Project On Logistics

EXECUTIVE SUMMARY

Logistics and supply chain management (SCM) as an area of research has been getting increasing
attention from academicians and practitioners over the last two decades since it may lead to
reduced operational costs, improved delivery performance and increased customer satisfaction
levels, thereby making an organization more competitive in terms of cost, quality, delivery and
flexibility. The importance of logistics and SCM is increasing also due to globalization as more
and more multi-national companies (MNC) are sourcing, manufacturing and distributing on a
global scale, making their supply chains very complex to manage. However, outsourcing logistics
activities to experienced logistics service providers (LSP), also known as third-party logistics
(3PL) providers, may enable companies get very efficient and customized logistical support while
themselves focusing on the core organizational activities.

Today, there are many large multi-national LSPs that offer complete supply chain solutions across
many diverse countries in terms of their socio-economic and political environments. Apart from
core logistical activities such as transportation and warehousing, LSPs also offer value-added
services such as customs clearance,
freight forwarding, import/export management, inventory management, assembly /installation,
packaging and labeling, distribution, after sales support, reverse logistics and so on. By
outsourcing logistics, companies can leverage the expertise of LSPs while concentrating on their
core competencies.

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While SCM deals more with the linkages in the chain, contracts and relationships, supplier
selection, information and financial flows besides materials flows, creating new facilities such as
plants, warehouses and distribution centers, and broader issues such as society, economy,
government and environment, the scope of logistics is more or less confined to the routine job of
transportation and storage of goods. However, if one deeply ponders, one may realize that
logistics is the core of SCM, and if logistics fails, the whole chain snaps. Though logistics deals
with mundane vehicles, warehouses, layouts, material handling equipment, Motor, Vehicles Act,
toll tax, sales tax, octroi, documentation etc., efficient management of it has the potential to make
the chain taut and agile. Therefore, there is growing interest in logistics, and hence in SCM,
around the world.

To survive in the cut-throat competition, the logistics organization should forge ahead with the
new ideas. The project deals with the ground operations of Blue Dart. The project work flashes
light on the introduction of the multimodal transportation in the current surface network.

Project On Logistics

COMPANY PROFILE

About BLUE DART

BLUE DART is South Asia's leading integrated air express carrier and premium logistics-services
provider. It has the most extensive domestic network covering over 13,880 locations, and service
more than 220 countries and territories worldwide through its Sales alliance with DHL, the premier
global brand name in express distribution services.

BLUEDARTS vision is to establish continuing excellence in delivery capabilities focused on the

individual customer. In pursuit of sustainable leadership in quality services, they have evolved an
infrastructure unique in the country today.

State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer
Service, Space Control and Reservations.

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

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

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

Its Competitive Advantage lies in:

Blue darts vast and unparalleled Domestic Network

Linked by some of the most advanced communications systems and positioned to offer a
consistent, premium, standardized quality of service.

A spectrum of services to provide customized solutions.

Blue dart is the only express carrier in the country today which offers an entire range of
services that extend from a document to a charter-load of shipments. Its services are relentlessly
monitored to deliver a net service level of 99.96% (as on February, 2014).

Its Customs and Regulatory expertise

Company had a dedicated team of specialists who provide the expertise for customs as well as
regulatory clearances at all States within the country, to support seamless service to the customer.

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

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Its Air Network

The only one of its kind in the country today, that is focused on carriage of packages as its
prime business, rather than as a by-product of a passenger airline. A dedicated aviation system to
support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling
and maintenance capability.

Its financial credibility

Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)"

[F one plus (Ind)]

rating for their short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned
the highest "A1+" (pronounced A one plus) Rating for their Commercial Paper Programme of Rs.
25 crores.

Its People force

Committed, diverse and over 4,000 strong are companys most valued asset. All companys
achievements have been possible because they have a team who believes in themselves and their
company, a team with a winning attitude. Blue dart is a learning organization, valuing selfdevelopment, and most of companys managers are homegrown.

Project On Logistics

MILESTONES
1983:
Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart Courier Services with a
capital base of Rs: 30,000. They forge ties with Gelco Express International U.K., and introduce
India's first international air package express service.

1984:
Blue Dart Courier Services becomes a Global Service Participant of FedEx with the acquisition
of Gelco Express International by FedEx. Blue Dart Courier Services is the first carrier in India to
provide domestic and international on-board couriers, a hub-and-spoke system and a 10.30 a.m.
delivery service.

1988:
Blue Dart Courier Services establishes real-time, on-line tracking for all international shipments
through COSMOS, the FedEx track and trace system.

1991:
Blue Dart Express is registered as a private limited company, and introduces its economical
logistics service option, Dart Surfaceline. It indigenously develops its domestic tracking system,
COSMAT-ITM.

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1992:
Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network, and sets up its
employee satisfaction programme - Survey Feedback Action (SFA).

