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Suresh Marimuthu 520964937 3078

PROJECT ON LOGISTICS MANAGEMENT

How word Logistics' derived?


The term 'Logistics' derived from the ancient Greek word 'o' ('logos'meaning 'ratio, word, calculation, reason, speech, oration'), is considered to have originated for the military's need. Logistics as a concept is considered to evolve from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title Logistikas who were responsible for financial and supply distribution matters. Although quite an old concept, the term 'Logistics' started to be used widely in the business world since the early 1990s when globalization, coupled with liberalization, triggered intense business competition and forced both private and public firms to commit themselves to meet the challenges of the market.

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What is Logistics?
Logistics is the . . . process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.

Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.

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History of Logistics
In military logistics, experts manage how and when to move resources to the places they are needed. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military strategy, since an armed force without food, fuel and ammunition is defenseless. The Iraq war was a dramatic example of the importance of logistics. It had become very necessary for the US and its allies to move huge amounts of men, materials and equipment over great distances. Led by Lieutenant General William Pagonis, Logistics was successfully used for this movement. The defeat of the British in the American War of Independence, and the defeat of Rommel in World War II, have been largely attributed to logistical failure. The historical leaders Hannibal Barca and Alexander the Great are considered to have been logistical geniuses. 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 for the right price and is the science of process and incorporates all industry sectors. The goal of logistic work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
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What is Logistic Management?


Logistics 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 customer and legal requirements. A professional working in the field of logistics management is called a logistician. Logistics management is known by many names, the most common are as follows: 1. 2. 3. 4. 5. Materials Management Channel Management Distribution (or Physical Distribution) Business or Logistics Management or Supply Chain Management

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Is it different from SCM?


Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers requirements. This is an excellent definition, conveying the idea that product flows are to be managed from the point where they exist as raw materials to the point where they are finally discarded. Logistics is also concerned with the flow of services as well as physical goods, an area of growing opportunity for improvement. It also suggests that logistics is a process, meaning that it includes all the activities that have an impact on making goods and services available to customers when and where they wish to acquire them. However, the definition implies that logistics is part of the supply chain process, not the entire process. So, what is the supply chain process or, more popularly, supply chain management? Supply chain management (SCM) is a term that has emerged in recent years that captures the essence of integrated logistics and even goes beyond it. Supply chain management emphasizes the logistics interactions that take place among the functions of marketing, logistics, and production within a firm and those interactions that take place between the legally separate firms within the product-flow channel. Opportunities for cost or customer service improvement are achieved through co-ordination
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and collaboration among the channel members where some essential supply chain activities may not be under the direct control of the logistician. Although early definitions such as physical distribution, materials management, industrial logistics and channel management - all terms used to describe logistics - have promoted this broad scope for logistics, there was little attempt to implement logistics beyond a companys own enterprise boundaries, or even beyond its own internal logistics function. Now, retail firms are showing success in sharing information with suppliers, who in turn agree to maintain and manage inventories on retailers shelves. Channel inventories and product stockouts are lower. Manufacturing firms operating under just-in-time production scheduling build relationships with suppliers for the benefit of both companies by reducing inventories. Definitions of the supply chain and supply chain management reflecting this broader scope are: The supply chain (SC) encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to the end user, as well as the associated information flows. Materials and information flow both up and down the supply chain. Supply chain management (SCM) is the integration of these activities, through improved supply chain relationships, to achieve a sustainable competitive advantage. Logistics/SC is a collection of functional activities (transportation, inventory control, etc) which are repeated many times throughout the channel through which raw materials are converted into
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finished products and consumer value is added. Because raw material sources, plants, and selling points are not typically located at the same places and the channel represents a sequence of manufacturing steps, logistics activities recur many times before a product arrives in the marketplace.

Even then, logistics activities are repeated once again as used products are recycled upstream in the logistics channel.

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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.

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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 valueadded benefits to the supply chain in cost-effective way. This definition 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
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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 firms basic service program. The three fundamental dimensions of customer service were: 1. 2. 3. Availability. Performance. Reliability.

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About Logistics & Customer Service


Logistics contributes to an organizations 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 businesses to the receiving docks of a firms 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.

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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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Logistics Functions
1. 2. 3. 4. 5. 6. 7. 8. Purchasing / Procurement Inventory Control Warehousing Materials Handling Facility Location / Network Design Transportation Customer Service Order Processing

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Purchasing and Procurement

HISTORY Prior to 1900, there were few separate and distinct purchasing departments in U.S. business. Most pre-twentieth-century purchasing departments existed in the railroad industry. The first book specifically addressing institutionalized purchasing within this industry was The Handling of Railway SuppliesTheir Purchase and Disposition, written by Marshall M. Kirkman in 1887.

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Early in the twentieth century, several books on purchasing were published, while discussion of purchasing practices and concerns were tailored to specific industries in technical trade publications. The year 1915 saw the founding of The National Association of Purchasing Agents. This organization eventually became known as the National Association of Purchasing Management (NAPM) and is still active today under the name The Institute for Supply Management (ISM). Purchasing and procurement is used to denote the function of and the responsibility for procuring materials, supplies, and services. Recently, the term "supply management" has increasingly come to describe this process as it pertains to a professional capacity. Employees who serve in this function are known as buyers, purchasing agents, or supply managers. Depending on the size of the organization, buyers may further be ranked as senior buyers or junior buyers. FACTORS FOR PURCHASING The importance of purchasing in any firm is largely determined the four factors: availability of materials, absolute dollar volume of purchases, percent of product cost represented by materials, and the types of materials purchased. Purchasing must concern itself with whether or not the materials used by the firm are readily available in a competitive market or whether some are bought in volatile markets that are subject to shortages and price instability. If the latter condition prevails, creative analysis by toplevel purchasing professionals is required.

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If a firm spends a large percentage of its available capital on materials, the sheer magnitude of expense means that efficient purchasing can produce a significant savings. Even small unit savings add up quickly when purchased in large volumes. When a firm's materials costs are 40 percent or more of its product cost (or its total operating budget), small reductions in material costs can increase profit margins significantly. In this situation, efficient purchasing and purchasing management again can make or break a business.

THE ROLE OF PURCHASING There are two basic types of purchasing: purchasing for resale and purchasing for consumption or transformation. The former is generally associated with retailers and wholesalers. The latter is defined as industrial purchasing. Purchasing can also be seen as either strategic or transactional. Also, the words "direct" and "indirect" have been used to distinguish the two types. Strategic (direct) buying involves the establishment of mutually beneficial long-term relationship relationships between buyers and suppliers. Usually strategic buying involves purchase of materials that are crucial to the support of the firm's distinctive competence. This could include raw material and components normally used in the production process. Transactional (indirect) buying involves repetitive purchases, from the same vendor, probably through a blanket purchase order. These orders could include products and services not listed on the bill of materials, such as MRO goods, but are used indirectly in producing the item.
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Some experts relate that the purchasing function is responsible for determining the organization's requirements, selecting an optimal source of supply, ensuring a fair and reasonable price (for both the purchasing organization and the supplier), and establishing and maintaining mutually beneficial relationships with the most desirable suppliers. In other words, purchasing departments determine what to buy, where to buy it, how much to pay, and ensure its availability by managing the contract and maintaining strong relationships with suppliers.

