Analysis of the courier

industry
DTDC
Courier industry
 Availability (presence) is important

 Rates between different courier companies do not differ

much

 Rates depend upon

 Distance
 Mode of transportation
 Type of goods –perishable or not
 Weight of the product to be sent
 Value added service
Industry analysis
 Courier industry earlier limited to 4 metros
 Extended fast to other metropolis, township & rural areas
 Manpower intensive
 Highly skilled & trained personnel
 Competitive market
 India has around 2300 courier companies
 Organized sector – 27%
 Semi-organized sector – 43%
 Unorganized sector – 27%
 Indian courier industry-Rs. 7,000-crore
Volume distribution

3%
27%
27%

43%

organized semi organized unorganized EMS Speedpost

Industry analysis
 Courier industry
 Time-definite
 Reliable transportation services

 Exhibited growth of about 30% over past 4 years

 Expected to grow at 25% in next 2-3 years

 Major players
 Blue Dart, DTDC, AFL, First Flight, GATI
 Unregulated industry (no entry barrier)
Revenue distribution

4% 6%

26%

64%

organized semi organized unorganized EMS Speedpost

Contd…
 Service categories
 Intra city
 Inter city
 Surface mode
 Air express
 Factors contributing for growth
 Economic growth
 Technological advancements
 Escalation of industrial sector
 Increase in export/import
 Effect of liberalization

“Courier industry — It's all about technology,

consolidation”
SWOT analysis: courier industry
STRENGTHS WEAKNESSES
• Around 40% annual growth • Erratic airlines’ systems
• Speed
• Dependency on increasing oil
prices
• Security (tracking) • Weak IMC
OPPURTUNITIES THREATS

• Investments by giant corporates • Increased competition

• Economic growth • Unorganized sector
• 10% profit margin - scope for
improvement • Demanding clientele
• Decreased restrictions in
International ExIm market • Brand switching
• Reduced tariffs • Increasing oil/ATF rates
• Improved Infrastructure  
Ways of Market coverage
 Wholly owned

 International tie-up for global reach

 Helps in infrastructure
 Helps in reach
Rising prices
 High oil prices & air freight
 Overall costs incurred by domestic couriers increased between
22% - 25%
 For consumer, tariff is up by 15% - 20%
 Consumer paying around Rs. 3/kg more
 Price hike
 In ground: 10% - 15%
 On air: 15% - 20%
DTDC
 Strategic Intent
 To save time by adopting ‘Right-Time approach in every part
of Business’
 To impartially select and develop employees & service partners
(Franchisees) for meeting quality service standard
 Mission
 To focus on Customer Loyalty and make it the goal of the
Organization.
 To encourage people for adoption of new technologies,
processes and systems for improved, reliable and speedy
service
 To relentlessly monitor to reach a minimum net service level of
98% delivery
 Vision
 To be the most Admired and Successful Express Distribution
Company in India by meeting and exceeding Customers'
expectation of services
Company analysis
 DTDC Courier & Cargo Ltd. (DTDC) was incorporated in
1990
 India’s largest courier company with a market share of 270
crores
 Presence in 3700 Indian & 240 international locations
delivering 10.5 million parcels every month
 Turnover for 2007-08 was 14,800 lakhs from the domestic
sector and 3000 lakhs from international sector
 Pioneered the franchisee concept in India with 4000
franchised outlets supported 176 offices all over the
country
Typical offerings
 Timely delivery

 Safe delivery

 Reasonable prices
Augmented offerings
 Pin code finder
 Helps to locate addresses of all DTDC offices anywhere in India
by typing destination’s pin code

 Location finder
 Online database with addresses of above 2500

 Pick up request
 DTDC representative comes to pick up customer’s consignment

 Online Tracking
 SMS Tracking and alert facility
 News flash service
Contd…
 E-shopping @ DTDC
 In association with fabmall.com, customers can choose from a
wide choice of gift articles to be hand-delivered

