Name

Suresh Marimuthu

Roll no.

520964937

LC Code

3078

PROJECT ON LOGISTICS
MANAGEMENT

How word Logistics' derived?

The term 'Logistics' derived from the ancient Greek word 'o'
('logos'meaning 'ratio, word, calculation, reason, speech,
oration'), is considered to have originated for the military's need.
Logistics as a concept is considered to evolve from the military's
need to supply themselves as they moved from their base to a
forward position. In ancient Greek, Roman and Byzantine empires,
there were military officers with the title Logistikas who were
responsible for financial and supply distribution matters. Although
quite an old concept, the term 'Logistics' started to be used widely
in the business world since the early 1990s when globalization,
coupled with liberalization, triggered intense business competition
and forced both private and public firms to commit themselves to
meet the challenges of the market.

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What is Logistics?
Logistics is the . . . process of planning, implementing, and
controlling the efficient, effective flow and storage of goods,
services, and related information from point of origin to point of
consumption for the purpose of conforming to customer
requirements.

Logistics is the art and science of managing and controlling the

flow of goods, energy, information and other resources like
products, services, and people, from the source of production to the
marketplace. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the
integration of information, transportation, inventory, warehousing,
material handling, and packaging. The operating responsibility of
logistics is the geographical repositioning of raw materials, work in
process, and finished inventories where required at the lowest cost
possible.

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History of Logistics
In military logistics, experts manage how and when to move
resources to the places they are needed. In military science,
maintaining one's supply lines while disrupting those of the enemy
is a crucialsome would say the most crucialelement of
military strategy, since an armed force without food, fuel and
ammunition is defenseless.
The Iraq war was a dramatic example of the importance of
logistics. It had become very necessary for the US and its allies to
move huge amounts of men, materials and equipment over great
distances. Led by Lieutenant General William Pagonis, Logistics
was successfully used for this movement. The defeat of the British
in the American War of Independence, and the defeat of Rommel
in World War II, have been largely attributed to logistical failure.
The historical leaders Hannibal Barca and Alexander the Great are
considered to have been logistical geniuses.
Logistics as a business concept evolved only in the 1950s. This
was mainly due to the increasing complexity of supplying one's
business with materials and shipping out products in an
increasingly globalized supply chain, calling for experts in the field
who are called Supply Chain Logisticians. This can be defined as
having the right item in the right quantity at the right time for the
right price and is the science of process and incorporates all
industry sectors. The goal of logistic work is to manage the fruition
of project life cycles, supply chains and resultant efficiencies.
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What is Logistic Management?

Logistics is that part of the supply chain which plans, implements
and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the
point of origin and the point of consumption in order to meet
customer and legal requirements. A professional working in the
field of logistics management is called a logistician.
Logistics management is known by many names, the most
common are as follows:
1.
2.
3.
4.
5.

Materials Management
Channel Management
Distribution (or Physical Distribution)
Business or Logistics Management or
Supply Chain Management

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Is it different from SCM?

Logistics is that part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage
of goods, services, and related information from the point of origin
to the point of consumption in order to meet customers
requirements.
This is an excellent definition, conveying the idea that product
flows are to be managed from the point where they exist as raw
materials to the point where they are finally discarded. Logistics is
also concerned with the flow of services as well as physical goods,
an area of growing opportunity for
improvement. It also suggests that logistics is a process, meaning
that it includes all the activities that have an impact on making
goods and services available to customers when and where they
wish
to acquire them. However, the definition implies that logistics is
part of the supply chain process, not the entire process.
So, what is the supply chain process or, more popularly, supply
chain management?
Supply chain management (SCM) is a term that has emerged in
recent years that captures the essence of integrated logistics and
even goes beyond it. Supply chain management emphasizes the
logistics interactions that take place among the functions of
marketing, logistics, and production within a firm and those
interactions that take place between the legally separate firms
within the product-flow channel. Opportunities for cost or
customer service improvement are achieved through co-ordination
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and collaboration among the channel members where some

essential supply chain activities may not be under the direct control
of the logistician.
Although early definitions such as physical distribution, materials
management, industrial logistics and channel management - all
terms used to describe logistics - have promoted this broad scope
for logistics, there was little attempt to implement logistics beyond
a companys own enterprise boundaries, or even beyond its own
internal logistics function. Now, retail firms are showing success in
sharing information with suppliers, who in turn agree to maintain
and manage inventories on retailers shelves. Channel inventories
and product stockouts are lower. Manufacturing firms operating
under just-in-time production scheduling build relationships with
suppliers for the benefit of both companies by reducing
inventories.
Definitions of the supply chain and supply chain management
reflecting this broader scope are:
The supply chain (SC) encompasses all activities associated with
the flow and transformation of goods from the raw materials stage
(extraction), through to the end user, as well as the associated
information flows. Materials and information flow both up and
down the supply
chain.
Supply chain management (SCM) is the integration of these
activities, through improved supply chain relationships, to achieve
a sustainable competitive advantage.
Logistics/SC is a collection of functional activities (transportation,
inventory control, etc) which are repeated many times throughout
the channel through which raw materials are converted into
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finished products and consumer value is added. Because raw

material sources, plants, and selling points are not typically located
at the same places and the channel represents a sequence of
manufacturing steps, logistics activities recur many times before a
product arrives in the marketplace.

Even then, logistics activities are repeated once again as used

products are recycled upstream in the logistics channel.

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Business logistics
Logistics as a business concept evolved only in the 1950s. This was mainly
due to the increasing complexity of supplying one's business with materials
and shipping out products in an increasingly globalized supply chain, calling
for experts in the field who are called Supply Chain Logisticians. This can be
defined as having the right item in the right quantity at the right time at the
right place for the right price and is the science of process and incorporates
all industry sectors. The goal of logistics work is to manage the fruition of
project life cycles, supply chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or
external focus (outbound logistics) covering the flow and storage of
materials from point of origin to point of consumption . The main functions
of a qualified logistician include inventory management, purchasing,
transportation, warehousing, consultation and the organizing and planning
of these activities. Logisticians combine a professional knowledge of each
of these functions so that there is a coordination of resources in an
organization. There are two fundamentally different forms of logistics. One
optimizes a steady flow of material through a network of transport links
and storage nodes. The other coordinates a sequence of resources to carry
out some project.

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Production logistics
The term is used for describing logistic processes within an industry. The
purpose of production logistics is to ensure that each machine and
workstation is being fed with the right product in the right quantity and
quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the
flow through the value adding processes and eliminates non-value adding
ones. Production logistics can be applied in existing as well as new plants.
Manufacturing in an existing plant is a constantly changing process.
Machines are exchanged and new ones added, which gives the opportunity
to improve the production logistics system accordingly. Production logistics
provides the means to achieve customer response and capital efficiency.
Production logistics is getting more and more important with the
decreasing batch sizes. In many industries (e.g. mobile phone) batch size
one is the short term aim. This way even a single customer demand can be
fulfilled in an efficient way. Track and tracing, which is an essential part of
production logistics - due to product safety and product reliability issues - is
also gaining importance especially in the automotive and the medical
industry.

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Logistics Management Process

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:

Inbound logistics: Purchasing, Inbound transportation, Inventory

Management.

Manufacturing: Production planning systems, Machine scheduling

system.

Outbound logistics: Order booking process, Distribution management,

outbound transportation, and Warehouse management systems.
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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Scenario of Logistics in India

At present, companies specialising in logistics operations in India use
traditional technologies and cater to stand alone services like
transportation, warehousing, clearing and forwarding. There is tremendous
scope to upgrade the technology, integrate the entire supply chain,
improve productivity levels and bring down operating costs. Any
technology that can improve productivity in transportation operations will
be a great boom to the economy both directly and indirectly with
opportunities for 10-12 per cent reduction in costs. Besides the savings on
downstream users of transport will be much higher and the cost multiplier
effect on the economy will be reduced to that extent.
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.
In recognition of the growing need for technology-enabled solutions
in logistics in India and abroad, many companies such as eLogistics are
taking shape. In fact, there are a dozen multinational logistics companies
such as Exel, Bax Global and Menlo which have started operations in India
during the last few years.
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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.
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.

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About Customer Service

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 valueadded 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
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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-added
services, by definition, are unique to specific customers and represent
extensions over and above a firms basic service program.
The three fundamental dimensions of customer service were: 1.

Availability.

2.

Performance.

3.

Reliability.

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About Logistics & Customer Service

Logistics contributes to an organizations success by providing customers
with timely and accurate product delivery. The key question is who is the
customer? For logistics, the customer is any delivery destination. Typical
destination range from consumers homes to retail and wholesale businesses
to the receiving docks of a firms manufacturing plants and warehouses. In
some cases the customer is a different organization or individual who is
taking ownership of the product or service being delivered. In many other
situations the customer is different facility of the same firm or a business
partner at some other location in the supply chain. Regardless of the
motivation and delivery purpose, the customer being serviced is the focal
point and driving force in establishing logistical performance requirements.
It is important to fully understand customer service deliverables when
establishing logistical strategies.
Whereas logistics is not capability that contributes to overall success, it is
fundamental to servicing customers. In a typical marketing situation, the
desired customer service performance changes over time. To plan marketing
strategy in a dynamic will serve to illustrate how logistical customer service
requirement related to a specific product/segment situation will change over
time. The product life cycle structure offers a useful framework for viewing
the dynamics associated with customer service requirements planning.

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In terms of overall logistical performance, the basic customer service

platform or program should be the level of support provided to all
customers.

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Logistics Functions
1.

Purchasing / Procurement

2.

Inventory Control

3.

Warehousing

4.

Materials Handling

5.

Facility Location / Network Design

6.

Transportation

7.

Customer Service

8.