1994:
Blue Dart Express Ltd. goes public with an equity offer of 2.55 million shares, at a premium of
14 times, worth Rs: 382.5 million. Blue Dart Express Ltd. launches Dart Apex (Domestic Air
Package Express), a multi-modal, premium package delivery service, and COSMAT-II TM, an
advanced system which includes track and trace. Blue Dart Aviation is registered as a public
limited company and becomes the first private company to receive government permission for
operation of cargo aircraft in India.

1995:
Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO permission. Blue Dart
Express Ltd. develops its SMART (Space Management Allocation Reservations and Tracking)
system for its aircraft, the first cargo management system in the country. Blue Dart Express Ltd.
is awarded the "Global Service Participant Sales Award" by FedEx for outstanding sales
performance.

Blue Dart, Calcutta is proud to have the office inaugurated by Mother Theresa of the Missionaries
of Charity, and Nobel Peace Prize Laureate.

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1996:
Blue Dart Aviation launches India's first jet express airline. Blue Dart Express Ltd's turnover
crosses the Rs: 1 billion mark, as it expands its domestic network by entering into strategic
alliances in North, South and West India. Blue Dart Express Ltd. is the first express company in
India to receive an ISO 9001 certification, and post its website on the internet. Blue Dart Express
Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., co-operate in bringing the world's largest
airlift of charity to Kolkata.

1997:
Blue Dart Express Ltd. signs agreements with leading international airlines for distribution of
bonded cargo within its network. Blue Dart Aviation launches its domestic charter operations.

1998:
Blue Dart Aviation develops India's first Load and Trim software for its B737F flights. Blue Dart
Express Ltd. launches SMARTBOX, its economical, packaged door-to-door product, and extends
its delivery to over 1000 locations.

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1999:
Blue Dart Express Ltd. moves to its state-of-the-art Administrative, Technology and Operations
Super hub, the Blue Dart Centre, at Mumbai. At close proximity to both the international and
domestic airports, encircled by four five-star hotels, and equipped with the latest technology, the
Super hub has improved efficiency and increased load-handling capacity multifold. Blue Dart
Express Ltd. Launches Power Dart 2000+, a software that provides customers free connectivity
to its database, enabling customers to track and retrieve all information related to their shipments.

2000:
Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is scheduled for operations on
the Bangalore-Delhi-Bangalore sector. Blue Dart Express Ltd. also revamps its website replacing
it with an interactive website to support e-trade and commerce and facilitate customer interface
on the net.

2001:
Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-Bangalore sector. The Civil
Aviation Ministry requisitions Blue Dart aircrafts for relief operations into earthquake-battered
Bhuj in Gujarat. Technology tools and customer software - MobileDart, On-Line Pick Up and
ShipDart - are developed in-house and launched. Blue Dart declares 1:1 bonus shares. Blue Dart,
Kolkata moves into heritage building, Kanak, its new premises inaugurated by Sr. Nirmala of the
Missionaries of Charity.

Project On Logistics

2002:
Blue Dart is re-certified as one of a handful of Indian companies to the new global ISO 9001 2000 standards for "Design, management and operations of countrywide express transportation
and distribution service within the Indian Subcontinent and to international destinations serviced
through multinational express companies". Blue Dart ends its contract with Federal Express and
signs a path-breaking Sales Alliance with the World's No. 1 international air express company,
DHL Worldwide Express. Blue Dart crosses 100,000 shipments per day.

2003:
2003 - Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on strengthening
infrastructure, Blue Dart establishes twelve of its own offices in the South, delivering to an
additional 198 locations, expands its hub at Bhiwandi and sets up a bonded warehouse in
Mumbai. The company is selected a Super brand from over 700 brands across 98 categories by a
jury of eminent marketing and advertising professionals. The company celebrates its 20 years of
service to the nation on 19th November 2003

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2004:
Blue Dart inducts its 4th aircraft into operation on 17th May 2004, connecting Hyderabad as its
6th Aviation Hub. Blue Dart also extends its brand into Sri Lanka through a Regional Service
Alliance with Foster Agencies Pvt. Ltd., Member of the Hayleys Group, one of Sri Lanka's
largest diversified multinationals. The Alliance will enable customers to use Blue Dart services
between 400 locations in Sri Lanka and over 13,700 locations in India. Blue Dart acquires its
fifth Boeing 737 freighter.

2005:
DHL Express (Singapore) Pvt. Ltd. completes the acquisition of 81.03% of the equity capital of
Blue Dart Express Limited. Blue Dart continues to operate as an independent brand and provides
a complete spectrum of domestic and international express services through synergies with DHL.

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Companys Future Plans:

To focus on the core domestic products to expand their market share and consolidate their
unique and premium position in the Indian market, and expansion into the near Mid-East and Far
East markets and the SAARC (South Asian Association of Regional Co-operation) countries. Blue
Dart would also leverage its vast customer base for global distribution through its alliance with
DHL. They plan to leverage their established infrastructure to continue adding value and
customised solutions to the changing and evolving demands of the customer. They would also
provide global logistics customers with access to their quality domestic and regional distribution.
Their domestic network will continue to differentiate itself in all areas of our core competencies supply chain management, logistics and Ecommerce.

