A

PROJECT REPORT
On

“AN APPROACH TOWARDS EFFECTIVENESS &

EFFICIENCY OF LOGISTICS MANAGEMENT”
SUBMTTED TO

UNIVERSITY OF PUNE
In Partial fulfilment of requirement for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

TAUFIK PATHAN
Under guidance of

Prof. Dr. Sunil Dhanawade

Through

SHIKSHAN MAHARSHI
DR. D Y PATIL CENTRE FOR MANAGEMENT AND
RESEARCH
CHIKHALI, PUNE- 412114
(2014-15)
 DECLARATION

I, the undersigned hereby declare that the project report

entitled “Distribution channels of Gati in retail
segment” written and submitted by me to the University of
Pune, in Partial fulfilment to the requirement for the award
degree of Master of Business Administration, under the
guidance of Prof.Dr Sunil Dhanawade, is my original work
and the conclusion drawn therein are based on the material
collected by myself.

Place: Taufik Pathan

Date:
 ACKNOWLEDGEMENT

I would like to acknowledge those who support has made

this project report possible. This project draws inspiration
and wisdom from the efforts and support of many
individuals.
First of all, I would like to thank Mr.Santosh Mitkari for
giving me the wonderful opportunity to do my research
work in the company.

I would also like to thank my institute DYPCMR,

especially Director Sir and my project guide Prof. Dr. Sunil
Dhanawade for helping me in every step of this project.

Taufik Pathan
MBA (2nd Year)
 (2014-15)

Chapter Particulars
No.
I Introduction
1.1 Executive Summary
II Research Methodology
2.1 Introduction
2.2 Statement of Problem
2.3 Objectives of Study
2.4 Scope Of Study
2.5 Data
2.5.1 Sample Collection Method
2.5.2 Sampling Frame
2.5.3 Sampling Unit
2.5.4 Sample Size
 Chapter No.1
EXECUTIVE SUMMARY
 Executive Summary

The courier industry in India was born in 1979 with the entry of DHL into
the market. The industry soon saw the entry of ELBEE and BLUE DART to
appropriate value from the lucrative sector. The industry in India is divided
into the organized, semi organized and the unorganized segments. The
industry is highly fragmented with over 2300 players in the market. The way
forward is through tie ups between the players in the organization segment
and a few powerful ones in the semi-organized segment.

Efficiency, speed and flexibility in the delivery and distribution aspects of a

business, form the key to successful logistics solution. Logistics planning
and management defines a unique network of Suppliers, producers and
distributors to deliver a specific product set. Different type of product
families and different customer segments may necessitate several distinctly
different supply chain configurations, which has to be designed for
flexibility and responsiveness.

The ideal supply chain for one set of conditions however, is not ideal for
another, since Conditions keep changing; Supply chain configuration will
have to be continually revised. The result will be the wireless solutions in
order to integrate business for both the local and global trade. 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.

The solution also helps the merchant, the customer and the vendor to save
the ever decreasing commodity-resource both time and money by being
mobile, whenever required The solution enables the industry to set up and
tightly integrate the customers, financial accounting, order management, and
other enterprise solutions to improve cycle time by facilitating exchange of
critical data, Such as product specifications, and by streamlining ordering
and approval processes, This solution allows you to reduce purchasing,
inventory, and overall management costs.
Chapter: 2
RESEARCH METHODOLOGY
 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.

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:

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.

 Companies websites

 Company catalogue

ii. External data:

External data are generated and collected from variety of events and sources
outside the firm’s premises.
  Business magazines

 Various newspapers

 Journals

 Various books

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.

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

D: Tools

It was secondary data that I have used in my project.

 INTRODUCTION

In any market driven economy, supplying customers with what they want,
when they want it, is the bare minimum required of any serious business.
But as product development, diversity and accessibility has accelerated
beyond all predictions, and as the business world has become increasingly
competitive, delivering that promise has taken on a more challenging reality.

In today’s global market, competitive advantage is gained by offering

customers flexibility, supplying products and services 24 hours a day, 365
days a year, cutting production lead times and call response times to a
minimum, offering customized solutions, securing global standards of
consistency. Profitability has to be reinforced by cost management,
minimizing capital held in warehouse, eliminating wastage through obsolete
stock, maximizing economies of scale through global sourcing and supply.

For the world’s highest performing and successful companies, managing the
supply chain has become a critical success factor. The innovative, the
pioneers of new industries, as well as established market leaders are all
focusing on this factor in their path to success. It is a management challenge
of how to achieve increased flexibility on the one hand, and to maintain and
build on profitability on the other.

Customer service is one important factor in service industry. Customer

service is concerned with making the product available to the customer.
There are many aspects in customer service such as consistency and
reliability of delivery, ordering convenience, delivery timing and flexibility,
claims procedures, condition of goods, visit of the sales people, status
information etc. Thus the customer service should be examined under three
elements:

1. Pre-transaction elements

2. Transaction elements

3. Post-transaction elements
 Statement of Problem:
Statement of the problem Logistics involve the integration of transportation,
inventory, warehousing, information, material handling and packaging of an
organization. The operating responsibility of logistics is the geographical
positioning of raw materials, work-in-process, and finished inventories
where required at the lowest cost possible. The study is concentrated with
Logistics activities of automobile transportation system in south India. Blue
Dart has been a major player in India’s logistic industry; the study is aimed
at assessing and analyzing the cost in Transportation, Warehousing and
Inventory. The study also intends to explore the various alternate modes of
transportation.