Order Processing

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Purchasing and Procurement

HISTORY
Prior to 1900, there were few separate and distinct purchasing
departments in U.S. business. Most pre-twentieth-century
purchasing departments existed in the railroad industry. The first
book specifically addressing institutionalized purchasing within
this industry was The Handling of Railway SuppliesTheir
Purchase and Disposition, written by Marshall M. Kirkman in
1887.

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Early in the twentieth century, several books on purchasing were

published, while discussion of purchasing practices and concerns
were tailored to specific industries in technical trade publications.
The year 1915 saw the founding of The National Association of
Purchasing
Agents. This organization eventually became known as the
National Association of Purchasing Management (NAPM) and is
still active today under the name The Institute for Supply
Management (ISM).
Purchasing and procurement is used to denote the function of
and the responsibility for procuring materials, supplies, and
services. Recently, the term "supply management" has
increasingly come to describe this process as it pertains to a
professional capacity. Employees who serve in this function are
known as buyers, purchasing agents, or supply managers.
Depending on the size of the organization, buyers may further be
ranked as senior buyers or junior buyers.
FACTORS FOR PURCHASING
The importance of purchasing in any firm is largely determined
the four factors: availability of materials, absolute dollar volume
of purchases, percent of product cost represented by materials,
and the types of materials purchased. Purchasing must concern
itself with whether or not the materials used by the firm are
readily available in a competitive market or whether some are
bought in volatile markets that are subject to shortages and price
instability. If the latter condition prevails, creative analysis by toplevel purchasing professionals is required.

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If a firm spends a large percentage of its available capital on

materials, the sheer magnitude of expense means that efficient
purchasing can produce a significant savings. Even small unit
savings add up quickly when purchased in large volumes. When a
firm's materials costs are 40 percent or more of its product cost
(or its total operating budget), small reductions in material costs
can increase profit margins significantly. In this situation, efficient
purchasing and purchasing management again can make or break
a business.

THE ROLE OF PURCHASING

There are two basic types of purchasing: purchasing for resale and
purchasing for consumption or transformation. The former is
generally associated with retailers and wholesalers. The latter is
defined as industrial purchasing.
Purchasing can also be seen as either strategic or transactional.
Also, the words "direct" and "indirect" have been used to
distinguish the two types. Strategic (direct) buying involves the
establishment of mutually beneficial long-term relationship
relationships between buyers and suppliers. Usually strategic
buying involves purchase of materials that are crucial to the
support of the firm's distinctive competence. This could include
raw material and components normally used in the production
process. Transactional (indirect) buying involves repetitive
purchases, from the same vendor, probably through a blanket
purchase order. These orders could include products and services
not listed on the bill of materials, such as MRO goods, but are
used indirectly in producing the item.
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Some experts relate that the purchasing function is responsible

for determining the organization's requirements, selecting an
optimal source of supply, ensuring a fair and reasonable price (for
both the purchasing organization and the supplier), and
establishing and maintaining mutually beneficial relationships
with the most desirable suppliers. In other words, purchasing
departments determine what to buy, where to buy it, how much
to pay, and ensure its availability by managing the contract and
maintaining strong relationships with suppliers.

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Inventory control

Inventory control means keeping the overall costs associated with having
inventory as low as possible without creating problems. This is also
sometimes called stock control. It is an important part of any business that
must have a stock of products or items on hand. Correctly managing
inventory control is a delicate balance at all times between having too much
and too little in order to maximize profits. The costs associated with holding
stock, running out of stock, and placing orders must all be looked at and
compared in order to find the right formula for a particular business.
It is impossible to have an unlimited supply on hand, for a number of
different reasons. Many businesses simply dont have enough money to keep
excessively large inventories. There are costs associated with purchasing the
items as well as storing them, and having too many products leads to further
losses when they dont move off of the shelves.
At the same time, there are issues with inventory control when there isnt
enough stock on hand. One common problem is running out of inventory,
which is caused by trying to reduce inventory costs too much. This is
something that no business wants to have happen, but it happens to virtually
all of them at some point. Even the largest stores run out of certain products
from time to time when they sell or use more than they expected. This can
cause financial losses when inventory is not available for customers to
purchase. Part of inventory control is trying to minimize shortages so these
are rare occurrences. Most businesses expect they will have shortages on
occasion and they have calculated that the small loss is worth the money
saved by not having an overstock.

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Another important element of inventory control is called reorder point.

Businesses need to think ahead and calculate the best time for reordering
products. Doing so too soon may cause financial difficulties or running out
of space. On the other hand, waiting to long to reorder will result in a
shortage and running out of inventory before the next shipment arrives.
When figuring out a reorder point, its necessary to calculate how long it
will take the shipment to arrive and the amount of demand for a particular
item. The overhead costs, fees, and shipping expenses of ordering large
versus small quantities should also be looked at.
Inventory control is an ongoing process that is rarely, if ever, executed
perfectly. Experience, expertise, and practice help people to make the best
decisions regarding stock, but there are always unknown circumstances and
variables. Stores can make good estimates about how many of a specific
product they will sell, but they get things wrong from time to time. This is
unavoidable. Inventory control can break a business if it is executed poorly,
because either expenses will be too high or customers will get tired of
dealing with shortages and find another place to spend their money.

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Warehousing

A warehouse is a commercial building for storage of goods. Warehouses are

used by manufacturers, importers, exporters, wholesalers, transport
businesses, customs, etc. They are usually large plain buildings in industrial
areas of cities and towns. They usually have loading docks to load and
unload goods from trucks. Sometimes warehouses load and unload goods
directly from railways, airports, or seaports. They often have cranes and
forklifts for moving goods, which are usually placed on ISO standard pallets
loaded into pallet racks.

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Warehouse Management is to Move from Managing Overhead to Creating a

Competitive Advantage
Inside the walls of your warehouse, your utilization of every component
space, people, inventory and equipmentwill impact your bottom line in
profound ways over time. Warehouse Management enables you to analyze
these components continually, so you can conserve effort, fill orders faster
and more accurately, save space and reduce inventory.
Use Warehouse Management to optimize:
1.

Inventory: With our complete inventory management capabilities,

track data on every unit utilizing the latest technologies. Improve the
accuracy of every order and reduce safety stock.

2.

Labor: Make people more efficient by managing their tasks and

improving their processes. Plan and balance workload and monitor
activities with integration to Labor Management.

3.

Physical Space: Cross-docking and flow-through capabilities, plus

integration with Yard Management, reduce the need for warehouse
space. Improve warehouse layout for faster fulfillment and overhead
reduction.

4.

Time: Automate picking, packing and shipping, and minimize the

number of moves per order. Analyze every facet of order fulfillment
to speed processing and improve customer service.

5.

Costs: Aggregate orders to reduce transportation and shipping costs.

Eliminate annual physical counts. Reduce expenses on labor and
storage.
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Material Handling

Material handling cannot be avoided in logistics, but can certainly be

reduced to minimum levels. The productivity potential of logistics can be
exploited by selecting the right type of handling equipment. The selection of
material handling equipment cannot be done in isolation, without
considering the storage system. Investment in the material handling system
will be sheer waste if it is not compatible to the warehouse layout plan. The
layout will create obstacles for free movement of equipment and goods,
resulting in poor equipment productivity. Recent trends indicate preference
for automated system with higher logistics productivity to enhance the
effectiveness of human energy in material movement.
Everyone wants more control. The more control you have, the better you
perform. Similarly good material handling systems give you control on
productivity. Distribution, manufacturing, and warehousing are the areas
where material handling plays a major role. To do these things well, you
need control of processes, of equipment, of personnel, of space and also of
time.
The basic questions frequently asked are:
1.
2.
3.
4.

When do things get done?

How many people does it take to do them?
Do your material handling systems increase controlor hinder it?
What is cost involved?
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5.

What is the up time of system?

Infact material handling systems power todays efficient distribution and

manufacturing facilities. It is the secret weapon in logistics operations for
improving system productivity. enhancing customer service and speeding up
throughputs. By gaining control of your warehouse, you gain control of your
profitability. Effective material handling systems create savings that helps
directly to improve your bottom line. If your business relies heavily on
manufacturing, warehousing, storage or distribution, the potential savings
are perhaps your greatest opportunity. If your suffer from damaged products,
slow pick rates, a lack of space, disorganization, or bottlenecks, dont think
throwing more people at it will solve the problem-thats short term help at
best, and youll be stuck with ongoing costs which you cannot eliminate.

Role of material handling in supply chain

In the last several years material handling has become a new, complex, and
rapidly evolving science. For moving material in and out of warehouse many
types of equipment and system are in use, depending on the type of products
and volume to be handled. The equipment is used, in loading and unloading
operations, for movement of goods over short distances. The handling of
material in warehouse is restricted to unitized forms, which require smaller
size equipment. However, for bulk handling of material at logistics nodes
such as shipyards, ports and airports different type of equipment is used. In
warehouses, material handling operation is performed at the following
stages:
1.
2.
3.
4.
5.

Unloading the incoming material from transport vehicle.

Moving the unloaded material to assigned storage place in
warehouses.
Lifting the material from its storage place during order picking.
Moving the material for inspection and packing.
Loading packages/boxes/cartons on to transport vehicles.

The efficiency of material handling equipments adds to the performance

level of the warehouse. The internal movement of goods has a direct bearing
on the order picking and fulfillment cycle. The warehouse, wherein the
material handling equipments is in use, is more sensitive to labor
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productivity than the manufacturing center as material handling is more

labor intensive. There is a scope for reducing labor and enhancing
productivity by emerging technology in material handling. A good material
handling system will enhance the speed and
throughput of material movement through the supply chain.