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Inventory control

Inventory control means keeping the overall costs associated with having inventory as low as possible without creating problems. This is also sometimes called stock control. It is an important part of any business that must have a stock of products or items on hand. Correctly managing inventory control is a delicate balance at all times between having too much and too little in order to maximize profits. The costs associated with holding stock, running out of stock, and placing orders must all be looked at and compared in order to find the right formula for a particular business. It is impossible to have an unlimited supply on hand, for a number of different reasons. Many businesses simply dont have enough money to keep excessively large inventories. There are costs associated with purchasing the items as well as storing them, and having too many products leads to further losses when they dont move off of the shelves. At the same time, there are issues with inventory control when there isnt enough stock on hand. One common problem is running out of inventory, which is caused by trying to reduce inventory costs too much. This is something that no business wants to have happen, but it happens to virtually all of them at some point. Even the largest stores run out of certain products from time to time when they sell or use more than they expected. This can cause financial losses when inventory is not available for customers to purchase. Part of inventory control is trying to minimize shortages so these are rare occurrences. Most businesses expect they will have shortages on occasion and they have calculated that the small loss is worth the money saved by not having an overstock.

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Another important element of inventory control is called reorder point. Businesses need to think ahead and calculate the best time for reordering products. Doing so too soon may cause financial difficulties or running out of space. On the other hand, waiting to long to reorder will result in a shortage and running out of inventory before the next shipment arrives. When figuring out a reorder point, its necessary to calculate how long it will take the shipment to arrive and the amount of demand for a particular item. The overhead costs, fees, and shipping expenses of ordering large versus small quantities should also be looked at. Inventory control is an ongoing process that is rarely, if ever, executed perfectly. Experience, expertise, and practice help people to make the best decisions regarding stock, but there are always unknown circumstances and variables. Stores can make good estimates about how many of a specific product they will sell, but they get things wrong from time to time. This is unavoidable. Inventory control can break a business if it is executed poorly, because either expenses will be too high or customers will get tired of dealing with shortages and find another place to spend their money.

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Warehousing

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and unload goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

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Warehouse Management is to Move from Managing Overhead to Creating a Competitive Advantage Inside the walls of your warehouse, your utilization of every component space, people, inventory and equipmentwill impact your bottom line in profound ways over time. Warehouse Management enables you to analyze these components continually, so you can conserve effort, fill orders faster and more accurately, save space and reduce inventory. Use Warehouse Management to optimize: 1. Inventory: With our complete inventory management capabilities, track data on every unit utilizing the latest technologies. Improve the accuracy of every order and reduce safety stock.

2.

Labor: Make people more efficient by managing their tasks and improving their processes. Plan and balance workload and monitor activities with integration to Labor Management.

3.

Physical Space: Cross-docking and flow-through capabilities, plus integration with Yard Management, reduce the need for warehouse space. Improve warehouse layout for faster fulfillment and overhead reduction.

4.

Time: Automate picking, packing and shipping, and minimize the number of moves per order. Analyze every facet of order fulfillment to speed processing and improve customer service.

5.

Costs: Aggregate orders to reduce transportation and shipping costs. Eliminate annual physical counts. Reduce expenses on labor and storage.
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Material Handling

Material handling cannot be avoided in logistics, but can certainly be reduced to minimum levels. The productivity potential of logistics can be exploited by selecting the right type of handling equipment. The selection of material handling equipment cannot be done in isolation, without considering the storage system. Investment in the material handling system will be sheer waste if it is not compatible to the warehouse layout plan. The layout will create obstacles for free movement of equipment and goods, resulting in poor equipment productivity. Recent trends indicate preference for automated system with higher logistics productivity to enhance the effectiveness of human energy in material movement. Everyone wants more control. The more control you have, the better you perform. Similarly good material handling systems give you control on productivity. Distribution, manufacturing, and warehousing are the areas where material handling plays a major role. To do these things well, you need control of processes, of equipment, of personnel, of space and also of time. The basic questions frequently asked are: 1. 2. 3. 4. When do things get done? How many people does it take to do them? Do your material handling systems increase controlor hinder it? What is cost involved?
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5.

What is the up time of system?

Infact material handling systems power todays efficient distribution and manufacturing facilities. It is the secret weapon in logistics operations for improving system productivity. enhancing customer service and speeding up throughputs. By gaining control of your warehouse, you gain control of your profitability. Effective material handling systems create savings that helps directly to improve your bottom line. If your business relies heavily on manufacturing, warehousing, storage or distribution, the potential savings are perhaps your greatest opportunity. If your suffer from damaged products, slow pick rates, a lack of space, disorganization, or bottlenecks, dont think throwing more people at it will solve the problem-thats short term help at best, and youll be stuck with ongoing costs which you cannot eliminate.

Role of material handling in supply chain In the last several years material handling has become a new, complex, and rapidly evolving science. For moving material in and out of warehouse many types of equipment and system are in use, depending on the type of products and volume to be handled. The equipment is used, in loading and unloading operations, for movement of goods over short distances. The handling of material in warehouse is restricted to unitized forms, which require smaller size equipment. However, for bulk handling of material at logistics nodes such as shipyards, ports and airports different type of equipment is used. In warehouses, material handling operation is performed at the following stages: 1. 2. 3. 4. 5. Unloading the incoming material from transport vehicle. Moving the unloaded material to assigned storage place in warehouses. Lifting the material from its storage place during order picking. Moving the material for inspection and packing. Loading packages/boxes/cartons on to transport vehicles.

The efficiency of material handling equipments adds to the performance level of the warehouse. The internal movement of goods has a direct bearing on the order picking and fulfillment cycle. The warehouse, wherein the material handling equipments is in use, is more sensitive to labor
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productivity than the manufacturing center as material handling is more labor intensive. There is a scope for reducing labor and enhancing productivity by emerging technology in material handling. A good material handling system will enhance the speed and throughput of material movement through the supply chain.

Material Handling Systems - Types


Materials handling systems provide transportation and storage of materials, components and assemblies. Material handling activities start with unloading of goods from delivery transportation, the goods then pass into storage, onto machining, assembly, testing, storage, packaging, storage, and finally loading onto transport. Each of these stages of the production process requires a slightly different design of handling equipment, and some processes require integration of multiple items of handling equipment. Design or selection of the right material handling system is one of the most important decisions that a manager can make, because of the effects on the rest of the manufacturing plant. It affects the material flow and the factory layout. Apart from the initial capital cost for a new system, the consequences of any misjudgment in material handling will have considerable and longterm effects on operations. In recent years computer based simulation tools have been developed to simulate material handling systems and their effect on the manufacturing process. Loading equipment is aimed at providing the capability to load and unload vehicles; it is also referred to as loading bay equipment. The category can be divided into products that provide access from the loading bay to the vehicle and equipment that moves the product from the loading bay to the vehicle and vice versa. Equipment that falls into the access category are scissor lifts, goods lifts, dock levelers, loading ramps, doors, dock seals and vehicle restraints, and equipment that falls into the movement category are pallet trucks, conveyors and fork lift trucks.

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Lifting and Transport Equipment


Lifting and transport equipment is used to move product around the production facility, from loading bay to storage, from storage to production, around production, from production to storage, and from storage to loading bay. Equipment that falls into this category are fork lift trucks, order picking trucks, overhead cranes, tower cranes and belt, chain and overhead conveyors. Storage Equipment Storage equipment, as the name suggests is used to store materials, components and assemblies. The level of complexity of this type of equipment is wide ranging, from a welded cantilever steel rack to hold lengths of stock materials to a powered vertical carousel system. Also within this category are pallet racks, mobile shelf units, and plastic, wood and steel containers. Automated Handling Equipment Manufacturers of automated handling equipment produce automated guide vehicles, storage and retrieval equipment, conveying systems and product sortation equipment. The level of automation varies depending on the handling requirements. Fully automated handling systems ensure that the materials/components/assemblies are delivered to the production line when required without significant manual intervention. Semi-automatic handling systems provide less advanced solutions that deliver materials/components/assemblies to the production line with some manual intervention. Automated Guided Vehicles (AGVs) An AGV is a material handling device that is used to move parts between machines or workcentres. They are small, independently powered vehicles that are usually guided by cables that are buried in the floor or they use an optical guidance system. They are controlled by receiving instructions either from a central computer or from their own on-board computer. In some applications they
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can be used as mobile workstations to replace the more traditional conveyor system.

