Products include: - Services
(i) Voice Dart: This is 24hr. hotline available to the customer in selected
cities of the country. It is an interactive voice response computer
system that enables customers to access key information regarding
the range of services offered by the company, to track the states of
their consignment and leave messages via a mailbox all in a voice
form;
(ii) Power Dart: a software-run-system which is installed at the
customer premises. Through a dial-up computer modem installed at
the customer premises, he can directly access the company's
database and retrieve relevant information of his shipments;
(iii) Dart Collect: Offers the overseas consignees receiving shipments
from India, the facility to pay the freight changes in foreign currency;
(iv) Dart Apex: This is a day definite door-to-door product for shipments
above 20 kgs. travelling to select cities within the company network; (v) IXF-2: This is a day definite door-to-door service for international
shipments weighing above 45 kgs.

Logistics in BLUE DART

Main challenge for any courier Industry: (i)
The delivery of goods to the customer in the most reliable transit period
(and preferably the shortest) possible.
(ii) The reverse flow of acknowledged signed delivery records without which,
in many cases, recovery of bills are virtually impossible.
Solution derived by BLUE DART (Logistics Function)
(i) It offers a predetermined delivery schedule with close to 100% accuracy, with help
of IT & efficient people.
(ii) Gave facility to its customers to track their packages through Power dart 2000.
(iii) The country's only express airline with a fleet of three Boeing 737s ensured that
packages were flown to their destinations overnight
(iv) 100 % retrieval system of delivery records.
(v) 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 bottomline.

Services of BLUE DART DHL

Domestic / Regional Services
DART APEX
DART SURFACELINE
SMART BOX

International Services
International services of BLUE DART were taken over by DHL in 2002.
They offers;
Express Document (DOX)
Worldwide Package Express (WPX)
The Jumbo Box & Jumbo Junior Box
Types of International Services
AIRPORT TO AIRPORT
CHARTERS
INTERLINE

SWOT Analysis
Strengths
Dominant player in the surface cargo segment in India, which accounts
for more than 55% of the total volume of cargo moved. International
presence, state-of-the-art mechantronic warehouses, warehouse
management solutions and value-added services should aid growth in
market share.
Entry into the coveted cold-chain logistics business.
Strong Brand Name and wide reach across India & global presence with
collaboration with DHL.
Significant presence at JNPT and other major Indian ports. Long-standing
relationship with Indian Railways.

SWOT Analysis
Opportunities
Strong macroeconomic growth, robust growth in trade driving the growth
of the Indian express industry. The industry was valued at Rs71 bn in
2005-06 and has grown in the range of 25%-30% over the past 3-4 years.
It is expected that the industry will register a similar growth rate over the
next few years.
Exemption of interstate sourcing from VAT will make having centralized
large warehouses more viable for companies than having local sourcing
and distribution..
Improvement in the logistics infrastructure in the country - the dedicated
rail freight corridor, modernization of ports, and improvement in road
infrastructure are set to give a boost to intra-state and inter state
freight movement.
Initiative by Indian Railways to allow private operators to run container
trains.

SWOT Analysis
Weakness
A rise in fuel charges could have an adverse impact on margins, which
are already low for the company.
Substantial investments involved in the setting up of warehouses and
building of vessels. Thus the industry is inherently capital-intensive.

Threats
Entry of new players into the courier operations business.
Rise in transportation costs would adversely affect margins. Also, an
increase in container traffic over and above capacity at the ports could
lead to congestion at the ports, leading to a decline/delay in the
throughput handled by the company.
An economic slowdown could impact the logistics industry as a whole

Future Plans
Focus on core products to expand market share and consolidate 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.
Position ourselves as the preferred, seamless link to a country projected
to be an economic superpower of the 21st Century.
Continue to deliver value to our stakeholders through our People
Philosophy and Corporate Governance based on distinctive Customer
Service, Business Ethics and Accountability, and Profitability.

Key Findings
Blue Dart express ltd. is fully aware of the basic need of customers than its
competitors.
The delivery of goods to the customer in the most reliable transit period
(and preferably the shortest) possible.
The reverse flow of acknowledged, signed delivery records is trust worthy.
The country's most reliable air and surface network offers a predetermined
delivery schedule with close to 100% accuracy.
Blue Dart offers the country's most comprehensive communications
technology and customer software to support critical supply-chain
distribution demands.
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

Recommendations
Since Blue Dart is mainly focuses on the international services so it
must pay attention in the domestic services.
Blue Dart does not have very well connection with the national
airports so
Blue Dart must make good connection with the national airports.
At national level transportation of goods is done via road that makes
delay in the service so the national airport services must be spread
to every airport so it will be resulted into quick service.
The national airport services are limited to certain airports and are
very expensive. Spreading to the every airport will also result into
the reasonable service.

Thanks

Blue Dart HO

Dart Surface Line

Express Package

Interline
International Services
Regional Services

Charters
Airport to Airport