DR.G.D.

POLFOUNDATION YMT COLLEGE OF MANAGEMENT KHARGHAR, NAVI MUMBAI 410210

Logistics Project Report On Blue Dart

PRESENTED BY VENKATESH B. ANKAM GUIDED BY PROF. SANJEEV KADAM

PROJECT REPORT SUBMITTED FOR FULFILLMENT OF MASTERS IN MANAGEMENT STUDIES DEGREE IN OPERATIONS IN THE YEAR 2011-2012

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Synopsis
Introduction:Corporate profile

About Blue Dart: BLUE DART is South Asia's leading integrated air express carrier and premium logisticsservices provider. Competitive Advantage: Blue darts vast and unparalleled Domestic Network. A spectrum of services to provide customized solutions. Its Customs and Regulatory expertise To focus on the core domestic products to expand their market share And consolidate their unique and premium position.

Logistics in Blue Dart The Information Technology industry is, perhaps, typical of the changing and escalating logistic demands of various industries. Services of Blue Dart: REGIONAL SERVICES IN SAARC AREA, DOMESTIC PRIORITY DART APEX DHL Offers : Express Document (DOX), Worldwide Package Express (WPX). Different types of international services: -AIRPORT TO AIRPORT, CHARTERS. Blue Dart Customer Satisfaction Benchmark Bibliography

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INDEX

Sr.No. 1 2 3 4 5 6 7 8 9

Contents Corporate Profile Companys Future Plans Logistics In Blue Dart Services in Blue Dart: Regional Services. International Services DHL Offers Types Of International Services Customer Satisfaction Benchmark Biblography

Page.No 1-3 4 5-7 8-12 !3-!4 15-17 18-20 21-22 23

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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.

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.

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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. 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, 2005).

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.

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

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

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company, a team with a winning attitude. Blue dart is a learning organization, valuing selfdevelopment, and most of companys managers are homegrown.

Acquisition (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 brand and provides a complete spectrum of domestic and international express services through synergies with DHL.

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 customized 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.

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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.

LOGISTICS 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 organizations 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

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returned before bills can be submitted to the customer. In most IT companies, the role of 'logistics' or 'fulfillment' is key.

With organizations 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.

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.

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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. 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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Logistics software solutions Vendor Solution Features Application program offered to Blue Dart offices and its SENTOR (Status Blue Dart Entry Offline for 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 improves TNT ExpressShipper (to be launched) 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 SMBs FedEx Global Trade Manager 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.

SERVICES OF BLUE DART

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REGIONAL SERVICES IN SAARC AREA

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. The service offers access to over 13,700 locations in India, and over 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coverage in the region through a quality network, an integrated air and ground infrastructure dedicated to express transportation and innovative technology support.

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 up to 500gms.

Regional Priority: Non-Documents (RPDT)

Fast reliable and safe door deliveries for samples and Currently available between India and Nepal only. non-commercial shipments.

Let see different type of regional services: -

DOMESTIC PRIORITY

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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 13,700 locations in India

Free pick-up from your location

Real-time Tracking

Regulatory Clearances

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 commercial shipments that are time-bound regulatory clearances, or require special handling. Dart Apex offers you 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 and are required to undergo

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locations serviced. A customer may book space for their shipments through companys Customer Service and deliver customer shipments to Blue Dart Aviation Office at the related airport. Dart Apex also offers a further economical option of a Door-to-Airport service. A customer may book their shipments at any of companys locations serviced for this product to any of the major airports. 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

Real-time Information

Time-Definite Delivery

Free Proof of Delivery on Demand

Speed

Flexibility

Economical

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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

Track your Shipment

Regulatory Clearances

Pick-up Convenience

Secure Shipments

Economical Tariff

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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

Free pick-up

Real-time Tracking

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Regulatory Clearances

Proof of Delivery

Trouble Free Service

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. The special benefits of the International Services are: 1) A Convenient Solution for Urgent, International Documents & Shipments. 2) Documents and packages will be picked-up from location, cleared through customs and delivered to consignee.

3) Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries worldwide, and pre-clearance for shipments in transit available for most destinations, ensure efficient delivery. 4) Real-time Tracking. 5) A Cost-effective Option. 6) Packaging.

DHL OFFERS:

1. Express Document (DOX):

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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.

Features:

Priority financial industry services. State of the art information systems. Specialised fast handling facilities. 90% of international banks' first choice. Door to door one company control. World class packaging.

Benefits:

The best possible service to the company. The leading edge for financial services. Track status online door to door. Highest level of control and security. One point of contact and accountability. Peace of mind.

2. Worldwide Package Express (WPX):

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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:

Door to door service. Simple documentation. Packaging range. Fastest for international expresss packages. State of the art information systems. Global customs clearance leader. Global market leader for international express packages.

Benefits:

Fastest transit time. Greater security and control. Simplified and convenient process. No hunting for packaging. Detailed online tracking. One company control.

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Single Invoice. Door to door peace of mind.

3. 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. Strong packaging and simple documentation.

Benefits:

Maximum convenience.

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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.

Different types of international services: -

AIRPORT TO AIRPORT

The airport-to-airport service is an air freight service available on the flights operated by Blue Dart Aviation between the airports of Kolkata, Delhi, Mumbai, Bangalore, Chennai and Hyderabad. The advantages of an airport-to-airport service are:

Cooling-Period

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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 which scheduled B737-200

freighter services within India and can offer a larger capacity than other domestic airline.

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.

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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

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 transhipment 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 23 international airlines - Air Canada, Air France, Air India, Air Mauritius, Alitalia, Asiana, British Airways, Cargolux, Cathay

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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.

BLUE DART INITIATES CUSTOMER SATISFACTION BENCHMARK

As a business entity customer have dispatched an important package that contains some confidential business documents. Customers do not know the status of the documents shipped. Customers end up making endless calls to the courier service office asking them when the 'Proof of Delivery' (POD) will come their way since company needs to be assured that everything that was sent has reached the destination. Now, Blue Dart Express Ltd promises to cure customers conventional woes.

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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. Companys 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 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.

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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.

BIBLOGRAPHY

*Blue Dart Brochure *www.bluedart.com *Information from

www.google.com www.wikkipedia.com

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