Robotics Robotics was first introduced 30 years ago. Since then their applications and versatility have increased dramatically. The basic robotics technology is similar to CNC technology but most robots have more degrees of freedom. In manufacturing applications, robots can be used for assembly work, process such as painting, welding, etc. and for material handling. Morerecently robots are equipped with sensory feedback through vision and tactile sense. The main advantage of robots is that they can be used for repetitive, monotonous, mundane tasks that need precision. They can also be used in hazardous environments that are not suitable forhuman operators.

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Facility Location / Network Design


Facility location decisions play a critical role in the strategic design of supply chain networks. In this paper, a literature review of facility location models in the context of supply chain management is given. We identify basic features that such models must capture to support decision-making involved in strategic supply chain planning. In particular, the integration of location decisions with other decisions relevant to the design of a supply chain network is discussed. Furthermore, aspects related to the structure of the supply chain network, including those specific to reverse logistics, are also addressed. Significant contributions to the current state-of-the-art are surveyed taking into account numerous factors. Supply chain performance measures and optimization techniques are also reviewed. Applications of facility location models to supply chain network design ranging across various industries are presented. Finally, a list of issues requiring further research are highlighted. Logistics Network Design relates to the establishment of supply, warehousing and distribution infrastructure. It encapsulates procurement, value-add and postponement activities and inventory control policies. Logistics Network Design seeks to minimize logistics cost while offering the right level of flexibility to meet service level requirements. A logistics network design initiative typically covers three elements - the inbound and internal supply chain, outbound logistics, and return logistics. It is important not to ignore the after-sales supply chain, where products need to be returned for repair and return, or swap and scrap/refurbish. A poorly designed reverse logistics network can have serious consequences for company profitability, especially in the case of product design flaws or component recalls. SimFlex Logistics Network Design solution enables reverse logistics network modeling independently or in conjunction with a forward logistics network.

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Transportation
Role of Transportation in Logistics Peter Druckers comment on distribution as the `last Dark Continent for business to conquer resulted in an important management function that has multiple strides ranging from integrated logistics management to supply chain management. It is virtually inconceivable in todays economy for a firm to function without the aid of transportation. Transportation is an essential and a major sub-function of logistics that creates time and place utility in goods. In fact, the backbone of the entire supply chain is the transportation management that makes it possible to achieve the well known seven Rs- 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. Micro Logistics and Macro Logistics Transportation decisions affect the other sub-functions, and there is a close linkage between them. Hence, transport decisions cannot be made in a vacuum. This part of the role of transportation in logistics may be termed as Micro Logistics, where at the firms level, the companies optimize this function for competitive cost advantage. The importance of transportation should also be seen by looking at the impact of transportation on a countrys economy. Studies reveal that in India the total logistics costs constitute nearly 10 percent of the GNP out of which nearly 40 percent is because of transportation alone. In the U.S., the estimates show that the cost is around 6 percent of the GNP. The major infrastructure required for moving goods from one place to another in India involve the active roles of Roads, Road Freight Industry, Railways, Ports and Shipping, and Pipelines, all of which are either managed or regulated by the government. The efficient and effective management of this infrastructure to enable the smooth flow of goods constitutes Macro Logistics. The situation in India is that because of unprofessional management of Macro Logistics, the industries are not able to derive the best out of their Micro Logistics. Any improvement in the Micro Logistics will be effective only if the Macro Logistics is effective. Also, Indian
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companies and the industries have not fully optimized their logistics function, as there is a tendency to live with the lacunae in Macro Logistics and the governments inefficiency. The objective of this article is to put forth the Macro perspectives in Indian transportation logistics, the scenarios in the infrastructure, which constitute Macro Logistics in the country, and possible remedies

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Customer Service

In the battle for consumersloyalty it is no longer enough simply to deliver quality of service - todays value-add is quality of experience. If a service is a transaction of which the consumer is by and large a recipient, then an experience is an activity or event in which the consumer is a fully active and engaged participant - a journey if you like - and that journey has the potential to leave a memory imprint that will far outlast a simple transactional outcome. Its easy to view clicking on the confirm orderbutton as simply the next to last station stop on the experience journey but for both the consumer and the on-line retailer its the start of a new journey in which fulfilment and logistics are the sole influencers of outcome. To achieve a seamless continuation from the presale stages through to the final destination we need to understand what customers expect from this next part of their journey and develop integrated fulfilment and logistics solutions that will deliver those needs.

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Customers need: 1. 2. 3. 4. 5. 6. 7. 8. 9. The right products To be delivered quickly/on time And to be in perfect condition Instant access to a customer service facility If they have any order queries or concerns And for order tracking Quick and effective resolution of queries or complaints An easy way to return unwanted products Or to obtain replacements for damaged products

These expectations may appear simple both to manage and deliver but there are many fulfilment and logistics building blocks to be manoeuvred into place with many value-added techniques to be applied if we want to deliver the kind of memorable experience that reinforces brand values and builds customer loyalty.

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Order Processing
Order processing Order processing is a key element of Order fulfillment. Order processing operations or facilities are commonly called "distribution centers". "Order processing" is the term generally used to describe the process or the work flow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier. The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The nature of the shipped product - shipping eggs and shipping shirts can require differing fulfillment processes The nature of the orders - the number of differing items and quantities of each item in orders The nature of the shipping packaging - cases, totes, envelopes, pallets can create process variations Shipping costs - consolidation of orders, shipping pre-sort can change processing operations Availability and cost and productivity of workforce - can create tradeoff decisions in automation and manual processing operations Timeliness of shipment windows - when shipments need to be completed based on carriers can create processing variations Availability of capital expenditure dollars - influence on manual verses automated process decisions and longer term benefits Value of product shipped - the ratio of the value of the shipped product and the order fulfillment cost Seasonality variations in outbound volume - amount and duration of seasonal peaks and valleys of outbound volume Predictability of future volume, product and order profiles Predictability of distribution network - whether or not the network itself is going to change

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A List of Approaches in Log. Man.


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Just in Time Inventory Vendor Managed Inventory Quick Response Collaborative Planning, Forecasting, and Replenishment Outsourcing / 3PLs Cross-docking / Flow Through Centers Build to Order SC Visibility Software Internet / EDI Collaborative Transportation Management Auctions / Exchanges Merge - In - Transit Partnerships / Alliances

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Just In Time
Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs. The process is driven by a series of signals, or Kanban , that tell production processes to make the next part. Kanban are usually simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency Just-in-Time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. Just In Time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban ( Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this work is often misunderstood.

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For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "...end up with the opposite of the desired result."[1] In recent years manufacturers have continued to try to hone forecasting methods (such as applying a trailing 13 week average as a better predictor for JIT planning,[2] however some research demonstrates that basing JIT on the presumption of stability is inherently flawed.[3]

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Vendor Managed Inventory


Vendor Managed Inventory (VMI) is a business model where the buyer of a product provides information to a vendor of that product and the vendor takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location. A third party logistics provider can also be involved to make sure that the buyer have the required level of inventory by adjusting the demand and supply gaps. VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain.

