Blue Dart-Pradeep-0494

A REPORT ONAN APPROACH TOWARDS EFFECTIVENESS & EFFICIENCY OF LOGISTICS MANAGEMENT AT BANGALORE Submitted in partial fulfillment of the requirements Of the MBA Degree Course of Bangalore University Submitted By M. M. PRADEEP 04XQCM6066 Under the Guidance and Supervision Of Dr. N. S. Viswanath Resident Director BVB-Marshall MBA Program Kalappa B.C Sr. Branch Manager Blue Dart, Bangalore M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan # 43, Race Course Road Bangalore-560001 2004 – 2006 STUDENT DECLARATION I hereby declare that the project undertaken by me and the report titled “AN APPROACH TOWARDS EFFECTIVENESS & EFFICIENCY OF LOGISTICS MANAGEMENT AT BLUE DART, BANGALORE” submitted to Bangalore University in partial fulfillment of the requirements for the award of the degree of Masters of Business Administration, is my original work and not submitted for the award of any other Degree/Diploma of any University. Place: Bangalore Date: Name: Pradeep M M Reg no: 04XQCM6066 GUIDE’S CERTIFICATE This is to certify that this report is the result of project undergone by Mr. Pradeep M M bearing the Register no: 04XQCM6066 at BLUE DART, Bangalore, under my guidance and supervision. This has not formed a basis for the award of any Degree/Diploma for any University. Place: Bangalore Date : Dr. N. S. Viswanath PRINCIPAL’S CERTIFICATE This is to certify that this report is the result of project undergone by Mr. under the guidance and supervision of Dr. S. Bangalore. N. Place: Bangalore Date : Dr. Pradeep M M bearing the Register no: 04XQCM606 at BLUE DART. this has not formed a basis for the award of any Degree/Diploma of any University. Nagesh S Malavalli (principal) . Viswanath. Last but certainly not the least. Human Resource department for encouraging me which was significant in successful completion of project. Bangalore: Date: (M M PRADEEP) Reg No: 04XQCM6066 .C. Branch Manager.Birla Institute of Management for providing the means and encouragement and Dr. Viswanath for their immense support and guidance. I would like to thank Mrs. Principal. I wish to thank our Dr. S. Nagesh Malavalli. Sr. my family and friends who co-operated in completing this project successfully. I thank all the Departmental heads and employees of BLUE DART for guiding me and extending their co-operation in completing this project successfully. I am extremely grateful to MR Kalappa B. N. M.ACKNOWLEDGEMENT “Blessed are those who give without remembering and Blessed are those who take without forgetting”. Rose Francis. P. for giving me an opportunity to embark on this project and whose guidance was significant in the successful completion of the project. 44 5 METHODOLOGY Background Review of Literature Existing Logistic model in Blue Dart Problem statement Objectives of the study Limitations of the study 45 .Introduction SWOT Analysis Aviation Industry 9 .64 7 8 CONCLUSIONS AND RECOMMENDATIONS BIBLIOGRAPHY 65 .Logistics Logistics Management PARTICULARS PAGE NO 1 2-8 3 INDUSTRY SCENARIO .Supply Chain Management .75 76 -77 .57 6 - ANALYSIS AND SUGGESTED MODEL Data analysis Suggested Model Major Findings 58 .15 4 COMPANY PROFILE Introduction Blue Dart Overview Blue Dart Services Blue dart Technology E-commerce Initiatives Blue Dart Aviation Ltd 16 .CONTENTS SL NO 1 2 INTRODUCTION CONCEPTS OF LOGISTICS MANAGEMENT . The result will be the wireless solutions in order to integrate business for both the local and global trade. Different type of product families and different customer segments may necessitate several distinctly different supply chain configurations. and overall management costs. The industry in India is divided into the organized. The solution enables the industry to set up and tightly integrate the customers. Supply chain configuration will have to be continually revised. This solution allows you to reduce purchasing. The industry is highly fragmented with over 2300 players in the market. is not ideal for another. producers and distributors to deliver a specific product set. The end-to-end solution will help the customer to manage the business and mobile sales and delivery team enabling them to ensure superior customer service and product availability without losing control of costs. form the key to successful logistics solution. Efficiency. semi organized and the unorganized segments. The industry soon saw the entry of ELBEE and BLUE DART to appropriate value from the lucrative sector. The way forward is through tie ups between the players in the organization segment and a few powerful ones in the semi-organized segment. the customer and the vendor to save the ever decreasing commodity-resource both time and money by being mobile. financial accounting. Logistics planning and management defines a unique network of Suppliers. The ideal supply chain for one set of conditions however. order management. which has to be designed for flexibility and responsiveness. Such as product specifications. . and by streamlining ordering and approval processes.EXECUTIVE SUMMARY The courier industry in India was born in 1979 with the entry of DHL into the market. The solution also helps the merchant. whenever required. speed and flexibility in the delivery and distribution aspects of a business. since Conditions keep changing. and other enterprise solutions to improve cycle time by facilitating exchange of critical data. inventory. . diversity and accessibility has accelerated beyond all predictions.INTRODUCTION In any market driven economy. as well as established market leaders are all focusing on this factor in their path to success. Customer service is one important factor in service industry. Customer service is concerned with making the product available to the customer. the pioneers of new industries. securing global standards of consistency. eliminating wastage through obsolete stock. Profitability has to be reinforced by cost management. maximizing economies of scale through global sourcing and supply. offering customized solutions. supplying customers with what they want. status information etc. In today’s global market. Post-transaction elements . cutting production lead times and call response times to a minimum. is the bare minimum required of any serious business. There are many aspects in customer service such as consistency and reliability of delivery. and to maintain and build on profitability on the other. ordering convenience. supplying products and services 24 hours a day. The innovative. condition of goods. when they want it. It is a management challenge of how to achieve increased flexibility on the one hand. minimizing capital held in warehouse. Pre-transaction elements 2. delivery timing and flexibility. For the world’s highest performing and successful companies. and as the business world has become increasingly competitive. delivering that promise has taken on a more challenging reality. 365 days a year. But as product development. competitive advantage is gained by offering customers flexibility. claims procedures. managing the supply chain has become a critical success factor. Transaction elements 3. visit of the sales people. Thus the customer service should be examined under three elements: 1. . e. Plan 2.g. 1. and related information from the point of origin to the pointof-consumption in order to meet customers’ requirements. The following are five basic components for supply chain management. Return . production. Make 4. services. logistics. and marketing. The Council of Logistics Management 16 defines logistics as: Logistics is that part of the supply chain process that plans. effective flow and storage of goods. Source 3.CONCEPTS OF LOGISTICS MANAGEMENT Supply chain management SCM might be seen as a business philosophy that strives to integrate the dependent activities between firms. and controls the efficient. This definition implies that logistics is a sub-set of SCM. implements. Deliver 5. purchasing. An industry is faced with many challenges like. anywhere Lessen cost for wider reach Lower transactional cost Complete security . which supplier to rely on etc.Logistics Logistics planning and management defines a unique network of suppliers. Increase profitability Reduce operating costs Streamline processes Increase the productivity Network customers. vendors and distributors Network inventory databases Targeting wider market Improve customer care Increase brand awareness The above challenges faced by industrialist should meet with some solutions that include the following. Faster response time Shorter sales cycle Order tracking. An industry should have the ability to quickly capitalize on emerging opportunities.online Reduce physical inventory Customized reports-anytime. producers and distributors to deliver a specific product set. Logistics management configuration decisions involve decisions like where to locate new manufacturing and distribution facilities. respond to new customer behavior and taste and adapt to new market conditions. Their relations with yielding a profit return can be illustrated by the following Figure . To measure the logistic effectiveness. one must be aware of the elements that affect its performance profitability. In the following Figure the traditional Du-Pont model is revised according to logistic operational perspective.The final target. logistic managers seek to achieve a previously agreed quality of customer service through state-of-the art operating competency. At a strategic level. the logistic of an enterprise is an integrated effort aimed at helping create customer value at the lowest cost level. Thus as far as it has been established. for most of business operations. The challenge is to balance service expectations and cost expenditure in a manner that achieve business profitability. is to reap profit. cost and tied up capital. the logistic efficiency can be described in terms of service. According to Lumsden. The Logistics Players. implements and controls the efficient. . The final consequences are increased inventory tied up capital and decreased customer service level with lower shipment frequencies. For example. Actually. services and related information from the point of origin to the point of consumption to meet customer’s requirement. Thus what we need to achieve is to make a good balance among these three dimensions and optimize the total result. the improvement of one parameter usually is on the sacrifices of the other two.From 1PL to 5PL As per Morgan Stanley’s Logistics is the part of the supply chain process that plans. if one wants to reduce the cost for transportation by using full truckload. one should not consider them as isolated parameters without any interaction among each other. effective flow and storage of goods.To have a full understanding of the three efficiency elements. then it will keep larger volume in stock waiting for large enough shipment quantities. From 1PL to 5PL By Morgan Stanley’s The concepts of 3PL (the third party logistics). and a 2PL provides service for a single or a small number of functions in the supply chain. Most small businesses buying and selling in the same location are 1PL. It performs all or a large portion of a client’s supply chain logistics activities and its value adding is based on information and knowledge versus a non-differentiated . and 4PL (the fourth party logistics) reflect the evolving demands of manufacturer essentially to own and handle all logistics functions. Next comes the distributors. many 2PLs have evolved into 3PLs by adding new logistics capabilities and integrating their operations. 