Logistics

Introduction
Logistics is about moving materials, information and funds from
one business to another or from a business to the consumer.

It is a vital part of the business economic system and is a major
global economic activity.

In fact 10-15 per cent of product costs are logistics related.
Worldwide, logistics constitutes about $2 trillion a year. For any
country, the logistics cost is estimated between 9 and 20 per cent of
its GDP.
Logistics Management
Process
Inbound logistics: Purchasing, Inbound transportation, Inventory
Management.


Manufacturing: Production planning systems, Machine scheduling
system.

Outbound logistics: Order booking process, Distribution
management, outbound transportation, and Warehouse
management systems
Indian Courier Industry
Indian Courier Industry
(Rs 35 bn)
Domestic (Rs 17.5 bn)

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

Unorganised (Rs 7 bn)
Organised (Rs 13 bn)
Inorganised (Rs 4.4 bn)
Industry Overview
1) Demand growth linked to general domestic markets &
- Leading service providers include Blue Dart, DHL, AHL, Fedex etc.
- Blue dart leads the domestic market with 38% market share.
- Salient features of the industry;
i. Door to Door Service
ii. Time definiteness
iii. Reliability
iv. Tracing & tracking

2) International Express markets
- Indian subcontinent constitutes approx 3.9% of the of the worlds airfreight

Industry Characteristics
& Drivers

Characteristics
1) Demand growth linked to general economic prospects
2) High Fixed Cost structure
3)Continuous investment in Fixed asset is required
4) The ability to provide time definite service wuth the competence to offer
clients information about the status of shipments and supply chains crucial
5) Close control is required over all shipments with attendant need for
sophisticated information system.

Industry Drivers
1) General growth in the domestic industry and the imports/ exports
2) Increasing need of reliable and time definite services from the industry
3) Growth in volumes of consignments and the revenue realization
SWOT Analysis:
Indian Courier Industry

Strengths
1) Non Regulated Industry : No licenses required to enter the Industry.
2) Limited players at national level
3)High growth industry : expected to grow @ 30% in coming years
4) Presence of huge entry barriers;
- Enormous set up of national networks. Offices, air lines tie-ups
- International tie-ups required

Weakness
1) High dependence on economic scenario
2) Poor infrastructural support, inadequate & inefficient airports, bad roads etc.

Opportunities
1) Integrated Logistics solutions for companies.
2) Development of e-commerce enables customers to stay online for any queries

Threats
1) Government regulations.
2) New Technology : Companies need to stay in touch with upgrading techno
savvy world.
About BLUE DART
Blue Dart Express Ltd. was incorporated on 5th April 1991. The
company was converted into a public limited company on June 15th,
1994 and the certificate of incorporation on change of name was
issued on June 17th, 1994.

The Company is engaged in the courier business for carriage and
door-to-door delivery of commercial documents, samples, panels and
printed matter in India and throughout the world.

The Company was promoted by Tushar Jani, Clyde Cooper and
Khushroo Dubash. - The name of the firm was changed to Blue Dart
Express on October 1st, 1990 and the firm was registered as a
private limited company on April 5th 1991.




BLUE DART is South Asia's leading integrated air express carrier
and premium logistics-services provider. It has the most extensive
domestic network covering over 25,498 locations, and service more
than 220countries and territories worldwide through its Sales
alliance with DHL, the premier global brand name in express
distribution services

Blue Dart has warehouses at 14 locations across the country as
well as bonded warehouses at the 6 major metros of Bangalore,
Chennai, Delhi, Mumbai, Kolkata and Hyderabad.

It has ISO 9001 - 2000 countrywide certification by Lloyd's
Register Quality Assurance for their entire operations, products
and services.

Corporate Profile
NOVEMBER 8, 2004 US courier giant DHL had acquired a 68.2 per cent
stake in a deal worth Rs 600 crore in Blue Dart Express.

Blue Darts Indian promoters and Newfields Holdings have entered into
separate definitive sale/purchase agreements to sell their equity shares,
collectively constituting 68.21 pc of the total current post issue paid up
equity share capital, at Rs 350 per share to DHL Express (Singapore) Pte.
The price of the acquisition is at a 9.4 per cent premium to the current
ruling market price of Blue Dart, of Rs 319.70. DHL will make an open
offer for acquisition of additional 20 pc shares in Blue Dart as per Sebi
guidelines on takeovers.

Blue Dart already has a sales alliance with DHL. With a 39 pc market
share in South Asia, it operates in India, Bangladesh, Bhutan, Nepal, and
Sri Lanka.
BLUE DART - DHL
Business Statements
Vision Statement : "To be the best and set the pace in the air
express integrated transportation and distribution industry, with a
business and human conscience. We commit to develop, reward and
recognize our people who, through high quality and professional
service and use of sophisticated technology, will meet and exceed
customer and stakeholder expectations profitably."