Introduction
Vendor Managed Inventory popularly known as VMI is gaining great momentum in retailbusiness processes. In this era of tough competition retailers are implementing every supply chain optimization process that will reduce their costs, reduce inventory levels and increase profits. Efficient supply chain management requires the rapid and accurate transfer of information throughout a supply system. Vendor Managed Inventory (VMI) is designed to facilitate that transfer and to provide major cost saving benefits to both suppliers and retailers customers. Vendor Managed Inventory is a continuous replenishment program that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish merchandise at the store or warehouse level. In this program, the retailer supplies the vendor with the information necessary to maintain just enough merchandise to meet customer demand. This enable the supplier to better project and anticipate the amount of product it needs to produce or supply.

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Definition and Concept


Vendor managed inventory process can be defined as A mechanism where the supplier creates the purchase orders based on the demand information exchanged by the retailer/customer. To say this in simple terms, VMI is a backward replenishment model where the supplier does the demand creation and demand fulfillment. In this model, instead of the customer managing his inventory and deciding how much to fulfill and when, the supplier does.The VMI concept provides improved visibility across the supply-chain pipeline that helps manufacturers, suppliers and retailers improve production planning, reduce inventory, improve inventory turnover and improve stock availability. With information available at a more detailed level, it allows the manufacturer to be more customer-specific in its planning. The VMI concept is being widely used in many packaged consumer goods processes where the end-users demand for products is relatively stable with short-term fluctuations in supply chain. With the ability of supply-chain applications to manage inventories at retailer locations, VMI concepts are being applied at both the distribution center-level and the store-level.

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Quick response
QR is a management concept created to increase consumer satisfaction and survive increasing competition from new competitors. It intends to shorten the lead time from receiving an order to delivery of the products and increase the cash flow. The QR (Quick Response) system, a production and distribution system for quick response to the market, was developed for the U.S. textile industry to survive the global competition with low-cost foreign companies. VICS (Voluntary Interindustry Commerce Standards Association) is the organization that is promoting QR. The EDI (electronic data interchange) protocol used for the QR system, that is a standard protocol for information exchange between the U.S. retail industry and companies, is also called "VICS", which is also a subset of ANSIX. While "VICS" is the name of the organization that promotes QR, it is also the name of EDI, i.e. the exchange of data (all data such as order placement and billing data) between companies who support QR. QR was created from a project to improve the supply chain management of the daily necessities industry such as the textile industry and ECR (efficient consumer response) concept was created by the processed food distribution industry. Both concepts were developed from the standpoint of increasing consumer satisfaction and as a mean to survive againat certains types of competitors that producer-retailer alliances call discounters and category killers. These concepts intend to shorten lead times from order receipt to delivery, minimize unsold inventory by holding minimum inventory levels, and increase cash flow.

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Collaborative Planning, Forecasting & Replenishment


One of the main issues inhibiting increased supply chain performance today is the lack of visibility into down-stream demand. This lack of demand and inventory visibility leads to lost sales and high inventory levels for both retailers and manufacturers. Most companies forecast future demand based on historical customer orders or shipment levels and patterns. However, actual consumer demand may be very different from the order stream. Each member of the supply chain observes the demand patterns of its customers and in turn produces as set of demands on its suppliers. But the decisions made in forecasting, setting inventory targets. Lot sizing and purchasing act to transform and distort the demand picture. The further a company is "upstream" in the supply chain, the more distorted is the order stream relative to consumer demand as described by the so-called bullwhip effect. This distortion of the demand picture imposes high supply chain costs in the form of suboptimal customer service levels, high inventories and low returns on asset. By providing business partner visibility into inventory and by collaborating on a single shared forecast of customer demand, supply chain partners can positively impact a set of key business drivers to create value across supply chain partners. Collaborative Planning Forecasting and Replenishment (CPFR) represents a paradigm-breaking business model that extents Vendor Managed Inventory principles by taking a holistic approach to supply chain management among a network of trading partners. CPFR has the potential to deliver increased sales, organizational streamlining and alignment, administrative and operational efficiency, improved cash flow, and improved return-on-assets (ROA) performance. The CPFR process model has been developed by the VICS Association in cooperation with leading retailers, consumer packaged goods manufacturers as well as consulting and software providers.

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The CPFR process model represents voluntary guidelines aimed at structuring and guiding supply chain partners in setting up their relationship and processes.

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Outsourcing / 3PLs
Outsourcing is a viable option for companies. Businesses outsource for many and varied reasons-increase shareholder value, reduce costs, business transformation, improve operations, overcome lack of internal capabilities, keep up with competitors, gain competitive advantage, improve capabilities, increase sales, improve service, reduce inventory, increase inventory velocity and turns, mitigate capital investment, improve cash flow, turn fixed costs into variable costs and other benefits, both tangible and intangible. To the maximum, and if done correctly, outsourcing and business process outsourcing can be used to create a viable virtual corporation. 3PLs. 3PLs have led the way in logistics outsourcing. Drawing on its core business, whether it be forwarding, trucking or warehousing, they moved into providing other services for customers. Creation of a 3PL presented a way for a commodity-service logistics provider to move into higher margin, bundled services. Customers, anxious to reduce costs, want what 3PLs have to offer. The potential market opportunity for outsourced logistics service providers, whether domestic, international and/or global is huge. But something has happened on the yellow-brick road. The reasons are varied, but the bottom line is many have failed at their own business transformation. Some 3PLs have not moved past their core commodity service to become true multi-service providers. Or international 3PLs have not understood how to provide domestic services; or domestic ones have not succeeded at venturing into international logistics services. Others have failed to differentiate themselves against the competition. Certain 3PLs have not done a good job positioning and defining themselves in the marketplace. Or the parent company has not given them the resources, especially sales and sales leads, to penetrate even their existing customers. And, sundry have commoditized their 3PL service, as a result undoing the very purpose of their 3PL. These setbacks have slowed down the growth of some 3PLs in terms of both customer retention, especially, and new customers. Fragmentation of the
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3PL sector reflects both the uncertainty of how 3PLs view themselves and the diversity of customer needs. As a result, customers have had to compare apples and oranges in their RFP replies. Shippers share some accountability with an overemphasis on cost reduction as the key metric and without a clear definition of their requirements for services they need and how it will all work within their company. They looked for silver bullets and quick answers to complex needs.

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Cross-docking / Flow Through Centers

Introduction: Cross-docking is an age-old practice that has served many companies well for decades. Cross-dock is a facility that transfers items between carriers or vehicles with minimal use of warehousing in between. In fact, the original cross-docks were so named because shipments literally moved across loading docks during their transfer. Modern cross-dock operations may include short-term warehousing and many involve value-adding services that require brief stops before product moves on.

Application: 1. Cross-dockings potential applications are as varied as its definitions. Various companies use cross-docks to perform international deconsolidation functions such as distribution center bypass or postponement. 2. Others use them to collect, Sort, and redirect product more efficiently, a concept known as hub-and-spoke, which works much like the relationship between small regional airports and airline hubs.
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3. Companies also use cross docks as flow-through centers that help provide manufacturing support

Benefits of Cross Docking: 1. During the early 1990s when just-in-time inventory was the mantra on virtually everyones lips, cross-docking was all about minimizing warehousing and achieving razor-thin inventory levels. Many companies now consider it equally valuable for increasing speed to market, especially if their supply chain is global. 2. Cross-docks can also help companies reduce transportation expenses.

