An Overview: The Logistics Industry

Logistics refers to movement of goods and raw material from the place of production to the place of consumption. A recent study defined logistics as that part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to meet the customers requirements. Transportation is the raw term used in place of logistics. Logistics was originated when it was felt that there was a great deal of need of transportation of arms, ammunitions, food supply, tools and thus the term logistics came into existence. 1920s and 1930s were the era of manufacturing. Less of customization; there were limited models of cars and that too of a particular range. At that time, the focus was entirely upon the production efficiency, companies concentrating more on the purchasing of cheap raw material and low cost transportation. With the changing emerging trends in the Indian market, the focus shifted from production to market orientation, the number of competitors increased in the market. Customers are now equipped with multiple choices and the companies shifted towards customization of more and more products. The mantra for being successful in the market to improvise the existing system the term purchasing of raw material transformed to procurement of raw material, thus there was addition of a number of warehouses and distribution system. Furthermore, the intense competition in the market place was on major highlights and concept of mere logistics turned into supply chain management. Now not only the attention given to production efficiency to produce better quality and low

priced products. All this was possible through a good communication and interlink age among the vendors, manufacturers, distributors of supply chain. Next level is the value chain strategy, in this concept no one is customer or supplier but all echelons of supply chain are partners and work hand in hand. Thus in order to have a sound and oiled logistics network rule is to give boost to supply chain and

value chain. Today's modern, efficient warehouses/distribution centers are the heart of logistics, and provide control, efficiency and velocity for goods moving through the system. Logistics is not confined to manufacturing operation alone. It is relevant to all enterprises, including Govt. institutions such as Hospitals and schools and service organization such as retailers, banks and financial service organizations. The study of logistics is especially important for bulk raw materials, where substantial outflow of freight is involved. Management of Logistics is an art, which is extremely difficult to perfect in India, JIT ends up being SHIT somehow in time. The Transportation & Logistics industry sector comprises a wide range of service providers, covering all modes of transport air, road, rail, sea as well as related services such as warehousing, handling, stevedoring, and finally value added services like packaging, labeling, assembling etc. In addition to these 'physical' services, T&L includes all sorts of planning, organizational and management services in the area of transportation and logistics. Over the past years, we have seen a trend to consolidation, resulting in larger, integrated groups operating in more than one of the T&L sub-sectors. As a result, the limits between the T&L sub-sectors become more and more indistinct.

The success of the logistics industry depends on the promptness with which the products can be delivered to a particular destination or to a client. Time and location are two factors, which can either make or mar the logistics industry. The logistics industry is governed by technology, integration, globalization, legislation and confederations. Formerly, warehousing facilities and logistic facilities were situated in remote areas like water port, beside rail tracks and those places in towns or cities which were not treaded up on by many. However, these sites shifted to rural areas and other localities. The logistics industry has experienced several changes over the years. These changes can be attributed to the growth in the retail industry and the manufacturing segments. Globally, the logistics industry is valued at US$ 3.5 trillion. The U.S., which contributes to over 25% of the global industry value, spends close to 9% of its GDP on logistic services. The Indian Logistics Industry is presently estimated at US$ 90 billion. The industry has generated employment for 45 million people in the country in comparison with the IT and ITeS sector which employs approximately 4.3 million people. According to CII It is forecast to grow at a Compound Annual Growth Rate (CAGR) of approximately 8% over the next three to five years. Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual growth rate (CAGR) of over 16% from 2007-10. Consequently, 3PL service providers are expected to corner an increased share of the Indian Logistics pie, from 6% in FY06 to 13% in FY11, at a CAGR of 25%. The primary growth drivers of this industry are as under: (1)Investments in the infrastructure sector amounting to US$ 350 billion.

