CH -1

INTRODUCTION

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 INTRODUCTION

What is LOGISTICS?

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 is the management of the flow of goods, information and

other resources, including energy and people, between the point of origin
and the point of consumption in order to meet the requirements of
consumers (frequently, and originally). Logistics involve the integration of
information, transportation, inventory, warehousing, material-handling, and
packaging

Every company dreams of achieving the seven R's - delivering the

right product in the right quantity and the right condition, at the right place,
at the right time, for the right customer at the right cost. Effective logistics
management alone can make this possible.

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.

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 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.

Today, responsiveness to the customers' needs is the determining

factor. An enterprise that caters instantly to the needs of the customer is the
winner. Integrated logistics can serve as a potent tool for success in today's
competitive business environment.

Logistics is an organized process of managing the flow of

merchandise from the source of supply - the vendor, wholesaler or
distributor - through internal processing functions like warehousing and
transportation, until the merchandise is sold and delivered to the end
customer.

Logistics management aims to reduce inventory-holding costs and

improve profits, while enhancing customer satisfaction.

Anything can be ordered online, but receiving a tangible product is

impossible. The difference between e-business success and failure lies in a
company's ability to manage the logistics.

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.

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 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.

Another area is Integrated Logistics Support (ILS). This is a

management function that provides funding, planning and controls to assure
that the system meets the expected requirements. ILS is also expected to
make sure the price of the goods is reasonable and the product is of the
required quality.

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.

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  History of Logistics

The Greeks defined logistics as "the science of correct reasoning by

means of mathematics". The first modern use of the term was in the military
to identify the process of planning and coordinating the movement of army
and weapon support systems. Good logistics brings out the ability to move
faster and accurately to the battlefront. “If one applies the same to the
business organisation, it is one's ability to reach the product to the consumer
at the right time, right place, right quantity and at the lowest cost.” On
similar lines, supply chain management will mean the network of
organisations involved in the process by which goods are moved from
producer to consumer and the counter flow of information, to manage the
supply chain as a single entity.

A prominent application of logistics was in World War II where

weapon movements were coordinated to ensure success. A recent instance of
massive logistics initiatives is in the Gulf war. With increasing competition
in the market place, managements started focusing on customer services in
the early 1950s in developed markets such as Europe and the U.S. In late
1960s some of the logistics concepts were tested. Following the oil crisis of
the 1970s and the concept of just in time in manufacturing customer-
servicing standards were given more importance and new integrated logistics
models and solutions were born. The emergence of organized distribution
system by department stores and super fast courier service organisations
gave a boost to logistics concepts and strategies. Today all businesses are
looking for seamless transaction systems to co-ordinate their information
and material requirements along the value chain.

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 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

Logistics management is that part of the supply chain which plans,

implements and controls the efficient, effective forward and reverse 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. A professional working in the field of logistics
management is called a logistician.

 Logistics Management Software

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.

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 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.

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. Logisticians combine a professional knowledge of each of
these functions so that there is a coordination of resources in an
organization. There are two fundamentally different forms of logistics. One
optimizes a steady flow of material through a network of transport links and
storage nodes. The other coordinates a sequence of resources to carry out
some project.

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 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.

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  Logistics Management Process

Michael Porter in his famous book "Competitive Advantage'' has

spoken of the value chain approach and emphasized logistics as one of the
most important tools for competitive advantage.

The various processes and elements that are part of logistics as a discipline
are:

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.

As customers started demanding improved servicing standards, fast cycle

time has become the key factor for business success, whether it is custom
made tailoring service in Hong Kong or development of a new car in
Detroit.

Before delving deep into logistics, a look at the current business scene will
be great help.

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  Scenario of Logistics in India

At present, companies specialising in logistics operations in India use

traditional technologies and cater to stand alone services like transportation,
warehousing, clearing and forwarding. There is tremendous scope to
upgrade the technology, integrate the entire supply chain, improve
productivity levels and bring down operating costs. Any technology that can
improve productivity in transportation operations will be a great boom to the
economy both directly and indirectly with opportunities for 10-12 per cent
reduction in costs. Besides the savings on downstream users of transport will
be much higher and the cost multiplier effect on the economy will be
reduced to that extent.

Given the emerging business and technological trends there are

possibilities for adoption of innovative logistics solutions specifically
designed for India. In addition, there is a requirement for an integrated
strategy towards developing logistics and its related IT infrastructure and
also enhancing its industry base.