Position themselves as the preferred, seamless link to a country projected to be an

economic superpower of the 21st Century. Through their technology development, premium
services, quality network and strategic alliances, the plan to carve for themselves a leadership
position in the industry as India's and the region's link to the world.
Continue to deliver value to their stakeholders through our People Philosophy and
Corporate Governance based on distinctive Customer Service, Business Ethics and Accountability,
and Profitability.

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Project On Logistics

Fact Sheet

Description

South Asia's premier courier and integrated air express

package distribution company.

Began Operations

November, 1983.

Headquarters

Mumbai, India.

The Board

Sharad Upasani (Chairman)

Anil Khanna (Managing Director)
Malcolm Monteiro (Director)
Clyde Cooper (Director)
Suresh Sheth (Director)
Christopher Ong (Director)

Revenues
(Jan - Dec 2008) `

Rs.9825 million

5078

Over 21,533 locations

Number of Shareholders
(as on 31st
December,2008)
Domestic Locations
Serviced

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International Destinations
Serviced

More than 220 countries and territories worldwide

through sales alliance with DHL.

Air Support

3 Boeing 737 and 4 Boeing 757 freighters

Ground Support

5,663 vehicles

Network

Domestic hubs :
Mumbai,Delhi,Bangalore,Chennai,Erode,Hyderabad,
Kolkata,Ahmedabad and Guwahati.
International Outbound Gateways :
Mumbai,Delhi and Chennai to Dubai,London,Frankfurt,
Bahrain,Hong Kong and Singapore.

Number of shipments
handled (in million)

Jan-Dec 2013
Domestic

International -

79.00
0.72

Tonnage handled
(in tonnes)

231,900

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No. of computer terminals

(as on 31st, May, 2014) :

Over 3,979 E-mail at 186 locations accessed by over

3,767 users.

Technology

Cosmat IITM, SMARTTM,ShopTrackTM, PackTrackTM,

MobileDartTM, TrackDartTM, MailDartTM, InternetDartTM,
ShipDartTM, ImageDartTM and Schedule a Pick-up.,
SENTOR,CARESS and SHIELD.

People Force

Over 6,966

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Project On Logistics

INDUSTRY PROFILE
LOGISTICS PROCESS IN BLUE DART

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

1. The delivery of goods to the customer in the most reliable transit period (and preferably the
shortest) possible. 'Reliable' alludes to a certain guaranteed transit time for packages to reach
customers or the response that organisations need in the event of any exceptions.

2. The reverse flow of acknowledged signed delivery records without which, in many cases,
recovery of bills are virtually impossible. Especially so in the case of companies placing multilocation orders that could cover hundreds of cities. The task for the supplier is staggering - plan
logistics for deliveries to all these locations, and hope for 100% of the delivery records to be
returned before bills can be submitted to the customer. In most IT companies, the role of 'logistics'
or 'fulfillment' is key.

With organisations moving towards close to perfect standards like Six Sigma, interaction with
logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the
organization.
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Project On Logistics

Blue Dart Express Limited applied and found solutions to these critical demands much before
other players could even recognize their need. Through its exceptional people processes, superior
technology, and stress on quality systems over the last, almost two decades now, Blue Dart was
quick to fulfill these needs:

The country's most reliable air and surface network offer a pre-determined delivery schedule with
close to 100% accuracy. The IT industry could plan its production with precision and avoid
expensive inventory build-up.

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

The country's only express airline with a fleet of three Boeing 737s ensured that packages were
flown to their destinations overnight. Another tremendous advantage was that the individual size of
packages that could be carried multiplied manifold.

Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was
quick to understand this requirement and put in place a 100% retrieval system.

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Project On Logistics

Blue Dart not only handles large volumes and oversize packages overnight - it also provides the
industry with status of their shipments and retrieves such records as are necessary for billing. The
entire cycle has been considerably shortened, enabling the industry to achieve healthy bottom-line.
Logistics software solutions
Vendor Solution

Features
Application program offered to Blue Dart offices and its

SENTOR (Status
Blue

Entry Offline for

Dart

Regional Service
participants)

channel partners in remote areas via the Internet. Users

receive detailed information on inbound packages for
delivery. Upon delivery, proof of delivery details are
entered offline and updated on Blue Dart's Web server
within three hours. The earlier time lag was 24 to 48
hours.
A PC-based solution aimed specifically at SMBs. It

TNT

ExpressShipper (to be
launched)

improves the business efficiency of customers by helping

them send more than fifteen consignments a day.
Customers can track consignments and obtain price
quotations directly from their PCs.
Online consultancy on customs-related paperwork for

FedEx

Global Trade
Manager

SMBs that helps determine which customs documents

should accompany their (customer's) international
shipments. Lets customers print and fill them up thereby
helping them save time on potential border delays.