3PL is a broader term that is frequently used to cover businesses in freight forwarding or contract logistics. such as a trucking company or a warehouse operator. such as trucking and warehousing. It may or may not involve asset ownership. Examples are the express parcel operators that charge premium pricing for timely delivery. the manufacturer’s logistics border grows. and the postal operators. As the business expands geographically.The Logistics Players. with high levels of asset intensity but low barriers of entry. a 2PL provider is generally a commodity capacity provider. They face low returns. albeit on a sizeable cost base. With the increasing demand for one-stop solutions. who through a dense network or legislative protection have achieved higher returns. The 4PL provider.transportations service at the lowest cost. 3PL tends to be asset-light with high returns. can also offer high value added advisory services to the manufacturer. . and for assembling and managing those end-to-end solutions. They are responsible for contracting various 2PL and 3PL providers. with its complete overview of the supply chain as well as strong logistics and IT capabilities. The 4PL provider is essentially a logistics integrator or a one-point contact for the manufacturer’s logistics outsourcing requirements. which coordinates and optimizes all logistics activities. parts and finished inventory (and the related information flows) through the organization and its marketing channels in such as way that current and future profitability are maximized through the cost-effective fulfillment of orders. logistics is the process of planning. supply/demand planning. the logistics function also includes sourcing and procurement. implements. order fulfillment. and management of third party logistics services providers. To varying degrees. finance and information technology ." Logistics Management activities typically include inbound and outbound transportation management.Logistics Management Logistics management is the process of strategically managing the procurement. According to the Council of Logistics Management (CLM). and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. as well as integrates logistics activities with other functions including marketing. services and related information between the point of origin and the point of consumption in order to meet customers' requirements. "Logistics Management is that part of Supply Chain Management that plans. movement and storage of materials. and controls the efficient. services. operational and tactical. warehousing. sales manufacturing. and customer service. implementing. effective forward and reverses flow and storage of goods. fleet management. logistics network design. It is involved in all levels of planning and execution – strategic. and controlling the efficient effective flow and storage of goods. packaging and assembly. Logistics Management is an integrating function. materials handling. production planning and scheduling. inventory management. . by deploying the services of a courier company. The world cargo fleet is expected to treble by the year 2015. There are very small courier companies that serve niche market. This industry is expected to grow at least 8% year a year till 2015. present a challenge for the country. Third and fourth party logistics too. . There’s a general trend for companies to try to shorten their supply chain by reducing their stock levels. They also invariably outsource much of the work to one of the bigger players. this is expected to increase to 40% by 2015. investments in infrastructure for more sophisticated players can be very high. Instead of having regional warehouse. Unfortunately. very few of the smaller players can back it up and they end up cutting corners. Delivering documents is becoming a smaller part of their business. Delivering documents is no longer the mainstay of the courier industry. Privatization has also created opportunities. High rate of inflation and ever increasing fuel prices as an ongoing challenge for the industry are one of the challenges. There’s a general global trend for companies to reduce their inventory. The courier industry is becoming increasingly competitive. Globally only 2% of the express freight is currently carried on aircraft. Barriers of entry at one level have been quite low on the one hand. companies are able to do their distribution from fewer warehouse. and then there are the large. The global trend towards outsourcing of non core activities has created opportunities for courier companies. integrated companies with global reach.INDUSTRY SCENARIO The courier industry globally is expecting a bullish trend in the near future. It’s a volume business and the smaller players soon realize that and then they begin to cut rates to survive. Hence essentially freight companies have to play a much larger role in satisfying the requirements and also in providing cost effective solutions to these companies. there will be fewer smaller companies. Collection Transportation Delivery Customer Relationship Overall Focus Customer Service The key activities are now viewed from a point of view of value creation at every stage. The companies looked at the business as transporting goods from one place to another. Key Activities The traditional view of the key activities is as given below. There will be shrinkage in the number of players but industry. this does not stop people from setting up new businesses. This is driven by the strategy of customer service and the support for this is mainly IT. They tried creating value by doing it in the most efficient manner with no real focus on customers. as a whole would not shrink.Although IT raises the barriers to entry. a re-look at the key activities is essential. with the rapid evolution of the industry and the changing market scenario in terms of consumer demands. . As for the future. but more medium to large players. Receiving Goods Transportation of goods Delivery of goods Value addition Efficient Transportation Fast delivery times However. A huge transport infrastructure now exists to move goods speedily There has been a tremendous liberalization of the barriers to trade. Growth of importance of marketing personnel in maintaining relationship with key account customers and keeping them happy. assembly and distribution. .Some of the value addition that is taking place within the industry is: Pickup and delivery of the package at the customer’s premises. Giving a customer a wide variety of services to choose from an effort to cater to consumer’s every demand. Drivers of Courier Industry Today international trade is moving at a pace never anticipated when they first started the business. The expansion in new technology has helped bring each component of the supply chain together from order entry. Buying planes to ensure fastest mode of transport and not being dependent on passenger airlines. The express distribution industry has been able to meet the corresponding growth in customer demand because of a unique combination of factors. to manufacturing. encouraged by economic groupings around the world. The other factor is the relations with govt. Economies of scale – This industry are volume driven and thrive on economies of scale. Weakness Dependent on economy scenario – this industry is highly dependent on the overall economic scenario. This discourages new entrants to a large extent. . For instance the companies also require a lot of trained manpower within their fold. Limited players – the organized and high return segment is dominated by a few major players which hold more than 90% of the market share. The infrastructure and technology have to be set up irrespective of the amount of business if the quality of service has to be world standard. This growth rate was sustained in the 90’s. But due to the general slowdown of the world economy. High Entry Barriers – as courier companies have to make a lot of investment in establishing a network and for it the requisite infrastructure and technology has to be set up. Hence the business becomes profitable only after a few years when there is a sizeable customer base. octroi etc. But with the revival of the economy and the greater reach of the major players in this segment. agencies (customs. there was a slowdown in this industry and the growth rate was sluggish at 1015%.SWOT Analysis of Industry Strengths: Non Regulated Industry – There are no licenses needed to enter this industry. This is because they would not necessarily trust some new company to deliver their parcels safely. which also have to be developed over a period of time.). In the mid 80’s the industry grew at a rapid pace at 30-35%. the industry is expected to grow at an increasing rate. Brand image – The brand image of an existing company has been developed over the years. People would prefer to continue dealing with companies they dealt with before. Threats Economy slowdown – the industry being driven by the general economic scenario there is always the threat of it being affected by slowdown in the economy. In addition. the companies can do business in a new international market without an initial investment in facilities. Today things like tracking and tracing is fairly common and has become a norm. govt owned competitors in the form of national postal services might pose a barrier. . take off and other rights in that market. Government Regulation – To start operations in any given country. thus lowering the associated risk. New technology – the companies also need to be constantly in touch with the latest technology to help them provide the best services possible. This outsourcing would enable manufacturing companies to concentrate on production and marketing. E-commerce – The development of e-commerce has given an opportunity to the companies to enable customers to deal with them on the net. an operator wishing to use its own aircraft must obtain landing. Backward integration – The courier companies now cease to be reliant on others for the services they need and have integrated backwards.Opportunities Logistics – the courier companies have all identified opportunities to take up integrated logistics solutions for other companies. By outsourcing inventory management to courier companies. Value added services – The courier companies endeavor to add value to the products of their customers to differentiate themselves from their competitors. This means lower capital investment at an embryonic stage of the business. technology. the industry is very fragmented with the presence of big players like Fedex. DHL etc and numerous regional organized as well as unorganized players. as customers has choices to select the courier for its dispatches. less supplier’s threat of forward integration.No. 1 Description Supply Details There is a saturation of players in the lower end of the markets. infrastructure. 3 Barriers to entry Economies of scale. as courier industry thrives on the technology and transportation infrastructure. Initial investments are very high. 4 Barriers to exit Relatively high. huge capital requirements. road. 5 Bargaining power of Supplies 6 Bargaining power of buyers Relatively low due to less switching cost. High. . 2 Demand The demand is expected to grow at a CAGR of 8% over the next few years. high brand identity. However. High. UPS. well entrenched distribution networks discourage new entrant to come in the market. very high service differentiation. Also price competition among the courier players gives him wide options 7 Threat from substitutes 8 Competition The substitutes are available in the form of different mode of transportation viz. there are few niche players in high value added segments like logistics management.Porter’s five force model Sl. train. . and the escalation in the price of aviation turbine fuel and local ground transportation costs. and would subsequently increase by 2. with the largest international coverage. there has been an increase in security costs. the surcharge would increase by a further 2. the third largest player in the USA. doubling of insurance premium on air transportation. and removed completely at a price of US$20 per barrel. The resultant Indian ATF costs. Post 11th September 2001. the owner of DHL. after UPS and FedEx. is making inroads into the US domestic market. based on the WTI Index of the previous month. DHL. after Central and State levies. should the price of oil further escalate to US$33 per barrel. are amongst the highest in the world. One of the global majors currently controlling the industry would be Deutsche Post.Aviation Industry Globally.5% when the price of oil declined to US$24 per barrel. with the emergence of four major players worldwide.98 per barrel (WTI index) in February 2003. A `Fuel Surcharge’ at the rate of 5% was made applicable in December 2002. from a level of US$28.5%. the express industry is part of the aviation industry and a subset of the air cargo industry.50 in September. The past year witnessed growing consolidation globally. with effect from December 2002. based on its unique delivery capability reinforced by its aviation system and technology. war surcharges. Blue Dart has clearly staked out its sole claim to the premium segment where it has established a stronghold.5% for every US$4 increase per barrel thereafter. Blue Dart introduced an equitable hedge solution by implementing a `Fuel Surcharge’ mechanism. 