Objectives of Study
The objectives of this study are:

 To give suggestions to improve effectiveness and efficiency

of logistics management at Blue Dart.

 Optimize the time taken to reach the destination in the Route.

 Maximize the number of delivery points for sharing the load.

 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.

 To make analysis and recommend on logistics management

Scope of Study
The methodology followed to meet these objectives is to study and
understand the Indian logistics industry by studying the industry trends and
other aspects from several industry related publications, business and
operations of Blue Dart by studying the company annual reports and
newsletters, internal operations and discussions with its employees and
associates.

Data Collection Method

The data required for the study of project has been collected as:

Primary Data:

Primary data is collected either through observations, interviews, test

questionnaires or through direct communication with respondents in one or
another or through personal interviews.

Secondary Data:

Secondary data means data which is already available.

Secondary data is collected through:

 Various publications of foreign government or of international bodies

 Public Records and statistics.
 Company Website
 Newspaper Articles
 Magazines
 Books

Limitations of Study
Each and every research carried out has some limitations due to various
reasons.

Since the research is a never ending processes so some limitations arise,

because some expectations are not yet fulfilled.

 Since this study is company-specific and confined only to

Maharashtra.
 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. As such the study needs to be undertaken by generating
datasheet under hypothetical condition.
 Investment pattern to the implementation of new model cannot be
estimated accurately because of lack of data and analysis.
 Chapter no: 3
LITERATURE REVIEW AND
THEORY
 Supply Chain Management (SCM)

A supply chain is a set of organizations directly linked by one or more of the

upstream and downstream flows of products, services, finances, and
information from a source to a customer. Managing a supply chain is 'supply
chain management'. In literature, logistics and SCM are often used
interchangeably, though there is a subtle difference between the two. While
SCM is more strategic in nature, logistics is more operations-oriented.

Supply Chain Management is the systemic, strategic coordination of the

traditional business functions and the tactics across these business functions
within a particular company and across businesses within the supply chain,
for the purposes of improving the long-term performance of the individual
companies and the supply chain as a whole.
Global logistics industry:

Currently the annual logistics cost of the world is about USD 3.5 trillion. For
any country, the annual logistics cost varies between 9% and 20% of the
GDP, the figure for the US being about 9%.

The logistics industry is a very competitive one with a large number of

international players having presence in many countries. The service
providers have a number of issues to address, such as pricing pressures, high
costs of operations and low returns on investments, hiring and retaining
talent, and pressure from clients to broaden the range of service offerings
and internationalize operations, demand for customized solutions and more
value-added services, besides infrastructure bottlenecks and government
regulations.

The service providers have to continuously upgrade their networks and

systems and equip themselves with the latest technologies to carry out their
complex operations and provide the best logistics services to their
customers. This involves huge capital expenditure and an ongoing
maintenance costs. Logistics companies the world over are increasingly
investing in technologies like Warehouse Management System (WMS),
Enterprise Resources Planning (ERP), Global Positioning System (GPS) and
Radio Frequency Identification (RFID) to provide the best logistics services
increasing transparency and efficiency of supply chains of their customers.
3PL

Third-party logistics (3PL) refers to outsourcing transportation, warehousing

and other logistics related activities to a 3PL service provider that were
originally performed in-house.

Third-party logistics (3PL) or logistics outsourcing is gaining importance as

more and more corporations across the world, unable to manage their
complex supply chains, are outsourcing logistics activities to the 3PL or
logistics service providers. Globalisation has led to rapid rise in the need for
outsourcing logistics by companies looking for readymade distribution
channels to an entity with local expertise. Also the process of global
sourcing by companies and supply chains increasingly becoming global and
complex has given impetus to the growth of 3PL services.

By outsourcing logistics activities, corporations are able to not only

concentrate on their core business operations, but also achieve cost-
efficiency and improve delivery performance and customer satisfaction.

Further evolving from outsourcing logistics to 3PL service providers

companies are moving towards 4PL and 5PL service providers to improve
their logistics with minimum investments and in a cost effective manner.
This process of evolution helps companies to build efficient supply chains,
reach all the potential customers and achieve customer satisfaction leading
to improved business performance impacting both revenue and profit
growth.
Indian Logistics Industry

The logistics sector in India has evolved over the past two decades from
being a pure transportation / warehousing functional service to provision of
more value added offerings like customs clearance, domestic / international
freight forwarding, cross-docking, reverse logistics, freight consolidation,
warehousing of modern standards etc. India with a GDP of about Rs 31,297
billion is estimated to spend 13 per cent of its GDP on logistics creating an
industry size of around Rs. 4,068 billion (approx. Rs 4 lakh crores). The
industry generates employment to 4.5 crore people in the country. The sector
has been witnessing double-digit y-o-y growth rate since 2002 and is
expected to be more than USD 120 billion (approx Rs.5.4 lakh crores) by
2015.

