Prakash Pohwani 64
Swapnil Raj 67
Kapil Sahitya 75
Jeetu Teckwani 85
Ranjit Singh Rhal 72
Sandeep Tulsiani 90
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ACKNOWLEDGEMENT
INDEX
Sr. No. Topic Page No.
1. Service Industry 5-6
2. Introduction & Importance of 7-10
Transportation
3. Modes of Transport 11-18
4. Advantages & Disadvantages of 19
Different Modes of Transport
5. 7 P’s of Transportation 20-21
6. Swot Analysis 22-23
7. Indian Transportation Sector 24-27
8. National Highways Development 28
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9. Golden Quadrilateral 29
10. Challenges Faced by Transportation 32-33
Sector
11. Key Government Strategies 34-35
12. World Bank Support 36-37
13. Transport Infrastructure 38
14. Measuring Relative Importance Of Each 39
Mode
15. Company Profile & Report 40-47
16. Conclusion 48
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INTRODUCTION
What is LOGISTICS?
Logistics is about moving materials, information and funds from one business to
another or from a business to the consumer. It is a vital part of the business economic
system and is a major global economic activity. In fact 10-15 per cent of product costs
are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any
country, the logistics cost is estimated between 9 and 20 per cent of its GDP.
Every company dreams of achieving the seven R's - delivering the right product in
the right quantity and the right condition, at the right place, at the right time, for the right
customer at the right cost. Effective logistics management alone can make this possible.
Logistics is one of the oldest and also the newest activities of business management. It
involves combining diverse functions and service providers who may be culturally and
objectively different.
In the past, quality of products and services was the key differentiating factor for
companies operating in the same market. In due course, quality and low cost became the
winning combination.
History of Logistics
At the micro level any manufacturing and marketing company spends 5 - 35 per
cent of sales on logistics. The major cost components are transportation, warehousing and
inventory carrying cost. Improvements in logistics get reflected in a reduction in
inventory levels, shorter delivery schedules, and improved servicing standards with
significant savings in total costs.
Michael Porter in his famous book "Competitive Advantage'' has spoken of the
value chain approach and emphasized logistics as one of the most important tools for
competitive advantage.
The various processes and elements that are part of logistics as a discipline are:
As customers started demanding improved servicing standards, fast cycle time has
become the key factor for business success, whether it is custom made tailoring service in
Hong Kong or development of a new car in Detroit.
Before delving deep into logistics, a look at the current business scene will be great help.
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Given the emerging business and technological trends there are possibilities for
adoption of innovative logistics solutions specifically designed for India. In addition,
there is a requirement for an integrated strategy towards developing logistics and its
related IT infrastructure and also enhancing its industry base.
Today logistics management in India has become complex with about ten million
related outlets to cater to the needs of 1000 million people.
The logistics market in India is estimated to be Rs. 260,000 crores and constitutes
13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to
countries like China and Korea.
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A reduction in logistics costs by one percentage point will mean a saving of $4.8
billion or Rs. 21,600 crores annually.
Besides significant benefits can be reaped through the multiplier effect of better
logistics on all economic sectors.
According to LaLonde and Zinszer have researched various ways that customer
service can be viewed: 1) as an activity, 2) in terms of performance levels, and 3) as a
philosophy of management. Viewing customer service in terms of performance levels has
relevancy providing it can accurately measured. The notion of customer service as a
philosophy of management exemplifies the importance of customer-focused marketing.
All three dimensions are important to understand what is involved in successful customer
service.
A broad definition of customer service should embody elements from all three
perspectives. LaLonde and his associates offer the following definition:
“Customer services are a process for providing significant value-added benefits to
the supply chain in cost-effective way.” This definition illustrates the trend to think of
customer service as a process-focused orientation that includes supply chain management
concepts.
It is clear that excellent customer service performance seems to add value for all
members of the supply chain. Thus, a customer service program must identify and
prioritize all activities important to accomplish operating objectives. A customer service
program also needs to incorporate measures for evaluating performance. Performance
needs to be measured in terms of goal attainment and relevancy. The critical question in
planning a customer service strategy remains, does the cost associated with achieving the
specified service goals represent a sound investment and, if so, for what customers?
Finally, it is possible to offer key customers something more than high-levels basic
service. Extra service beyond the basics is typically referred to as value- added. Value-
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added services, by definition, are unique to specific customers and represent extensions
over and above a firm’s basic service program.
Corporate 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.
It’s Technology
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Designed to enhance the reliability of our operations and process efficiency, and
add value to the customer through time and cost savings.
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.
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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.
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-IITM, an advanced system which includes track and trace. Blue
Dart Aviation is registered as a public limited company and becomes the first private
company to receive government permission for operation of cargo aircraft in India.
1995:
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Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO permission.
Blue Dart Express Ltd. develops its SMART (Space Management Allocation
Reservations and Tracking) system for its aircraft, the first cargo management system in
the country. Blue Dart Express Ltd. is awarded the "Global Service Participant Sales
Award" by FedEx for outstanding sales performance.
Blue Dart, Calcutta is proud to have the office inaugurated by Mother Theresa of the
Missionaries of Charity, and Nobel Peace Prize Laureate.
1996:
Blue Dart Aviation launches India's first jet express airline. Blue Dart Express Ltd's
turnover crosses the Rs: 1 billion mark, as it expands its domestic network by entering
into strategic alliances in North, South and West India. Blue Dart Express Ltd. is the first
express company in India to receive an ISO 9001 certification, and post its website on the
internet. Blue Dart Express Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., 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.