(2)Increased efficiency and productivity of the transport system would result in lower transit times. (3) Streamlining of the indirect tax structure: The introduction of Value Added

Tax (VAT) and the proposed introduction of a singular Goods and Services Tax (GST) are expected to significantly reduce the number of warehouses manufacturers are required to maintain in different states, thereby resulting in a substantial increase in demand for integrated logistics solutions. (4)Robust trade growth:-Strong economic growth and liberalization have led to considerable increase in domestic and international trade volumes over the past five years. Consequently, the requirement for transportation, handling and warehousing is growing at a robust pace and is driving the demand for integrated logistics solutions. (5)Globalization of manufacturing systems coupled with advancements in technology are increasingly compelling companies across verticals to concentrate on their core competencies and avail the cost saving potential of outsourcing. This is expected to contribute to an increase in the need for integrated logistics solutions, which is the niche of every business. (6)Third Party Logistics Service (3PL Services) provider.The industry has been valued at US$ 125 billion in 2010. A snapshot of the FDI regulations governing the industry is as under: 100% FDI under the automatic route is permitted for all logisticservices except services mentioned in points ii and iii below. FDI up to 100% subject to FIPB approval is permitted for courierservices.

 FDI up to 49% under the automatic route is permitted for airtransport services, including air cargo services. It is pertinent to mention in this context, that Press Note 1 (2007) that is expected to be imminently notified by the DIPP proposes to increase the limit of FDIon air cargo services in 74%. The industry has been at the receiving end of increasing interest from the private equity sector. The year 2007 witnessed just under US$ 1 billion in private equity investments in this industry, representing approximately 7% of total private equity investments during the year, against 3% in the previous year.

List of Some Logistics Company of India:

S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. Site TNT AFL DHL Blue Dart Gati Safexpress Ashok Leyland Agarwal Packers & Movers DTDC

10.

First Flight

TNT Express:
This company is a key leader in the international market in the sector of global express services. The company ensures safe and on time delivery of your documents, freight and parcels. The company offers time and day definite delivery in about 200 nations across the world. It operates 47 jet freighter aircraft and 26,000 road vehicles and has a network of 2,300 companies.

AFL:
One among the acknowledged leaders among the logistics companies in India is AFL. Through its domain of logistics services,the company has delivered world-class service in India. In 1979, the company introduced the first ever courier service by forming an alliance with DHL

World Wide Express. The company offers services like Logistics and warehousing,Courier Company and Custom Consultant.

DHL:
This company is one among the major logistics companies in India. It is a market leader globally in overland

transport,airfreight and international express. The company ranks No.1 in the world in contract logistics and ocean freight. The biggest logistics and express network in the world has a network in about 220 territories and countries,72,000 vehicles,350 Aircrafts, 36 hubs and 4,700 bases.

Blue Dart:
This logistics company is South Asia's top integrated express package Distribution and Courier Company. The domestic network of the company covers about 21,340 locations and provides service to 220 countries by the company's sales alliance with DHL. It provides the best service like Free Pick up from your location,Regulatory Clearances,Real Time Tracking,Free Computerized Proof of Delivery etc.

Gati:
The company is a key leader in the arena of express cargo delivery and a significant one in the supply chain management solutions and distribution in India since the year 1989.The company provides services like the Warehousing,Express Cargo etc. Logistics Solutions of the company are Warehousing,Supply chain Management.

The Distribution Solutions of the company are Gati Surface Express, Gati coast to coast, Gati Air Express etc.

Safexpress:
It is one of the largest express companies in India. The company offers the best and integrated logistics solutions. In 2002, the Limca Book of Records declared the company as the Largest Logistics service Provider in India. The company has a network over 560 locations in 35 states and union territories. It has 3500 weatherproof ISO-9002 vehicles.

Ashok Leyland:
The leading provider of logistic vehicles for the India Army is this company. It is a key leader in the tractor-trailers and multi axle trucks. The company manufactures buses, trucks, engines and special application vehicles in India. It is promoting a new company called Ashley Transport Services Ltd. for exchange of information and integrated services related to logistics in order to tackle the business of freight contractors.

Agarwal Packers and Movers:

This popular Indian logistics company provides logistic services like the home shifting,car packing etc. across India. The company believes in keeping technology and people and of course heart and soul in the movement of the individuals respective items. The company offers quality service in transportation and packing.

DTDC :
The biggest Domestic Delivery Network Company is DTDC. The company offers high-class delivery service in about 3700 Indian locations and 240 international places. The company dispatches about 10 million parcels in a month. It also offers low cost for bigger parcel to US,UK,India,Nepal,Dubai and other places across the world.

First Flight:
This logistics company in India specializes in courier services worldwide. The multi-tracking programs of the company are Domestic, International,First Wheels,First Wings and many others. The overseas offices of the company are in Malaysia,Singapore,UK, US, UAE, Qatar, Oman.