Material Handling Systems - Types

Materials handling systems provide transportation and storage of materials,
components and assemblies. Material handling activities start with unloading
of goods from delivery transportation, the goods then pass into storage, onto
machining, assembly, testing, storage, packaging, storage, and finally
loading onto transport. Each of these stages of the production process
requires a slightly different design of handling equipment, and some
processes require integration of multiple items of handling equipment.
Design or selection of the right material handling system is one of the most
important decisions that a manager can make, because of the effects on the
rest of the manufacturing plant. It affects the material flow and the factory
layout. Apart from the initial capital cost for a new system, the consequences
of any misjudgment in material handling will have considerable and longterm effects on operations. In recent years computer based simulation tools
have been developed to simulate material handling systems and their effect
on the manufacturing process.
Loading equipment is aimed at providing the capability to load and unload
vehicles; it is also referred to as loading bay equipment. The category can be
divided into products that provide access from the loading bay to the vehicle
and equipment that moves the product from the loading bay to the vehicle
and vice versa. Equipment that falls into the access category are scissor lifts,
goods lifts, dock levelers, loading ramps, doors, dock seals and vehicle
restraints, and equipment that falls into the movement category are pallet
trucks, conveyors and fork lift trucks.

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Lifting and Transport Equipment

Lifting and transport equipment is used to move product around the
production facility, from loading bay to storage, from storage to production,
around production, from production to storage, and from storage to loading
bay. Equipment that falls into this category are fork lift
trucks, order picking trucks, overhead cranes, tower cranes and belt, chain
and overhead conveyors.
Storage Equipment
Storage equipment, as the name suggests is used to store materials,
components and assemblies. The level of complexity of this type of
equipment is wide ranging, from a welded cantilever steel rack to hold
lengths of stock materials to a powered vertical carousel system.
Also within this category are pallet racks, mobile shelf units, and plastic,
wood and steel containers.
Automated Handling Equipment
Manufacturers of automated handling equipment produce automated guide
vehicles, storage and retrieval equipment, conveying systems and product
sortation equipment. The level of automation varies depending on the
handling requirements. Fully automated handling systems
ensure that the materials/components/assemblies are delivered to the
production line when required without significant manual intervention.
Semi-automatic handling systems provide less advanced solutions that
deliver materials/components/assemblies to the production line
with some manual intervention.
Automated Guided Vehicles (AGVs)
An AGV is a material handling device that is used to move parts between
machines or workcentres. They are small, independently powered vehicles
that are usually guided by cables that are buried in the floor or they use an
optical guidance system. They are controlled by receiving instructions either
from a central computer or from their own on-board computer. In some
applications they
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can be used as mobile workstations to replace the more traditional conveyor

system.

Robotics
Robotics was first introduced 30 years ago. Since then their applications and
versatility have increased dramatically. The basic robotics technology is
similar to CNC technology but most robots have more degrees of freedom.
In manufacturing applications, robots can be used for assembly work,
process such as painting, welding, etc. and for material handling.
Morerecently robots are equipped with sensory feedback through vision and
tactile sense. The main advantage of robots is that they can be used for
repetitive, monotonous, mundane tasks that need precision. They can also be
used in hazardous environments that are not suitable forhuman operators.

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Facility Location / Network Design

Facility location decisions play a critical role in the strategic design of
supply chain networks. In this paper, a literature review of facility location
models in the context of supply chain management is given. We identify
basic features that such models must capture to support decision-making
involved in strategic supply chain planning. In particular, the integration of
location decisions with other decisions relevant to the design of a supply
chain network is discussed. Furthermore, aspects related to the structure of
the supply chain network, including those specific to reverse logistics, are
also addressed. Significant contributions to the current state-of-the-art are
surveyed taking into account numerous factors. Supply chain performance
measures and optimization techniques are also reviewed. Applications of
facility location models to supply chain network design ranging across
various industries are presented. Finally, a list of issues requiring further
research are highlighted.
Logistics Network Design relates to the establishment of supply,
warehousing and distribution infrastructure. It encapsulates procurement,
value-add and postponement activities and inventory control policies.
Logistics Network Design seeks to minimize logistics cost while offering the
right level of flexibility to meet service level requirements. A logistics
network design initiative typically covers three elements - the inbound and
internal supply chain, outbound logistics, and return logistics. It is
important not to ignore the after-sales supply chain, where products need
to be returned for repair and return, or swap and scrap/refurbish. A poorly
designed reverse logistics network can have serious consequences for
company profitability, especially in the case of product design flaws or
component recalls. SimFlex Logistics Network Design solution enables
reverse logistics network modeling independently or in conjunction with a
forward logistics network.

ROLL NO. 520964937

Transportation
Role of Transportation in Logistics
Peter Druckers comment on distribution as the `last Dark Continent for
business to conquer resulted in an important management function that has
multiple strides ranging from integrated logistics management to supply
chain management.
It is virtually inconceivable in todays economy for a firm to function
without the aid of transportation. Transportation is an essential and a major
sub-function of logistics that creates time and place utility in goods. In fact,
the backbone of the entire supply chain is the transportation management
that makes it possible to achieve the well known seven Rs- 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.
Micro Logistics and Macro Logistics
Transportation decisions affect the other sub-functions, and there is a close
linkage between them. Hence, transport decisions cannot be made in a
vacuum. This part of the role of transportation in logistics may be termed as
Micro Logistics, where at the firms level, the companies optimize this
function for competitive cost advantage.
The importance of transportation should also be seen by looking at the
impact of transportation on a countrys economy. Studies reveal that in India
the total logistics costs constitute nearly 10 percent of the GNP out of which
nearly 40 percent is because of transportation alone. In the U.S., the
estimates show that the cost is around 6 percent of the GNP. The major
infrastructure required for moving goods from one place to another in India
involve the active roles of Roads, Road Freight Industry, Railways, Ports
and Shipping, and Pipelines, all of which are either managed or regulated by
the government. The efficient and effective management of this
infrastructure to enable the smooth flow of goods constitutes Macro
Logistics. The situation in India is that because of unprofessional
management of Macro Logistics, the industries are not able to derive the
best out of their Micro Logistics. Any improvement in the Micro Logistics
will be effective only if the Macro Logistics is effective. Also, Indian
ROLL NO. 520964937

companies and the industries have not fully optimized their logistics
function, as there is a tendency to live with the lacunae in Macro Logistics
and the governments inefficiency.
The objective of this article is to put forth the Macro perspectives in Indian
transportation logistics, the scenarios in the infrastructure, which constitute
Macro Logistics in the country, and possible remedies

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Customer Service

In the battle for consumersloyalty it is no longer enough simply to deliver

quality of service - todays value-add is quality of experience. If a service is
a transaction of which the consumer is by and large a recipient, then an
experience is an activity or event in which the consumer is a fully active and
engaged participant - a journey if you like - and that journey has the
potential to leave a memory imprint that will far outlast a simple
transactional outcome.
Its easy to view clicking on the confirm orderbutton as simply the next to
last station stop on the experience journey but for both the consumer and the
on-line retailer its the start of a new journey in which fulfilment and
logistics are the sole influencers of outcome. To achieve a seamless
continuation from the presale stages through to the final destination we need
to understand what customers expect from this next part of their journey and
develop integrated fulfilment and logistics solutions that will deliver those
needs.

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Customers need:
1.
2.
3.
4.
5.
6.
7.
8.
9.

The right products

To be delivered quickly/on time
And to be in perfect condition
Instant access to a customer service facility
If they have any order queries or concerns
And for order tracking
Quick and effective resolution of queries or complaints
An easy way to return unwanted products
Or to obtain replacements for damaged products

These expectations may appear simple both to manage and deliver but there
are many fulfilment and logistics building blocks to be manoeuvred into
place with many value-added techniques to be applied if we want to deliver
the kind of memorable experience that reinforces brand values and builds
customer loyalty.

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Order Processing
Order processing Order processing is a key element of Order fulfillment.
Order processing operations or facilities are commonly called "distribution
centers". "Order processing" is the term generally used to describe the
process or the work flow associated with the picking, packing and delivery
of the packed item(s) to a shipping carrier. The specific "order fulfillment
process" or the operational procedures of distribution centers are determined
by many factors. Each distribution center has its own unique requirements or
priorities. There is no "one size fits all" process that universally provides the
most efficient operation. Some of the factors that determine the specific
process flow of a distribution center are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

The nature of the shipped product - shipping eggs and shipping shirts
can require differing fulfillment processes
The nature of the orders - the number of differing items and quantities
of each item in orders
The nature of the shipping packaging - cases, totes, envelopes, pallets
can create process variations
Shipping costs - consolidation of orders, shipping pre-sort can change
processing operations
Availability and cost and productivity of workforce - can create tradeoff decisions in automation and manual processing operations
Timeliness of shipment windows - when shipments need to be
completed based on carriers can create processing variations
Availability of capital expenditure dollars - influence on manual
verses automated process decisions and longer term benefits
Value of product shipped - the ratio of the value of the shipped
product and the order fulfillment cost
Seasonality variations in outbound volume - amount and duration of
seasonal peaks and valleys of outbound volume
Predictability of future volume, product and order profiles Predictability of distribution network - whether or not the network
itself is going to change

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A List of Approaches in Log. Man.

1.

Just in Time Inventory

2.

Vendor Managed Inventory

3.

Quick Response

4.

Collaborative Planning, Forecasting, and Replenishment

5.

Outsourcing / 3PLs

6.

Cross-docking / Flow Through Centers

7.

Build to Order

8.

SC Visibility Software

9.

Internet / EDI

10.

Collaborative Transportation Management

11.

Auctions / Exchanges

12.

Merge - In - Transit

13.