2002 and peaked at near US$ 40 per barrel during the Iraqi conflict. and is estimated at about $55 billion. To mitigate the increase in fuel cost. The industry has undergone a realignment of partnerships and a greater divide between the premium and lower-end segments. However. the surcharge would slide downwards by 2. Aviation turbine fuel prices increased to US$ 35. The negative economic impacts of the past year have had a particularly crippling effect on the global aviation industry. There has been substantial press coverage on Deutsche Post acquiring Airborne. Ground operating costs have also risen sharply in the short term due to escalating costs of diesel and petrol supplies to the market. As per `Fuel Surcharge’ mechanism. . State-of-the-art Technology. management and operations of countrywide express transportation and distribution services within the Indian subcontinent and to international destinations serviced through multinational express companies". they have evolved an infrastructure unique in the country today. The Company is South Asia's leading air express transportation company and logistics service provider and offers a comprehensive range of services and products for both domestic and international shippers. The company has been re-certified as one amongst a handful of Indian companies to the new global ISO 9001 . innovating new products and expanding its network and infrastructure. Blue Dart has continuously evolved to meet the growing demands of business and customers. Also.95% reliability levels in the express industry. Blue Dart Aviation. MIS. dedicated capacity to support our time-definite morning deliveries through night freighter flight operations. weighing over 76. . They have the most extensive Domestic network covering over 3. the company handled during the year over 28 million shipments. the premier global brand name in express distribution services. and service more than 220 countries and territories worldwide through their Sales alliance with DHL.Company Profile Blue Dart is South Asia's leading integrated air express carrier and premium logistics-services provider.880 locations.000 tons. for Track and Trace. thereby increasing its market share in the country. In pursuit of sustainable leadership in quality services. ERP. Customer Service. Over the years. Their vision is to establish continuing excellence in delivery capabilities focused on the individual customer.000 shipments a day.2000 standards for "Design. the company achieved yet another milestone of handling 100. Space Control and Reservations. During the year under review. indigenously developed. Blue Dart's continuous commitment towards identifying and addressing the needs and concerns of the Customers has enabled it to provide unmatched standards of service quality with over 99. A . Mumbai. products and services. and add value to the customer through time and cost savings. Ecommerce B2B and B2C initiatives including partnering with some of the prime portals in the country.A countrywide Surface network to complement our air services Warehouses at 14 locations across the country as well as bonded warehouses at the 6 major metros of Bangalore. standardized quality of service. Technology Designed to enhance the reliability of their operations and process efficiency. Chennai. rather than as a by-product of a passenger airline. Kolkata and Hyderabad ISO 9001 . 2005).2000 countrywide certification by Lloyd's Register Quality Assurance for our entire operations. Delhi. Competitive Advantage lies in: Vast and unparalleled Domestic Network Linked by some of the most advanced communications systems and positioned to offer a consistent.96% (as on July. Their services are relentlessly monitored to deliver a net service level of 99. Air Network The only one of its kind in the country today that is focused on carriage of packages as its prime business. premium. Customs and Regulatory expertise They have a dedicated team of specialists who provide the expertise for customs as well as regulatory clearances at all States within the country. A spectrum of services to provide customized solutions They are 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. to support seamless service to the customer. with a business and human conscience. Corporate Governance Corporate Governance is the combination of voluntary practices and compliances with laws and regulations leading to effective control and management of the Organization. a team with a winning attitude. with its own bonded warehouses. they value self-development.dedicated aviation system to support Blue Dart's services is self-sustaining. reward and recognize their people who. Good Corporate Governance leads to long term shareholders value and enhances the interest of other stakeholders. through high quality and professional service and use of sophisticated technology. ground handling and maintenance capability. They are a learning organization. and most of their managers are homegrown. Vision "To be the best and set the pace in the air express integrated transportation and distribution industry. They commit to develop. People force Committed. will meet and exceed customer and stakeholder expectations profitably. Blue Dart is fully committed to good Corporate Governance and has complied with the Corporate Governance Code as stipulated under the provisions of Clause 49 of the Listing Agreement with the Stock Exchanges. . All their achievements have been possible because they have a team who believes in themselves and their company. diverse and over 3. It believes in providing services through transparency in all its dealings.900 strong are their most valued asset. It believes Corporate Governance is an important instrument for shareholders’ returns and value enhancement. They encourage learning. in turn. caring and professional image of us and our services at all times. apolitical and secular company . self-development and building effective leadership They provide a work place where each and every employee is nurtured and who.Guiding Principles They treat each other fairly and with respect and dignity They encourage freedom in communication of thoughts and ideas in all our interactions They value integrity and we will be uncompromising in upholding it at all times They ensure that our PSP (People Service Profit) philosophy serves as a driving force behind the success of our organization They encourage and inculcate in all a winning attitude. Service Quality and Customer Care They project a positive. thereby creating wealth for stakeholders They expect our people to be accountable for all their actions related to the company They drive the First Time Right concept to achieve 100% Quality and Customer satisfaction They encourage passion and enthusiasm for Work. They avoid waste by being conscious of the impact of all our actions on the environment They continue to be a law-abiding. will nurture the organization. 814 Domestic Locations Serviced : Over 13. 2006) : 4. Bangalore. Hong Kong and Singapore. Delhi and Chennai to Dubai.Blue Dart Overview Description : South Asia's premier courier and integrated air Express Package Distribution Company Began Operations : November.429 vehicles Network : Domestic hubs: Mumbai. Delhi. Chennai. Kolkata. 4.880 locations International Destinations : Serviced More than 220 countries and territories Worldwide through sales alliance with DHL Air Support Ground Support : : 5 Boeing 737 freighters 3. . Bahrain.621 million Number of Shareholders (As on 3rd March. London. 1983 Headquarters : Mumbai. Frankfurt. Hyderabad. India Revenues (FY 2004-2005) : Rs. Erode. Ahmedabad and Guwahati International Outbound Gateways: Mumbai. SENTOR. ShipDartTM. ImageDartTM Schedule a Pick-up. MobileDartTM..bluedart.000 http://www. 2005) : Over 2. ShopTrackTM. CARESS SHIELD Over 4. SMARTTM. of computer Terminals (As on 15th Dec.com Technology : People Force World Wide Web Address : : .Number of shipments Handled (FY 2004-2005) : International: 0.450 users Cosmat IITM. InternetDartTM. MailDartTM.240 E-mail at 114 locations accessed by over 2.02 million No.53 million Domestic: 42. TrackDartTM. PackTrackTM. The special benefits of this service are: Delivery to over 13. Dart Apex also offers you a further economical option of a Door-to-Airport service. Kolkata and Hyderabad to all the Dart Apex locations serviced. most efficient delivery solution for the commercial shipments that are time-bound and are required to undergo regulatory clearances. Mumbai. Delhi. . It is the fastest. Dart Apex offers an economical option of an Airport-to-Door service from the major airports of Chennai. Bangalore.Services Express Services Domestic Priority: The services are subject to their Terms and Priority. And above. The Consignee would be required to collect the shipment from the Blue Dart Aviation office at the concerned airport. most reliable. The fastest. One may book space for the shipments through the Customer Service and deliver the shipments to the Blue Dart Aviation Office at the related airport. or require special handling. Nepal and Bhutan for documents and small shipments under 32kgs per package. Free Computerized Proof of Delivery Dart Apex: Dart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. providing with information on shipments from pick-up to delivery Regulatory Clearances for all States in India taken care of by our team of specialists. to resolve your regulatory requirements.880 locations in India Free pick-up from your location Real-time Tracking through the net. One may book the shipments at any of the locations serviced for this product to any of the major airports mentioned above. door-to-door delivery service within India and to Bangladesh. or Contact Blue Dart. Price Finder will provide with the applicable tariff for your shipment. transported to their destination. with the following value-added benefits: . processed through the regulatory channels and delivered to the consignee. One can also view. through the advanced tracking system.Dart Apex offers the following benefits: Wide Market Reach Single-window Clearance Shipments are picked-up from your location. It offers a cost-effective logistics option for your less time-sensitive shipments. Time-Definite Delivery Free Proof of Delivery on Demand One may use Tracking or Contact Blue Dart for information on date and time of delivery as well as name of recipient. ground distribution service within India for shipments weighing 10 kgs and above. download and print copies of Proof of Deliveries and Delivery challans of Dart Apex shipments. Real-time Information On the status of the ship ment at all stages of transportation. One may Track the shipment through the net. shipments are uplifted the same night for early morning deliveries at major metros. Dart Surfaceline : Dart Surfaceline is an economical door-to-door. apart from a Door-to-Door service Economical Dart Apex offers a cost-effective logistics solution with time-bound deliveries that provide cost-savings in warehousing and inventory. Flexibility Dart Apex offers options of Airport-to-Door and Door-to-Airport delivery services. Speed Backed by the air network night operations focused on carriage on freight. cleared through regulatory channels and delivered to the consignee. economic. providing with information on the shipments from pick-up to delivery. and are designed to accommodate a variety of products. Contact Blue Dart to schedule a pick-up and supply of Smart Box Real-time Tracking Through the net. manned by trained professionals to ensure the safety and security of your shipments. The special benefits of using Smart Box are: A wide market reach Speedy Delivery Carriage of the Smart Box is supported by an integrated air and surface network to provide the fastest. while you are able to receive updated information and proof of delivery on demand. . transported. Regulatory Clearances The team of specialists will provide with the clearance support required to ensure a smooth delivery. most reliable delivery service for packages Free pick-up From the location. and your shipment will be pickedup. packaging unit priced to include a door-to-door delivery service within India. Secure Shipments All the destinations serviced by Dart Surface line are supported by their own warehouses. One may also Contact Blue Dart for information on the status of your shipments. 10kgs and 25 kgs. The units come in 2 sizes.Time-bound Delivery A fleet of vehicles run to pre-determined schedules to provide committed delivery. Economical Tariff All these benefits are available at charges that support value-pricing Smart Box: Smart Box is a convenient. Pick-up Convenience One may Contact Blue Dart to schedule a pick-up. Regulatory Clearances For all States in India taken care of by team of specialists. Flown by Blue Dart Aviation between the 5 metro airports of . FREIGHT SERVICES Domestic Airport-to-Airport: Early morning deliveries. Blue Dart offers the fastest. door-to-door express deliveries for your documents and packages to countries in the SAARC region through Regional Priority. Proof of Delivery Confirming the date and time of delivery as well as the name of the recipient. most reliable. Régional Priority: Non Documents (RPDT) Fast reliable and safe door deliveries for samples and non-commerical shipments. to resolve the regulatory requirements. Currently available between India and Nepal only. Bangladesh. Regional Priority: Documents (RPDX) The most dependable and secure delivery for non-dutiable. Regional Services Between India. The Blue Dart Envelope provides secure and attractive packaging for your documents. brochures and reports upto 500gms. No cooling period (otherwise mandatory on passenger airlines). Security checked at Blue Dart's warehouses equipped with x-ray machines. download and print copies of Proof of Deliveries and Delivery challans of Smart Box shipments. Bhutan and Nepal. Late cut-offs. Trouble Free Service Smart Box provides packaging. One can also view. trouble-free delivery service and realtime information on the status of the shipment. critical and important shipments such as legal documents and tenders. a door-to-door. Blue Dart Aviation operates the only Boeing 737 freighters in India. This facility has enabled distribution of imports within the country and has provided exports access to and from the gateways of international airlines. . enhancing marketing possibilities in offline cities within India. The freighters have an 8-pallet configuration. Bangalore. The bonded warehouses with customs personnel facilitate efficient transshipment of cargo within India. shipments manufactured during the day can connect the night flights and be delivered at destination the next morning. Delhi and Kolkata. professionally-trained personnel. 