 DTDC PLUS
 launched in April 2007, by which Documents & Packages
weighing up to 5 kilos can be shipped through DTDC

 Saving of 50% on excess baggage

 Carrying of excess baggages & delivering to the consignee's
door
 Clearing of customs formalities in case of detention
Key players of courier industry
 Blue Dart-DHL  Trackon

 DTDC  SkyPak
 TNT
 GATI
 FedEx
 Blazeflash
 First Flight
 Elbee
 Professional Couriers

 EMS  Overnite express

 Safe Express  Patel on board

PROCESS
 Customer gives
Customer calls Package delivered at customer’s door
package Line of interaction

Franchisee owner
Customer service Franchisee owner
picks up package
order makes entry Line of visibility

Delivered to
hubs

DTDC Blueprint Sorting done

Goes to main
Line of internal interaction office

Package delivered
to hub Unload & sort Load on truck

Packages sent
Sorting done Sent to Mumbai To destination
to main office

Load for delivery

Sorting done via rail,
road or air
Marketing Strategy Audit for DTDC
 Provider gap 1
 Upward communication  5/10
 Relationship Focus  6/10
 Service Recovery  3/10
SCORE OBTAINED : 14/30

 Provider gap 2
 Systematic service design  7/10
 Presence of customer defined standards 8/10
 Appropriate Physical evidence & Service scape  7.5/10
SCORE OBTAINED: 22.5/30

Key: 1= poor 10= excellent

Contd…
 Provider gap 3
 Effective role fulfillment by customers 9/10
 Effective alignment with service intermediaries 7/10
 Alignment of supply & demand 5/10
SCORE OBTAINED: 21/30

 Provider gap 4
 Effective management of customer expectations  4/10
 Accurate promising in advertising & communications  6/10
 Adequate horizontal communications  5.5/10
SCORE OBTAINED: 15.5/30

Key: 1= poor 10= excellent

Customer perceptions vs Importance ratings
of a DTDC customer plotted on a Priority
matrix
DTDC
PEOPLE
People (employees)
 Diverse work force

 Over 13000 employees

 Over 4000 business partners

 Knowledge-driven work environment

 Equal opportunities to all employees

 Training programs and multiple developmental initiatives

 Lays stress in constant learning

Franchisee-Franchiser
 Benefits for a DTDC franchiser
 Leveraged business format for greater expansion & revenues
 Knowledge of local markets
 Shared financial risk & more working capital

 Challenges for a DTDC franchiser

 Difficulty in maintaining & motivating franchisees
 Inconsistent quality
 Customer relationships are controlled by the franchisee rather
than the franchiser
Technology
 Accuracy and integrity of transactions

 Customized IT solutions

 Franchisees - access to Corporate and Regional Offices

 Electronic network - largest in the country

 Over 300 POPs who can link with central database

 Wide area network provides synergy to physical network

 Modes of link to central database

 Leased lines
 Digital Subscriber Lines (DSL)
 Cable and dial up lines
Contd…
 Enterprise Class Gateway anti-virus solutions

 400 million transactions on IT systems 

 4 crores invested for centralization

 Latest MIS reports

Contd…
 Opts for Document Management System from Newgen
Software

 Software ‘Pocket’ used for HRMS to manage the entire

cycle of staffs – recruitment, joining, training, internal
growth and exit

 Database servers, mail servers, anti-virus servers, backup

solution, SMS and web-tracking, auto alert and delivery
information system

 Introduction of tracking

 Only courier company to introduce both GSM and CDMA

based mobile trackers, rate, pin code & location finders
Future – where DTDC is heading
 Enhancing technology to provide end-to-end solutions
 Re-architecting the solutions
 Future tech deployments-totally customer centric
 Upgradation of its infrastructure and human resource

 Planning to launch
 A WAP based website
 Complete technology solutions for mass mailers
 Indigenous hand held device for mobile delivery workforce to
capture data as and when it is ready
 ERP solutions
 Working on automating all its franchisees
 Automating processes where customers can print and paste
their own consignment numbers
Thank you