An Overview: Safexpress-The Complete logistics solutions

Safexpress Indias Leading Logistics Company is renowned for its domain expertise and experienced manpower in the LSCM sector. Safexpress can best understand your Logistics and distribution requirements and can offer the most suitable Logistics model and solution to you. Safexpress has the largest network coverage across India traversing over 6,00,000 km. every day covering over 560 locations through more than 750 routes operating 24 hours a day 365 days a year reaching these locations through its fleet of 3500 vehicles operating on. All Safexpress vehicles have all-weather proof containers for safe transit. Safexpress also operates through Air to locations directly covered by flights and to all other locations on a multi modal basis. Safexpress have an Integrated Logistics Management. Safexpresss 3PL Product optimizes your companys supply chain. First, Safexpress examine the linkages between your suppliers, producers, buyers, intermediaries and end users in order to identify time and cost inefficiencies. Next, company deploys their unique mix of local know-how, global practices and cutting-edge technology to provide integrated supply chain solutions. These range from specific services such as warehouse management, statutory compliance and invoicing - to an entire gamut of third party logistics services. Safexpress works and carries on the Philosophy of 'Custodians First Carriers Later. Safexpress sincerely abide by its corporate philosophy on the subject. Safexpress has an all risks cover - Carriers Risk offer, which unburdens the customer of his worries of losses in transit. On minimal extra charge of Risk

Charges, we cover your valuable shipment against all sorts of transit losses including fire, flood, damage, accident, shortage, etc.

The Latest of the material handling equipment are used at Safexpress' hubs to ensure safety and remove Laxity from material handling. Equipment including hydraulic hand pallet trucks, dock levelers, trolleys, forklifts multilevel pallet stackers are used by Safexpress. Chain Pulleys and Cranes handle consignments, which are not possible by smaller equipment to maneuver. It might not be out of place to mention here all the hubs of Safexpress are on platform level height. Any Logistician will understand and appreciate the essentiality and importance that platform level warehouses have for material handling.

Safexpress- Mission
We shall adopt and internalize a work culture which demonstrates a "we can we will" attitude to reflect in our daily responsibilities so as to far exceed our objectives, consistently striving towards market dominance. We will create historical landmarks forming a strong edifice for the future overcoming all obstacles pro-actively as our personal responsibility and commitment to create delight for the customer with impeccable personalized services.

Safexpress- Vision
To be a conscious learning organization maintaining flexibility for change so as to provide the most customized solutions. Striving towards global market share whilemaintaining dominance in the domestic market through good HR practice and excellent customer service.

Safexpress- Quality
A quality service relies upon constant customer interaction and feedback. An immediate response to the changing environment with pre-defined business processes managed effectively and efficiently leads to the highest output from the lowest input and this is the strongest measure of quality. The best certification of a quality organization is the measurement of the scale of the smile on the customers face

SERVICES OFFERED
Safexpress is one of the leading Indian logistics company offering Integrated logistics Management, express, air, multi-modal transport, door-to-door

management, time definite delivery and consultancy services. The company also offers e-logistics and customized solutions for e-business. Safexpress has been recorded in Limca Book of Records. Services provided by Safexpress are as under: Express services:-

Express services of Safexpress are time definite, with infinite options. The published transit schedule covers about 560 destinations, offering surface, air and multi-modal networking. Cargo is moved in specially sealed weatherproof ISO 9002 containers and tracked with the GPS application. The Safexpress air cargo network has an equally wide reach. Safe air:Safe air services ensure constant connectivity of your cargo through a wide network of Airlines and ATOs. Safeair can get cargo air bone on time. Safe box :Safexpress pioneered the revolutionary safe box-a readymade packaging solution that gives valuable cargo added safety and security by surface and air mode. The Safe box comes in two convenient sizes: the17x17x12 Safe box carries up to 20kgs of cargo, and the 16x12x9 Safe box carries up to 10kgs of air cargo. Safe box comes with free Auto Insurance of Rs.5000, as part of the package. All Risk Cover:Safexpress believes in being Custodians First, Carriers Later. In line with this strong belief and vision, Safexpress provides an unprecedented total cover under Carriers Risk, which is unmatched in the industry. Safexpress charges a nominal premium and the claim, if any, is settled within seven days on unconditional basis.