In recognition of the growing need for technology-enabled solutions

in logistics in India and abroad, many companies such as eLogistics are
taking shape. In fact, there are a dozen multinational logistics companies
such as Exel, Bax Global and Menlo which have started operations in India
during the last few years.

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 Today logistics management in India has become complex with about
ten million related outlets to cater to the needs of 1000 million people.

The logistics market in India is estimated to be Rs. 260,000 crores and

constitutes 13 per cent of the GDP. It is much higher than for the U.S. but
lower when compared to countries like China and Korea.

A reduction in logistics costs by one percentage point will mean a

saving of $4.8 billion or Rs. 21,600 crores annually.

Besides significant benefits can be reaped through the multiplier

effect of better logistics on all economic sectors.

 About Customer Service

According to LaLonde and Zinszer have researched various ways that

customer service can be viewed: 1) as an activity, 2) in terms of performance
levels, and 3) as a philosophy of management. Viewing customer service in
terms of performance levels has relevancy providing it can accurately
measured. The notion of customer service as a philosophy of management
exemplifies the importance of customer-focused marketing. All three
dimensions are important to understand what is involved in successful
customer service.
A broad definition of customer service should embody elements from
all three perspectives. LaLonde and his associates offer the following
definition:
“Customer services are a process for providing significant value-
added benefits to the supply chain in cost-effective way.” This definition

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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.

The three fundamental dimensions of customer service were: -

Availability.
Performance.
Reliability.

 About Logistics & Customer Service

Logistics contributes to an organization’s success by providing
customers with timely and accurate product delivery. The key question is
who is the customer? For logistics, the customer is any delivery destination.
Typical destination range from consumers’ homes to retail and wholesale

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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.

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 CH- 2
OBJECTIVES
OF
THE STUDIES

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 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 .

 To know about the policies and procedure followed by the BLUE

DART while transporting the goods and services.

 To know about the need and importance of a logistics company in

today’s scenario.

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 CH- 3
ANALYTICAL
RESEARCH
OF
BLUE DART

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17
 Corporate Profile
 About BLUE DART

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 13,880 locations, and service more than 220
countries and territories worldwide through its Sales alliance with DHL, the
premier global brand name in express distribution services.

BLUEDART’S 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.

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 Blue Dart Aviation, dedicated capacity to support their time-definite
morning deliveries through night freighter flight operations.

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 their entire operations, products and services.

It’s Competitive Advantage lies in:

Blue dart’s 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.

Blue 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 99.96% (as on February, 2005).

It’s Customs and Regulatory expertise

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 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.

It’s 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.

Its financial credibility

Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)"
[F one plus (Ind)] rating for their short term debt programme of Rs. 30
crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced
A one plus) Rating for their Commercial Paper Programme of Rs. 25 crores.

Its People force

Committed, diverse and over 4,000 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

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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

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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,

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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.

Blue Dart, Calcutta is proud to have the office inaugurated by Mother

Theresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.

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

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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.

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COMPANY’S VISION
&
FUTURE PLANS
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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."

 Company’s future plans:

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.

Position ourselves as the preferred, seamless link to a country

projected to be an economic superpower of the 21st Century. Through our
technology development, premium services, quality network and strategic
alliances, we plan to carve for ourselves a leadership position in the industry
as India's and the region's link to the world.
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.

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LOGISTICS
IN
BLUE DART

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  LOGISTICS IN BLUE DART

The Information Technology industry is, perhaps, typical of the

changing and escalating logistic demands of various industries today,
irrespective of their category as 'old' or 'new' economy. In the IT industry,
the difference between success and failure is closely linked to the
supply/value chain integration, of which there are two distinct processes:

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.

2. The reverse flow of acknowledged signed delivery records without which,

in many cases, recovery of bills are virtually impossible. Especially so in the
case of companies placing multi-location orders that could cover hundreds
of cities. The task for the supplier is staggering - plan logistics for deliveries
to all these locations, and hope for 100% of the delivery records to be

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returned before bills can be submitted to the customer. In most IT
companies, the role of 'logistics' or 'fulfillment' is key.

With organisations 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:

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.