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


BLUE DART
Products/ Services
The services offered by Blue Dart Express are as follows -
Air freight
Ocean freight
Supply chain solutions
Freight forwarding
Customs clearance
Project handling
Charters

BLUE DART Products/
Services
Some of the New Products include: -
(i) Voice Dart: This is 24hr. hotline available to the customer in selected cities of
the country. It is an interactive voice response computer system that enables
customers to access key information regarding the range of services offered
by the company, to track the states of their consignment and leave messages
via a mailbox all in a voice form;

(ii) Power Dart: a software-run-system which is installed at the customer
premises. Through a dial-up computer modem installed at the customer
premises, he can directly access the company's database and retrieve
relevant information of his shipments;

(iii) Dart Collect: Offers the overseas consignees receiving shipments from
India, the facility to pay the freight changes in foreign currency;

(iv) Dart Apex: This is a day definite door-to-door product for shipments above
20 kgs. travelling to select cities within the company network; -

(v) IXF-2: This is a day definite door-to-door service for international shipments
weighing above 45 kgs.
Logistics in BLUE DART
Main challenge for any courier Industry: -
(i) The delivery of goods to the customer in the most reliable transit period
(and preferably the shortest) possible.

(ii) The reverse flow of acknowledged signed delivery records without which,
in many cases, recovery of bills are virtually impossible.

Solution derived by BLUE DART (Logistics Function)
(i) It offers a predetermined delivery schedule with close to 100% accuracy, with help of IT &
efficient people.

(ii) Gave facility to its customers to track their packages through Power dart 2000.

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

(iv) 100 % retrieval system of delivery records.

(v) Blue Dart not only handles large volumes and oversize packages overnight - it also
provides the industry with status of their shipments and retrieves such records as are
necessary for billing. The entire cycle has been considerably shortened, enabling the
industry to achieve healthy bottomline.

Services of BLUE DART -
DHL
Domestic / Regional Services
DART APEX
DART SURFACELINE
SMART BOX

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

Types of International Services
AIRPORT TO AIRPORT
CHARTERS
INTERLINE

SWOT Analysis
Strengths
Dominant player in the surface cargo segment in India, which accounts for more
than 55% of the total volume of cargo moved. International presence, state-of-
the-art mechantronic warehouses, warehouse management solutions and value-
added services should aid growth in market share.

Entry into the coveted cold-chain logistics business.

Strong Brand Name and wide reach across India & global presence with
collaboration with DHL.

Significant presence at JNPT and other major Indian ports. Long-standing
relationship with Indian Railways.

SWOT Analysis
Opportunities
Strong macroeconomic growth, robust growth in trade driving the growth of the
Indian express industry. The industry was valued at Rs71 bn in 2005-06 and has
grown in the range of 25%-30% over the past 3-4 years. It is expected that the
industry will register a similar growth rate over the next few years.

Exemption of interstate sourcing from VAT will make having centralized large
warehouses more viable for companies than having local sourcing and
distribution..

Improvement in the logistics infrastructure in the country - the dedicated rail
freight corridor, modernization of ports, and improvement in road infrastructure
are set to give a boost to intra-state and inter state freight movement.

Initiative by Indian Railways to allow private operators to run container trains.


SWOT Analysis


Weakness
A rise in fuel charges could have an adverse impact on margins, which are
already low for the company.

Substantial investments involved in the setting up of warehouses and building
of vessels. Thus the industry is inherently capital-intensive.


Threats
Entry of new players into the courier operations business.

Rise in transportation costs would adversely affect margins. Also, an increase in
container traffic over and above capacity at the ports could lead to congestion at
the ports, leading to a decline/delay in the throughput handled by the company.

An economic slowdown could impact the logistics industry as a whole

Future Plans
Focus on core products to expand market share and consolidate unique and
premium position in the Indian market, and expansion into the near Mid-East
and Far East markets and the SAARC (South Asian Association of Regional Co-
operation) countries.

Blue Dart would also leverage its vast customer base for global distribution
through its alliance with DHL.

Position ourselves as the preferred, seamless link to a country projected to be an
economic superpower of the 21st Century.

Continue to deliver value to our stakeholders through our People Philosophy
and Corporate Governance based on distinctive Customer Service, Business
Ethics and Accountability, and Profitability.
Key Findings
Blue Dart express ltd. is fully aware of the basic need of customers than its
competitors.

The delivery of goods to the customer in the most reliable transit period (and
preferably the shortest) possible.

The reverse flow of acknowledged, signed delivery records is trust worthy.

The country's most reliable air and surface network offers a predetermined
delivery schedule with close to 100% accuracy.

Blue Dart offers the country's most comprehensive communications technology
and customer software to support critical supply-chain distribution demands.

Blue Dart is mainly focuses on the international services.

Blue Dart does not have very well connection with the national airports.

The national airport services are limited to certain airports and are very
expensive.

At national level transportation of goods is done via road that makes delay in the
service.
Recommendations
Since Blue Dart is mainly focuses on the international services so it must
pay attention in the domestic services.

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

At national level transportation of goods is done via road that makes delay
in the service so the national airport services must be spread to every
airport so it will be resulted into quick service.

The national airport services are limited to certain airports and are very
expensive. Spreading to the every airport will also result into the
reasonable service.







Thanks
Blue Dart HO
International Services
Interline
Charters
Airport to Airport
Dart Surface Line
Regional Services
Express Package