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Strengths Of Bluedart.

Vast and unparalleled domestic network

o Linked by advanced communications system, positioned to offer standardised
quality of service
A spectrum of services providing customized solutions
o Variety of services, net service level of 99.96%
Customs and Regulatory expertise
o Clearances at all states within the country, seamless service to customers
Technology
o Adds value through time and cost saving
Air Network
o Self-sustaining, dedicated aviation system, with its own bonded warehouses,
ground handling and maintenance capability
Financial Credibility
o F1+ (Ind) rating from Fitch, A1+ from ICRA (for various programmes)
People force
o Learning organisation, valuing self-development, homegrown managers

SUPPY CHAIN IN BLUEDART

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Supply Chain Management at Blue Dart

Distribution model of items

Hub-and-Spoke Model

Possesses seven dedicated cargo aircrafts

HUB (NEAR FROM

SERVICECENTER)

HUB (NEAR FROM

SERVICECENTER)

BRANCH /
SERVICECENTER

BRANCH /
SERVICECENTER

CONSIGNOR /
SHIPPER

CONSIGNEE /
RECEIVER

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Blue Dart: Mumbai branch

Cnnected to Bhiwandi and Andheri by surface and other metros by air

Special arrangements for out of delivery location

1200 sq feet warehouse

Parcels sorted while unloading and kept in stocks

Fixed routes
No routing as per parcel patterns

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Tracking of Consignments at Blue-Dart

Tracking of consignments at Blue-Dart is done by barcode scanners inscan while

unloading at a warehouse, outscan while delivery and finally delivery confirmation by phone

The basic tracking solution enables Blue Dart's customers a number. A mail-based
solution allows the customers to query status of to track their shipments, through single or multiple
waybills, on-line

Customers can check the status of their shipments using a waybill number or a reference
their shipments using e-mail.

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Real Time Tracking

Real-time Tracking takes place through the net, providing the customer with information on their
shipments from pick-up to delivery. They can also view, download and print copies of Proof of
Deliveries and Delivery Challans or they may also Contact Blue Dart for information on the status
of their consignments.

A registered user of Blue-Dart can download the tracking and status data. This tool benefits most
medium to large businesses in managing their tracking processes and integrating them with their
back-end systems.

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Project On Logistics

MobileDartTM
SMS works on any mobile phone or device which supports sending SMS (Short Messaging
Service). This service provides two tracking features - current status of shipments forwarded and
automated intimation on delivery of the shipment.

ShipDartTM

ShipDart is a Blue Dart proprietary solution especially created for the convenience of
regular customers

It enables user control over the entire shipping and tracking processes.

It needs to be installed at the customers premises in order to interface with their own
system for the pre-shipping and post-tracking activities, thereby playing a major role in bridging
the existing gap in any package movement.

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PRODUCTS OF BLUEDART
SERVICES
The Blue Dart provides a wide range of unique packaging to protect and secure your documents
and shipments, and enhance the brand value of your products.
DHL Express Worldwide (DOC)

Delivering non-dutiable shipments such as banking and legal documents, reports,

proposals, tenders, etc.

DHL Express Worldwide (NON DOC)

To deliver a dutiable international shipment. For commercial shipments like electrical

goods and components etc.

The Express Easy Box 8 & Express Easy Box 6

Market Innovations They offer low flat fees for shipments up to 10kg and 25kg

Express Pallet

It's a special wood-free palletized packaging, which can be 'built' to accommodate

shipment as small as 50kg or as large as 100kg plus.

Express Easy Student

Exclusive air express service designed to deliver student applications to universities

abroad in the most reliable, fast and secure way.

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Blue Dart provides excellent services while handling materials that are fragile and need extra
care.
Temperature Controlled Logistics. (TCL)
Blue dart has developed a range of superior Temperature Controlled Solutions which are

backed by extensive and reliable express distribution, dry ice supplies etc.
The packaging is constructed from recyclable, environmentally-friendly and cost-effective

material.

The innovative Temperature Controlled Solution ensures safe and compliant transport in
frozen, chilled and ambient conditions.

Using appropriate cooling mediums, the packaging performance delivers temperature for
the range - 20C, 2 - 8C and 15 - 25C for varying distribution times.

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TCL Caters to

Pharmaceuticals Companies

Contract/Clinical Research Organizations (CROs)

Hospitals/Doctors/Laboratories linked to CROs for research & development

Research & Development wings of International Aids

Indian R & D wings

Live animal husbandry

Outsourcing at Blue Dart :

Due to high pressure of logistics handling

Some part of the logistics are outsourced to other agencies specialized in handling them.

At the operational level, Bluedart mostly outsources its groundwork activities like:

Booking counter operation

Loading and unloading

Data-entry

Delivery

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Project On Logistics

distribution to other companies who specialize in such activities

Other activities outsourced are :

Audit activities

IT services

This will help them to focus upon their core competencies.