India ranked 47th in the World Bank’s 2010 Logistics Performance Index
(LPI) out of 115 countries that were assessed for their efficient logistics
systems with a score of 3.12 out of a possible 5.

While there has been a growing recognition in India of logistics as a

strategic tool for enterprise cost reduction and improvement of
organizational efficiency on the flip side however, the logistics sector is
characterized by dominance of a disorganized market. Transporters with
fleets smaller than five trucks account for over two-thirds of the total trucks
owned and operated in India and make up 80% of revenues. The freight-
forwarding segment is also represented by thousands of small customs
brokers and clearing & forwarding agents, who cater to local cargo
requirements. In order to reduce logistics costs and focus on core
competencies, Indian companies across verticals are now increasingly
seeking and using the services of third-party logistics service providers.

Traditionally LSPs (Logistics Service Providers) concentrated mainly on

transportation and logistics as they form a major share in logistics. However,
in order to keep up with rising demands and customer expectations,
companies now also concentrate on value added services like packaging,
custom clearance, inventory management and labeling.

The major elements of logistics costs for Indian Industries include

transportation, warehousing, inventory management and other value added
services such as packaging. The figure on the right shows that transportation
and inventories account for 35 % and 25 % of logistics cost respectively,
indicating their importance in logistics.
Challenges faced by Indian logistics sector
These are among the supply chain challenges outside companies can expect
as they enter the India market:

 Limited physical infrastructure. In India the national highways

account for less than 2 percent of the total road network, but carry 40
percent of the traffic. This is one reason the average speed in India is
20 miles per hour, compared to the West’s 60 miles per hour.

 Over-burdened ports. India has a long coastline, but its port system
isn’t well utilized. Seventy percent of the seaborne trade is handled by
2 of its 12 major ports, while 180 minor ports go virtually unutilized.

 Non-existent warehouse standards. There is virtually no complex

distribution center set-up, no standards for suppliers, and little vendor
compliance. Beyond that, firms will find there is little vacant DC
space available. Firms entering the country will have to build this
infrastructure, which will include supplying their own electricity,
running water, and road access.

 Disorganized trucking operations. Two-thirds of fleets have less

than five vehicles, making it difficult for shippers to manage the
plethora of carriers required to handle shipment volumes. Freight
consolidators and brokers take a commission to provide truck owners
with consignments, and corruption is rampant.

 Multiple tax structures at entry points of different states. Multiple

tax rates at different states, octroi and different documentation
requirements at the entry checkpoints of different states consumes
 time and increases complexity of trade between states. This acts a big
blockade for movement of goods between states.

Opportunities:

 The Indian economy at USD 1.2 trillion and growing at the rate of
7.5% offers huge potential for the growth of logistics sector which is
valued currently at USD 156 billion and expected to witness double
digit growth in the coming years.

 The phasing out of VAT and introduction of Goods and Services Tax
(GST) will remove multiple tax structures in different states and hence
accelerate the interstate movement of goods.

 The investment in infrastructure projects like upgradation and setting

up of seaports and airports at several locations across the country, the
Golden Quadrilateral project and dedicated rail freight corridor will
improve transport infrastructure in the country, reduce logistics costs
and lead times.

 The setting up Free Trade and Warehousing Zones (FTWZs) on the

lines of SEZs will increase investments in the sector and logistics
infrastructure in the country.

 The 3PL market in India is least developed and highly fragmented.

However, there is an immense potential for growth of 3PL in India,
about 20% per annum with companies increasingly outsourcing their
logistics to focus on core activities and achieve cost efficiencies.
  The new mass-merchant-style organized retailing, which today makes
up less than 4 percent of the overall market, is expected to grow to
$60 billion and increase the overall retail market by a compound
annual growth rate (CAGR) of 21.8 percent by 2015.

Key Players

Indian logistics industry is a highly fragmented one with 99% of the market
catered by many small unorganized players and most of the remaining 1%
catered by a large number of organized players. So, one can see that the
logistics industry in India is in a nascent stage.

There are a large number of organized logistics service providers (LSPs)

operating in India operating in several modes viz road, rail, air and sea. Over
the year each player has developed competence in one or multiple modes,
but none have achieved economies of scale to operate cost effectively due to
severe competition from unorganized players.

Review of the literature

In order to understand the concepts behind the topic, “logistics

management”, a review of the following literature was done.
ƒ Fundamentals of Logistics Management (McGraw-Hill Series in
Marketing) by Douglas Lambert, James R Stock, Lisa M. Ellram, 2003
ƒ Roadmap for logistics excellence: need to break the unholy equilibrium
by Raghuram and Janath shah , 2004

LOGISTICS AND DISTRIBUTION SYSTEM DESIGN METHODOLOGY

Throughout the application of the methodology, several types of activities are
necessary and need to be taken into consideration.
 Data consolidation: to determine the best grouping of customers and
suppliers.
 Sales forecasts: based ohm mathematical projections of historical
data, on market research, on other statistical techniques.
 Transportation costs : based on the actual data
 Warehousing costs: based on public warehousing cost database, or
estimated from construction and labour cost databases.
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, sales forecasts,
transportation costs, transportation times, inventorying costs