Partnerships / Alliances

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Just In Time
Just In Time (JIT) is an inventory strategy implemented to improve the
return on investment of a business by reducing in-process inventory and its
associated costs. The process is driven by a series of signals, or Kanban ,
that tell production processes to make the next part. Kanban are usually
simple visual signals, such as the presence or absence of a part on a shelf.
When implemented correctly, JIT can lead to dramatic improvements in a
manufacturing organization's return on investment, quality, and efficiency
Just-in-Time (JIT) is a production strategy that strives to improve a
business' return on investment by reducing in-process inventory and
associated carrying costs. Just In Time production method is also called
the Toyota Production System. To meet JIT objectives, the process relies
on signals or Kanban ( Kanban?) between different points in the
process, which tell production when to make the next part. Kanban are
usually 'tickets' but can be simple visual signals, such as the presence or
absence of a part on a shelf. Implemented correctly, JIT focuses on
continuous improvement and can improve a manufacturing organization's
return on investment, quality, and efficiency. To achieve continuous
improvement key areas of focus could be flow, employee involvement
and quality.
Quick notice that stock depletion requires personnel to order new stock is
critical to the inventory reduction at the center of JIT. This saves
warehouse space and costs. However, the complete mechanism for
making this work is often misunderstood.

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For instance, its effective application cannot be independent of other key

components of a lean manufacturing system or it can "...end up with the
opposite of the desired result."[1] In recent years manufacturers have
continued to try to hone forecasting methods (such as applying a trailing
13 week average as a better predictor for JIT planning,[2] however some
research demonstrates that basing JIT on the presumption of stability is
inherently flawed.[3]

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Vendor Managed Inventory

Vendor Managed Inventory (VMI) is a business model where the buyer of a
product provides information to a vendor of that product and the vendor
takes full responsibility for maintaining an agreed inventory of the material,
usually at the buyer's consumption location. A third party logistics provider
can also be involved to make sure that the buyer have the required level of
inventory by adjusting the demand and supply gaps. VMI makes it less
likely that a business will unintentionally become out of stock of a good and
reduces inventory in the supply chain.

Introduction
Vendor Managed Inventory popularly known as VMI is gaining great
momentum in retailbusiness processes. In this era of tough competition
retailers are implementing every supply chain optimization process that will
reduce their costs, reduce inventory levels and increase profits. Efficient
supply chain management requires the rapid and accurate transfer of
information throughout a supply system. Vendor Managed Inventory (VMI)
is designed to facilitate that transfer and to provide major cost saving
benefits to both suppliers and retailers customers. Vendor Managed
Inventory is a continuous replenishment program that uses the exchange of
information between the retailer and the supplier to allow the supplier to
manage and replenish merchandise at the store or
warehouse level. In this program, the retailer supplies the vendor with the
information necessary to maintain just enough merchandise to meet
customer demand. This enable the supplier to better project and anticipate
the amount of product it needs to produce or supply.

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Definition and Concept

Vendor managed inventory process can be defined as A mechanism where
the supplier creates the purchase orders based on the demand information
exchanged by the retailer/customer. To say this in simple terms, VMI is a
backward replenishment model where the supplier does the demand creation
and demand fulfillment. In this model, instead of the customer managing his
inventory and deciding how much to fulfill and when, the supplier does.The
VMI concept provides improved visibility across the supply-chain pipeline
that helps manufacturers, suppliers and retailers improve production
planning, reduce inventory, improve inventory turnover and improve stock
availability. With information available at a more detailed level, it allows the
manufacturer to be more customer-specific in its planning. The VMI
concept is being widely used in many packaged consumer goods processes
where the end-users demand for products is relatively stable with short-term
fluctuations in supply chain. With the ability of supply-chain applications to
manage inventories at retailer locations, VMI concepts are being applied at
both the distribution center-level and the store-level.

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Quick response
QR is a management concept created to increase consumer satisfaction and
survive increasing competition from new competitors. It intends to shorten
the lead time from receiving an order to delivery of the products and
increase the cash flow.
The QR (Quick Response) system, a production and distribution system for
quick response to the market, was developed for the U.S. textile industry to
survive the global competition with low-cost foreign companies. VICS
(Voluntary Interindustry Commerce Standards Association) is the
organization that is promoting QR. The EDI (electronic data interchange)
protocol used for the QR system, that is a standard protocol for information
exchange between the U.S. retail industry and companies, is also called
"VICS", which is also a subset of ANSIX. While "VICS" is the name of the
organization that promotes QR, it is also the name of EDI, i.e. the exchange
of data (all data such as order placement and billing data) between
companies who support QR.
QR was created from a project to improve the supply chain management of
the daily necessities industry such as the textile industry and ECR (efficient
consumer response) concept was created by the processed food distribution
industry. Both concepts were developed from the standpoint of increasing
consumer satisfaction and as a mean to survive againat certains types of
competitors that producer-retailer alliances call discounters and category
killers. These concepts intend to shorten lead times from order receipt to
delivery, minimize unsold inventory by holding minimum inventory levels,
and increase cash flow.

ROLL NO. 520964937

Collaborative Planning, Forecasting & Replenishment

One of the main issues inhibiting increased supply chain performance today
is the lack of visibility into down-stream demand. This lack of demand and
inventory visibility leads to lost sales and high inventory levels for both
retailers and manufacturers.
Most companies forecast future demand based on historical customer orders
or shipment levels and patterns. However, actual consumer demand may be
very different from the order stream. Each member of the supply chain
observes the demand patterns of its customers and in turn produces as set of
demands on its suppliers. But the decisions made in forecasting, setting
inventory targets. Lot sizing and purchasing act to transform and distort the
demand picture. The further a company is "upstream" in the supply chain,
the more distorted is the order stream relative to consumer demand as
described by the so-called bullwhip effect. This distortion of the demand
picture imposes high supply chain costs in the form of suboptimal customer
service levels, high inventories and low returns on asset.
By providing business partner visibility into inventory and by collaborating
on a single shared forecast of customer demand, supply chain partners can
positively impact a set of key business drivers to create value across supply
chain partners.
Collaborative Planning Forecasting and Replenishment (CPFR) represents a
paradigm-breaking business model that extents Vendor Managed Inventory
principles by taking a holistic approach to supply chain management among
a network of trading partners. CPFR has the potential to deliver increased
sales, organizational streamlining and alignment, administrative and
operational efficiency, improved cash flow, and improved return-on-assets
(ROA) performance. The CPFR process model has been developed by the
VICS Association in cooperation with leading retailers, consumer packaged
goods manufacturers as well as consulting and software providers.

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The CPFR process model represents voluntary guidelines aimed at

structuring and guiding supply chain partners in setting up their relationship
and processes.

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Outsourcing / 3PLs
Outsourcing is a viable option for companies. Businesses outsource for
many and varied reasons-increase shareholder value, reduce costs, business
transformation, improve operations, overcome lack of internal capabilities,
keep up with competitors, gain competitive advantage, improve capabilities,
increase sales, improve service, reduce inventory, increase inventory
velocity and turns, mitigate capital investment, improve cash flow, turn fixed
costs into variable costs and other benefits, both tangible and intangible. To
the maximum, and if done correctly, outsourcing and business process
outsourcing can be used to create a viable virtual corporation.
3PLs. 3PLs have led the way in logistics outsourcing. Drawing on its core
business, whether it be forwarding, trucking or warehousing, they moved
into providing other services for customers. Creation of a 3PL presented a
way for a commodity-service logistics provider to move into higher margin,
bundled services.
Customers, anxious to reduce costs, want what 3PLs have to offer. The
potential market opportunity for outsourced logistics service providers,
whether domestic, international and/or global is huge.
But something has happened on the yellow-brick road. The reasons are
varied, but the bottom line is many have failed at their own business
transformation. Some 3PLs have not moved past their core commodity
service to become true multi-service providers. Or international 3PLs have
not understood how to provide domestic services; or domestic ones have not
succeeded at venturing into international logistics services.
Others have failed to differentiate themselves against the competition.
Certain 3PLs have not done a good job positioning and defining themselves
in the marketplace. Or the parent company has not given them the resources,
especially sales and sales leads, to penetrate even their existing customers.
And, sundry have commoditized their 3PL service, as a result undoing the
very purpose of their 3PL. These setbacks have slowed down the growth of
some 3PLs in terms of both customer retention, especially, and new
customers. Fragmentation of the
ROLL NO. 520964937

3PL sector reflects both the uncertainty of how 3PLs view themselves and
the diversity of customer needs.
As a result, customers have had to compare apples and oranges in their RFP
replies. Shippers share some accountability with an overemphasis on cost
reduction as the key metric and without a clear definition of their
requirements for services they need and how it will all work within their
company. They looked for silver bullets and quick answers to complex
needs.

ROLL NO. 520964937

Cross-docking / Flow Through

Centers

Introduction:
Cross-docking is an age-old practice that has served many companies well
for decades. Cross-dock is a facility that transfers items between carriers or
vehicles with minimal use of warehousing in between. In fact, the original
cross-docks were so named because shipments literally moved across
loading docks during their transfer. Modern cross-dock operations may
include short-term warehousing and many involve value-adding services that
require brief stops before product moves on.

Application:
1. Cross-dockings potential applications are as varied as its definitions.
Various companies use cross-docks to perform international deconsolidation
functions such as distribution center bypass or postponement.
2. Others use them to collect, Sort, and redirect product more efficiently, a
concept known as hub-and-spoke, which works much like the relationship
between
small
regional
airports
and
airline
hubs.
ROLL NO. 520964937

3. Companies also use cross docks as flow-through centers that help provide
manufacturing support

Benefits of Cross Docking:

1. During the early 1990s when just-in-time inventory was the mantra on
virtually everyones lips, cross-docking was all about minimizing
warehousing and achieving razor-thin inventory levels. Many companies
now consider it equally valuable for increasing speed to market, especially if
their
supply
chain
is
global.
2. Cross-docks can also help companies reduce transportation expenses.

Transloading vs. Cross - docking:

Its very common to confuse Transloading and cross-docking, but the terms
are not interchangeable. Transloading is a form of cross-docking that
involves switching transportation modes, usually with unloading and
reconfiguration in between. For example, Many companies Transload the
contents of their incoming ocean containers into over-the-road trailers before
shipping out via truck because its possible to fit the contents of nearly two
ocean containers into one trailer.