Challenges in outsourcing

Careful selection of people

Deciding what things to be outsourced and what to manage inhouse

Managing all costs to ensure pricing structure is appropriate

Surveillance exercised over the outsourced personnel responsible for the assigned tasks

Operational Control

Continuity and risk management

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Advantages of outsourcing

Can focus on its core activities

Take advantage of local supply chain which is already established

Reduced overheads

Cost efficiency
Disadvantages of outsourcing

Quality of services at risk

Dependency

Operational control

Service-level agreement (SLA) of the Blue Dart

All shipments under the Waybill are carried at Owner's risk

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Shipper's Obligation And Acknowledgement

Each article in the shipment should not contravene the provisions of the Indian
Post Office Act

Packing of the material is the responsibility of the shipper

BDE has the right to open and/or inspect the shipment

The Shipper may insure his shipments at his own costs

BDE's right of lien on its shipments for any outstanding freight

the liability of BDE for any loss or damage to the shipment shall be the lowest of

Rs.5,000/- or

The amount of loss or actually sustained

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Limitation of Liability
Liabilities will not be assumed in case of damage due to:

acts of God, force majeure

The act, fault of the shipper/ the consignee

Carriers such as Airlines

The nature of the shipment or any defects

BDE will not under any circumstances be liable for delay in pick up, transportation or delivery of
any shipment regardless of cause of such delays.
CLAIMS

Any claim must be brought by the shipper within 30 days of the date of acceptance of
shipment

No claim for loss or damage will be entertained until all charges have been paid

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MATERIALS NOT ACCEPTABLE FOR CARRIAGE

Hazardous material, dangerous goods, prohibited, banned or restricted articles by IATA

International Air Transport Association.

Not permitted by the laws/rules/restrictions

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If customer is unavailable:

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ACTION TAKEN DURING QUALITY PROBLEM

If there is a quality problem upon delivery

a.

Inspection is done to evaluate the extent of damage

b.

Appropriate compensation is done as per the terms and conditions agreed upon prior to
delivery

Modalities are decided by the concerned department at Head office

Damage can be updated online and can be tracked until final settlement is over

No action will be taken in the case of damage to the goods, unless a written notice
describing
a. Goods concerned
b. date of the damage
c. Details of the claims