Modeling and Simulation

Once the basic data has been assembled, it must be integrated into a
mathematical logical model, which must faithfully represent all the
characteristics of the problem.
The state of the art approach in modeling is to generate
automatically a custom made model of a specific problem using artificial
intelligence techniques.
 Describe the current
system

Establish requirement
& constraints for the
proposed system
Audit

Develop costs for the Develop logistics

proposed system 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, practical recommendations which can be
implemented in the real world.
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, scanned and placed Station outbound

in container package scan (sops)
COSMAT
Container transported to hub by air or
road

Container unloaded at hub

Packages sorted, scanned and Hub out bound

reloaded Into containers package scan
(hops)
Container transported to
inbound Station by air
or road

Container unloaded and packages Station inbound

are sorted and scanned package Scan (sips)
COSMAT

Packages sorted, scanned and loaded

into vans
Packages transported to destination, Proofs of delivery
scanned and delivered scan
 CURRENT MODEL EXISTING WITH IN MAHARASHTRA

Blue Dart offers the country's most comprehensive communications

technology and customer software to support critical supply-chain
distribution demands. 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. Dart
apex and the Dart surface are scanned and by the Blue Dart Aviation dept.
Dart Apex is reaching directly to the specified destination any
where in Maharashtra 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 throughout
Maharashtra

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.e. 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 Mumbai and to
other parts of Maharashtra.
 Thus the inbound operation in Blue Dart is carried out at the fast
phase. 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. 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
 Chapter no. 4
Company Profile
 Blue Dart is South Asia's leading integrated air express carrier and
premium logistics-services provider. They have the most extensive Domestic
network covering over 3,880 locations, and service more than 220 countries
and territories worldwide through their Sales alliance with DHL, the premier
global brand name in express distribution services.

The company has been re-certified as one amongst a handful of Indian

companies to the new global ISO 9001 - 2000 standards for "Design,
management and operations of countrywide express transportation and
distribution services within the Indian sub-continent and to international
destinations serviced through multinational express companies".

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. 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 99.95% reliability levels in the express industry.
Over the years, Blue Dart has continuously evolved to meet the growing
demands of business and customers, innovating new products and expanding
its network and infrastructure, thereby increasing its market share in the
country.

During the year under review, the company achieved yet another milestone
of handling 100,000 shipments a day. Also, the company handled during the
year over 28 million shipments, weighing over 76,000 tons.
Their 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 our time-definite morning
deliveries through night freighter flight operations.
  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, Chennai, Delhi,
Mumbai, Kolkata and Hyderabad
 ISO 9001 - 2000 countrywide certification by Lloyd's Register
Quality Assurance for our entire operations, products and services.
 Ecommerce B2B and B2C initiatives including partnering with some
of the prime portals in the country.

Vision
“To be the best and set the pace in the air express integrated
transportation and distribution industry, with a business and human
conscience.”

They commit to develop, reward and recognize their people who,

through high quality and professional service and use of sophisticated
technology, will meet and exceed customer and stakeholder expectations
profitably.

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. Good Corporate Governance leads to long
term shareholders value and enhances the interest of other stakeholders.

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.
It believes in providing services through transparency in all its dealings. It
believes Corporate Governance is an important instrument for shareholders’
returns and value enhancement.
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.
 They encourage learning, self-development and building effective
leadership
 They provide a work place where each and every employee is
nurtured and who, in turn, will nurture the organization, 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, Service Quality
and Customer Care
 They project a positive, caring and professional image of us and our
services at all times.
 They avoid waste by being conscious of the impact of all our
Blue Dart Overview

Description : South Asia's premier courier and integrated

Express Package Distribution Company

Began Operations : November, 1983

Headquarters : Mumbai, India

Revenues : Rs. 4,621 million

(FY 2004-2005)

Number of Shareholders : 4,814

(As on 3rd March, 2006)

Domestic Locations : Over 13,880 locations

Serviced

International Destinations : More than 220 countries and territories

Serviced Worldwide through sales alliance with DH

Air Support : 5 Boeing 737 freighters

Ground Support : 3,429 vehicles

Network : Domestic hubs: Mumbai, Delhi, Bangalor

Chennai, Erode, Hyderabad, Kolkata, Ahm
and Guwahati

International Outbound Gateways:

Mumbai, Delhi and Chennai to Dubai, Lo
Frankfurt, Bahrain, Hong Kong and Singa
Number of shipments : International: 0.53 million
Handled
(FY 2004-2005) Domestic: 42.02 million

No. of computer
Terminals : Over 2,240 E-mail at 114 locations accessed by
(As on 15th Dec, 2005) over 2,450 users

Technology : Cosmat IITM,

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

People Force : Over 4,000

World Wide Web : http://www.bluedart.com

Address
Services
Express Services
Domestic Priority:
The services are subject to their Terms and Priority, The
fastest, most reliable, door-to-door delivery service within
India and to Bangladesh, Nepal and Bhutan for documents
and small shipments under 32kgs per package. The special
benefits of this service are:
 Delivery to over 13,880 locations in India
 Free pick-up from your location
 Real-time Tracking through the net, 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.
 Free Computerized Proof of Delivery
Dart Apex:
Dart Apex is a door-to-door delivery service
within India for shipments weighing 10kgs. And
above. It is the fastest, most efficient delivery
solution for the commercial shipments that are
time-bound and are required to undergo
regulatory clearances, or require special handling.
Dart Apex offers an economical option of an Airport-to-Door service
from the major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata and
Hyderabad to all the Dart Apex locations serviced. 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.