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. Blue Dart Aviation is positioned to offer the most superior quality of service in the country today. Facilitates transshipment of customs-bonded freight from these airlines' gateways. and company-owned cargo handling assets. as well as bonded warehouses at all the on-line stations. Mumbai. With qualified.Chennai. Interline: Interline agreements with 20 international airlines. and enhance their marketing possibilities at off-line locations by utilizing the distribution capabilities of Blue Dart Aviation. The advantages of an airport-to-airport service are: No Cooling-Period All the Blue Dart Aviation warehouses are equipped with X-ray machines. This provides international airlines with a cost-effective option to restrict their on-line stations within India. which eliminate the necessity of the mandatory 24 hour cooling-period required for security reasons for all air freight transported within India Late Night Cut-off & Early Morning Deliveries With Blue Dart Aviation's night operations. and operations are supported by an in-house ground-handling and maintenance capability. and operations are supported by an in-house ground-handling and maintenance capability. Cargolux.Terms and Conditions of Carriage. KLM Royal Dutch Airlines. Available to 228 countries worldwide.Air Canada. British Airways. Asiana. Sri Lankan Airlines. DHL Worldwide Package Express (WPX) and the Jumbo Box (Jumbo Box . Alitalia. With qualified. International Services: For international documents and packages. Charters are operated on an ad-hoc basis. Air Mauritius. Saudi Arabian Airlines. Polar Air. South African Airways. professionally-trained personnel. Kenya Airways. Normally. . Blue Dart Aviation is positioned to offer the most superior quality of service in the country today. Computer peripherals and Electronics.Currently. Swiss Air. offers DHL Document Express (DOX). International services are subject to the DHL . The freighters have an 8-pallet configuration.). Air France. Blue Dart has interline agreements signed with 25 international airlines . a one-stop shipping process for reliable. Emergency Equipment and large inventory for JIT plants. through its International Sales alliance with DHL. Das Air. charters have been used where timely deliveries of sensitive equipment or large loads are required. El Al Israel Airlines. the Premier global brand name in express distribution services. Singapore Airlines. Qatar Airways. BMI and Etihad Airways. Blue Dart Aviation has operated charters for carriage of TV Equipment for the Miss World Contest. Air India. and company-owned cargo handling assets. and the liability terms incorporated. time-definite. Blue Dart Express Limited. Cathay Pacific. Emirates Sky Cargo. as well as bonded warehouses at all the on-line stations. and Jumbo Junior . Charters: Blue Dart Aviation operates the only Boeing 737 freighters in India. high-value TV and Broadcasting equipment for Cricket Matches around the country. In the past.10 kgs.25 kgs. door to door delivery of international documents and packages. perishable Aquaculture. Kuwait Airways. China Airlines. cleared through customs and delivered to your consignee. Specialized fast handling facilities. proposals. 90% of international banks' first choice.bluedart. reports. quality network of Blue Dart and DHL. tenders. International Documents & Shipments Documents and packages will be picked-up from your location. DHL offers: Express Document (DOX) : DHL Express document is the fastest. . and enhance the brand value of your products. Real-time Tracking Through the net at www. for information on your shipments at all stages of transportation A Cost-effective Option The door-to-door service eliminates the need to retain a clearing agent and arrange transportation at destination for delivery to the Consignee. Packaging DHL has innovated a wide range of unique packaging to protect and secure your documents and shipments. State of the art information systems. ensure efficient delivery. Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries world-wide.com. The special benefits of the International Services are: A Convenient Solution for your Urgent. You can rely on this international service Features: o o o o Priority financial industry services. etc.The service offers access to 220 countries and territories worldwide and the extensive. trustworthy and most secure way to deliver nondutiable shipments such as banking and legal documents. and pre-clearance for shipments in transit available for most destinations. Strong packaging and simple documentation . Features: o o o o o o o Door to door service. manufactured items & non-commercial shipments. Step by step customs declarations. The Jumbo Box & Jumbo Junior Box : DHL Jumbo Box and Jumbo Junior are the original market innovations for value priced. World class packaging. Simple documentation. Global market leader for international express packages. For commercial shipments like electrical goods and components. All the benefits of the Worldwide Package Express plus. State of the art information systems. flat fee international express. Features: o o o o o Unique easy to assemble boxes.o o Door to door one company control. They offer low flat fees for shipments up to 10kg and 25kg and convenient uniquely designed packaging to all destinations worldwide. garments. Low flat fee for each kilo over flat fee limit. Full DHL express door to door service. Fastest for international express packages. Global customs clearance leader. Worldwide Package Express (WPX) : DHL Express Package is the fastest most secure way to deliver a dutiable international shipment. Packaging range. complete and accurate information about their consignments. Some of the technology-based business offerings on our site are as follows : TrackDartTM MobileDartTM ShopTrackTM ShipDartTM Schedule a pickup Location Finder Price Finder SMART MailDartTM InternetDartTM PackTrackTM Billing Waybill Generation Transit Time Finder COSMAT II ImageDart . They have one of the largest private computer networks in India.Blue Dart Technology Blue Dart has been the only Indian Air Express Company that has invested extensively in Technology infrastructure to create differentiated delivery capabilities.070 users. which includes an advanced state-of-the-art track and trace system for all the consignments.750 computer terminals connected by dedicated leased lines. Their E-mail is accessed at 89 locations daily by over 2. They also employ wireless. quality services and customized solutions for the customer. radio sets and pagers extensively to enhance the communication speed and connectivity with their troops on the field. using bar coding and laser scanner technology. This enables the customers to receive real-time. Consignments are scanned from pick up to every transit point till delivery. with over 1. Their Customer Service Cell is equipped with Automated Call Distribution Systems (ACDs) to provide quick response and support to our customers. They are the only Indian express company to have indigenously developed COSMAT IITM. mobile telephones. transmitting updates automatically to the Oracle database. VSATs and Microwave links. . to provide flexibility and convenience. Aimed at further integrating the supply chain. Enables tracking updates from some of the remotest corners of the country WMS (WAREHOUSE MANAGEMENT SYSTEM) Developed indigenously to global standards. complete ERP system. Designed to manage storage. simultaneous tracking of multiple shipments by interfacing with Blue Dart's systems.com with the waybill numbers will receive an automated response providing the latest status of the shipments. Covers all the complex processes of the organization. E-mails sent to track@bluedart. inventory. generation of reports and all other logistics activities.STAND-ALONE TOOLS COSMAT II TM Blue Dart's own. PICKUP-ONLINE Allows registration of pick-up online for shipments requiring door pick-ups. maintenance. Provides complete. MAILDART TM Shipments can be tracked via e-mail using MailDart. WEB BASED TOOLS TRACKDART TM Is accessible through the internet and provides real-time. order fulfillment. Allows real-time space and revenue management on the aviation network. accurate status of shipments. Enables real-time tracking of shipments. SMART TM (Space Management Allocation Reservations and Tracking): India's first indigenous Cargo Reservations System. Space reservations made on SMART ensure that shipments are pickedup. transported and tracked until delivery SENTOR TM (Status Entry Offline for Regional service participants/Remote locations): An application designed to provide Blue Dart channel partners and Blue Dart offices in far-flung areas access to information and updates. One may generate a series of reports. origin. Blue Dart has been the only Indian Air Express Company that has invested extensively in Technology infrastructure to create differentiated delivery capabilities. at a pre-determined frequency. Some of the technology-based business offerings are as follows: InternetDartTM: Track on-line the status update of the shipments sent over the last 45 days. you can check any of the following. TRANSIT TIME FINDER Provides transit-times taken for delivery for both. on-line.LOCATION FINDER Provides details of the Blue Dart offices closest to the customer. Can be found by city. and destination. destination and services used. For on-line queries and reports: on providing the input of range of pickup dates. street name or pin code. PRICE FINDER Calculates the shipping costs for domestic and international shipments. Also provides service updates. One may track by a range of dates. domestic and international locations from a point of origin in India. delivered or undelivered shipments or service used. origin. on-line: Waybill details and status of all shipments sent during a given period Details of all delivered shipments Status of all undelivered shipments Details of all RTO (Return to Origin) shipments . It also has an automated volume-weight calculator. E-business Solutions These tools may be efficiently integrated with your systems to provide you with a convenient and cost-effective solution to the shipping requirements. quality services and customized solutions for the customer. and sort the results on-line. It is simple. . and bringing the entire chain within his domain. ShopTrackTM : ShopTrackTM is an API (Applications Program Interface) designed specifically to support and enhance the services provided by a portal or any e-business. while etailers provided an entire gamut of product services and information. It has been designed to streamline and integrate shipping processes. ShopTrackTM provides an effortless. customized solution. These e-business tools. Queries are fetched immediately from Blue Dart's database. Customers no longer have to leave the Portal site to track their purchases. Research indicated that. The Portal can decide how to display the data elements and may even store them in their database. providing him with an effective CRM tool. bring increased efficiencies to most B2C. e-shoppers invariably had to leave the website or use manual means to track their purchases. distribution and inventory control. This tool is available only to registered customers of Blue Dart. the first of their kind in the country. PackTrackTM: PackTrackTM is an API (Applications Program Interface) designed for any client involved in logistics. B2B and C2C transactions.One may download the tracking and status data. The result .less eyeball time on their pages. ShopTrackTM is another time and cost-saving tool created to arm Blue Dart's customers with a competitive edge. The client may store this data in his database. providing a seamless service for the client and his customers. PackTrackTM can be integrated into the client's systems and enables him to keep track of the entire distribution status of all his customers. This tool will benefit most medium to large businesses in managing their tracking processes and integrating them with their back-end systems. Portals that sought to resolve this dilemma were faced with the unattractive alternative of database maintenance and call centers. They just need to enter the order-number of their purchase and the shipping and delivery details are displayed on the same page. easy-to-use and can be easily integrated with any windows-based application or any Java compliant machine. Ship Dart needs to be installed at the customer’s premises in order to interface with their own system for the pre-shipping and post-tracking activities. ImageDartTM: Image Dart will enable users of Blue Dart's Apex (Air Package Express) and Surface line services to download Proof Of Delivery (POD) and Delivery Challans (DC) online. Ship Dart enables user control over the entire shipping and tracking processes. from the Blue Dart website. ShipDartTM: Ship Dart is a Blue Dart proprietary solution especially created for the convenience of regular customers. MobileDartTM . With Image Dart.MobileDartTM: Mobile DartTM . the customer can check the current status of his shipments online by entering the waybill number.WAP works on any mobile phone or device which supports Wireless Application Protocol. This enables the customer to make a shipping decision on the run. The customer