SORRY Card is given on late delivery

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GENERAL IMPORT PROCEDURES BY BLUDARTDHL AT BOMBAY

PORT

IMPORT CONTRACT WITH EXPORTER

IMPORTER HAS TO SHOW LETTER OF CREDIT/BANK GUARANTEE TO EXPORTER

SENDING SWIFT COPY TO EXPORTER BY IMPORTER

CARGO EXPORTED AND VESSEL IS COMING TO BOMBAY PORT

RECEIVING DOCUMENTS FROM EXPORTER

FILLING ARRIVAL NOTICE TO THE CUSTOMS BY STEAMER AGENT

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FILLING OF IGM TO THE CUSTOMS BY STEAMER AGENTS

BERTH PLANNING BY PORT

BERTH ALLOCATION BY PORT

BERTHING OF VESSEL

CUSTOMS INSPECTION & VALUATION

ALLOWING UNLOADING BY CUSTOMS

CONCERNED IMPORTER FILLING BILL OF LADING TO STEAMER AGENT

GETTING DELIVERY ORDER FROM STEAMER AGENT

FILLING BILL OF ENTRY TO CUSTOMS

FILLING IMPORT APPLICATION WITH DELIVERY ORDER TO BOMBAY PORT

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GETTING APPRAISER TICKET FROM BOMBAY PORT

CUSTOMS APPRAISEMET OF CARGO BY CUSTOMS APPRAISOR

PAYMENT OF ALL IMPORT DUTIES

PASSEDOUT ALL CUSTOM CHARGES IN BILL OF ENTRY

GETTING PASSED BILL OF ENTRY FROM CUSTOMS

CARGO MOVEMENT FROM BOMBAY PORT

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GENERAL EXPORT PROCEDURES BY BLUEDART AT BOMBAY

PORT
EXPORT CONTRACT WITH IMPORTER

IMPORTER HAS TO SHOW LETTER OF CREDIT/BANK GUARANTEE TO EXPORTER

RECEIVING SWIFT COPY FROM IMPORTER

STUFFING OF MARINE PRODUCTS IN THE CONTAINER

FILLING OF PRESHIPMENT DOCUMENTS TO CUSTOMS

CHECK LIST GENERATED FROM CUSTOMS

INSPECTION AND VALUATION OF CARGO BY CUSTOMS

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CONTAINER SEALED BY CUSTOMS

CONTAINER SEALED BY STEAMER AGENT

CONTAINER AT BOMBAY PORT

SHIPPING BILL GENERATED FROM CUSTOMS

LET EXPORT PERMISSION FROM CUSTOMS

SHIPPING BILL AT PORT TRUST AND ALLOWING LOADING TO VESSEL

SHPPING BILL AT STEAMER AGENT

PREPAIRING & ADDING BOARD NOTE BY STEAMER AGENT

ISSUING BILL OF LADING TO CONCERNED EXPORTERS

FILLING EGM TO CUSTOMS BY CONSOLODATING ALL SHIPPING BILL

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MMD CLEARANCE OF VESSEL

AFTER COMPLETION OF LOADING PORT WILL INFORM TO MARINE DEPARTMENT

PORT PILOT WILL SAIL THE VESSEL TO MAIN CHANNEL

SENDING DOCUMENTS TO IMPORTER AND FOLLOW UP FOR PAYMENT

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EXPORT AND IMPORT A BRIEF

An Export is a function of International trade whereby goods produced in one country are
shipped to another country for future sale or trade by removing all barriers to trade. Export is the
oldest form of economic transfers, and occurs on a large scale between nations that have fewer
restrictions on trade, such as tariffs or subsidies.
An Import is a function of International trade whereby goods produced in one country are
bringing to another country for future sale or trade by removing all barriers to trade.

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OBJECTIVES OF THE STUDY

The objective was to have a complete knowledge the logistics of goods,

information and other resources, including energy and people. Alongside this, the
objective was to study the functioning of BLUE DART as an example of typical
logistics company.

The study was done primarily with the following objective in mind:-

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

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

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Project On Logistics

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

scenario.

RESEARCH METHODOLOGY

To gather the relevant information regarding the project, the following method has been used.
A: Research Design
The research design is exploratory research design. In the exploratory research design literature
survey was conduct.
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data.

Exploratory Research Design:

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

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Project On Logistics

Literature survey:
One of the most economical and quickest ways to discover hypotheses is through a literature
search. For this purpose, large volumes of published and unpublished data are available.

Research Design

Exploratory Research Design

Literature Survey

B: Data Collection Design

Data Type

There are mainly two types of data are available; Primary data and Secondary data,
I conducted my study mainly based on the secondary data. That is collected by the
Secondary Data:
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Secondary data is that data which are collected for some earlier research work and are applicable
in the study the research has presently undertaken.
Depending upon the gathering sources, secondary data can be divided iinto two categories-

i.

Internal data:
Internal data is procured by the research in normal operations within his own premises.

ii.

Companies websites

Company catalogue

External data:
External data are generated and collected from variety of events and sources outside the
firms premises.

Business magazines

Various newspapers

Journals

Various books

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Secondary Data

Internal Data

External Data

Various internal

Indexes, Commercial

reports of the firm.

sources etc.

C: Sample Design
Collecting data from where only a few units of population under study are considered for analysis
is called sampling method.

Sample Size:
A sample size of 1 Company was taken.

Sample Type:
There are two main categories; Probability sampling and Non probability sampling.
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The sample type was Non-probability sampling.

Non-probability sampling:
In non-probability sampling, the chance of any particular unit in the population being
selected is unknown.

Sample Technique:
There are mainly three non probability designs; Judgment sampling Convenience
sampling and Quota sampling.
Judgment sampling technique was used.

Sample Design

Non-Probability

Judgment
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D: Tools
It was secondary data that I have used in my project.

DATA ANALYSIS AND INTERPRETATION

Location Mapping:
Company
Scheduled Destinations

Safe Express
582

Gati
407

Blue dart
394

City Coverage

442

333

257

District Coverage

250

278

178

Scheduled Destinations

Safe Express

394

Gati

582

Blue dart

407

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Safexpress has the highest number of scheduled destinations & city coverage However; Gati
leads the way in district coverage.
All the three companies serve 143 common cities across India.
There are close to 158 cities where only Safexpress is present.
Safexpress & Gati serves 94 cities where blue dart is absent

Scheduled Destination by Zone

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Below is the Zone wise Scheduled destination of all 3 companies

Company

Safe Xpress

Gati

Blue Dart

East

67

79

West

217

121

116

North

169

97

109

South

129

110

167

Total

582

407

394

East :
Arunachal Pradesh, Assam , Bihar , Chhattisgarh, Jharkhand , Manipur, Meghalaya, Mizoram,
Nagaland, Orissa, Sikkim, Tripura, West Bengal, Andaman & Nicobar
West
Gujarat, Madhya Pradesh, Maharastra, Daman, Diu, Dadra & Nagar Haveli, Goa.
North
Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Rajasthan, Uttar Pradesh, UttraKhand,
Chandigarh, Delhi
South

Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry, Lakshadweep

Graphical Analysis of Scheduled Destination

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East
148

160
140
120
100
80

67

East

79

60
40
2

20
0
Safe Xpress

Gati

Blue Dart

West
454

500
450
400
350
300
250

West
217

200

121

150

116

100
50
0
Safe Xpress

Gati

Blue Dart

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South
406

450
400
350
300
250
200

South
129

150
100

167
110

50
0
Safe Xpress

Gati

Blue Dart

North
375

400
350
300

North

250
200

169

150

109

97

100
50
0
Safe Xpress

Gati

Blue Dart

CITY COVERAGE BY ZONE

Zone

Safe Express

Gati
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Blue Dart

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East

61

72

West

128

86

66

North

150

89

74

South

103

86

115

Total

442

333

257

East
160
140

135

120
100
80
60 61

East
72

40
20
0
Safe Express

2
Gati

Blue Dart

West
300

280

250
200
150
128
100

West
86

66

50
0
Safe Express

Gati

Blue Dart

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North
350
304

300
250

South

200
150
100103
50
0
Safe Express

115

86

Gati

Blue Dart

South
350
304

300
250

South

200
150
100103

115
86

50
0
Safe Express

Gati

Blue Dart

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District Coverage By Zone

Safe Express
45
57
94
54
250

East
West
North
South
total

Gati
62
66
84
66
278

Blue Dart
2
46
65
67
180

Graphical Comparison of District Zone Wise

East
109
120
100
80
60

East

62
45

40

20
0

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West
169
180
160
140

West

120
100
80

57

66
46

60
40
20
0

North
243
250
200
150

North
94

84

65

100
50
0

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South
200
180
160
140
120
100
80
60
40
20
0

187

South

54

67

66

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Comparision of all companies zone wise respectively

94
100
90
80
70
60

84

57

62

66

65 67

66

54
46

45

50
40
30
20

East
West
North
South

10
0
Safe Express

Gati

Blue Dart

From going through all the data and Analyzing the Graph we come with some of the Conclusion
that is as mentioned below:
Safexpress is leading the way in Western & Northern region of India, In terms of scheduled
destination and City coverage.
Gati is leading the way in the Eastern part of the country Whereas Strength of Blue dart lies into
Southern India
Safexpress has the highest district Coverage in Northern India, Gati leads in Eastern & Western
Part Whereas Blue dart leads into southern India.

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SWOT ANALYSIS
Strengths
Dominant player in the surface cargo segment in India, which accounts for more than 55% of the
total volume of cargo moved. International presence, state-of-the-art mechantronic warehouses,
warehouse management solutions and value-added services should aid growth in market share.
Entry into the coveted cold-chain logistics business.Strong Brand Name and wide reach across
India & global presence with collaboration with DHL.
Significant presence at JNPT and other major Indian ports. Long-standing relationship with
Indian Railways.
Opportunities
Strong macroeconomic growth, robust growth in trade driving the growth of the Indian express
industry. The industry was valued at Rs71 bn in 2005-06 and has grown in the range of 25%-30%
over the past 3-4 years. It is expected that the industry will register a similar growth rate over the
next few years. Exemption of interstate sourcing from VAT will make having centralized large
warehouses more viable for companies than having local sourcing and distribution..
Improvement in the logistics infrastructure in the country - the dedicated rail freight corridor,
modernization of ports, and improvement in road infrastructure are set to give a boost to intrastate and inter state freight movement.Initiative by Indian Railways to allow private operators
to run container trains.

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Weakness
A rise in fuel charges could have an adverse impact on margins, which are already low for the
company.Substantial investments involved in the setting up of warehouses and building of
vessels. Thus the industry is inherently capital-intensive.
Threats
Entry of new players into the courier operations business. Rise in transportation costs would
adversely affect margins. Also, an increase in container traffic over and above capacity at the
ports could lead to congestion at the ports, leading to a decline/delay in the throughput handled
by the company. An economic slowdown could impact the logistics industry as a whole.

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FINDINGS

Blue Dart express ltd. is fully aware of the basic need of customers than its
competitors.

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

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

The country's most reliable air and surface network offers a predetermined

delivery schedule with close to 100% accuracy.

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

Blue Dart is mainly focuses on the international services.

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

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

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

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SUGGESTIONS

Since Blue Dart is mainly focuses on the international services so it must pay

attention in the domestic services.

Blue Dart does not have very well connection with the national airports so
Blue Dart must make good connection with the national airports.
At national level transportation of goods is done via road that makes delay in the
service so the national airport services must be spread to every airport so it will be

resulted into quick service.

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

IN AN INTERVIEW WITH
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Michael Pereira [General Manager - Operations(AI)]

What are the key challenges you face in air express operations?
One of the biggest challenges facing express operators today is infrastructureboth air and
surface. Space at airports, airside (the part of an airport directly involved in the arrival and
departure of aircraft) and city side infrastructure are often inadequate. In addition, parking bays,
airside/city side access and traffic congestion adversely impact costs as well as service quality.
Air express companies are constrained by the size of the facilities at the airports, as they have
remained the same while the loads have increased manifold.