Transloading vs. Cross - docking:

Its very common to confuse Transloading and cross-docking, but the terms are not interchangeable. Transloading is a form of cross-docking that involves switching transportation modes, usually with unloading and reconfiguration in between. For example, Many companies Transload the contents of their incoming ocean containers into over-the-road trailers before shipping out via truck because its possible to fit the contents of nearly two ocean containers into one trailer.

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Requirements of Cross-docking: For personal cross-dock facility, one should consider shall over than a standard warehouse (50 to 125 feet as opposed to 400 feet) so that inbound product could arrive on one side of the facility and easily be moved and loaded across the facility to an outbound truck. But thats not a luxury a lot of companies can afford. Many third-party logistics companies and carriers include cross-docking among their offerings. Either way, the key is stationing incoming and outgoing vehicles in close proximity and having good people in place to meet high inventory velocity goals.

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Build to Order
1. INTRODUCTION Build-to-order (BTO) is defined as the process of manufacturing quality products based on the needs of a customer at competitive prices (Gunasekaran, 2005). The objective of BTO supply chain management in organizations is to maximize customer satisfaction by providing customizable products in a timely fashion. BTO responds to customer needs by adjusting production to their specifications. This customization of products varies depending on the type of product. When implementing a BTO strategy, a company must have a close relationship with the suppliers, distributors and contract manufacturers. To make BTO successful, the firm must adopt focused inventory practices. In the case of BTO in the computer industry, just-in-time, or JIT is a widely used inventory strategy. There are many strategies the computer industry has adopted to help gain competitive advantage. The BTO model has been one of the most successful. BTO is very flexible, and allows for mass customization. Certain computer companies such as Dell have influenced the computer industry immensely with the wide usage of BTO strategies. Other companies such as Gateway, Hewlett Packard and Compaq have recently found success in this model as well. Dell gained competitive advantage through BTO by keeping no work in process or finished goods inventories at the end of each workday. Dell has also utilized the internet as a means of information exchange with the customer, as well as a means of ordering their product. Dell also acquired competitive advantage though their generous return policy and modularization of their returned parts. BTO is so popular and difficult to

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implement that other companies such as Apple have lost business to companies who have been successful in adopting BTO. Build-to-Order (BTO) is defined as "a value chain that activates the processes of building the products based on individual customer requirements and by leveraging information technology and strategic alliances with partnering firms for required components and support services such as logistics. The aim in BTO is to meet the demands of individual customers with a short lead time and minimum inventory and production costs along the value chain" (Gunasekaran, 2005). BTO provides a level of responsiveness, cost benefits, and flexibility that allows companies to distribute the custom products in a timely manner. BTO eliminates a large portion of inventory, work in process, and raw materials. The reaction time in the market time is minimal in the BTO system. The BTO strategy is used to mass produce products and distribute them to customers all over the world. When it comes to purchasing a computer, customers want to be sure that they have made the right decision. Computers tend to be very large investments averaging anywhere from $ 500 to $ 2000. When spending an amount of money as large as this, the customers want to ensure that they are going to be pleased with their purchase and that their computer will benefit their needs for an acceptable period of time. The BTO model enables firms to produce specific products to suit individual customer needs in the new competitive global market. In the BTO environment, the operations are less free and tend to be more structured because they can not operate independently from customer demand, because the wants and needs of the customer drive production (Prasad, 2005). BTO allows manufacturers to respond more efficiently to the conditions of the market. When customer preferences change, the product mix will change immediately to reflect demand. Also, the demand can be predicted and shaped by the sales system (Gunasekaran, 2005).

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It is important to maintain a close relationship with customers. Because BTO provides a specific product for each individual customer, they maintain a better working relationship. Customers are more satisfied with a product suited for them specifically. In BTO, firms take into consideration the needs of each individual customer. Marketing in this case plays an important role in customer service. Marketing in BTO is more customer-oriented, rather than product-oriented. The role of marketing is to assure customer satisfaction through adequate supply and offering a more quality product .

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SC Visibility Software
Global supply chain teams need to have near-real time visibility to the status of orders, shipments and in-transit inventory to optimize their network. Desired by many, and achieved by few, Supply Chain Visibility is complicated by the realities of todays global network: multiple trading partners, all with different information systems and data definitions, and information that can flow at unpredictable times. The following factors are also major challenges for companies to develop a Supply Chain Visibility project: The cost of integration is very high The integration requirements vary widely among message type and mode Data quality can not be efficiently monitored and maintained causing users to lose confidence in the content The software can not handle the complex structures and relationships of orders to shipments to equipment

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Supply Chain Visibility software addresses the complexity of your global network with five key capabilities that are all needed to provide users with consistent, reliable and timely information: Supply Chain Network. Over the past two decades we have built one of the most extensive networks in the industry, using secure, e-commerce technologies to connect suppliers, forwarders, transportation carriers across all modes, and customs brokers. We are experts in on-boarding supply chain partners and enjoy a high degree of reuse which allows us to offer faster, more cost-effective deployments. Data Quality Management. A visibility solution is only as good as the data that powers it. Over the years we have developed a proprietary set of technologies and business processes to ensure that your data is complete, accurate and timely. Order, Shipment and Inventory Visibility. Our visibility software can handle the complex structures associated with orders and multi-mode shipments, and tracks inventory at a granular-enough level to make fulfillment decisions such as diversions or direct-to-store delivery. Alerts & Event Management. Our customers are able to sift through mountains of data to focus

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efforts on the most critical issues that affect supply chain performance. We

develop schedules by origin, destination and product/service type to measure attainment of a milestone plan. You know when the shipment is on-time, early or late and can take appropriate action. Performance Management. And this information is then aggregated and optimized for reporting in our business intelligence platform, powered by Business Objects. Access reports from a personal or departmental dashboard, generate KPI metrics and scorecards, or develop complex ad-hoc analyses to effectively manage the performance of your service providers and streamline your supply chain. Access our Supply Chain Visibility Success eKit for customer case studies, key capabilities, analyst reports, and solution differentiators to consider when improving your supply chain

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Supply Chain Visibility offers a powerful platform to automate processes, support continuous improvement programs and to manage performance data, help your team improve planning, execution and to focus efforts by configuring alerts to: Coordinate POs with suppliers Monitor supplier ship windows Manage origin logistics Expedite delayed shipments Identify shipments stuck in Customs Trigger dray carrier when goods clear Customs Divert shipments to reduce stock-outs

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Internet / EDI
Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention. It is more than mere e-mail; for instance, organizations might replace bills of lading and even cheques with appropriate EDI messages. It also refers specifically to a family of standards. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguishes mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing." EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention.