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Requirements of Cross-docking:
For personal cross-dock facility, one should consider shall over than a
standard warehouse (50 to 125 feet as opposed to 400 feet) so that inbound
product could arrive on one side of the facility and easily be moved and
loaded across the facility to an outbound truck. But thats not a luxury a lot
of companies can afford. Many third-party logistics companies and carriers
include cross-docking among their offerings. Either way, the key is
stationing incoming and outgoing vehicles in close proximity and having
good people in place to meet high inventory velocity goals.

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Build to Order
1. INTRODUCTION
Build-to-order (BTO) is defined as the process of manufacturing quality
products based on the needs of a customer at competitive prices
(Gunasekaran, 2005). The objective of BTO supply chain management in
organizations is to maximize customer satisfaction by providing
customizable products in a timely fashion. BTO responds to customer needs
by adjusting production to their specifications. This customization of
products varies depending on the type of product. When implementing a
BTO strategy, a company must have a close relationship with the suppliers,
distributors and contract manufacturers. To make BTO successful, the firm
must adopt focused inventory practices. In the case of BTO in the computer
industry, just-in-time, or JIT is a widely used inventory strategy.
There are many strategies the computer industry has adopted to help gain
competitive advantage. The BTO model has been one of the most successful.
BTO is very flexible, and allows for mass customization. Certain computer
companies such as Dell have influenced the computer industry immensely
with the wide usage of BTO strategies. Other companies such as Gateway,
Hewlett Packard and Compaq have recently found success in this model as
well. Dell gained competitive advantage through BTO by keeping no work
in process or finished goods inventories at the end of each workday. Dell has
also utilized the internet as a means of information exchange with the
customer, as well as a means of ordering their product. Dell also acquired
competitive advantage though their generous return policy and
modularization of their returned parts. BTO is so popular and difficult to

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implement that other companies such as Apple have lost business to

companies who have been successful in adopting BTO.
Build-to-Order (BTO) is defined as "a value chain that activates the
processes of building the products based on individual customer
requirements and by leveraging information technology and strategic
alliances with partnering firms for required components and support services
such as logistics. The aim in BTO is to meet the demands of individual
customers with a short lead time and minimum inventory and production
costs along the value chain" (Gunasekaran, 2005). BTO provides a level of
responsiveness, cost benefits, and flexibility that allows companies to
distribute the custom products in a timely manner. BTO eliminates a large
portion of inventory, work in process, and raw materials. The reaction time
in the market time is minimal in the BTO system. The BTO strategy is used
to mass produce products and distribute them to customers all over the
world.
When it comes to purchasing a computer, customers want to be sure that
they have made the right decision. Computers tend to be very large
investments averaging anywhere from $ 500 to $ 2000. When spending an
amount of money as large as this, the customers want to ensure that they are
going to be pleased with their purchase and that their computer will benefit
their needs for an acceptable period of time.
The BTO model enables firms to produce specific products to suit individual
customer needs in the new competitive global market. In the BTO
environment, the operations are less free and tend to be more structured
because they can not operate independently from customer demand, because
the wants and needs of the customer drive production (Prasad, 2005). BTO
allows manufacturers to respond more efficiently to the conditions of the
market. When customer preferences change, the product mix will change
immediately to reflect demand. Also, the demand can be predicted and
shaped by the sales system (Gunasekaran, 2005).

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It is important to maintain a close relationship with customers. Because BTO

provides a specific product for each individual customer, they maintain a
better working relationship. Customers are more satisfied with a product
suited for them specifically. In BTO, firms take into consideration the needs
of each individual customer. Marketing in this case plays an important role
in customer service. Marketing in BTO is more customer-oriented, rather
than product-oriented. The role of marketing is to assure customer
satisfaction through adequate supply and offering a more quality product .

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SC Visibility Software
Global supply chain teams need to have near-real time visibility to the
status of orders, shipments and in-transit inventory to optimize their
network. Desired by many, and achieved by few, Supply Chain
Visibility is complicated by the realities of todays global network:
multiple trading partners, all with different information systems and
data definitions, and information that can flow at unpredictable times.
The following factors are also major challenges for companies to
develop a Supply Chain Visibility project:
The cost of integration is very high
The integration requirements vary widely among message type and
mode
Data quality can not be efficiently monitored and maintained
causing users to lose confidence in the content
The software can not handle the complex structures and
relationships of orders to shipments to equipment

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Supply Chain Visibility software addresses the complexity of your

global network with five key capabilities that are all needed to provide
users with consistent, reliable and timely information:
Supply Chain Network.
Over the past two decades we have built one of the most extensive
networks in the industry, using secure, e-commerce technologies to
connect suppliers, forwarders, transportation carriers across all
modes, and customs brokers. We are experts in on-boarding supply
chain partners and enjoy a high degree of reuse which allows us to
offer faster, more cost-effective deployments.
Data Quality Management.
A visibility solution is only as good as the data that powers it. Over
the years we have developed a proprietary set of technologies and
business processes to ensure that your data is complete, accurate and
timely.
Order, Shipment and Inventory Visibility.
Our visibility software can handle the complex structures associated
with orders and multi-mode shipments, and tracks inventory at a
granular-enough level to make fulfillment decisions such as
diversions or direct-to-store delivery.
Alerts & Event Management.
Our customers are able to sift through mountains of data to focus

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efforts on the most critical issues that affect supply chain

performance. We

develop schedules by origin, destination and product/service type to

measure attainment of a milestone plan. You know when the
shipment is on-time, early or late and can take appropriate action.
Performance Management.
And this information is then aggregated and optimized for reporting
in our business intelligence platform, powered by Business Objects.
Access reports from a personal or departmental dashboard, generate
KPI metrics and scorecards, or develop complex ad-hoc analyses to
effectively manage the performance of your service providers and
streamline your supply chain.
Access our Supply Chain Visibility Success eKit for customer case
studies, key capabilities, analyst reports, and solution differentiators
to consider when improving your supply chain

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Supply Chain Visibility offers a powerful platform to automate

processes, support continuous improvement programs and to manage
performance data, help your team improve planning, execution and to
focus efforts by configuring alerts to:
Coordinate POs with suppliers
Monitor supplier ship windows
Manage origin logistics
Expedite delayed shipments
Identify shipments stuck in Customs
Trigger dray carrier when goods clear Customs
Divert shipments to reduce stock-outs

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Internet / EDI
Electronic data interchange (EDI) is the structured transmission of data
between organizations by electronic means. It is used to transfer electronic
documents or business data from one computer system to another computer
system, i.e. from one trading partner to another trading partner without
human intervention.
It is more than mere e-mail; for instance, organizations might replace bills of
lading and even cheques with appropriate EDI messages. It also refers
specifically to a family of standards.
In 1996, the National Institute of Standards and Technology defined
electronic data interchange as "the computer-to-computer interchange of
strictly formatted messages that represent documents other than monetary
instruments. EDI implies a sequence of messages between two parties, either
of whom may serve as originator or recipient. The formatted data
representing the documents may be transmitted from originator to recipient
via telecommunications or physically transported on electronic storage
media." It distinguishes mere electronic communication or data exchange,
specifying that "in EDI, the usual processing of received messages is by
computer only. Human intervention in the processing of a received message
is typically intended only for error conditions, for quality review, and for
special situations. For example, the transmission of binary or textual data is
not EDI as defined here unless the data are treated as one or more data
elements of an EDI message and are not normally intended for human
interpretation as part of online data processing."
EDI can be formally defined as the transfer of structured data, by agreed
message standards, from one computer system to another without human
intervention.

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Electronic Data Interchange (EDI) is the fastest, easiest, and most

productive way to conduct business with the transportation, warehousing
and logistics industry. Computer-to-computer communication eliminates the
need to fax documents and provides a complete and comprehensive audit.
Traditionally, in the Public Warehousing industry, their have been two
functions provided:
1.

Product Storage and Replenishment

2.

Product Processing and Transfer

The process is very simple. The warehouse works as a "middle man" in the
logistics process. A manufacturer produces product and ships the product to
the public warehouse. The public warehouse stores the product until the
manufacturer requests that they ship it to another company.
Public Warehouses have heavily invested in EDI systems to automate the
information flow to support these basic functions. While these interfaces
were excellent for transacting business with large customers, they usually
failed to include the small and medium sized business customer, who could
not make the investment necessary to take advantage of EDI. In addition,
these interfaces limited their focus to the Replenishment and Transfer Cycle.
The following are the processes which were not automated with the advent
of EDI in the warehousing industry:
Invoice Management (Invoices for warehousing services)
Item Maintenance
Merchandise Management
In addition, as public warehouses change their market niche from simply
product processors to information processors, they are striving to use the
electronic transfer of business information to provide additional services to
their clients. For example, forward thinking public warehouses are looking
to provide:

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Sales Order Processing for their Clients

Presently, inventory is being managed by the retailer or by the manufacturer.
The newest trend is to have public warehouses to manage the inventory for
the manufacturer. The process would have:
Retailers to send Product Activity Data to the warehouse.
Warehouses utilizing the Retailers product activity data plus its
own Vendor Managed Inventory software to suggest Purchase
Orders to retailers.
Retailers to approve the suggested Purchase Order (PO) and
send the information back to the warehouse.
The approved Purchase Order would be used by the warehouse
to create a Warehouse Transfer (which may also create an
Advanced Shipment Notification if required).
A copy of the Approved Purchase Order would be sent to the
Manufacturer who will use this information to Invoice the
Retailer.