can also access the Location Finder which provides details about all locations service by Blue Dart. he can choose to receive delivery details by email or SMS. Using Mobile Dart-WAP.com). saving them interest costs and making their billing and recovery cycle. based on a pincode. In the case of an undelivered shipment.bluedart. thereby playing a major role in bridging the existing gap in any package movement. Information about all the Service product offerings as well as the company is also available on the WAP site (wap. The image has complete delivery details including the consignee's signature and comments and will be made available on Blue Dart's website 48 hours after delivery of the shipment. and supply chain more efficient. A set of Master Files which controls the Ship Dart system has to be downloaded from the site.SMS works on any mobile phone or device which supports sending email over SMS (Short Messaging Service). . Blue Dart customers will now be able to realise their collections from their own customers much faster. for value added solutions. As a technology leader in the business of supply-chain management in the country. This e-strategy encompasses E-Solutions to deliver additional process efficiencies to business by allowing them access to Blue Dart’s e-shipping tools and integration with its e-business tools. distribution and supply chain management. Shipping Uses the following tools to simplify the shipping process: Location Finder: Find the service locations of Blue Dart as well as the Blue Dart counter located closest to you. An individual solution is available for each business.E-commerce Initiatives E-vision: To enable global connectivity to Blue Dart's present and future interactive technology strengths. Transit Time Finder: Check the transit times for your domestic and international shipments.880 locations serviced in India. thereby increasing value to our customers and shareholders. from. Bangladesh or Bhutan or in more than 220 countries and territories worldwide. transacting off the internet or on the internet. or pin code to find one of over 13. You may search by city. big or small. and ranging from a stand-alone to a fully integrated one. to and within the region. and has been exploring web-based solutions to extend the range of services available to its customers and integrate them into its core products. Nepal. It has evolved an estrategy. and for the various services offered by Blue Dart to help you identify the service that meets your requirements . Blue Dart Express Limited recognized the far-reaching scope of the internet in 1996. To facilitate seamless integrated transportation. Mondays to Saturdays. This service is available for locations serviced by Blue Dart. You have the option to pay on-line. high-volume users and e-shops. . Ship DartTM: A complete downloadable package for all Shipping and Tracking needs of frequent. Schedule-a-pickup service allows you to register a pickup online for all services that require a door pickup. either through internet banking or credit card.Price Finder: Calculate your shipping costs for your domestic and international shipments by using our Price Finder. Billing The Bills and Payments tool enables credit customers to receive invoices online. Currently. Delhi. You will receive the following on request: Invoice Debit Note Schedule a pickup (only for registered users) Online "Schedule-a-pickup" service is designed for added speed. this service is only available from Kolkata. Mumbai. Schedule a pickup on-line from anywhere in the world. You may view your out standings and download and print the invoice. Bangalore and Chennai . convenience and flexibility in logging your pickup requirements. If you are a regular customer in need of customized pricing. Blue Dart believes that the alliance would bring the DHL advantage to Blue Dart's customers. . DHL is the world's leading express and logistics company offering customers innovative and customized solutions from a single source. Sri Lanka and the Maldives. Blue Dart and DHL signed a Sales Alliance Agreement which came into effect from the 1st October 2002. With global expertise in solutions. besides an additional 1000 tones per week through other modes. 1 international air express service provider and India's No. The coming together of the world's No. carrying and distributing via its aircraft over 600 tones of time-sensitive. the alliance provides both organizations with the flexibility to grow their individual businesses unhindered. express. its aircraft are strategically positioned in Kolkata. Further. DHL is 100% owned by Deutsche Post World Net. including any multi-national air express operator. guarantees fast and reliable services aimed at exceeding customers' expectations. Blue Dart chose to ally with DHL as it is the #1 international air express company in the world. greater flexibility of its network and the strongest brand recognition in India and in the world. air and ocean freight and overland transport DHL combines worldwide coverage with an in-depth understanding of local markets. unmatched cross-border specialization. In addition. Blue Dart operates over 50 night and 8 day missions per week. the customer and the stakeholders of both organizations. Blue Dart can now offer its services to any customer. express packages each week. with superior hi-tech on-ground infrastructure. Chennai and Bangalore. 1 domestic express services provider is a logical step in a win-win relationship to benefit all the parties involved. Belgium.000 dedicated employees. DHL's harmonized international network links more than 220 countries and territories worldwide. in close proximity to the countries of Bangladesh. resulting in greater customer satisfaction. DHL continues to be at the forefront of technology and. Blue Dart has a unique domestic infrastructure and is the only domestic cargo airline in the SAARC region. The Agreement is for duration of five years on a principal to principal basis.Blue Dart-DHL Relationship On the 12th September 2002. Based in Brussels. with more than 150. who wishes to avail of quality distribution within the country and the region. with a fleet of 3 Boeing 737 freighters. The night operations were designed to meet the specific needs of the business community as they focused on late night cut-offs and early morning deliveries. averaged a compounded annual growth rate of 25% and progressed to claim close to 60% of the U.S. Taking a cue from the enormous success of the U.Blue Dart Aviation Ltd Blue Dart Aviation Ltd. market. Customers could now rely on air capacity that was focused to service business needs and not passenger travel schedules. Shipments originating from a city at the end of the business day could arrive before the start of the next business day at their destinations. the management viewed the delivery capabilities of the domestic airlines inadequate and a limitation to the explosive growth of air express. In an express industry where growth. It set up the first and. made a path-breaking decision to create its own infrastructure and buy its own aircraft. was created primarily to support the growing demands of Blue Dart Express Ltd. consistently exceeded 35%. Demand for express package services surged. Blue Dart Aviation Ltd. only domestic freighter operations in India. Blue Dart Express Ltd. which started with a 4% share in 1977. till date. . year over year. spurring capacity addition and Blue Dart added a fifth aircraft to its fleet in 2004. and launched its operations with a fleet of 2 Boeing 737-200 freighters on the 17th June 1996. was incorporated in May 1994 as a 100% subsidiary of Blue Dart Express Limited.S. The restricted day flights and capacities oriented to passenger requirements were not consonant with the demands of the express market. which is committed to morning deliveries that rely on guaranteed space and late night operations. express industry. enhanced efficiency in daily operations. lower manpower costs. and Blue Dart Aviation has since been contracted to provide dedicated services to Blue Dart Express Limited. The specs were provided by Blue Dart Aviation. Warehouses at all the 6 airports are equipped with X-ray machines. In collaboration with the Madras Institute of Technology. Mumbai. Bangalore. has provided exports access to and from the gateways of international airlines. Established at substantial initial investment to the company. curtailing handling time by 80%. it has developed the only Indian software for handling of the Load and Trim Sheet. and design and manufacture undertaken by a Coimbatore-based manufacturer. and cost-savings in operations because of increased fuel efficiency: SALIM (System for Aircraft Logistics Inventory Management FUSION (Flight Updating. has many firsts to its credit: The first Indian-manufactured main deck loaders at all its 5 on-line stations Chennai. MAK Control. in a 4-month period at less than 20% of the cost of the international equivalent.integrating the cockpit voice recorder in real-time with the Digital Flight Data Recorder. that have resulted in improved safety standards. and resulted in returns for . making it the only private operator capable of accepting freight without the requisite coolingperiod for security. Bonded warehouses with customs personnel to enable transshipment of cargo within India. Inquiries and Operational Notes) SODA (System of Digital Flight Data Recorder Analysis) VINDAS (Voice Integrated Data Analysis System) . Its own maintenance capability to clear aircraft through the D-Check level. Delhi and Kolkata. Scheduling. on 11th March 2005. this facility has enabled distribution of imports within the country. It has also developed the following software applications. STAB (System of Trimming and Balancing). in-house.Blue Dart Express Limited has divested 60% of its shareholding in Blue Dart Aviation Ltd. better time-management. Blue Dart Aviation Ltd. Blue Dart is the only jet cargo airline in India who offer various services including Air Cargo Movement (Charters). to support Blue Dart's future expansion plans. Delhi and Calcutta. 1956 situated at Chennai. Profile Blue Dart. Engineering. India.Chennai and Calcutta connecting enroute Bangalore.the organization. . operating and connecting the metro cities of Chennai. Blue Dart has in-house Engineering. and a fifth aircraft has been inducted in December 2004. The only Jet Cargo Aviation Company possessing B737-200 freighters in India. a Public Company registered under the Indian Companies Act. Aviation Projects and Flight Handling Services. this facility provides international airlines a cost-effective option to restrict their on-line stations and enhance their marketing possibilities by utilizing the distribution capabilities of Blue Dart Aviation A third aircraft was inducted into the network in February 2001. Bombay and Delhi for overnight next day delivery of Express and Cargo loads. operates B737-200 freighter version modified aircraft. Mumbai. Blue Dart operates the aircraft at night ex . Security facilities to meet the business of carriage of Express and Cargo loads on the above sectors. Hyderabad. Given the high operating costs and decreasing yields. A fourth aircraft was acquired in June 2003 to augment capacity and connect a sixth aviation hub. to meet increased customer demand. Bangalore. Software Development. Quality Control. Ground Handling. Blue Dart Aviation Limited. Third Party Jobs Blue Dart has in-built capacity to undertake third party maintenance. electrical. and CPCP.SODA. wheels & brakes are also established.house various packages to meet the requirements. The above systems are in use by Blue Dart and can be modified for specific customer needs. The above facilities have been availed by various airlines in the course of thirty months from inception. Service bays for radio.STAB. rectification and repair of B737-200 aircraft including modification. maintenance facilities for servicing.FUSION. repairs. System of Aircraft Trimming and Balancing .SALIM. Blue Dart continuously and progressively strives to enhance the above capabilities. including modification of component in service bays. . SSID. Blue Dart has planned to specialize in domestic Charter to meet the growing needs of quick and reliable movement of cargo. System for Aircraft Logistics Inventory Management . Maintenance and Engineering Blue Dart has established captive consumption. modification on airframe. System for DFDR Analysis for Crew Performance Monitoring .SERVICES Air cargo Movement Blue Dart is established with a commitment to grow and meet the requirement of movement of Express and Cargo loads within the country and also support the interline movement of Cargo. Flight Updating Scheduling Inquiries and Operational Notes . Software Development Blue Dart has developed in . The established facilities are equipped to undertake “D” Check. ENGINEERING MANPOWER The in-house team of Engineers is led by the Chief Engineering Manager credited with 20 “C” checks. Bangalore. to meet the QC requirements of the customer. avionics. besides modifications such as TCAS. X-ray screening and security facilities. including set up of an aviation operation in India and has a dedicated team of experienced professionals to meet customer requirements. 