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Electronic Data Interchange (EDI) is the fastest, easiest, and most productive way to conduct business with the transportation, warehousing and logistics industry. Computer-to-computer communication eliminates the need to fax documents and provides a complete and comprehensive audit. Traditionally, in the Public Warehousing industry, their have been two functions provided: 1. 2. Product Storage and Replenishment Product Processing and Transfer

The process is very simple. The warehouse works as a "middle man" in the logistics process. A manufacturer produces product and ships the product to the public warehouse. The public warehouse stores the product until the manufacturer requests that they ship it to another company. Public Warehouses have heavily invested in EDI systems to automate the information flow to support these basic functions. While these interfaces were excellent for transacting business with large customers, they usually failed to include the small and medium sized business customer, who could not make the investment necessary to take advantage of EDI. In addition, these interfaces limited their focus to the Replenishment and Transfer Cycle. The following are the processes which were not automated with the advent of EDI in the warehousing industry: Invoice Management (Invoices for warehousing services) Item Maintenance Merchandise Management In addition, as public warehouses change their market niche from simply product processors to information processors, they are striving to use the electronic transfer of business information to provide additional services to their clients. For example, forward thinking public warehouses are looking to provide:

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Sales Order Processing for their Clients Presently, inventory is being managed by the retailer or by the manufacturer. The newest trend is to have public warehouses to manage the inventory for the manufacturer. The process would have: Retailers to send Product Activity Data to the warehouse. Warehouses utilizing the Retailers product activity data plus its own Vendor Managed Inventory software to suggest Purchase Orders to retailers. Retailers to approve the suggested Purchase Order (PO) and send the information back to the warehouse. The approved Purchase Order would be used by the warehouse to create a Warehouse Transfer (which may also create an Advanced Shipment Notification if required). A copy of the Approved Purchase Order would be sent to the Manufacturer who will use this information to Invoice the Retailer.

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Logistics Management for their Clients Another trend in public warehousing is to have the warehouse manage the logistics process. An increasing popular portion of the logistics process being taken over by public warehouses is the handling of Merchandise Returns from Retailers. For example the process would have: Retailers to send Return Merchandise Requests to the Warehouse via EDI. Warehouses receive requests and to provide a Return Merchandise Authorization number to send back to the retailer authorizing the return. Retailers would send the goods back with a Debit Note attached to the warehouse and a copy of the Debit Note to the manufacturer. The warehouse would receive and inform the manufacturer of the receipt of the goods. Upon approval of the Return, the manufacturer would send a Credit Note to the Retailer and a document specifying to the warehouse how to dispose of the returned product. The key to automating warehouse processes is to be able to have a solution that provides all parties the information that they need to do their job. This is where forward thinking public warehouses are looking to re-invest in EDI in solutions such as SoftCares TradeLink that can effectively manage their existing and new business models.

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Collaborative Transportation Management


CTM Introduction This white paper provides an overview of Collaborative Transportation Management (CTM), a process for bringing trading partners and transportation service providers together for the sake of win-win-win outcomes among all parties. The paper will: define and describe Collaborative Transportation Management; present the business case for CTM; illustrate a process for collaboration; and provide guidelines for implementation.

We start out by examining why transportation represents an important opportunity for collaboration in the supply chain. Why Collaborate on Transportation? The job of moving goods from where they are produced to where they are demanded is a 24/7/365 job. Transportation consumes 5.5% of the U.S. gross domestic product, and approximately the same proportion of a companys sales revenue . These percentages have declined somewhat for U.S. customers of transportation since the industry was largely deregulated in 1980. A deregulated environment has dramatically intensified competition among carriers. Intense competition, along with rising costs of operation, requires carriers to run an efficient operation or close their doors. While efficiency improvements are abundant over the past two decades there still remain significant opportunities for further improvement. Trucks still run empty approximately 15% to 20% of the time, enduring both real and opportunity costs for the carrier and driver. Waiting to load and unload shipments consumes 33.5 hours of a drivers time each week, on average, according to 1999 estimates. Drivers frustrated with long, unproductive waits are easily tempted to abandon
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the carrier in favor of another, causing driver turnover ratios to hover at around 100% each year. Revised hours-of-service (HOS) regulations that went into effect in January of 2004 will further impact the hours available for operation and how drivers will use their on-duty time, worsening the problems of poor utilization and inefficiency. Also, given the mandate for heightened security provisions throughout the supply chain, shippers and carriers must work closely to ensure the safe transit of goods while keeping the costs of enhanced security within reason. Service implications of transportation are also significant. Transportation service represents a major component of order lead time the time that elapses from an order placement until the goods are ultimately delivered to a customer. Much of the variability in order lead time is attributed to variation in transit times. The criticality of good service is never more apparent than when a truck breaks down, runs into inclement weather, or a preferred carrier goes on strike or, worse, goes out of business. With more and more companies operating on a just-in-time basis, there is less room for error in the delivery process. Given these concerns, it is important for companies to work together to eliminate inefficiencies, reduce cost, and ensure excellence in the movement of goods. In most instances, there is only so much that a single member of the supply chain can do to resolve the problems noted above. This is why collaboration among partners in a supply chain has become a topic of great interest for many and an essential element of company strategy for others. Collaboration is not easy and can be hard to define. However, collaboration is more than cooperation. It requires that all companies engaged in a collaborative initiative work actively together as one toward common objectives, sharing information, knowledge, risk, and profits/benefits in an agreed-to, consistent fashion to ensure a common unity of effort. At the operational level, collaboration entails understanding how other companies operate, how they make decisions, and what is important to them. For true collaboration it is critical that all parties involved realize benefits.

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Defining Collaborative Transportation Management Collaborative Transportation Management (CTM) is a holistic process that brings together supply chain trading partners and service providers to drive inefficiencies out of the transport planning and execution process. The objective of CTM is to improve the operating performance of all parties involved in the relationship by eliminating inefficiencies in the transportation component of the supply chain through collaboration. CTM recognizes two important factors: 1. More and more companies are adopting new supply chain practices in an attempt to reduce inventory investment and shorten order cycle time, resulting in increased pressure on all parties involved in the logistics process. With such short notice, many carriers are having difficulty synchronizing their assets with customer demand and, in effect, forcing buyers of transportation services (manufacturers, distributors, and retailers) to pay a premium. 2. Superior customer service is a requirement for any successful relationship between trading partners, and the importance of each carriers contribution is underscored by the fact that many performance metrics, such as on-time delivery and order fill-rate, are directly affected by a carriers ability to pickup, transport, and deliver goods in a timely, claim-free fashion. By bringing carriers into a collaborative partnership and working with them to reduce operating costs and eliminate inefficiency, sometimes caused unknowingly or unintentionally by the shipper or receiver, all members of the collaboration are expected to benefit. CTM focuses on enhancing the interaction and collaboration between three principle parties -- a shipper, a carrier, and a receiver, as well as secondary participants such as third-party logistics (3PL) service providers. The CTM process is designed for application to both inbound and outbound transportation flows. As such, both the shipper and the receiver can perform some of the steps in the CTM business process, while other steps are performed individually by either the shipper or receiver. Typically, the party that is ultimately responsible for the carrier relationship/contract would be responsible for the CTM steps.
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Participants collaborate by sharing key information about demand and supply (e.g., forecasts, event plans, expected capacity), ideas and capabilities to improve the performance of the overall

transport planning and execution process, and assets, where feasible (i.e., trucks, warehouses). The process begins with an order/shipment forecast, and includes capacity planning and scheduling, order generation, load tender, delivery execution, and carrier payment.