Dart Apex also offers you a further economical option of a Door-to-

Airport service. One may book the shipments at any of the locations
serviced for this product to any of the major airports mentioned above. The
Consignee would be required to collect the shipment from the Blue Dart
Aviation office at the concerned airport.

Dart Apex offers the following benefits:

 Wide Market Reach
 Single-window Clearance
o Shipments are picked-up from your location, transported to
their destination, processed through the regulatory channels and
delivered to the consignee.
Real-time Information

 On the status of the ship ment at all stages of transportation, through

the advanced tracking system. One may Track the shipment through
the net, or Contact Blue Dart.
 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. One can also view,
download and print copies of Proof of Deliveries and Delivery challans
of Dart Apex shipments.
Speed

Backed by the air network night operations focused on carriage on

freight, shipments are uplifted the same night for early morning
deliveries at major metros.
Flexibility

Dart Apex offers options of Airport-to-Door and Door-to-Airport

delivery services, 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. Price
Finder will provide with the applicable tariff for your shipment.

Dart Surfaceline :

Dart Surfaceline is an economical door-to-door,

ground distribution service within India for
shipments weighing 10 kgs and above. It offers a
cost-effective logistics option for your less time-
sensitive shipments, with the following
value-added benefits:
Time-bound Delivery

A fleet of vehicles run to pre-determined schedules to provide committed

delivery.
Regulatory Clearances

The team of specialists will provide with the clearance support required to
ensure a smooth delivery.
Pick-up Convenience

One may Contact Blue Dart to schedule a pick-up, and your shipment will
be picked-up, transported, cleared through regulatory channels and delivered
to the consignee, while you are able to receive updated information and
proof of delivery on demand.
Secure Shipments

All the destinations serviced by Dart Surface line are supported by their own
warehouses, manned by trained professionals to ensure the safety and
security of your shipments.
Economical Tariff

All these benefits are available at charges that support value-pricing

Smart Box:

Smart Box is a convenient, economic, packaging unit priced to

include a door-to-door delivery service within India. The units
come in 2 sizes, 10kgs and 25 kgs, and are designed to
accommodate a variety of products. The special benefits of using
Smart Box are:
 A wide market reach
 Speedy Delivery
Carriage of the Smart Box is supported by an integrated air and surface
network to provide the fastest, most reliable delivery service for packages
Free pick-up

From the location. Contact Blue Dart to schedule a pick-up and supply of
Smart Box Real-time Tracking
Through the net, providing with information on the shipments from pick-up
to delivery. One may also Contact Blue Dart for information on the status of
your shipments.

1. Regulatory Clearances
For all States in India taken care of by team of specialists, to resolve the
regulatory requirements.
2. Proof of Delivery
Confirming the date and time of delivery as well as the name of the
recipient. One can also view, download and print copies of Proof of
Deliveries and Delivery challans of Smart Box shipments.
3. Trouble Free Service
Smart Box provides packaging, a door-to-door, trouble-free delivery
service and real-time information on the status of the shipment.

 4. Regional Services
Between India, Bangladesh, Bhutan and Nepal.
Blue Dart offers the fastest, most reliable, door-to-door
express deliveries for your documents and packages to
countries in the
SAARC region through Regional
Priority.
Regional Priority: Documents
(RPDX)
The most dependable and secure delivery for non-dutiable, critical and
important shipments such as legal documents and tenders. The Blue Dart
Envelope provides secure and attractive packaging for your documents,
brochures and reports upto 500gms.
Régional Priority: Non Documents (RPDT)
Fast reliable and safe door deliveries for samples and non-commerical
shipments. Currently available between India and Nepal only.

FREIGHT SERVICES

Domestic Airport-to-Airport: Early morning

deliveries. Late cut-offs. Security checked at Blue
Dart's warehouses equipped with x-ray machines.
No cooling period (otherwise mandatory on
passenger airlines). Flown by
Blue Dart Aviation between the 5 metro airports
of
Chennai, Bangalore, Mumbai, Delhi and Kolkata. The advantages of an
airport-to-airport service are:
No Cooling-Period
All the Blue Dart Aviation warehouses are equipped with X-ray machines,
which eliminate the necessity of the mandatory 24 hour cooling-period
required for security reasons for all air freight transported within India
Late Night Cut-off & Early Morning Deliveries
With Blue Dart Aviation's night operations, shipments manufactured during
the day can connect the night flights and be delivered at destination the next
morning.
 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.