1999:
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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.
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
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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
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) Pte. Ltd. completes the acquisition of 81.03% of the equity
capital of Blue Dart Express Limited. Blue Dart continues to operate as an independent
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brand and provides a complete spectrum of domestic and international express services
through synergies with DHL.
Company’s Vision:
"To be the best and set the pace in the air express integrated transportation
and distribution industry, with a business and human conscience. We
commit to develop, reward and recognize our people who, through high
quality and professional service and use of sophisticated technology, will
meet and exceed customer and stakeholder expectations profitably."
Focus on our core domestic products to expand our market share and
consolidate our unique and premium position in the Indian market, and
expansion into the near Mid-East and Far East markets and the SAARC
(South Asian Association of Regional Co-operation) countries. Blue Dart
would also leverage its vast customer base for global distribution through its
alliance with DHL. We plan to leverage our established infrastructure to
continue adding value and customised solutions to the changing and
evolving demands of the customer. We would also provide global logistics
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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.
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.
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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.
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.
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.
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DOMESTIC PRIORITY
Real-time Tracking
Regulatory Clearances
DART APEX
Single-window Clearance
Real-time Information
Time-Definite Delivery
Speed
Flexibility
Economical
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DART SURFACELINE
Time-bound Delivery
Regulatory Clearances
Pick-up Convenience
Secure Shipments
Economical Tariff
SMART BOX
Speedy Delivery
Free pick-up
Real-time Tracking
Regulatory Clearances
Proof of Delivery
INTERNATIONAL SERVICE
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International services of Blue dart are taken over DHL EXPRESS in 2002.
Blue Dart Express Limited, through its International Sales alliance with DHL, the
premier global brand name in express distribution services, offers DHL Document
Express (DOX), DHL Worldwide Package Express (WPX) and the Jumbo Box (Jumbo
Box - 25 kgs. and Jumbo Junior - 10 kgs.), a one-stop shipping process for reliable, time-
definite, door to door delivery of international documents and packages. The service
offers access to 220 countries and territories worldwide and the extensive, quality
network of Blue Dart and DHL.
4) Real-time Tracking.
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5) A Cost-effective Option.
6) Packaging.
DHL OFFERS:
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.
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Features:
Benefits:
Features:
Benefits:
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:
Benefits:
Maximum convenience.
Low price.
Exporting documentation made easy.
Fastest transit time.
Door to door service.
Track status online door to door.
No hunting for packaging or paperwork.
AIRPORT TO AIRPORT
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.
Capacity
CHARTERS
Charters are operated on an ad-hoc basis. Normally, charters have been used
where timely delivery of sensitive equipment or large loads is required. In the past, Blue
Dart Aviation has operated charters for carriage of TV Equipment for the Miss World
Contest, high-value TV and Broadcasting equipment for Cricket Matches around the
country, perishable Aquaculture, Computer peripherals and Electronics, Emergency
Equipment and large inventory for JIT plants.
INTERLINE
Currently, Blue Dart has interline agreements signed with 23 international airlines
- Air Canada, Air France, Air India, Air Mauritius, Alitalia, Asiana, British Airways,
Cargolux, Cathay Pacific, China Airlines, Cross Air, Das Air, El Al Israel Airlines,
Emirates Sky Cargo, KLM Royal Dutch Airlines, Kuwait Airways, Polar Air, Saudi
Arabian Airlines, Singapore Airlines, Sri Lankan Airlines, Swiss Air, South African
Airways, and Qatar Airways.
Value added services on the rise. Blue Dart has started providing value-added
services like “logistics management, supply chain management and warehousing
facilities to its clients. Going forward demand for such services from corporates is likely
to grow at a fast clip. This is because by outsourcing such services to third party service
providers they would be able to cut down on costs and improve their efficiency levels.
For the courier companies such services would be part of the overall value proposition
they would be offering their clients apart from the normal pick up and delivery. Such
services have the potential for enhancing the margins of courier companies like Blue
Dart. We believe that Blue Dart is best equipped to capitalize on the growing
opportunities in the emerging areas of warehousing and supply chain management.
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Termed 'net service levels', the initiative is all internal benchmarking exercise by
which the organisation evolves an action plan to examine the areas where the customer
satisfaction levels have not matched up to the standards that have been established
internally by the enterprise. The company also evolves marketing strategics that can
enable its business to effectively retain customers.
Blue Dart Express Ltd senior vice-president (marketing & projects) Tulsi
Mirchandaney says that- "The express service Industry does not have any external
benchmark to look up to. Company’s therefore, decided to look into some of the
operations that successfully institutionalised internally, and use those as benchmark to
efficiently address various customer needs."
This implies that every day professionals from Blue Dart will monitor the exact
status of various shipments of its clients, specially air cargo services which is one of the
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core offerings where the company generates substantial business volumes. In this
business, the company may encounter imperatives like flight delays to bad weather
conditions or some other peculiar circumstances which may lead to considerable worry
and anxiety for the target customers. This is more so because the delivery of these
shipments would be crucial to effectively run their own independent end-businesses. The
team within the company, in such instances will track the specific geographical areas
where the problem persists through Internal technology tool and other aligned systems
that have been initiated by the enterprise. The company will also personally interact with
customers and explain to them the exact reasons for the delay along with the time when
the cargo will be delivered.
Further, the moment the company discovers that there are certain areas where
customer service delivery is not in sync with the standards that have been set by the
organisation, the entire team gets down to analysing the problem. This is done to
determine where exactly the company needs to gear up further.