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Auctions / Exchanges In order for shippers to minimize shipment costs and carriers to maximize capacity utilization, a number of transportation exchanges have been formed over the last few years. Some of the more popular exchanges who operate in this shipment and capacity trading space are: Celarix, National Transportation Exchange, Freight Market, and Link Logistics. As product life cycles shrink, a faster time to market becomes the imperative and logistics operations hold the key to the success of product manufacturers. By matching shippers needs with carriers capacity, exchanges can optimize the transactions on both sides. There is currently a critical need for research to develop efficient logistics marketplaces. In a transportation or logistics exchange, shippers, who have goods and/or materials to transport seek transportation services from carrier companies. Transportation exchange methods range from simple fax to on-line auctions, as well as the shippers core requirements for quality, reliability and control. When shippers need to procure transportation services for a set of distinctive delivery routes (called lanes) with different origins and destinations or delivery schedules, they can obtain quotes for each lane individually and repeat a simple auction process for each lane or they might negotiate for bundles of lanes with one carrier at a time. It will be certainly more efficient to allow shippers to make all lanes available for bidding simultaneously and to allow carriers to simultaneously bid upon combinations of individual lanes. It is natural for carriers to have different valuations for different combinations of lanes and carriers can take advantage of bundling to reduce empty or less loaded movements and to organize their operations in a more efficient way. Similarly, bundling is advantageous to shippers due to the complementarity involved in combinations of lanes. Such exchanges where carriers and shippers submit bids in the form of bundles can result in significant cost savings for both shippers and carriers. We call these combinatorial logistics exchanges.

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Merge in Transit
Supported by our global networks, high-end facilities, IT solutions and European transport solutions cross-docking solutions allow customers' products to flow directly where they are needed for improved cycle-time and cost effectiveness. solutions are customized to meet your exact requirements to provide customers greater flexibility in responding to changing market conditions. Merge in transit (MIT) service allows assembly and transport to occur simultaneously. Carriers pick up separate shipments from two or more sources and ship the components to a location near their final destination where a merge operation is performed. The merge operation can range from simple cross-docking consolidation to value added logistics (VAL) activities. Trucks carrying various PC components arrive at specified meeting points within hours of each other and merge the components to finished products.

Benefits of merge in transit service for our customers: 1. 2. 3. 4. 5. 6. Increased flexibility (warehouse on wheels) Lead-time, inventory and obsolescence reductions Products move, products are not stored Virtual warehousing Reduction of inventory carrying cost Reduction of obsolete stock

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Partnerships / Alliances
A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization,[1] shared expenses and shared risk. Types of strategic alliances Various terms have been used to describe forms of strategic partnering. These include international coalitions (Porter and Fuller, 1986), strategic networks (Jarillo, 1988) and, most commonly, strategic alliances. Definitions are equally varied. An alliance may be seen as the joining of forces and resources, for a specified or indefinite period, to achieve a common objective. There are seven general areas in which profit can be made from building alliances. Stages of Alliance Formation A typical strategic alliance formation process involves these steps: 1. Strategy Development: Strategy development involves studying the alliances feasibility, objectives and rationale, focusing on the major issues and challenges and development of resource strategies for
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production, technology, and people. It requires aligning alliance objectives with the overall corporate strategy.

2.

Partner Assessment: Partner assessment involves analyzing a potential partners strengths and weaknesses, creating strategies for accommodating all partners management styles, preparing appropriate partner selection criteria, understanding a partners motives for joining the alliance and addressing resource capability gaps that may exist for a partner.

3.

Contract Negotiation: Contract negotiations involves determining whether all parties have realistic objectives, forming high calibre negotiating teams, defining each partners contributions and rewards as well as protect any proprietary information, addressing termination clauses, penalties for poor performance, and highlighting the degree to which arbitration procedures are clearly stated and understood.

4.

Alliance Operation: Alliance operations involves addressing senior managements commitment, finding the calibre of resources devoted to the alliance, linking of budgets and resources with strategic priorities, measuring and rewarding alliance performance, and assessing the performance and results of the alliance.

5.

Alliance Termination: Alliance termination involves winding down the alliance, for instance when its objectives have been met or cannot be met, or when a partner adjusts priorities or re-allocates resources elsewhere.

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The advantages of strategic alliance include: 1. Allowing each partner to concentrate on activities that best match their capabilities.

2.

Learning from partners & developing competences that may be more widely exploited elsewhere.

3.

Adequate suitability of the resources & competencies of an organization for it to survive.

There are four types of strategic alliances: joint venture, equity strategic alliance, non-equity strategic alliance, and global strategic alliances. 1. Joint venture is a strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage.

2.

Equity strategic alliance is an alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities to create a competitive advantage.

3.

Non-equity strategic alliance is an alliance in which two or more firms develop a contractual-relationship to share some of their unique resources and capabilities to create a competitive advantage.

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4.

Global Strategic Alliances working partnerships between companies (often more than two) across national boundaries and increasingly across industries, sometimes formed between company and a foreign government, or among companies and governments.

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Top 10 Logistics Companies in India:


TNT Express AFL DHL Blue Dart Gati Safeexpress Ashok Leyland Agarwal Packers & Movers DTDC First Flight

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Some of the details regarding these top 10 players in the logistics industry in India is given below:

TNT Express:
TNT Express is the key leader not only in the Indian market, but also in the international market in the sector of global express services. They ensure timely and safe delivery of parcels, freight and documents. They offer day and time definite delivery in about 200 nations all over the world. They have a network of 2300 companies and operate 26000 road vehicles and 47 jet freighter aircraft for timely delivery of the consignment of their customers. They have classified their delivery service into three groups namely: Delivery of a specific day in 2-5 days Next day delivery in the morning times Same day delivery The customers can choose any of the aforesaid services according to their delivery requirement.

AFL:
AFL is offering some of the best services like custom consultancy, courier service and warehousing service. In the year 1979, they introduced a revolution in the field of courier service by entering into an agreement with DHL World Wide Express. They are acting as one among the acknowledge leaders in the industry of logistics in India.

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DHL:
DHL is acting as a market leader all over the world in the fields like international express, air freight and overland transport. They are the leading player in the ocean freight and logistics fields. They are also engaged in other services like: Aerospace sector Automative sector Chemical sector Consumer sector Fashion sector Renewable energy sector Retail sector Technology sector

Blue Dart:
Blue Dart came into existence in the year 1983 and they are the top courier company and integrated express package distribution service provider in the whole of South Asia. Their alliance with DHL offers service to over 220 countries and their domestic service covers around 21000 locations. Some of the best services offered by this company are: Free Computerized proof of delivery Real Time tracking Regulatory clearance Free pick up from the location of the customer
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Gati:
Gati is the top players in the arena of supply chain management and express cargo delivery. Some of the logistics solution provided by them are supply chain management, warehousing and cold chain solutions. Their distribution solutions include the following services: Gati Desk to desk cargo Al Gati Gati Ships Gati Air Express Gati Surface Express

Safeexpress:
Safeexpress is a leading-edge expertise in the field of logistics and they are backed by a formidable national network, which comprises of more than 1000 operating routes, 3000 vehicles and offering service to more than 550 locations. They offer their service all round the year and some of the logistics supply chain services offered by them are: C&F E-logistics Packaging solutions Statutory obligations management 3PL Reverse logistics Single source invoicing
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Door to door distribution

Ashok Leyland:
Ashok Leyland is the leading provider of logistic vehicles to the Indian Army and they are acting as the best company in the areas of multi-axle trucks and tractor-trailer manufacturing. They are also engaged in manufacture of special application vehicles, engine, trucks and buses in India and they are in the process of promoting a new company in the name of Ashly Transport Services Limited for exchanging integrated services and information with respect to logistics industry with a view to handle the business of freight contractors.

Agarwal Packers & Movers:


Agarwal Packers & Movers are leading in the areas of car packing and home shifting services all over India. They believe in keeping people and technology and also soul and heart in the movement of the hard earned goods of their customers. They offer the best service in packing and transportation. Some of the services offered by them are: International relocation Safe shifting of car from one place to another Shifting of home from one area to another Shifting of office from one location to another They offer these services by safely carrying good from one place to another without causing any physical damage to the goods.