Interline:
Interline agreements with 20 international airlines.
Facilitates transshipment of customs-bonded freight
from these airlines' gateways, enhancing marketing
possibilities in offline cities within India.
Blue Dart Aviation operates the only Boeing 737 freighters in India. The
freighters have an 8-pallet configuration, and operations are supported by an
in-house ground-handling and maintenance capability, as well as bonded
warehouses at all the on-line stations, and company-owned cargo handling
assets. With qualified, professionally-trained personnel, Blue Dart Aviation
is positioned to offer the most superior quality of service in the country
today.
The bonded warehouses with customs personnel facilitate efficient
transshipment of cargo within India. This facility has enabled distribution of
imports within the country and has provided exports access to and from the
gateways of international airlines. This provides international airlines with a
cost-effective option to restrict their on-line stations within India, and
enhance their marketing possibilities at off-line locations by utilizing the
distribution capabilities of Blue Dart Aviation.
Currently, Blue Dart has interline agreements signed with 25
international airlines - Air Canada, Air France, Air India, Air Mauritius,
Alitalia, Asiana, British Airways, Cargolux, Cathay Pacific, China Airlines,
Das Air, El Al Israel Airlines, Emirates Sky Cargo, KLM Royal Dutch
Airlines, Kuwait Airways, Polar Air, Saudi Arabian Airlines, Singapore
Airlines, Sri Lankan Airlines, Swiss Air, South African Airways, Qatar
Airways, Kenya Airways, BMI and Etihad Airways.

Charters:
Blue Dart Aviation operates the only Boeing 737
freighters in India. The freighters have an 8-pallet
configuration, and operations are supported by an
in-house ground-handling and maintenance
capability, as well as
bonded warehouses at all the on-line stations, and company-owned cargo
handling assets. With qualified, professionally-trained personnel, Blue Dart
Aviation is positioned to offer the most superior quality of service in the
country today.
Charters are operated on an ad-hoc basis. Normally, charters have
been used where timely deliveries of sensitive equipment or large loads are
required. In the past, Blue Dart Aviation has operated charters for carriage of
TV Equipment for the Miss World Contest, high-value TV and Broadcasting
equipment for Cricket Matches around the country, perishable Aquaculture,
Computer peripherals and Electronics, Emergency Equipment and large
inventory for JIT plants.

International Services:
For international documents and packages. Available to 228 countries
worldwide. International services are subject to the DHL - Terms and
Conditions of Carriage, and the liability terms incorporated.
 Blue Dart Express Limited, through its International Sales alliance with
DHL, the Premier global brand name in express distribution services,
offers DHL Document Express (DOX), DHL Worldwide Package
Express (WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo
Junior - 10 kgs.), a one-stop shipping process for reliable, time-definite,
door to door delivery of international documents and packages.

 The service offers access to 220 countries and territories worldwide and
the extensive, quality network of Blue Dart and DHL. The special
benefits of the International Services are:
 A Convenient Solution for your Urgent, International Documents &
Shipments Documents and packages will be picked-up from your
location, cleared through customs and delivered to your consignee.
 Customs Clearance Expertise
 Specialists conversant with customs formalities in India as well as in 228
countries
world-wide, and pre-clearance for shipments in transit available for most
destinations, ensure efficient delivery.
 Real-time Tracking
Through the net at www.bluedart.com, 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, and enhance the brand value of
your products.

DHL offers:

 Express Document (DOX) :

DHL Express document is the fastest, trustworthy and most secure way to
deliver non-dutiable shipments such as banking and legal documents,
reports, proposals, tenders, etc. You can rely on this international service

 Features:

 Priority financial industry services. o State of the art information

systems. o Specialized fast handling facilities.
 90% of international banks' first choice.

 Door to door one company control.

 World class packaging.

Worldwide Package Express (WPX) :

DHL Express Package is the fastest most secure way to deliver a dutiable
international shipment. For commercial shipments like electrical goods and
components, garments, manufactured items & non-commercial shipments.

Features:

1. Door to door service.

2. Simple documentation.
3. Packaging range.
 4. Fastest for international express packages.
5. State of the art information systems.
6. Global customs clearance leader.
7. Global market leader for international express packages.

 The Jumbo Box & Jumbo Junior Box :

DHL Jumbo Box and Jumbo Junior are the original market innovations
for value priced, flat fee international express. All the benefits of the
Worldwide Package Express plus. They offer low flat fees for shipments
up to 10kg and 25kg and convenient uniquely designed packaging to all
destinations worldwide.
Features:

 Unique easy to assemble boxes.

 Step by step customs declarations.
 Full DHL express door to door service.
 Low flat fee for each kilo over flat fee limit.
o Strong packaging and simple
documentation
 E-Commerce Initiative

E-vision:

To enable global connectivity to Blue Dart's present and future

interactive technology strengths, for value added solutions.

To facilitate seamless integrated transportation, distribution and

supply chain management, from, to and within the region, thereby increasing
value to our customers and shareholders.