12 “D” Checks (Check II). pallet movement trolleys. Structural Inspection. airframes. we can make suitable arrangements at reasonable rentals. Bombay. Boroscope inspection. structural inspection and others. suitable for B727/ 737 aircraft. modifications including STCs and Corrosion Prevention and Control Programmed. Training. Even though Blue Dart does not possess the Hangar. Quality Control. duly assisted by experienced licensed engineers and technicians capable of NDT. Besides scheduled checks specific services for work on engines. and heavy maintenance services can provide at most competitive rates. Blue Dart can provide services to customers at Chennai. painting. structural repairs.Aviation Project Consultancy Blue Dart offers aviation project consultancy relating to Flight Operations. and pallet builds up facilities. Aircraft Maintenance. sheet metal. QUALITY CONTROL Blue Dart further has Quality Control Department. . Delhi and Calcutta Maintenance Services Blue Dart can provide Engineering Services including “C” and “D” checks. Flight Handling Blue Dart possesses trained personnel and equipment including main deck loaders. MODE "S" SB 1080 etc. NDT shop. LOCAL REGULATORY (DGCA) APPROVALS Blue Dart has approval for servicing B737-200 aircraft. DGCA callouts. test equipment. pipeline fabrication shop. Blue Dart can arrange customer representative review of our facilities i.e. AER LINGUS. . fitment of major components like undercarriage flaps. tools. VHF Tx Rx shop. GECAS. Export C of A. ground support equipment and general purpose tools including specific test equipment and nondestructive testing equipment for B737-200 maintenance and “D” Checks as also engine change equipment. THIRD PARTY MAINTENANCE ASSIGNMENTS Blue Dart has successfully completed various jobs on Third Party aircraft of customers like PLM. battery shop. wheel shop.. SSFDR/CVR Readout. sheet metal shop. The assignments successfully completed for the above parties include engine change and trim run. overhaul of brakes. wheels etc. Electrical repair shop. Sahara India. Blue Dart has approval for servicing B727-200 wheel and brake assemblies. equipment and stores on request. INVENTORY Blue Dart possesses adequate Inventory for B737-200 spares (in excess of 7000 line items) to meet Customer requirements arising out of Maintenance orders. flight release certification. Nondestructive testing on aircraft. retrieval after prolong grounding. and Lufthansa Cargo. Blue Dart has long term established relationships with overseas reputed suppliers from USA to meet urgent maintenance requirements. C of A renewal. brake assembly shop.EQUIPMENT & TOOLS Blue Dart possesses complete range of tools. 6 7 2.3.2.3.3.3.3.5.4.3.4.5.5.6 7 2.6 930 1030 7 Note: 1 = Mon.5.2.6 7 1.BLUE DART Flight Schedule FLT. 4 = Thur.3.5 6 2.4. 2 = Tue.3.4.3.4.4.3.3.4.5.5.5.5. 6 = Sat.5. SECTOR MAA ETD BLR 2255 2355 25 125 245 345 530 630 2230 2330 150 250 435 535 715 815 2250 2350 120 220 405 505 20 120 345 445 630 730 ETA 2340 2355 200 300 445 545 735 835 45 145 350 450 610 710 800 900 35 135 320 420 645 745 300 400 545 645 745 845 DAYS OF OPS 1.6 7 1.4.4.6 7 2.3.4.6 7 2. 5 = Fri.3.6 7 BLR BZ102 BOM BOM DEL DEL CCU CCU DEL DEL BZ201 BOM BOM BLR BLR MAA MAA BOM BZ103 BOM DEL DEL BLR BLR DEL DEL BZ301 BOM BOM HYD 830 930 2.6 7 2. 7= Sun HYD MAA .5.4.6 7 2.4.4.5 6 2.2.5.6 7 2.4. 3 = Wed.6 7 2.4.3.3.5 6 2.5. . Blue Dart not only handles large volumes and oversize packages overnight . Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. and stress on quality systems over the last. . and stress on quality systems over the last. Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was quick to fulfill these needs.Methodology Background Logistics in Blue Dart With organizations moving towards close to perfect standards like Six Sigma. These freighters offer capacity and volumes not available with any other carrier in the domestic air space. The entire cycle has been considerably shortened. almost two decades now. Blue Dart offers the country's most comprehensive communications technology and customer software to support critical supply-chain distribution demands. superior technology.it also provides the industry with status of their shipments and retrieves such records as are necessary for billing. interaction with logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the organization. The country's only express service provider with a dedicated fleet of five Boeing 737s ensures that packages are flown to their destinations overnight. Through its exceptional people processes. almost two decades now. Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Blue Dart was quick to fulfill these needs. Blue Dart was quick to understand this requirement and put in place a 100% retrieval system. enabling the industry to achieve healthy bottom lines. Through its exceptional people processes. superior technology. on market research. . sales forecasts. “logistics management”. Data consolidation: to determine the best grouping of customers and suppliers. a review of the following literature was done. inventorying costs Modeling and Simulation Once the basic data has been assembled. Lisa M. Fundamentals of Logistics Management (McGraw-Hill Series in Marketing) by Douglas Lambert.Review of the literature In order to understand the concepts behind the topic. transportation costs. 2003 Roadmap for logistics excellence: need to break the unholy equilibrium by Raghuram and Janath shah . it must be integrated into a mathematical logical model. transportation times. Data development The first step in developing a logistics strategy is to define the specific data requirement to formulate the problem in an efficient and realistic manner Data requirement include –Data consolidation. several types of activities are necessary and need to be taken into consideration. Ellram. Sales forecasts: based ohm mathematical projections of historical data. or estimated from construction and labour cost databases. which must faithfully represent all the characteristics of the problem. Transportation costs : based on the actual data Warehousing costs: based on public warehousing cost database. James R Stock. The state of the art approach in modeling is to generate automatically a custom made model of a specific problem using artificial intelligence techniques. 2004 LOGISTICS AND DISTRIBUTION SYSTEM DESIGN METHODOLOGY Through out the application of the methodology. on other statistical techniques. . practical recommendations which can be implemented in the real world. showing the recommended implementation sequence. deadlines and major resource requirement. milestones. The best approach is to organize them in the form an action plan.Describe the current system Establish requirement & constraints for the proposed system Audit Develop costs for the proposed system Develop logistics management system Operate Model & simulate the logistics network Implement Develop logistics organization Conduct financial analysis Develop an implementation Fig: Logistics and Distribution System Design Methodology Development of recommendations The findings from the optimum simulation must then be complied into a series of specific. scanned and placed in container Container transported to hub by air or road Container unloaded at hub Station outbound package scan (sops) COSMAT Packages sorted. scanned and delivered Proofs of delivery scan . scanned and loaded into vans Packages transported to destination. scanned and reloaded Into containers Container transported to inbound Station by air or road Container unloaded and packages are sorted and scanned Hub out bound package scan (hops) Station inbound package Scan (sips) COSMAT Packages sorted.LOGISTIC MODEL FOLLOWED BY BLUE DART (Operations) Shipper gets package ready and calls for pick up Courier receives order and arrives at shipper Order received and entered A courier boy picks up package Carrier transport to outbound stations Package sorted. CURRENT MODEL EXISTING WITH IN KARNATAKA Blue Dart offers the country's most comprehensive communications technology and customer software to support critical supply-chain distribution demands. Dart Apex is reaching directly to the specified destination any where in Karnataka through road ways or air ways and will reach the respective destination and gets delivered by the Blue Dart Aviation dept Dart surface is specifically through road ways and from hub it goes to the warehouses and then it routed according to the specified destination through vans or trains or by buses by the Blue Dart Aviation dept through out Karnataka Domestic Priority (DP) are handled by the Blue Dart express and Blue Dart Aviation dept will scan it (x-ray) and handle the shipment to Blue Dart express then the Blue Dart express will further scan each and every document (i. Blue Dart express is responsible for the Domestic Priority (DP) and they in scan it and out scan it and then load it to the vans and sends to destination and again they in scan it and out scan it and delivery boys deliver the goods to the end customer thus the whole process is carried out in the inbound operations in the Blue Dart . Blue Dart Aviation dept will clear all the shipment with in 45 -50 min after the shipment is arrived and they load the shipments in to the service centers. Dart apex and the Dart surface are scanned and by the Blue Dart Aviation dept. Blue dart mainly has two operations INBOUND OPERATION: The inbound operation starts with receiving the packages or the goods from the out bound station and comes in to HUB and in hub the Dart apex and the Dart surface are handled by the Blue Dart Aviation dept.e. Thus the inbound operation in Blue Dart is carried out at the fast phase. in scan and out scan) and then segregate it according to the route and are put in to the canvas bag according to the destination and through vans are delivered to the various service centers in Bangalore and to other parts of Karnataka. The following figures shows the model they follow in Karnataka for various operations INBOUND OPERATIONS IN DOMESTIC SERVICES Domestic Priority INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned (x-ray scan) Packages transported to various service centers (Domestic Priority) ITPL ULS PNY CGM JNR APT ………. loaded into vans or to motor cycle COSMAT Packages transported to destination specified Delivered to customer . Nth Container and packages are sorted and scanned.. DART APEX INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned Packages transported directly from HUB to destination (Dart Apex) via road/air Container and packages are sorted and scanned, loaded into vans COSMAT A B C D E F ……….. Nth Delivered to customer DART SURFACE INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned Packages transported directly from HUB to service centers (Dart Surface) via road/air COSMAT Transported to ware houses and then to different service centers A B C D E F …….. Nth Container and packages are sorted and scanned, loaded into vans COSMAT Packages transported to destination Delivered to customer OUT BOUND OPERATION: In the outbound operation starts with the carrier receiving the order and arrives at the shipper and than take the shipment to the respective service center. Than they will in scan the document and further they segregate the shipment and out scan the shipment, than load it to the hub. Again in the hub it is scanned (x-ray) and further loaded to the destination. Dart Apex is reaching directly picked up through road ways or air ways and will reach the hub and gets scanned, than to the respective destination and gets delivered by the Blue Dart Aviation dept Dart surface is specifically through road ways and from the pick up point, it directly goes to the warehouses and then it is transferred to the hub for the routing according to the specified destination through vans or trains or by buses by the Blue Dart Aviation dept through out Karnataka Domestic Priority (DP) are handled by the Blue Dart express .The Blue Dart express will first in scan the document and than out scan each and every document and then segregate it according to the route and are put in to the canvas bag according to the destination and through vans are delivered to the hub and then it is routed accordingly by specified destination Thus the out bound operation happens to be in the evening and the shipment will be cleared by the night and shipped to the destination by various modes of transportation and thus will be delivered to the customer with in one day in metros and two days to other parts of the Karnataka. Thus the operation is carried over night and they are quick enough to deliver to the customer with high speed scanned and placed in container In the service centers COSMAT Container transported to HUB by road through vans Container unloaded at hub Packages sorted. scanned and reloaded into containers Container transported to specified service centers by air or road Container unloaded in service centers and packages are sorted and scanned.OUTBOUND OPERATIONS IN DOMESTIC SERVICES OUTBOUND OPERATION Courier receives order and arrives at shipper Carrier transport to outbound service centers Package sorted. loaded into vans COSMAT Packages transported to destination and delivered . The logistics network