What is the size of the Indian market in terms of domestic and international express
services? What are the growth prospects?
The domestic organized air express market is pegged between Rs1,250 crore and Rs1,500 crore
while the domestic organized ground express market is pegged between Rs1,500 crore and
Rs1,800 crore.
The outlook for the air express industry in 2009 is probably best described as extremely
challenging. Whats difficult at this moment is predictability of the market movement. These are
tough times, but cyclical happenings. We believe that these inconsistencies will bottom out with
the revival of the economy...
Several air express carriers are waiting in their wings.

Is there a market for more competitors?

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Blue Dart, operating for the last 25 years, is the leader in the industry. It has been the pioneer
having critical domain expertise and enjoys a market share of 43% in the domestic air express
industry.
Various airlines are contemplating their entry into the sector, which is a positive sign of the
growth and potential of the industry. Moreover, Indias projected growth (rates) are encouraging,
and we have a large population entering the consuming segment. Business now extends to the
smaller towns and cities of the country, giving ample scope for express (services). In fact, an
efficient express (service) now forms the core of every successful business. Therefore, every
player has an opportunity to find its niche to fulfil the growing demand for distribution, from
production to consumption.

Which are the key routes for an express airline and why?
The key routes domestically would include the seven major metros of the countryDelhi,
Mumbai, Chennai, Bangalore, Hyderabad, Kolkata, Ahmedabad. As a validation of the 80-20
rule, these key routes account for maximum traffic. However, smaller business centers now
evolving in the burgeoning cities and towns... are increasingly demanding express solutions.
Blue Dart connects the seven metros through direct flight connections every night to service the
growing demands in these areas while it also connects and provides services to 21,471 locations
across India.

Any plans to fly international?

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As part of the DHL Group, Blue Dart already accesses the largest and most comprehensive
express and express network worldwide, covering over 220 countries, and offers an entire
spectrum of distribution services including air express, freight forwarding, supply chain solutions
and customs clearance.

How do you manage last-mile connectivity and how critical is that?

Blue Dart provides door-to-door express solutions, where air transportation is one key
component, the others being an integrated air-ground infrastructure to enable last-mile deliveries
within a short time frame and at globally benchmarked quality levels.
Our ground fleet of 5,669 vehicles ensures last-mile connectivity. Advanced technology is an
intrinsic part of the process, as tracking and optimizing resources becomes of paramount
importance.
The traditional modes of fleet tracking in India, which include making long-distance calls en
route, predefined points or asking the driver to keep reporting on its location at regular intervals,
are now pass. Technology has now moved to the next level in the form of a new toolGPS
(Global Positioning system) and Blue Dart being the technology leader in the industry has
already upgraded its systems to accommodate this revolutionizing technology.
In Blue Dart, we have initiated the use of GPS in all our vehicles as we recognize the fact that
synchronization of all activities makes for an efficient supply chain.
Moreover, our shipment track and trace facilities via Internet allow total visibility to customers.

What are the future plans of Blue Dart?

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Focus on our core domestic products to expand our market share and consolidate our unique and
premium position in the Indian market. Blue Dart would also leverage its vast customer base for
global distribution through its alliance with DHL. We plan to leverage our established
infrastructure to continue adding value and customized solutions to the changing and evolving
demands of the customer. We would also provide global logistics customers with access to our
quality domestic and regional distribution. Our domestic network will continue to differentiate
itself in all areas of our core competencies - supply chain management, logistics and Ecommerce.
Position ourselves as the preferred, seamless link to a country projected to be an economic
superpower of the 21st Century. Through our technology development, premium services, quality
network and strategic alliances, we plan to carve for ourselves a leadership position in the
industry as India's and the region's link to the world.
Continue to deliver value to our stakeholders through our People Philosophy and Corporate
Governance based on distinctive Customer Service, Business Ethics and Accountability, and
Profitability.

CONCLUSIONS
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The process of planning, implementing, and controlling the efficient, cost effective flow and
storage of raw materials, in-process inventory, finished goods and related information from point
of origin to point of consumption for the purpose of meeting customer requirements.
A recent US study found that logistics costs account for almost 10% of the gross domestic
product. The process itself covers a diverse number of functional areas. Involved in logistics are
transportation and traffic, as well as shipping and receiving. It also covers storage and
import/export operations.
The Blue Dart fulfill all the necessary and regulatory requirements of the logistics of goods and
service as a renowned supply chain management company, it sincerely concentrate on all the
area of its quality services.
Though it always try to fulfill all the requirement of its customers but it is lacking in the case of
domestic services.
It must pay equal attention on the domestic services so that more and more people can take the
advantages of its ultimate services.

BIBLIOGRAPHY
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Secondary Data:
o www.bluedart.com
o http://searchlogistics.techtarget.com
o Network Service Guide, Jan-March, 2009, Blue Dart Express Pvt.
Ltd., Mumbai.
o Employee Handbook, Edition- 2009, Blue Dart Express Pvt. Ltd.,
Mumbai.

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