Blue Dart offers the country's most comprehensive communications

technology. Much before the internet was prevalent; Blue Dart customers
could dial into the network through Power Dart 2000 and track their
packages. As an added option, Fax dart could fax a copy of the delivery
record the minute the Blue Dart system was updated.

The country's only express airline with a fleet of three Boeing 737s
ensured that packages were flown to their destinations overnight. Another

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tremendous advantage was that the individual size of packages that could be
carried multiplied manifold.

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-
line.

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34
Logistics software solutions

Vendor Solution Features

Application program offered to Blue Dart offices and its

channel partners in remote areas via the Internet. Users
SENTOR (Status Entry
Blue receive detailed information on inbound packages for
Offline for Regional
Dart delivery. Upon delivery, proof of delivery details are
Service participants)
entered offline and updated on Blue Dart's Web server
within three hours. The earlier time lag was 24 to 48 hours.
A PC-based solution aimed specifically at SMBs. It
improves the business efficiency of customers by helping
ExpressShipper (to be
TNT them send more than fifteen consignments a day.
launched)
Customers can track consignments and obtain price
quotations directly from their PCs.

Online consultancy on customs-related paperwork for

SMBs that helps determine which customs documents
FedEx Global Trade Manager should accompany their (customer's) international
shipments. Lets customers print and fill them up thereby
helping them save time on potential border delays.

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 SERVICES
OF
BLUE DART

 SERVICES OF BLUE DART

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 REGIONAL SERVICES IN SAARC AREA
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. The service offers
access to over 13,700 locations in India, and over 800 locations in
Bangladesh, Bhutan and Nepal, providing the widest coverage in the region
through a quality network, an integrated air and ground infrastructure
dedicated to express transportation and innovative technology support.

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 up to 500gms.

Regional Priority: Non-Documents (RPDT)

Fast reliable and safe door deliveries for samples and non-commerical
shipments. Currently available between India and Nepal only.

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REGIONAL SERVICES

 Let see different type of regional services: -

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 DOMESTIC 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 13,700 locations in India

 Free pick-up from your location

 Real-time Tracking

 Regulatory Clearances

 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 commercial shipments that are time-bound and are
required to undergo regulatory clearances, or require special handling.
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 Dart Apex offers you 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. A customer
may book space for their shipments through company’s Customer Service
and deliver customer shipments to Blue Dart Aviation Office at the related
airport.

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

Airport service. A customer may book their shipments at any of company’s
locations serviced for this product to any of the major airports. 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

 Real-time Information

 Time-Definite Delivery

 Free Proof of Delivery on Demand

 Speed

40
  Flexibility

 Economical

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

 Track your Shipment

 Regulatory Clearances

 Pick-up Convenience

 Secure Shipments

 Economical Tariff

41
 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

 Free pick-up

 Real-time Tracking

 Regulatory Clearances

 Proof of Delivery

 Trouble Free Service

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.

The special benefits of the International Services are:

1) A Convenient Solution for Urgent, International Documents &

Shipments.

2) Documents and packages will be picked-up from location, cleared

through customs and delivered to consignee.

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:

1. 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.

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:

 The best possible service to the

company.
 The leading edge for financial
services.
 Track status online door to door.
 Highest level of control and
security.
 One point of contact and
accountability.
 Peace of mind.

2. Worldwide Package Express (WPX):

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:

 Door to door service.

 Simple documentation.
 Packaging range.
 Fastest for international expresss packages.
 State of the art information systems.
 Global customs clearance leader.
 Global market leader for international express
packages.

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.

3. 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:

 Unique easy to assemble boxes.

 Step by step customs declarations.
 Full DHL express door to door service.
 Low flat fee for each kilo over flat fee limit.
 Strong packaging and simple documentation.

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

The airport-to-airport service is an air

freight service available on the flights
operated by Blue Dart Aviation between the
airports of Kolkata, Delhi, Mumbai, Bangalore, Chennai and Hyderabad.
The advantages of an airport-to-airport service are:

 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

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

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 delivery of sensitive equipment or large loads is
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.

INTERLINE

Blue Dart Aviation operates the only

Boeing 737 freighters in India. The freighters

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.

The bonded warehouses with customs personnel facilitate efficient

transhipment 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 23

international airlines - Air Canada, Air France, Air India, Air Mauritius,
Alitalia, Asiana, British Airways, Cargolux, Cathay Pacific, China Airlines,
Cross Air, 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,
and Qatar Airways.