must be designed in such a way that it takes maximum advantage of tax differentials and other national factors in arriving at the optimal structure. DHL is responsible for the International services has it has the strategic alliance with Blue Dart.INTERNATIONAL SERVICES: In international logistics systems. Another very important consideration in international logistics systems is that of optimal transfer prices. and the best border customs points. the model is shown below: OUTBOUND OPERATION IN INTERNATIONAL SERVICES OUTBOUND OPERATION Courier receives order and arrives at shipper Package sorted. scanned and placed in container In the service centers Package sorted. scanned and placed in container In the service centers COSMAT Container transported to HUB by road through vans Container unloaded at hub Packages sorted. there is need to determine the best ports of loading and unloading. scanned and reloaded into containers Then taken over by DHL and Packages are transported to destination and delivered Container transported to destination by air till a center in India . The logistics management for changing business environment is the main area of consideration in the project. Optimize the time taken to reach the destination in the Route. Objectives of the study To give suggestions to improve effectiveness and efficiency of logistics management at Blue Dart. This project solely focuses on the secondary data source that can be classified on the basis of sources as internal data as extracted from companies’ Data Bases. Data Collection: Observational Studies The data is collected by regular observation at Hubs & Service Centers. Purpose of the Study o To Evaluate the effectiveness/efficiency of logistics at Blue Dart from HUB or Clearing point and Forwarding to end customers and to recommend methods of improving its efficiency. pricing and quality of products and services offered taking prominence. Maximize the number of delivery points for sharing the load. o To make analysis and recommend on logistics management Data Source The sources of data are mainly the primary data by obtaining the customer or industry information by interviewing the personnel.Problem Statement A change in the lifestyle of consumer and increase in competition generate issues like customer loyalty. The model is designed by involving in the fields and observation done on the various process in the Hubs and different service centers in Bangalore . Information from the service centre with respect to space requirements. customer database. delivery points and timing detail. This required an in depth study of current model Research Limitations: Since this study is company-specific and confined only to Karnataka. means of transportation means etc. routing. Research Type: Descriptive Research As the research is based on the objective of evaluating the effectiveness of the logistics and requires recommendation for improving its efficiency. warehouses. As such the study needs to be undertaken by generating datasheet under hypothetical condition. requirement is to give a precise model that will remove the flaws in the existing model. service centers. Findings of the study and the conclusion are drawn on the basis of observation and interviews Generation of new hypothetical datasheets was feasible but not revealing. Investment pattern to the implementation of new model cannot be estimated accurately because of lack of data and analysis.The required details: Information from the operations Department about the existing process followed and the time associated with the existing process. And on the basis of the collected information. . inferences were drawn explaining the effect of suggested logistic model. Logistics department provided information on pricing. Information required being collected from Finance Department for knowing the Investment pattern. . Similar to traditional mining where we search beneath the surface for valuable ore. novel. data mining searches large databases for indispensable information for managing an organization. but the major problem in the existing model is that they need to fast enough in scanning the documents and in loading the goods and minimize the human interface. SAMPLE & EXPLORE As mentioned in the previously that with respect to this project it’s very essential to understand the effect and patters of each and every step in whole process because the data is not too large whole of the population can be used for the inference so sampling should not be done. They should try to adopt auto scan or the super tracker in place of the bar code scanner.DATA ANALYSIS DATA MINING The term data mining describes the concept of discovering knowledge from databases. and ultimately understandable pattern in data. . the process they follow is quit efficient and can yield good result. useful. Modify Based on the data obtained in the exploration phase the new model design is difficult. The idea behind data mining is the process of identifying valid. DATA MINING PROCESS a. b. Model On the basis of the obtained data the model is constructed which helps in improving the efficiency of the current model. Following is the step-by-step process of tailored logistics. Further it is identified that the major part of the time is delayed by the employees in getting the shipment from the pick point to the service centers and there is delay in entering the details of the customer because of the wired bar code scanner. Bar code scanner does not perform all the functions. . which is used for the process of decision making in this project.c. Demand Flow chart for the process of program Collect the data Spilt and group in terms of services Estimate the time required for the each service Compare and check economically feasible Estimate the number required for transportation Estimate the time required to reach the hub If not for Individual. and these data are feed manually Thus the new models which are developed are as follows which may be more efficient and effective than the pervious model. check for combination feasible If yes Accept the model if feasible If no Revise the model to desired level Thus according to the above specified flow chart it is observed and estimated that there is delay in the getting the materials and processing it from the pick up point to the hub to destination. loaded into vans or to motor cycle Auto scan Packages transported to destination specified Delivered to customer .. Nth Container and packages are sorted and scanned.SUGGESTED MODEL FOR OPERATIONS IN BLUE DART Model for the Inbound Operations Domestic Priority INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned (x-ray scan) Packages transported to various service centers (Domestic Priority) ITPL ULS PNY CGM JNR APT ………. Nth Delivered to customer . loaded into vans Auto scan A B C D E F ………..DART APEX INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned Packages transported directly from HUB to service centers (Dart Apex) via road/air Container and packages are sorted and scanned. Nth Container and packages are sorted and scanned. loaded into vans Auto scan Packages transported to destination Delivered to customer .DART SURFACE INBOUND OPERATION Container received in inbound Station by air or road (HUB) Container unloaded and packages are sorted and scanned Packages transported directly from HUB to service centers (Dart Surface) via road/air Transported to ware houses and then to different service centers Scanning A B C D E F …….. Model for Out Bound Operation OUTBOUND OPERATION Courier receives order and arrives at shipper and the Package is scanned and transport to service centers Super Tracker Packages are sorted and placed in container in the service centers Container transported to HUB by road through vans or other means Container unloaded at hub Packages sorted. which could indicate the superiority of this model over the previous model. . Assessment As the model is ready the next step being assessment. scanned and reloaded into containers (x-ray) Container transported to specified service centers by air or road Container unloaded in service centers and packages are sorted and scanned. loaded into vans Auto scan Packages transported to destination and delivered d. tracking the shipments etc. Blue Dart has lower number of service centers. Blue Dart is not much dedicated front end employees and they are not properly trained. Blue Dart is delayed in entering the data as they make use of the bar code scanner to scan each and every document.MAJOR FINDINGS OF PROJECT The major findings in Blue Dart are pointed out as follows: Blue Dart has the efficient model with them but they are delayed due to the inefficient use of technology.over night transportation. Blue Dart have traditional logistics model and they should try to adopt new technology which gives them better result and increase efficiency in delivery. . Blue Dart is scanning for two times one is in scan and the other is out scan which will take more time. Hub is too away from the service centers which in turn makes shipments to be delivered gets delayed. Blue Dart is delivering the shipments to metro cities with in one day but to other parts of Karnataka they take two days to deliver the goods. picking up packages at the shipper’s location. Blue Dart is not focusing much on the late delivery Blue Dart have quiet efficient 3PL. next day delivery Blue Dart has created a good brand in the minds of the customer Blue Dart is utilizing all the 7 P’s of services marketing mix to full extent Blue Dart provides taking orders over telephone. . so as to make the shipments reach the destination in an cost effective manner and with high speed Alternative two The model suggested on logistics aspects though is superior to existing Model but when we focus on the shipments from the hub to the service centers with auto scan there may be a chance of risk associated with it. . it shows that its not a feasible option as the cost is concerned because of loading and unloading will be higher when there is a multi point delivery. Where in all shipments can directly scan from the HUB . It is feasible to directly scan the shipments from service centers and forward it to destinations instead of wasting time in entering the data and delaying.CONCLUSIONS AND RECOMMENDATIONS CONCLUSION Purpose The basic objective of this study is finding: Improving Effectiveness and Efficiency of logistics management and checking the feasibility of cutting the process for shipments of services from HUB to the service centers and to the delivery to the customer Two Strategies Alternative one If there is no change in the information available for Blue dart they will have to adjust their business through internal changes. After getting an idea about how Blue dart new transportation model will affect. Following this alternative Blue dart have to adjust its transportation according to Model suggested.This way of going towards a more effective logistics is the simplest solution for the present situation since it does not include any much technical investments. Blue dart will be able to make internal changes towards a more effective logistics. But if there is an increase in demand to reach the destinations soon within Karnataka then Blue dart should shift to new Model where in shipments can be scanned directly and time is minimized and with less time it can reach the destination from Blue dart. The only requirement will be increase speed of the shipments in HUB and in the service centers with some new technical modification. been a powerful and compelling enabler across a wide range of industries. These concepts include: information sharing. and extended or joint performance measures. The following chart is quite helpful Under stand the customer needs Monitor the inflow and out flow Replenishes documents so as to lower their inventories NO Are you networked with them? YES Ensure increase in customer value Monitor employee’s performance Ensure employees profitability YES Are you networked with them? NO .There is no much alteration done in the model but should adopt new technology to speed the process with super tracker. As a result. auto scan. The recommendation can be done in improving the technology and try to motivate the employees to be efficient and provide proper training to under stand the customer and increase the sales The company should examine the mechanism to add value through logistics. RECOMMENDATIONS Integration of the supply chain has. for many years. postponement for mass customization. multi-party collaboration. The information technology has allowed companies to come up with highly innovative solutions that accelerated the adoption of these core supply chain principles. many of the core supply chain concepts and principles have been put into practice in a much more effective way. outsourcing and partnerships. design for supply chain management. solutions need to be provided in order to improve response time. They have to make strategic acquisition and enter into global alliance that can • • • • Complement core business Build global brand Lower the costs expand geographic presence and managerial expertise Increase customer responsiveness To remain competitive.Generic Aspect: Implementing Effective logistics For effective logistics. and