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Logistics Management for their Clients

Another trend in public warehousing is to have the warehouse manage the
logistics process. An increasing popular portion of the logistics process
being taken over by public warehouses is the handling of Merchandise
Returns from Retailers. For example the process would have:
Retailers to send Return Merchandise Requests to the
Warehouse via EDI.
Warehouses receive requests and to provide a Return
Merchandise Authorization number to send back to the retailer
authorizing the return.
Retailers would send the goods back with a Debit Note attached
to the warehouse and a copy of the Debit Note to the
manufacturer.
The warehouse would receive and inform the manufacturer of
the receipt of the goods.
Upon approval of the Return, the manufacturer would send a
Credit Note to the Retailer and a document specifying to the
warehouse how to dispose of the returned product.
The key to automating warehouse processes is to be able to have a solution
that provides all parties the information that they need to do their job. This is
where forward thinking public warehouses are looking to re-invest in EDI in
solutions such as SoftCares TradeLink that can effectively manage their
existing and new business models.

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Collaborative Transportation
Management
CTM Introduction
This white paper provides an overview of Collaborative Transportation
Management (CTM), a process for bringing trading partners and
transportation service providers together for the sake of win-win-win
outcomes among all parties. The paper will:

define and describe Collaborative Transportation Management;

present the business case for CTM;
illustrate a process for collaboration; and
provide guidelines for implementation.

We start out by examining why transportation represents an important

opportunity for collaboration in the supply chain.
Why Collaborate on Transportation?
The job of moving goods from where they are produced to where they
are demanded is a 24/7/365 job. Transportation consumes 5.5% of the
U.S. gross domestic product, and approximately the same proportion of a
1

companys sales revenue . These percentages have declined somewhat

for U.S. customers of transportation since the industry was largely
deregulated in 1980. A deregulated environment has dramatically
intensified competition among carriers. Intense competition, along with
rising costs of operation, requires carriers to run an efficient operation or
close their doors. While efficiency improvements are abundant over the
past two decades there still remain significant opportunities for further
improvement. Trucks still run empty approximately 15% to 20% of the
time, enduring both real and opportunity costs for the carrier and driver.
Waiting to load and unload shipments consumes 33.5 hours of a drivers
time each week, on average, according to 1999 estimates. Drivers
frustrated with long, unproductive waits are easily tempted to abandon
ROLL NO. 520964937

the carrier in favor of another, causing driver turnover ratios to hover at

around 100% each year. Revised hours-of-service (HOS) regulations that
went into effect in January of 2004 will further impact the hours available
for operation and how drivers will use their on-duty time, worsening the
problems of poor utilization and inefficiency. Also, given the
mandate for heightened security provisions throughout the supply chain,
shippers and carriers must work closely to ensure the safe transit of goods
while keeping the costs of enhanced security within reason.
Service implications of transportation are also significant. Transportation
service represents a major component of order lead time the time that
elapses from an order placement until the goods are ultimately delivered
to a customer. Much of the variability in order lead time is attributed to
variation in transit times. The criticality of good service is never more
apparent than when a truck breaks down, runs into inclement weather, or
a preferred carrier goes on strike or, worse, goes out of business. With
more and more companies operating on a just-in-time basis, there is less
room for error in the delivery process.
Given these concerns, it is important for companies to work together to
eliminate inefficiencies, reduce cost, and ensure excellence in the
movement of goods. In most instances, there is only so much that a single
member of the supply chain can do to resolve the problems noted above.
This is why collaboration among partners in a supply chain has become a
topic of great interest for many and an essential element of company
strategy for others.
Collaboration is not easy and can be hard to define. However,
collaboration is more than cooperation. It requires that all companies
engaged in a collaborative initiative work actively together as one toward
common objectives, sharing information, knowledge, risk, and
profits/benefits in an agreed-to, consistent fashion to ensure a common
unity of effort. At the operational level, collaboration entails
understanding how other companies operate, how they make decisions,
and what is important to them. For true collaboration it is critical that all
parties involved realize benefits.

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Defining Collaborative Transportation Management

Collaborative Transportation Management (CTM) is a holistic process that
brings together supply chain trading partners and service providers to drive
inefficiencies out of the transport planning and execution process. The
objective of CTM is to improve the operating performance of all parties
involved in the relationship by eliminating inefficiencies in the
transportation component of the supply chain through collaboration. CTM
recognizes two important factors:
1. More and more companies are adopting new supply chain practices in
an attempt to reduce inventory investment and shorten order cycle time,
resulting in increased pressure on all parties involved in the logistics
process. With such short notice, many carriers are having difficulty
synchronizing their assets with customer demand and, in effect, forcing
buyers of transportation services (manufacturers, distributors, and
retailers) to pay a premium.
2. Superior customer service is a requirement for any successful
relationship between trading partners, and the importance of each
carriers contribution is underscored by the fact that many performance
metrics, such as on-time delivery and order fill-rate, are directly affected
by a carriers ability to pickup, transport, and deliver goods in a timely,
claim-free fashion. By bringing carriers into a collaborative partnership
and working with them to reduce operating costs and eliminate
inefficiency, sometimes caused unknowingly or unintentionally by the
shipper or receiver, all members of the collaboration are expected to
benefit.
CTM focuses on enhancing the interaction and collaboration between
three principle parties -- a shipper, a carrier, and a receiver, as well as
secondary participants such as third-party logistics (3PL) service
providers. The CTM process is designed for application to both inbound
and outbound transportation flows. As such, both the shipper and the
receiver can perform some of the steps in the CTM business process,
while other steps are performed individually by either the shipper or
receiver. Typically, the party that is ultimately responsible for the carrier
relationship/contract would be responsible for the CTM steps.
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Participants collaborate by sharing key information about demand and

supply (e.g., forecasts, event plans, expected capacity), ideas and
capabilities to improve the performance of the overall

transport planning and execution process, and assets, where feasible (i.e.,
trucks, warehouses). The process begins with an order/shipment forecast,
and includes capacity planning and scheduling, order generation, load
tender, delivery execution, and carrier payment.

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Auctions / Exchanges
In order for shippers to minimize shipment costs and carriers to
maximize capacity utilization, a number of transportation exchanges have
been formed over the last few years. Some of the more popular
exchanges who operate in this shipment and capacity trading space are:
Celarix, National Transportation Exchange, Freight Market, and Link
Logistics. As product life cycles
shrink, a faster time to market becomes the imperative and logistics
operations hold the key to the success of product manufacturers. By
matching shippers needs with carriers capacity, exchanges can optimize
the transactions on both sides. There is currently a critical need for
research to develop efficient logistics marketplaces. In a transportation or
logistics exchange, shippers, who have goods and/or materials to
transport seek transportation services from carrier companies.
Transportation exchange methods range from simple fax to on-line
auctions, as well as the shippers core requirements for quality, reliability
and control. When shippers need to procure transportation services for a
set of distinctive delivery routes (called lanes) with different origins and
destinations or delivery schedules, they can obtain quotes for each lane
individually and repeat a simple auction process for each lane or they
might negotiate for bundles of lanes with one carrier at a time. It will be
certainly more efficient to allow shippers to make all lanes available for
bidding simultaneously and to allow carriers to simultaneously bid upon
combinations of individual lanes. It is natural for carriers to have
different valuations for different combinations of lanes and carriers can
take advantage of bundling to reduce empty or less loaded movements
and to organize their operations in a
more efficient way. Similarly, bundling is advantageous to shippers due
to the complementarity involved in combinations of lanes. Such
exchanges where carriers and shippers submit bids in the form of bundles
can result in significant cost savings for both shippers and carriers. We
call these combinatorial logistics exchanges.

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Merge in Transit
Supported by our global networks, high-end facilities, IT solutions and
European transport solutions cross-docking solutions allow customers'
products to flow directly where they are needed for improved cycle-time and
cost effectiveness. solutions are customized to meet your exact requirements
to provide customers greater flexibility in responding to changing market
conditions.
Merge in transit (MIT) service allows assembly and transport to occur
simultaneously. Carriers pick up separate shipments from two or more
sources and ship the components to a location near their final destination
where a merge operation is performed. The merge operation can range from
simple cross-docking consolidation to value added logistics (VAL)
activities. Trucks carrying various PC components arrive at specified
meeting points within hours of each other and merge the components to
finished products.

Benefits of merge in transit service for our customers:

1.
2.
3.
4.
5.
6.

Increased flexibility (warehouse on wheels)

Lead-time, inventory and obsolescence reductions
Products move, products are not stored
Virtual warehousing
Reduction of inventory carrying cost
Reduction of obsolete stock

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Partnerships / Alliances
A Strategic Alliance is a relationship between two or more parties to pursue
a set of agreed upon goals or to meet a critical business need while
remaining independent organizations.
Partners may provide the strategic alliance with resources such as products,
distribution channels, manufacturing capability, project funding, capital
equipment, knowledge, expertise, or intellectual property. The alliance is a
cooperation or collaboration which aims for a synergy where each partner
hopes that the benefits from the alliance will be greater than those from
individual efforts. The alliance often involves technology transfer (access to
knowledge and expertise), economic specialization,[1] shared expenses and
shared risk.
Types of strategic alliances
Various terms have been used to describe forms of strategic partnering.
These include international coalitions (Porter and Fuller, 1986), strategic
networks (Jarillo, 1988) and, most commonly, strategic alliances.
Definitions are equally varied. An alliance may be seen as the joining of
forces and resources, for a specified or indefinite period, to achieve a
common objective.
There are seven general areas in which profit can be made from
building alliances.
Stages of Alliance Formation
A typical strategic alliance formation process involves these steps:
1.

Strategy Development: Strategy development involves studying the

alliances feasibility, objectives and rationale, focusing on the major
issues and challenges and development of resource strategies for
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production, technology, and people. It requires aligning alliance

objectives with the overall corporate strategy.

2.

Partner Assessment: Partner assessment involves analyzing a

potential partners strengths and weaknesses, creating strategies for
accommodating all partners management styles, preparing
appropriate partner selection criteria, understanding a partners
motives for joining the alliance and addressing resource capability
gaps that may exist for a partner.

