dtdc rajan

Logistics

• Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics is a part of supply chain management (SCM).

Range of Logistics Services

Supply Chain Management (SCM)

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

Global logistics industry

Evolution of Logistics Model

Element of Logistics Cost

Challenges faced by Indian logistics sector

• Limited physical infrastructure.

• Non-existent warehouse standards.

• Disorganized trucking operations.

Logistics performance of Index of India with other countries

Country LPI Score

USA 3.85

UK 3.84

Singapore 4.19

India 3.07

China 3.64

Mexico 2.64

Logistics cost contributed from GDP in different countries

Country Logistics Cost/GDP

India 13%

U.S. 9.9%

Europe 10%

Japan 11.4%

Key Growth Drivers Of Logistics sector

Courier & cargo industries

Birth,Growth & Development of Courier Service in  India • The  Indian Postal System  came into existence  in 1774• First Indian Post office Act introduced in 1837• Then came “Angadias” who carried documents and precious

gems and jewels• The  most unique Express  Service prevalent in  India  is

the “Dabbawalas”• The  organized Courier Industry  came into existence  in 1977• The Courier Industry started gaining momentum in 1980’s

Future of Courier & Cargo Industry 

• Courier  & Cargo business  has become a mega  market• Industry steadily growing at the estimated rate of 25% each year• Very  few players in the  organized sector• Estimated  growth in revenue of  INR 4,000 Crores (USD 

889 Million) and expected  to double in next  5 years• Domestic airfreight market likely to grow exponentially by 2010• Attracting MNCs

Key player of Courier & Cargo Industry 

AFL DHL

Blue Dart Gati

Safexpress First Flight

TNT FEDEX

MARKET SHARE OF DTDC

DTDC Overview

• India’s largest  delivery network• Handles 10 million parcels a month• 13,000 people in operations• 3,700 locations• Serves 10,000 Pin codes• 10 Regional offices and gateways• 240 International destinations• Special services to SAARC• ISO9000 Certified• Reliance (ADAG) large shareholder

DTDC Fact Sheet• Founded : July 26, 1990• Head Quarters : Bangalore• Web Address : www.dtdc.com (intra.dtdc.co.in

)• Principal Officer : Mr. Subhasish

Chakraborty(Chairman & Managing Director)

• Zonal Offices : 4• Regional Offices : 9• BR /SF/ MF office : 200 /58/ 12 =270• Franchisee Offices : 4,910 (as on 13 May’2010)• Employees (Direct) : 4,400 (approx)• Shipments Per Day : 2,50,000 (approx)

Franchises• Pioneer in Franchise  Business• 3700 in India• 25 in US and UK• 500 finished 10 years• 1000 finished over 5 years• Win-Win partnership• Long term commitments• Sales support• IT link up - intranet• Special schemes

TECHNOLOGY 

• Web based tracking• Electronic POD• Over 100 people team• 10 Years of investment• IBM partnership• Solid intranet• Linked with partners• Bar coding of AWB• 100% scanning

SERVICES PROVIDED

• Domestic tracking via internet, SMS• DTDC’s E commerce solution that helps with system

generated bar-coded waybill at the Customer’s destination facilitating an easy process.

• Customers can schedule a courier pick-up• Get customized rate quotes• Customer can create customized shipment reports• DTDC Indian Address Validation Tool- ensures that

customer-entered shipping addresses for the de1stinations are correct at the time of order.

Business Process

Distribution infrastructure of logistics companies

Conclusions and recommendations• The Indian logistics industry is going through a transformation. The sector will

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

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

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

• DTDC should expand its distribution network by setting up more outlets in prime locations which will increase its revenues and also increases the brand visibility.

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