As a technology leader in the business of supply-chain management in

the country, Blue Dart Express Limited recognized the far-reaching scope of
the internet in 1996, and has been exploring web-based solutions to extend
the range of services available to its customers and integrate them into its
core products. It has evolved an e-strategy.
This e-strategy encompasses E-Solutions to deliver additional process
efficiencies to business by allowing them access to Blue Dart’s e-shipping
tools and integration with its e-business tools. An individual solution is
available for each business, big or small, transacting off the internet or on
the internet, and ranging from a stand-alone to a fully integrated one.
Blue Dart-DHL Relationship
On the 12th September 2002, Blue Dart and DHL signed a Sales
Alliance Agreement which came into effect from the 1st October 2002. The
Agreement is for duration of five years on a principal to principal basis.
Blue Dart chose to ally with DHL as it is the #1 international air
express company in the world, with superior hi-tech on-ground
infrastructure, unmatched cross-border specialization, greater flexibility of
its network and the strongest brand recognition in India and in the world.
The coming together of the world's No. 1 international air express service
provider and India's No. 1 domestic express services provider is a logical
step in a win-win relationship to benefit all the parties involved, the
customer and the stakeholders of both organizations. Blue Dart believes that
the alliance would bring the DHL advantage to Blue Dart's customers,
resulting in greater customer satisfaction.
DHL is the world's leading express and logistics company offering
customers innovative and customized solutions from a single source. With
global expertise in solutions, express, air and ocean freight and overland
transport DHL combines worldwide coverage with an in-depth
understanding of local markets. DHL's harmonized international network
links more than 220 countries and territories worldwide.
DHL continues to be at the forefront of technology and, with more
than 150,000 dedicated employees, guarantees fast and reliable services
aimed at exceeding customers' expectations.
Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post
World Net. In addition, the alliance provides both organizations with the
flexibility to grow.
 Chapter no.5
DATA ANALYSIS AND
INTERPRETATION
DATA MINING
The term data mining describes the concept of discovering knowledge from
databases. The idea behind data mining is the process of identifying valid, novel,
useful, and ultimately understandable pattern in data. Similar to traditional mining
where we search beneath the surface for valuable ore, data mining searches large
databases for indispensable information for managing an organization.

DATA MINING PROCESS

a. 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.

b. Modify

Based on the data obtained in the exploration phase the new model design is
difficult, the process they follow is quit efficient and can yield good result, 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. They should try
to adopt auto scan or the super tracker in place of the bar code scanner.
 c. 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, which is used for the process of decision making in this project.

Flow chart for the process of program

Collect the data Spilt and group in terms Estimate the time required
of services for the each service

Compare and check Estimate the number Estimate the time required to
economically feasible required for transportation reach the hub

If not for Individual, check for If yes Accept the model if

combination feasible 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. 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, 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.
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

………..

Container and packages are sorted and scanned, Auto scan

loaded into vans or to motor cycle

Packages transported to destination specified

Delivered to customer
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, loaded into vans Auto scan

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

Transported to ware houses and then to Scanning

different service centers

A B C D E F …….. Nth

Container and packages are sorted and

scanned, loaded into vans Auto scan

Packages transported to destination

Delivered to customer
Model for Out Bound Operation

OUTBOUND
OPERATION
Pack
a
Courier receives order and g
arrives at shipper and the e
Package is scanned and s
transport to service centers
t
r
a
n
s
Packages are sorted
p
and placed in
container in the o
r
service centers t
Container transported e
to HUB by road d
through vans or other
means t
o

Container unloaded at d
hub Packages sorted, e
scanned and reloaded
s
into containers (x-ray) t
i
n
Container transported a
to specified service t
centers by air or road i
o
n
Container unloaded in
service centers and a
packages are sorted n
and scanned, loaded d
into vans
 deliv
ered

Super
Tracke
r

Auto
scan

d. Assessment

As the model is ready the

next step being assessment, which
could indicate the superiority of
this model over the previous
model.
 MAJOR FINDINGS OF PROJECT

The major findings in Blue Dart are pointed out as follows:

ƒ Blue Dart has the efficient model with them but they are delayed due to
the inefficient use of technology.
ƒ Blue Dart is delayed in entering the data as they make use of the bar code
scanner to scan each and every document.
ƒ Blue Dart is scanning for two times one is in scan and the other is out
scan which will take more time.
ƒ Blue Dart is not much dedicated front end employees and they are not
properly trained.
ƒ Hub is too away from the service centers which in turn makes shipments
to be delivered gets delayed.
ƒ Blue Dart has lower number of service centers.
ƒ Blue Dart have traditional logistics model and they should try to adopt
new technology which gives them better result and increase efficiency in
delivery.
ƒ 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.
ƒ Blue Dart is not focusing much on the late delivery
ƒ Blue Dart have quiet efficient 3PL,over night transportation, next day
delivery
ƒ Blue Dart has created a good brand in the minds of the customer
ƒ Blue Dart is utilizing all the 7 P’s of services marketing mix to full extent
ƒ Blue Dart provides taking orders over telephone, picking up packages at
the shipper’s location, tracking the shipments etc.
Chapter No.6
Findings, Suggestion and Conclusion.
Findings

 The Indian logistics industry is going through a transformation. The

sector will see an unprecedented growth in the coming years with
improved infrastructure and a uniform tax structure. This will improve
logistics performance and bring down overall product cost making Indian
products globally competitive.