with complete security. lower transactional cost. Following are some of the major points which is helpful in creating the Effective logistics Maintain leader ship position in core domestic business The strategy should be to increase core domestic revenues through cross selling of the existing and new service to their large and diverse customer base and to employ technology-driven efficiencies to increase operating profit Establish strategic partnerships and strategic acquisition It is important to establish strategic partnerships with other companies for a successful supply chain. reduce physical inventory. order tracking done online. customized reports which can be done anytime and anywhere. The problem that greatly hinders the implementation is the relationship between customer and the employees . firms focus on improved supply chain efforts to Creating Collaboration and Trust in the Supply Chain There are challenges in managing logistics. shorter sales cycles. lessen cost for wider reach. Blue dart should redesign and operate supply chains for major companies in the India They should focus on the technology and the management-based solutions for their customers rather than the more traditional logistics More business. such as the simulation tools which has been developed in have now emerged as perhaps the most enabling integration tools. businesses can gain global visibility across their extended network of trading partners and help they respond quickly to changing business conditions such as customer demand and resource availability. Provide comprehensive logistics and financial solutions Many companies have decided to out source the part of their logistics to cut cost and to improve service. standards-based and virtually ubiquitous. new innovation generated day by day with new possibilities provided.Developing New Technology and the Solution When developing a logistics. Logistics management does not so much require the employment of a specific technology or solution as it demands an understanding of the business processes that must work together. it should begin by evaluating how the links in a Supply chain fit together. or the Internet computing model. Information visibility will help company’s to include more dynamic. Information technology has long been a major factor. Processes within all of these organizations must be evaluated and updated or even overhauled to meet efficiency and logistical expectations. Ebusiness. Because opening.to-business (B2B) solutions Blue dart should continue to develop more e-business tools and provide solutions to address customers need in the whole chain more Creating Information Visibility Supply chain integration must be accomplished not only within one enterprise but also within those of its customers and employers (and often their customers' as well). collaborative communication networks in their . offerings. . giving birth to collaborative commerce and helping to improve communication beyond the transactional supply chain. and this kind of relationship will not last long. it is not good to sacrifice others benefit for gaining more. Although there are a lot of challenges to the implementation. the gains to be realized with the supply chain outweigh the concerns and hence more and more organizations are moving towards automating their supply chain. • • • • • Use of Information Technology yields the following Prevents Inventory Buildup Customize the logistics according to customer segments need Service the customers according to their needs Provides fast delivery time Choice of transport Transport selection should follow the following steps • • • • • Identify those factors affecting the choice transport selection Categorize the significant factors and identify potential risks Determine the distribution network in terms of number of service centers and the size Apply matrix analysis to select the most appropriate transport method Measure operational success Thus factors affecting the choice of transport selection are o Customer charteristics o Product charteristics o Environmental charteristics o Company charteristics Sharing Benefits Sharing benefits is an important success factor for many companies. The benefits should be equally shared within supply chain members. The solutions provided by using state of art technology which enable to setup and tightly integrate the accounting. the solution provider has to analyze and design supply chains for the static conditions. lower transactional cost. order management. For effective logistics. As conditions are certain to change. reduce physical inventory. 3 party logistics providers and other enterprise solutions to improve cycle times by facilitating exchange of critical data. etc. . current costs. HR. order tracking done online. It also involves the strategies in logistics to provide for better implementation of technology. customized reports which can be done anytime and anywhere.EFFECTIVE LOGISTICS MANAGEMENT The effective logistics management involves providing solutions to specific industries using latest technologies at various segments of the supply chain. In order to provide with the above solutions for the challenges faced. hence supply chain should be continuously be revised. The ideal supply chain for one set of conditions is almost surely not ideal for another. shorter sales cycles. forecast demand. solutions need to be provided in order to improve response time. and with complete security. lessen cost for wider reach. End-to-end solutions are to be provided to help manage the business and mobile sales and delivery team enabling and ensuring superior customer service and product availability without losing control of costs. The company should focus on “Reverse Logistics” Virtual integrated logistics :One stop shop for all logistical requirements o Take a holistic view of the logistics as operations in the following chart . Attack the Inventories by linking the logistics Management to financials pay-offs in other parts of value chain Apply vertical solutions – Strategic logistics will look beyond its own parish to check for optimization at the other nodes on the company’s value chain. The company can follow the following cardinal laws of logistics: • • • • • • • Home operations –The functional aspects of company’s logistics have to be very efficient than those of its competitors.such as product specifications. forecasts and by streamlining ordering and approval processes. reduce inventory and overall management costs. Channel company’s resources according to the configurations of the delivery system. Serve the end user. INTEGRATED VIRTUAL LOGISTICS NETWORK FOR QUICK RESPONSE Developing a framework for “Integrated virtual logistics network for quick response” which would factor in the existing processes, systems and organizations’ roles and the government’s proposed investments in the e-commerce and e-governance infrastructure, and designing a technology transformation road map. Need for Integrated Logistics Model and Applications Mobile transaction processing capability coupled with a proper combined electronic business management model helps in integrating the manufacturers, transport service providers, financial institutions along with government agencies like regional transport department, central excise and customs, warehousing. Interviews with truck drivers/fleet operators reveal that the losses at check posts for larger trip lengths of more than 1500 km. constitute 30 to 35 percent of the total journey time. This could be reduced by 10 to 15 percent if the virtual logistics model is implemented by all the agencies in its totality. The approach for virtual logistics network is comprised of solutions, which are built on services, which are, in turn, comprised of competencies. Competencies: These are the building blocks that enable an organization’s service offerings. Typically, a given competency plays a role in more than one service but, in some instances, a competency may also be a service in its own right. Services: Services are the market needs. These are the comprehensive capabilities that customers want and understand. Shipper includes third party logistics providers, freight forwarders, demand aggregators and any party who needs to ship goods. Carrier represents truck load carriers, less than truck load carriers, intercontinental carriers/ocean liners, small package carriers, cargo airlines, and rail. Fig: Markets Services Competencies Solution Framework for Virtual Logistics Network E- Market makers Suppliers, Distributors Virtual logistics Application services Info-mediary Transportation providers Shipment & capacity brokers 3 party logistics providers Import/ export integration Transportation e-market Dynamic Trade Ware house integration Fulfillment management Claims integration Logistics Management Billing &payments Network design Notified service Strategic sourcing Shipment tracking Demand and capacity agg Tracking Interaction m/g Auctions Yield m/g Exchanges Revenue m/g Matching optimization Electronics billing Customer value analysis Contract generation EFT Campaign m/g Core integration Virtual Logistics: This solution is intended for organization that is willing to have a third party manage their entire transportation, logistics and fulfillment needs. The primary customers for this global reach. inventory chain optimization. TECHNOLOGIES TO BE USED AT BOTH FRONT END AND BACK END The system should make use of GPRS and GPS technology for wired and wireless communication between front and backend and for location tracking of delivery vans. if all the check posts are linked with concerned government agencies the delay could be considerably reduced. warehouse management. distribution management. individual truck owners/operators to increase the utilization of trucks at least in the return trips. transport brokerage and real time interface with federal agencies for speedy document clearance. The brokers/agents could make use of this portal and in turn advice their client’s i. reverse logistics. Conclusions: The virtual logistics network framework addresses services in the areas such as asset management.e.organization are the ones who desire to focus on their core competencies and let the expert handle the rest. The system should have wireless Bar Code scanner with front-end application and RFID integration with front-end application. In addition. logistics productivity. The system should try to use the AUTO SCAN process They should also provide SUPER TRACKER to increase efficiency and reduce time . These processes in turn increase the productivity of the truck and enhance the profitability of operators. transport capacity matching. conveyor towed trolleys and automated guided vehicles can carry multiple unit loads over long distance with a relatively low labour costs. as well as transporting material. Major types of trucks are. devices and machines has been introduced and different methods have been developed for handling different products. they can load and unload other vehicles and lift pallet loads up high for storage. complex. Various trolleys are: Manual trolleys Roll pallets Motorized trolleys Toe trains Driverless trolleys Forklift trucks The main advantage of this machine is that. Straddle truck Reach truck . Any type of goods movement that is performed more than a few times per hour is worth mechanizing. rapidly evolving science. A huge range of new techniques. Trolleys: Hand trolleys are relatively small and slow so they are really only efficient with small volumes over short distances. Motorized trolleys like tow trains.MATERIAL HANDLING In the last several years materials handling has become a new. They have the advantage of being able to take away a carton. a work tote or a unit load as it becomes available. Chains. Rollers. . No extra labour is needed. These days they can also be loaded and unloaded automatically.Counterbalanced truck Conveyors Conveyors excel at straightforward transportation because they eliminate rehandling before and after each function. Wheels. Conveyors of various types • Belts. . Bowersox. 2003.uk www. article 2005 Strategic logistics management by Stock. James R & Lambert. • Supply Chain Logistics Management Bixby Cooper. • Modern Logistics Management . Capacino. 2001 • The Management of Business Logistics: A Supply Chain Perspective (7th Edition) John J.logismarket. • Supply Chain Logistics Management by Donald J. Jr. 2002. David Closs. John Langley. M.google. Closs. James R Stock.total-logistics. OH.onlylogistic. Coyle.co. and M. Mason. NY.2004 Web sites: www. McGraw-Hill. McGraw-Hill.2002 by Donald Bowersox.. Bixby Cooper.com www.by John F. William F. Edward J. “You’re Guide to Logistics / Supply Chain”. New York.BIBILOGRAPHY References: • Supply chain management by Logistics management by ERP by Alexis Leon……………………………published by Tata McGraw Hill. Ellram. Magee.co.uk . David J. Douglas • • Fundamentals of Logistics Management (McGraw-Hill Series in Marketing) by Douglas Lambert. Bardi. and C.com www.2003 • From Jeff Ashcroft……. Lisa M. SouthWestern/Thomson Learning. Database: Blue Dart database Journal: ICFAI Journal of Marketing ICFAI Marketing Mastermind. Business Today Business Magazines: Economic Times. Business Standard . Business World.