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:-

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

The basic tracking solution will enable Blue Dart's customers

number. A mail-based solution will allow the customers to query status of to

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.

Registered customers of Blue Dart can make advanced queries on

the status of their shipments, and can keep track of them for up to 45 days
on-line. They can filter their queries by date range, origin, destination and
service, and sort the results on-line. Registered customers can download the
entire waybill tracking data - schedule the download, and select the
frequency and the data to be downloaded. These customers can also generate
and download various reports customized to meet their individual needs.

59
  E-Shipping Tools:-

Blue Dart provides some convenient tools to aids to its customer’s shipping
management processes.

Web Based Tools

 TrackDartTM

 MailDartTM

 Location Finder

 Transit Time Finder

 Price Finder

 Billing

 Schedule a pickup

 Image Dart

 Waybill Generation

60
Stand-alone Tools

 COSMAT II

(Computerised On-line System for Management, Accounting and Tracking)

 SMART

(Space Management Allocation Reservation and Tracking),

 CaressTM
(Complaint Appreciation, Resolution and Evaluation to Satisfaction System),

 ShieldTM

 ShipDartTM

 Customised Solutions

61
 E-Business Tools:-

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.

These tools may be efficiently integrated with the customer’s systems

to provide him with a convenient and cost-effective solution to his
shipping requirements.

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

 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

ShopTrack TM is an API (Applications Program

Interface) designed specifically to support and enhance the services
provided by a portal or any e-business.

 PackTrackTM

PackTrackTM is an API (Applications Program Interface) designed for

any client involved in logistics, distribution and inventory control.
PackTrackTM can be integrated into the client's systems and enables
him to keep track of the entire distribution status of all his customers.

 MobileDartTM

MobileDartTM - WAP works on any mobile phone or device which

supports Wireless Application Protocol. Using MobileDart-WAP, the

63
customer can check the current status of his shipments on-line by
entering the waybill number.

64
 BLUE DART
INITIATES
CUSTOMER
SATISFACTION
BENCHMARK

BLUE DART INITIATES CUSTOMER

SATISFACTION BENCHMARK

As a business entity customer have dispatched an important package

that contains some confidential business documents. Customers do not know

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.

Termed 'net service levels', the initiative is all internal benchmarking

exercise by which the organisation evolves an action plan to examine the
areas where the customer satisfaction levels have not matched up to the
standards that have been established internally by the enterprise. The
company also evolves marketing strategic that can enable its business to
effectively retain customers.

Blue Dart Express Ltd senior vice-president (marketing & projects)

Tulsi Mirchandaney says that- "The express service Industry does not have
any external benchmark to look up to. Company’s therefore, decided to look
into some of the operations that successfully institutionalised internally, and
use those as benchmark to efficiently address various customer needs."

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.

Exploratory Research Design:

The exploratory study is particularly helpful in breaking broad and vague
problem into smaller, more precise sub – problem statements. Exploratory
studies help in formulating hypotheses for the further research.

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

Exploratory Research Design

Literature Survey

B: Data Collection Design

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

ii. External data:

External data are generated and collected from variety of events and
sources outside the firm’s premises.
• Business magazines
• Various newspapers
• Journals
• Various books

70
 Secondary Data

Internal Data External Data

Various internal Indexes, Commercial

reports of the firm. sources etc.

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.

71
 • 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

On the basis of study conducted, it is evident that BLUE DART is following

most of pre-requisites of an efficient logistics (supply-chain management)
company.
However there are some areas, which need further attention for increasing
the quality of services.
FINDING:-
 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 pre-
determined 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.

77
 At national level transportation of goods is done via road that makes
delay in the service.

CH - 7
RECOMMENDATIONS

78
79
 RECOMMENDATIONS

The following are the recommendation based on the study:-

 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.

80
 CH - 8
CONCLUSIONS

81
 CONCLUSIONS

The process of planning, implementing, and controlling the efficient, cost

effective flow and storage of raw materials, in-process inventory, finished
goods and related information from point of origin to point of consumption
for the purpose of meeting customer requirements.
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.
The Blue Dart fulfill all the necessary and regulatory requirements of the
logistics of goods and service as a renowned ‘supply – chain management
company’, it sincerely concentrate on all the area of its quality services.
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.

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:

• Khurana P.K., “Export Management”,Galgotia

Publication, New Delhi.

84