3.

Contract Negotiation: Contract negotiations involves determining

whether all parties have realistic objectives, forming high calibre
negotiating teams, defining each partners contributions and rewards
as well as protect any proprietary information, addressing termination
clauses, penalties for poor performance, and highlighting the degree to
which arbitration procedures are clearly stated and understood.

4.

Alliance Operation: Alliance operations involves addressing senior

managements commitment, finding the calibre of resources devoted
to the alliance, linking of budgets and resources with strategic
priorities, measuring and rewarding alliance performance, and
assessing the performance and results of the alliance.

5.

Alliance Termination: Alliance termination involves winding down

the alliance, for instance when its objectives have been met or cannot
be met, or when a partner adjusts priorities or re-allocates resources
elsewhere.

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The advantages of strategic alliance include:

1.

Allowing each partner to concentrate on activities that best match

their capabilities.

2.

Learning from partners & developing competences that may be more

widely exploited elsewhere.

3.

Adequate suitability of the resources & competencies of an

organization for it to survive.

There are four types of strategic alliances: joint venture, equity strategic
alliance, non-equity strategic alliance, and global strategic alliances.
1.

Joint venture is a strategic alliance in which two or more firms create

a legally independent company to share some of their resources and
capabilities to develop a competitive advantage.

2.

Equity strategic alliance is an alliance in which two or more firms

own different percentages of the company they have formed by
combining some of their resources and capabilities to create a
competitive advantage.

3.

Non-equity strategic alliance is an alliance in which two or more

firms develop a contractual-relationship to share some of their unique
resources and capabilities to create a competitive advantage.

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4.

Global Strategic Alliances working partnerships between companies

(often more than two) across national boundaries and increasingly
across industries, sometimes formed between company and a foreign
government, or among companies and governments.

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Top 10 Logistics Companies in India:

TNT Express
AFL
DHL
Blue Dart
Gati
Safeexpress
Ashok Leyland
Agarwal Packers & Movers
DTDC
First Flight

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Some of the details regarding these top 10 players in the logistics

industry in India is given below:

TNT Express:
TNT Express is the key leader not only in the Indian market, but also in the
international market in the sector of global express services. They ensure
timely and safe delivery of parcels, freight and documents. They offer day
and time definite delivery in about 200 nations all over the world. They have
a network of 2300 companies and operate 26000 road vehicles and 47 jet
freighter aircraft for timely delivery of the consignment of their customers.
They have classified their delivery service into three groups namely:
Delivery of a specific day in 2-5 days
Next day delivery in the morning times
Same day delivery
The customers can choose any of the aforesaid services according to their
delivery requirement.

AFL:
AFL is offering some of the best services like custom consultancy, courier
service and warehousing service. In the year 1979, they introduced a
revolution in the field of courier service by entering into an agreement with
DHL World Wide Express. They are acting as one among the acknowledge
leaders in the industry of logistics in India.

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DHL:
DHL is acting as a market leader all over the world in the fields like
international express, air freight and overland transport. They are the leading
player in the ocean freight and logistics fields. They are also engaged in
other services like:
Aerospace sector
Automative sector
Chemical sector
Consumer sector
Fashion sector
Renewable energy sector
Retail sector
Technology sector

Blue Dart:
Blue Dart came into existence in the year 1983 and they are the top courier
company and integrated express package distribution service provider in the
whole of South Asia. Their alliance with DHL offers service to over 220
countries and their domestic service covers around 21000 locations. Some of
the best services offered by this company are:
Free Computerized proof of delivery
Real Time tracking
Regulatory clearance
Free pick up from the location of the customer
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Gati:
Gati is the top players in the arena of supply chain management and express
cargo delivery. Some of the logistics solution provided by them are supply
chain management, warehousing and cold chain solutions. Their distribution
solutions include the following services:
Gati Desk to desk cargo
Al Gati
Gati Ships
Gati Air Express
Gati Surface Express

Safeexpress:
Safeexpress is a leading-edge expertise in the field of logistics and they are
backed by a formidable national network, which comprises of more than
1000 operating routes, 3000 vehicles and offering service to more than 550
locations. They offer their service all round the year and some of the
logistics supply chain services offered by them are:
C&F
E-logistics
Packaging solutions
Statutory obligations management
3PL
Reverse logistics
Single source invoicing
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 Door to door distribution

Ashok Leyland:
Ashok Leyland is the leading provider of logistic vehicles to the Indian
Army and they are acting as the best company in the areas of multi-axle
trucks and tractor-trailer manufacturing. They are also engaged in
manufacture of special application vehicles, engine, trucks and buses in
India and they are in the process of promoting a new company in the name
of Ashly Transport Services Limited for exchanging integrated services and
information with respect to logistics industry with a view to handle the
business of freight contractors.

Agarwal Packers & Movers:

Agarwal Packers & Movers are leading in the areas of car packing and home
shifting services all over India. They believe in keeping people and
technology and also soul and heart in the movement of the hard earned
goods of their customers. They offer the best service in packing and
transportation. Some of the services offered by them are:
International relocation
Safe shifting of car from one place to another
Shifting of home from one area to another
Shifting of office from one location to another
They offer these services by safely carrying good from one place to another
without causing any physical damage to the goods.

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DTDC:
DTDC holds the pride of handling nearly 10 million consignments every
month and they are offering their service to more than 240 international
destinations. They have manpower of 13000 individuals and are offering
delivery service to over 10000 zip code areas. They offer delivery service to
even the remotest villages in India through their business partners spread
across the nook and corner of the country.
First Flight:
They offer their courier service not only to India, but also to the countries all
over the world. They have overseas offices in different countries like Oman,
Quatar, the UAE, the US, Singapore, the UK and Malaysia. Some of the
multi-tracking service offered by the company are:
First wings
First wheels
SMS Tracking
E-mail tracking
These services enable the sender of the consignment to know the status of
the consignment sent by him/her.
The companies in this industry is involved in material packaging and
handling, warehousing, inventory, transportation, integration of information
and sometimes security as well. These logistics companies also offer a wide
range of employment opportunities, thereby contributing towards the
economic development of the country.

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Project
Report
on

Blue Dart
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OBJECTIVES
The objective was to have a complete knowledge the logistics of goods,
information and other resources, including energy and people. Alongside
this, the objective was to study the functioning of BLUE DART as an
example of typical logistics company.
The study was done primarily with the following objective in mind:-

1.

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

2.

To know about the policies and procedure followed by the BLUE

DART while transporting the goods and services.

3.

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

todays scenario.

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BLUE DART

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About BLUE DART

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

BLUEDARTS vision is to establish continuing excellence in delivery

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

State-of-the-art Technology, indigenously developed, for Track and

Trace, MIS, ERP, Customer Service, Space Control and Reservations.

Blue Dart Aviation, dedicated capacity to support their time-definite

morning deliveries through night freighter flight operations.

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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).

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Its Customs and Regulatory expertise

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

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

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

ROLL NO. 520964937

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

Its People force

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

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

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

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

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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 multimodal, 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.

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

Blue Dart, Calcutta is proud to have the office inaugurated by Mother

Theresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.

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., cooperate in bringing the world's largest airlift of charity to Kolkata.

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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:
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.

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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-DelhiBangalore 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 No. 1
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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.

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

ROLL NO. 520964937

COMPANYS VISION
&
FUTURE PLANS

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Companys 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."

1.

Companys future plans:

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
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.

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Position ourselves as the preferred, seamless link to a country

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

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LOGISTICS
IN
BLUE DART

ROLL NO. 520964937

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
organisations need in the event of any exceptions.

2. The reverse flow of acknowledged signed delivery records without which,

in many cases, recovery of bills are virtually impossible. Especially so in the
case of companies placing multi-location orders that could cover hundreds
of cities. The task for the supplier is staggering - plan logistics for deliveries
to all these locations, and hope for 100% of the delivery records to be
returned before bills can be submitted to the customer. In most IT
companies, the role of 'logistics' or 'fulfillment' is key.

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With organisations moving towards close to perfect standards like Six

Sigma, interaction with logistics suppliers has taken on a critical role
moving up sometimes to the level of the CEO of the organization.

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 predetermined 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.

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

Retrieval of signed delivery records posed the industry's most

intriguing problem. Blue Dart was quick to understand this requirement and
put in place a 100% retrieval system.

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 bottomline.

ROLL NO. 520964937

Logistics software solutions

Vendor Solution

Features

Application program offered to Blue Dart offices

SENTOR (Status
Blue

Entry Offline for

Dart

Regional Service
participants)

and its 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 the business efficiency of customers
TNT

Express Shipper (to

by helping them send more than fifteen

be launched)

consignments a day. Customers can track

consignments and obtain price quotations
directly from their PCs.

Online consultancy on customs-related

paperwork for SMBs that helps determine which
FedEx

Global Trade

customs documents should accompany their

Manager

(customer's) international shipments. Lets

customers print and fill them up thereby helping
them save time on potential border delays.

ROLL NO. 520964937

SERVICES
OF
BLUE DART

ROLL NO. 520964937

SERVICES OF BLUE DART

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.

ROLL NO. 520964937

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 non-commerical
shipments. Currently available between India and Nepal only.

ROLL NO. 520964937

REGIONAL SERVICES

ROLL NO. 520964937

Let see different type of regional services: -

DOMESTIC 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:

1.

Delivery to over 13,700 locations in India

2.

Free pick-up from your location

3.

Real-time Tracking

4.

Regulatory Clearances

5.

Free Computerized Proof of Delivery

ROLL NO. 520964937

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 and are
required to undergo 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 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-toAirport 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.

ROLL NO. 520964937

Dart Apex offers the following benefits:

1.

Wide Market Reach

2.

Single-window Clearance

3.

Real-time Information

4.

Time-Definite Delivery

5.