ILM(Integrated Logistics Management):-

ILM-our 3PL solution-helps in optimizing companys supply chain management. The company understands partner dependencies, which form the web of relationships for success of the entire chain, technological knowhow with the best global practices. Consulting:Safexpress offers value added beyond operations, in the form of consultancy. Safexpress works with simulation modules to map transactions using historical data, forecasting methodologies and trend analysis to provide the right supply chain solutions.
FUNCTIONS

:-

1. Finance & Administration:-

The concerned department takes care of the expenses paid and revenue generated by the company. It performs the following functions:a) Ensuring the compliance of the entry procedure for Booking Associate. b) Coordinating for the categorization of Branch & allotment of booking code. c) Coordinating for the application and installation of telephones (landlines). d) Taking care of the Branding/signage & Painting. e) Maintaining records of MOUs with the Branch Heads. f) Coordinating of opening a Bank Account. g) Ensuring issue of Stationery items, Visiting cards & promotional items. h) Ensuring adherence of the Filing System.

i) Explaining the policy of Credit & Paid Booking, thereby adhering of the accounting system.

2. Operations:This department handles both the booking and delivery functions related to the consignment. It includes the networking process starting from booking of consignment to the delivery point. It is categorized into: Stationery Moving The companys total process based upon the operational functioning. 3. Customer Relations Management (CRM) This department takes into consideration all the grievances and queries of different kind of customers. Every Branch has its own CRM cell. The department is provide by the particulars & the account details of each & every customer to handle with them .e.g. details of booking, delivery, claims ,charges ,etc. The settlement of freight refund is undertaken by this department on percentage basis. Generally, the refund percentage is 33-34%.

4. Marketing:-

The prime function of this department is to do survey of the interested and prospective customers and convince them to build & maintain healthy relations. All these are done and under the purview of Branch Manager, by negotiating, providing discount and other facilities and make them their permanent clients. The company depends on the following strategies: (ATL) Above The Line Marketing (BTL) Below The Line Marketing (PR) Public Relations E-Marketing Corporate Branding

5. Sales:This department works in alignment with the marketing department. Its basic function is to generate business for the company. This department focuses on business development by getting new clients and contracts. This department also does market research on different products and verticals for new initiatives for the company. 6. Human Resource Management (HRM):This department deals with following: Scrutinizing of the applications and selecting the required person suitable to filling the position. Placements are provided by linking with the institutions. The department works on the ADERLINE system for its functioning. Interviews held and conducted by the H.R. persons (including direct interview, prelims, etc).

 Various aptitude test, I.Q test and psychometric test are also conducted Maintenance of daily attendance records of all employees. Performance Appraisal

Employee Retention & salary negotiation.

7. Information Technology (I.T.):This department works and handles the whole networking of the company and works on software of ORACLE & FOXPRO through which invoices, (P.O) Purchase Orders, credit memos, debit memos are prepared. The companys strength lies in its sound ERP, i.e. backbone of the company.

MILESTONES
1995 Safexpress launches as a door-to-door service with 4 routes, 9 offices, 12 container mounted vehicles and 20 employees. Safexpress' door-to-door services include niche products like DoD and To-Pay freight. 1996 Safexpress opens super hubs at Delhi, Mumbai and Bangalore.

1997 Safexpress launches Integrated Logistics Services. Our first ILS client is NIIT; the first international ILS account is signed with Hilti from Europe. Spurred on by a surging domestic economy, Safexpress extends its

fleet to 250 and number of stations to 290. Safexpress Private Limited emerges as an independent entity 1998 Safeair and Safebox are launched, setting a new standard in value added cargo services. All hubs are connected through web-based software. 1999 Having grown by over 300%in 4 years without compromising quality, Safexpress is awarded the Golden Peacock Award for quality and innovationin Logistics Management. 2000 Pilot run for GPS starts on 28 routes. Safexpress reaches the 350-destinations mark and the fleet crosses 1400. 2001 Safexpress upgrades and launches a whole lot of features on www.safexpress.com including ePod, Virtual Cargo and Privileged Member. 2002 Safexpress declared India's "Largest Logistics Service Provider" by Limca Book of Records 2002 Safexpress declared India's "Largest Logistics Service Provider" by Limca Book of Records 2003 Mr.pawan Jain, CMD, Safexpress, becomes one of the finalists in the prestigious EnY's Entrepreneur of the Year Award. 2004 Safexpress inaugurated its 500th scheduled delivery location Safexpress bags the Franchise Awards04 for excellence in Team

2003

Work. Safexpress bags the MICO:Power of We Award for excellent service in logistics Safexpress fleet crosses 3000 mark.