 Most of the damages while transhipment occurs due to improper

packaging, absence of cushioning material, improper sized of packaging
used.
 Lack of visibility of docket number on the GATI sticker is the major
reason for short that occurs in GDW.

 No marshalling area is also present which turns out to misplacement of

dockets at the time of unloading 3-4 trucks simultaneously.

 The most important concern is the automation in the warehouse.

Automation needs to improved as well as the present ones should be
optimally utilized.

 The PEDN (Pune Express Distribution centre) manpower of handlers is

very short in EDC, So pressure overwhelms their desire to earn more.
Policies don’t allow them to take care of goods that seriously.

 Work process also depends on the chemistry between the handlers and the
supervisors or associate they work with. A well behaved associate is liked
by the handler and lets them work just fine.
 Foot printing process is not done properly so that is very difficult to know
the status of deliver and cooling hour.

 Proper training to all level employees to be given for smooth functioning.

Suggestion

 Gati should expand its distribution network by setting up more outlets in

prime locations which will increase its revenues and also increases the
brand visibility.

 Gati’s vehicles on road are a good mode of promotion, but it should step
up its promotion efforts by aggressively promoting its services through
sign boards, hoardings and media ads. It should support its outlets to
promote the services of Gati in their locality by providing adequate
promotional material.

 What I have observed in these days we have generally DEPS( Damages,

Extra, Pilferage, Shortage) problem in shortage and extra. While we are
sending the dockets from here we should have a check out process.

 Gati has adequate market penetration as compared to other companies in

cargo business. So the company should focus on its cargo business and
expand its share of the pie.

 Gati has very little competition in cargo and express distribution services
and the company should focus on this segment.
Learning of Student from project

 The logistics industry is a very competitive one with a large number of

international players having presence in many countries.

 Logistics is a channel of the supply chain which adds the value of time
and place utility.

 I understand Transportation has converged the globe; it has brought

people together, accelerated and globalised trade and commerce.

 Transportation is the back bone of any economy. Though developments in

the field of Information Technology have significantly reduced the need
for physical movement, transportation still plays a major role in the
movement of goods and people.

 There are a large number of organized logistics service providers (LSPs)

operating in India operating in several modes viz road, rail, air and sea.

 Gati has good distribution network for cargo business as compared to its
competitors. But when it comes to courier business it does not have the
adequate reach to compete with the other courier companies who have
huge distribution infrastructure and compete on low prices.

 From the survey of outlets, Gati (37%) is the preferred player in logistics
services for cargo business and Safexpress (21%) is its nearest
competitor. But when it comes to courier services it has many competitors
like DTDC, Blue Dart and First Flight.
Contribution to Host Organization

 Participated in the training of SQS (Service quality

Standardization)

 Life time membership in the Grean Peace India (In cooperated

by GATI)

 Observation of operational and data leverage.

Conclusion

 Gati must develop relationship with Retailing for development

of Retail business.

 Which will help the company:

 To establish and maintain long term bonds with customers,

rather than act as if each sales transaction is a completely new
encounter.

 Company must concentrate on the total retail experience and

which helps in generating more business.

 Stay in touch with customers.

 Promotional Focus.
Bibliography

Books :-

 Supply Chain Management in India: Problems and Challenges by Vrat, P

 Logistics Industry: Global and Indian Perspectives.
 A Survey of the Third-Party Logistics (3PL) Service Providers in India.
 Gati Ltd Annual Report 2013-14.

Websites:-
 www.gati.com
 www.wikiedia.org
 www.google.com
Annexure
Questionnaire for Survey

1) Nature of location

a) Commercial b) Academic c) Residential d) Institutional e) Industrial

2) Is the outlet company owned or outsourced?

a) Company Owned b) Outsourced

3) What are the products/services other than logistics being offered at the outlet?

4) What are the sales (from logistics) per month?

5) What is the Courier and Cargo business ratio?

6) What is the Cash and Credit business ratio?

7) What is the Domestic and International business ratio?

8) Is the booking done online or offline?

a) Online b) Offline

9) How many persons are employed in the outlet?

a) One b) Two c) Three or more

10) What is the booking timing?

11) What are your major functions?

a) Booking b) Pickup c) Storage d) Dispatch e) Delivery f) Other

12) Is the pickup and delivery done by self or the company?

a) Self b) Company c) Third Party

13) Who are your competitors in Courier business?

a) Blue Dart b) DTDC c) First Flight d) Overnite Express e) Professional

f) Why do you think so?

14) Who are your competitors in Cargo business?

a) AFL b) Blue Dart c) Safexpress d) TNT e) XPS f) Others (specify)

g) None

15) Why do you think so?

16) What is the infrastructure and support being offered by the company?

17) How do you handle customer complaints?

18) Who do you communicate with?

a) Area sales person b) Service personnel c) Retail Manager

d) Service Manager e) Customer service executive f) Other

19) How do you communicate with the company?

a) Mobile b) e-mail c) Personal Visits d) Through Sales force

20) What are the incentives being provided by the company?

21) What is your experience with the sales force and other employees of the
company?

a) Very bad b) Bad c) OK d) Good e) Very good

23) What should be done by the company to increase sales?

24) Any suggestions?