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DTDC:
DTDC holds the pride of handling nearly 10 million consignments every month and they are offering their service to more than 240 international destinations. They have manpower of 13000 individuals and are offering delivery service to over 10000 zip code areas. They offer delivery service to even the remotest villages in India through their business partners spread across the nook and corner of the country. First Flight: They offer their courier service not only to India, but also to the countries all over the world. They have overseas offices in different countries like Oman, Quatar, the UAE, the US, Singapore, the UK and Malaysia. Some of the multi-tracking service offered by the company are: First wings First wheels SMS Tracking E-mail tracking These services enable the sender of the consignment to know the status of the consignment sent by him/her. The companies in this industry is involved in material packaging and handling, warehousing, inventory, transportation, integration of information and sometimes security as well. These logistics companies also offer a wide range of employment opportunities, thereby contributing towards the economic development of the country.

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Project Report on

Blue Dart
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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:-

1.

The main objective of the study to learn about the logistics along with the functioning of BLUE DART .

2.

To know about the policies and procedure followed by the BLUE DART while transporting the goods and services.

3.

To know about the need and importance of a logistics company in todays scenario.

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BLUE DART

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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.

BLUEDARTS 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.

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

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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.

Its Competitive Advantage lies in:

Blue darts 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).

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Its Customs and Regulatory expertise


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.

Its Technology
Designed to enhance the reliability of our operations and process efficiency, and add value to the customer through time and cost savings.

Its 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

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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 companys most valued asset. All companys achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. Blue dart is a learning organization, valuing self-development, and most of companys managers are homegrown.

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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 international shipments through COSMOS, the FedEx track and trace system.

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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 multimodal, 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.

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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, 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., cooperate in bringing the world's largest airlift of charity to Kolkata.

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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 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.

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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-DelhiBangalore 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 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
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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 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.

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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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COMPANYS VISION & FUTURE PLANS

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Companys 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."

1.

Companys 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 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.

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

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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 predetermined 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.

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

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Logistics software solutions

Vendor Solution

Features

Application program offered to Blue Dart offices SENTOR (Status Blue Dart Entry Offline for Regional Service participants) and its channel partners in remote areas via the Internet. Users receive detailed information on inbound packages for delivery. Upon delivery, proof of delivery details are 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 TNT Express Shipper (to be launched) by helping them send more than fifteen consignments a day. Customers can track consignments and obtain price quotations directly from their PCs.

Online consultancy on customs-related paperwork for SMBs that helps determine which FedEx Global Trade Manager customs documents 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

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SERVICES OF BLUE DART

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.

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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

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Let see different type of regional services: -

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:

1. 2. 3. 4. 5.

Delivery to over 13,700 locations in India Free pick-up from your location Real-time Tracking Regulatory Clearances Free Computerized Proof of Delivery

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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. 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 companys 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-toAirport service. A customer may book their shipments at any of companys 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.

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Dart Apex offers the following benefits:

1. 2. 3. 4. 5. 6. 7. 8.

Wide Market Reach Single-window Clearance Real-time Information Time-Definite Delivery Free Proof of Delivery on Demand Speed Flexibility Economical

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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:

1. 2. 3. 4. 5. 6.

Time-bound Delivery Track your Shipment Regulatory Clearances Pick-up Convenience Secure Shipments Economical Tariff

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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:

1. 2. 3. 4. 5. 6. 7.

A wide market reach Speedy Delivery Free pick-up Real-time Tracking Regulatory Clearances Proof of Delivery Trouble Free Service

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INTERNATIONAL SERVICE

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INTERNATIONAL SERVICE

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.

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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.

3.

Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries worldwide, and preclearance for shipments in transit available for most destinations, ensure efficient delivery.

4. 5. 6.

Real-time Tracking. A Cost-effective Option. Packaging.


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DHL OFFERS

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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:
1. 2. 3. 4. 5. 6. 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:
1. 2. 3. 4. 5. 6. 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.

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7.

Worldwide Package Express (WPX):

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:
1. 2. 3. 4. 5. 6. 7. 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.

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Benefits:
1. 2. 3. 4. 5. 6. 7. 8. Fastest transit time. Greater security and control. Simplified and convenient process. No hunting for packaging. Detailed online tracking. One company control. Single Invoice. Door to door peace of mind.

8.

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:
1. 2. 3. 4. 5. 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.
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Benefits:
1. 2. 3. 4. 5. 6. 7. 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.

1.

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:

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1.

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.

2.

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.

3.

Capacity
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.

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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.

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INTERLINE

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. 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,

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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.

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VALUE ADDED SERVICES

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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.

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E-COMMERCE INITIATIVE

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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 Darts 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 track their shipments, through single or multiple waybills, on-line. Customers can
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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.

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E-Shipping Tools:Blue Dart provides some convenient tools to aids to its customers shipping management processes.

Web Based Tools

1. 2. 3. 4. 5. 6. 7. 8.

TrackDartTM MailDartTM Location Finder Transit Time Finder Price Finder Billing Schedule a pickup Image Dart

Waybill Generation

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Stand-alone Tools

1.

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

1.

SMART
(Space Management Allocation Reservation and Tracking),

2.

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

3. 4.

ShieldTM ShipDartTM

Customised Solutions

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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 customers 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:-

1.

InternetDartTM
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.
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2.

ShopTrackTM
ShopTrackTM is an API (Applications Program Interface) designed specifically to support and enhance the services provided by a portal or any e-business.

3.

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.

4.

MobileDartTM

MobileDartTM - WAP works on any mobile phone or device which supports Wireless Application Protocol. Using MobileDart-WAP, the customer can check the current status of his shipments on-line by entering the waybill number.

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BLUE DART INITIATES CUSTOMER SATISFACTION BENCHMARK

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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 the status of the documents shipped. Customers 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 customers 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. Companys therefore, decided to look

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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 shipments would be crucial to effectively run their own independent endbusinesses. 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.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
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.

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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

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RESULT & ANALYSIS

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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.

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The techniques and procedure used by the Blue Dart are very effective that is keeping pace with time and requirement of the customers. 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

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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.

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FINDINGS OF THE STUDIES

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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:1. Blue Dart express ltd. is fully aware of the basic need of customers than its competitors. 2. The delivery of goods to the customer in the most reliable transit period (and preferably the shortest) possible. 3. The reverse flow of acknowledged, signed delivery records is trust worthy. 4. The country's most reliable air and surface network offers a predetermined delivery schedule with close to 100% accuracy. 5. Blue Dart offers the country's most comprehensive communications technology and customer software to support critical supply-chain distribution demands. 6. 7. Blue Dart is mainly focuses on the international services. Blue Dart does not have very well connection with the national airports. 8. The national airport services are limited to certain airports and are very expensive.
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9.

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

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RECOMMENDATIONS

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RECOMMENDATIONS
The following are the recommendation based on the study:-

1.

Since Blue Dart is mainly focuses on the international services so it must pay attention in the domestic services.

2.

Blue Dart does not have very well connection with the national airports so Blue Dart must make good connection with the national airports.

3.

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.

4.

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.

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CONCLUSIONS

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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.

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Logistics Experience will be different from one sector to another

Textiles 1. speed and variety due to seasonality concerns

Retailing (FMCG) 1. 2. prevents stores from having empty shelves or shelves with overstocks Frozen storage and transportation

Health 1. hygienic, have limited shelf life, require special storage conditions and entertain high inventory risks

Automotive 1. just in time (JIT), delivering parts from thousands of kilometers, special packaging

Fuel and Petroleum Transportation 1. very special tanker security systems

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