2005

2006

Safexpress awarded by ADC Krone for providing best logistics services. Safexpress bags prestigious RAI's (Retailers Association of India) Award for Best Logistics Service Provider. Got International Business Excellence Award for the Best Business Enterprise in 2008

2008

2009

Best supply chain company of the year award 2009 Best logistic provider of the year award 2009

TURNOVER
The privately-held company has been growing at 35 per cent and posted a turnover of Rs. 600 crore in 2008-09. It expects a similar growth. In two years, Safexpress will add 7 million sq. ft of space to its existing 3 million sq. ft. It will set up logistics parks comprising warehouses, vendor management, raw material management, finished products storages, and also distribute consignments. These parks will come up in 32 locations across the country.

EMPLOYEES TURNOVER

At present, there are 2500 employees in Safexpress but they are planning to expand their number of employees in future.

ACHIEVEMENTS
Safexpress won International Business Excellence Award 2008. SafexpressCMD, conferred with the Bharat

Mr.

Pawan

Jain

GauravPuraskar by the Institute of Economic Studies.

Mumbai, September 4, 2008: Logistics Guru and CMD, Safexpress, Mr. Pawan Jain was conferred with the Bharat GauravPuraskar for the Best Business Leader by the Institute of Economic Studies (IES) this week. His entrepreneurship venture, Safexpress Pvt. Ltd. which has grown into one of the leading logistics and supply chain management companies in India was also awarded the International Business Excellence Award for the Best Business Enterprise at the same platform organized at Hotel Grand Sukhumvit By Sofitel at Bangkok, Thailand. The prestigious award was presented in a ceremony proceeded by a seminar on The Global Indians. The award was given in recognition of the achievements of Mr. Pawan Jain with respect to bringing innovation, excellence and quality in the field of Logistics. The award was presented to Mr. Jain by the former Deputy Prime Minister of Thailand, Dr. KornDabbaransi.

On this grand occasion, Logistics Guru, Mr. Pawan Jain, CMD, Safexpresssaid, Both these prestigious awards mean a lot to us. It is indeed a proud moment for everyone associated with Brand Safexpress. We are happy that our relentless efforts have been recognized in the industry. Business Excellence as per International standards. IES is the most esteemed economic institution of the country. It seeks to provide expert advice on the various facets of Indian economy by way of indepth study and research. IES has been actively involved in providing information to its members on the critical developments taking place on the various economic fronts. In present day, it has come to epitomize excellence in economic sphere. Safexpress is Indias No. 1 Supply Chain and Logistics Company. The company offers the best and the most innovative solutions for all SCM and Logistics requirements. Their services are totally customized as per the demand of different segments of the business industry. Courtesy their wide range of quality services, Safexpress has set a benchmark in SCM standards and redefined the functioning of Indian Logistics Industry. Growing at a phenomenal rate of over 35 % in the last couple of years, Safexpress achieved an annual turnover of Rs. 600 crores in the FY 2008-09. The company is targeting a turnover of Rs. 1000 crores by the year 2010. Safexpress has firmly entrenched itself as the 'Knowledge Leader' and 'Market Leader' of the Supply Chain & Logistics industry. The company has expanded its reach to over 560 destinations all across India through more than 3,500 GPS enabled vehicles. Safexpress provides Express Distribution, Third Party Logistics (3PL) services and Supply Chain Consulting.

Pioneered and driven by 'Logistics Guru' and CMD, Safexpress, Mr. Pawan Jain, the company has today given a new face to the Indian Supply Chain & Logistics Industry with the implementation of innovative and state-of-the-art services. Growing at a phenomenal rate, Safexpress is the undisputed leader in the Indian Supply Chain & Logistics Industry. The company plans to achieve a turnover of Rs. 1000 crores by 2010. The company has recently been chosen as the 'Most Promising Brand of the Year' in a consumer research conducted by ICMR, India's foremost research body. This research involved a thorough study of around 40,000 international, national and regional brands across the country.

SWOT ANALYSIS