Free Proof of Delivery on Demand

6.

Speed

7.

Flexibility

8.

Economical

ROLL NO. 520964937

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:

1.

Time-bound Delivery

2.

Track your Shipment

3.

Regulatory Clearances

4.

Pick-up Convenience

5.

Secure Shipments

6.

Economical Tariff

ROLL NO. 520964937

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:

1.

A wide market reach

2.

Speedy Delivery

3.

Free pick-up

4.

Real-time Tracking

5.

Regulatory Clearances

6.

Proof of Delivery

7.

Trouble Free Service

ROLL NO. 520964937

INTERNATIONAL
SERVICE

ROLL NO. 520964937

INTERNATIONAL SERVICE

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.

ROLL NO. 520964937

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 preclearance for shipments in transit available for most destinations,
ensure efficient delivery.

4.

Real-time Tracking.

5.

A Cost-effective Option.

6.

Packaging.
ROLL NO. 520964937

DHL
OFFERS

ROLL NO. 520964937

DHL OFFERS:
1.

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.

Features:
1.

Priority financial industry services.

2.

State of the art information systems.

3.

Specialised fast handling facilities.

4.

90% of international banks' first choice.

5.

Door to door one company control.

6.

World class packaging.

Benefits:
1.

The best possible service to the company.

2.

The leading edge for financial services.

3.

Track status online door to door.

4.

Highest level of control and security.

5.

One point of contact and accountability.

6.

Peace of mind.

ROLL NO. 520964937

7.

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 expresss packages.

5.

State of the art information systems.

6.

Global customs clearance leader.

7.

Global market leader for international express packages.

ROLL NO. 520964937

Benefits:

8.

1.

Fastest transit time.

2.

Greater security and control.

3.

Simplified and convenient process.

4.

No hunting for packaging.

5.

Detailed online tracking.

6.

One company control.

7.

Single Invoice.

8.

Door to door peace of mind.

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:
1.

Unique easy to assemble boxes.

2.

Step by step customs declarations.

3.

Full DHL express door to door service.

4.

Low flat fee for each kilo over flat fee limit.

5.

Strong packaging and simple documentation.

ROLL NO. 520964937

Benefits:

1.

1.

Maximum convenience.

2.

Low price.

3.

Exporting documentation made easy.

4.

Fastest transit time.

5.

Door to door service.

6.

Track status online door to door.

7.

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:

ROLL NO. 520964937

1.

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.

2.

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.

3.

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.

ROLL NO. 520964937

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 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.

ROLL NO. 520964937

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 Pacific, China Airlines,

ROLL NO. 520964937

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.

ROLL NO. 520964937

VALUE
ADDED SERVICES

ROLL NO. 520964937

VALUE ADDED SERVICES

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.

ROLL NO. 520964937

E-COMMERCE
INITIATIVE

ROLL NO. 520964937

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 Darts 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.
The basic tracking solution will enable Blue Dart's customers number. A
mail-based solution will allow the customers to query status of to track their
shipments, through single or multiple waybills, on-line. Customers can
ROLL NO. 520964937

check the status of their shipments using a waybill number or a reference

their shipments using e-mail.
Registered customers of Blue Dart can make advanced queries on
the status of their shipments, and can keep track of them for up to 45 days
on-line. They can filter their queries by date range, origin, destination and
service, and sort the results on-line. Registered customers can download the
entire waybill tracking data - schedule the download, and select the
frequency and the data to be downloaded. These customers can also generate
and download various reports customized to meet their individual needs.

ROLL NO. 520964937

E-Shipping Tools:Blue Dart provides some convenient tools to aids to its customers shipping
management processes.

Web Based Tools

1.

TrackDartTM

2.

MailDartTM

3.

Location Finder

4.

Transit Time Finder

5.

Price Finder

6.

Billing

7.

Schedule a pickup

8.

Image Dart

Waybill Generation

ROLL NO. 520964937

Stand-alone Tools

1.

COSMAT II
(Computerised On-line System for Management, Accounting and Tracking)

1.

SMART
(Space Management Allocation Reservation and Tracking),

2.

CaressTM
(Complaint Appreciation, Resolution and Evaluation to Satisfaction System),

3.

ShieldTM

4.

ShipDartTM

Customised Solutions

ROLL NO. 520964937

E-Business Tools:-

Blue Dart has been the only Indian Air Express Company that has
invested extensively in Technology infrastructure to create
differentiated delivery capabilities, quality services and customized
solutions for the customer.
These tools may be efficiently integrated with the customers systems
to provide him with a convenient and cost-effective solution to his
shipping requirements.
Some of the technology-based business offerings are as follows:-

1.

InternetDartTM
Track on-line the status update of your shipments sent over the last 45
days. You may track by a range of dates, origin, destination, delivered
or undelivered shipments or service used, on-line. You may generate a
series of reports, at a pre-determined frequency, and sort the results
on-line.
ROLL NO. 520964937

2.

ShopTrackTM
ShopTrackTM is an API (Applications Program
Interface) designed specifically to support and enhance the services
provided by a portal or any e-business.

3.

PackTrackTM
PackTrackTM is an API (Applications Program Interface) designed for
any client involved in logistics, distribution and inventory control.
PackTrackTM can be integrated into the client's systems and enables
him to keep track of the entire distribution status of all his customers.

4.

MobileDartTM

MobileDartTM - WAP works on any mobile phone or device which supports

Wireless Application Protocol. Using MobileDart-WAP, the customer can
check the current status of his shipments on-line by entering the waybill
number.

ROLL NO. 520964937

BLUE DART INITIATES

CUSTOMER SATISFACTION
BENCHMARK

ROLL NO. 520964937

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 need to be assured that
everything that was sent has reached the destination. Now, Blue Dart
Express Ltd promises to cure customers conventional woes.

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 strategic 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

ROLL NO. 520964937

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, especially 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 endbusinesses. 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.

ROLL NO. 520964937

RESEARCH METHODOLOGY

ROLL NO. 520964937

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.

ROLL NO. 520964937

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

ROLL NO. 520964937

RESULT & ANALYSIS

ROLL NO. 520964937

RESULT & ANALYSIS

Logistics is defined as a business planning framework for the management

of material, service, information and capital flows. It includes the
increasingly complex information, communication and control systems
required in today's business environment.
A recent US study found that logistics costs account for almost 10% of the
gross domestic product. The process itself covers a diverse number of
functional areas. Involved in logistics are transportation and traffic, as well
as shipping and receiving. It also covers storage and import/export
operations.
In business, logistics may have either internal focus (inbound logistics), or
external focus (outbound logistics) covering the flow and storage of
materials from point of origin to point of consumption. The main functions
of a qualified logistician include inventory management, purchasing,
transportation, warehousing, consultation and the organizing and planning of
these activities.
The issue is not the transportation itself, but to streamline and control the
flow through the value adding processes and eliminates non-value adding
ones.
As a technology leader in the business of supply-chain management in the
country, Blue Dart Express Limited recognised the far-reaching scope of
logistics in the country as well as outside the country.

ROLL NO. 520964937

The techniques and procedure used by the Blue Dart are very effective that
is keeping pace with time and requirement of the customers.
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
their customers and shareholders.
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.
The country's only express service provider with a dedicated fleet of seven
freighters (two Boeing 757s and four Boeing 737s) ensures that packages are
flown to their destinations overnight. These freighters offer capacity and
volumes not available with any other carrier in the domestic air space.
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.
Blue Dart is mainly focuses on the international services. Blue Dart does not
have very well connection with the national airports. The national airport
services are

ROLL NO. 520964937

limited to certain airports and are very expensive. At national level

transportation of goods is done via road that makes delay in the service.
Though it always try to fulfill all the requirement of its customers but it is
lacking in the case of domestic services. It must pay equal attention on the
domestic services so that more and more people can take the advantages of
its ultimate services.

ROLL NO. 520964937

FINDINGS
OF
THE STUDIES

ROLL NO. 520964937

FINDINGS
On the basis of study conducted, it is evident that BLUE DART is following
most of pre-requisites of an efficient logistics (supply-chain management)
company.
However there are some areas, which need further attention for increasing
the quality of services.
FINDING:1.

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

2.

The delivery of goods to the customer in the most reliable transit

period (and preferably the shortest) possible.

3.

The reverse flow of acknowledged, signed delivery records is trust

worthy.

4.

The country's most reliable air and surface network offers a predetermined delivery schedule with close to 100% accuracy.

5.

Blue Dart offers the country's most comprehensive communications

technology and customer software to support critical supply-chain
distribution demands.

6.

Blue Dart is mainly focuses on the international services.

7.

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

8.

The national airport services are limited to certain airports and are
very expensive.
ROLL NO. 520964937

9.

At national level transportation of goods is done via road that makes

delay in the service.

ROLL NO. 520964937

RECOMMENDATIONS

ROLL NO. 520964937

RECOMMENDATIONS
The following are the recommendation based on the study:-

1.

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

must pay attention in the domestic services.

2.

Blue Dart does not have very well connection with the national
airports so Blue Dart must make good connection with the national
airports.

3.

At national level transportation of goods is done via road that makes

delay in the service so the national airport services must be spread to
every airport so it will be resulted into quick service.

4.

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

ROLL NO. 520964937

CONCLUSIONS

ROLL NO. 520964937

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

ROLL NO. 520964937

Logistics Experience will be different from one sector to another

Textiles
1.

speed and variety due to seasonality concerns

Retailing (FMCG)
1.

prevents stores from having empty shelves or shelves with

overstocks

2.

Frozen storage and transportation

Health
1.

hygienic, have limited shelf life, require special storage

conditions and entertain high inventory risks

Automotive
1.

just in time (JIT), delivering parts from thousands of

kilometers, special packaging

Fuel and Petroleum Transportation

1.

very special tanker security systems

ROLL NO. 520964937