summer project harshit

8/8/2019 Summer Project Harshit

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ACKNOWLEDGEMENT

This project in itself is an acknowledgement to the inspiration,drive and valuable guidance contributed to it by many

individuals. This project would have never seen the light of the

day without the help and guidance that I have received.

I would like to express my gratitude to Prof. P. L. Arya,

Director, N. L. Dalmia Institute of Management Studies &

Research (NLDIMSR), whose constant efforts gave me an

opportunity to get the two month live exposure of the media

industry.

I would like to express my sincere thanks to my

project guide, Mr. Michael Pereira (General Manager

Operations(AI) ), who devoted his precious time from his busy

schedule to guide and help me at all times. It is under his

valuable guidance, constant interest and encouragement that I

have been able to complete this project.

I would also like to thank all the members of the organization

right from ones working at BlueDart Headquarters, Adarsh

Service Center, Bombay Hub who were always ready to givetheir support in any learning I required.

The experience has been my privilege to work as a part of

Operations Department, Blue Dart. I would like to express my

deep sense of gratitude to all those people who have helped

me during the preparation of this project.

N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH


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COLLEGE CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

We do hereby declare that this Summer Training report titled

Modeling the DP(Domestic Product) network of Blue Dart

Logistics/Operations has been prepared and submitted by

Mr. Harshit P. Desaiduring the period 2008-2010 in partial

fulfillment of the requirements of the Post Graduate Diploma in

Business Management from our institute, under the guidance of

Mr. Michael Pereira, General Manager, Operations, Blue

Dart.

We take the responsibility regarding the authenticity of the

information in this report. The report will be kept confidential

and will not be submitted to any other organization.

(Prof. P. L. Arya) Date:

Director Place:

NLDIMSR



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DECLARATION

I, Harshit P. Desai, studying at N. L. Dalmia Institute of

Management Studies & Research, Mumbai, hereby state that

this report which is submitted in partial fulfillment of the

requirement for the Post Graduate Diploma in Business

Management, is an original work carried out by me

under the guidance and supervision of Mr. Michael Pereira,

General Manager(Operations), Blue Dart, and that the project

or any part thereof has not been previously submitted for a

degree/diploma of any institute elsewhere.

(Harshit P. Desai) Date:

Place:



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TOPIC PAGE NO.

Executive Summary 6

What is Courier?? 7-8

Courier Service 8-10

Global Logistics Industry 10-11Indian Logistics Industry 11-14

Objectives of the Project 15-16

Company Profile 17-21

Factsheet & Current Market Share of BlueDart 22-24

Products of BlueDart 25-26

Technological innovations by Blue Dart 27-28

Supply Chain Management 29-30

Objective 1 Analysis 31-36

Objective 2 Analysis 37

Objective 3 & 4 Analysis 38-40

Recommendation 40


INDEX


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An Interview with Michael Pereira 41Annexure 43

Bibliography 52

Logistics and supply chain management (SCM) as an area of research hasbeen getting increasing attention from academicians and practitionersover the last two decades since it may lead to reduced operational costs,improved delivery performance and increased customer satisfactionlevels, thereby making an organization more competitive in terms of cost,quality, delivery and flexibility. The importance of logistics and SCM isincreasing also due to globalization as more and more multi-nationalcompanies (MNC) are sourcing, manufacturing and distributing on a globalscale, making their supply chains very complex to manage. However,outsourcing logistics activities to experienced logistics service providers(LSP), also known as third-party logistics (3PL) providers, may enablecompanies get very efficient and customized logistical support whilethemselves focusing on the core organizational activities.

Today, there are many large multi-national LSPs that offer completesupply chain solutions across many diverse countries in terms of theirsocio-economic and political environments. Apart from core logistical

activities such as transportation and warehousing, LSPs also offer value-added services such as customs clearance,freight forwarding, import/export management, inventory management,assembly /installation, packaging and labeling, distribution, after salessupport, reverse logistics and so on. By outsourcing logistics, companiescan leverage the expertise of LSPs while concentrating on their corecompetencies.

While SCM deals more with the linkages in the chain, contracts andrelationships, supplier selection, information and financial flows besidesmaterials flows, creating new facilities such as plants, warehouses and

distribution centers, and broader issues such as society, economy,government and environment, the scope of logistics is more or lessconfined to the routine job of transportation and storage of goods.However, if one deeply ponders, one may realize that logistics is the coreof SCM, and if logistics fails, the whole chain snaps. Though logistics dealswith mundane vehicles, warehouses, layouts, material handlingequipment, Motor, Vehicles Act, toll tax, sales tax, octroi, documentationetc., efficient management of it has the potential to make the chain tautand agile. Therefore, there is growing interest in logistics, and hence inSCM, around the world.


EXECUTIVE SUMMARY


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To survive in the cut-throat competition, the logistics organization shouldforge ahead with the new ideas. The project deals with the groundoperations of Blue Dart. The project work flashes light on the introductionof the multimodal transportation in the current surface network.

What is a Courier??

Couriers are basically a service for sending money or goods at some extra

cost. It involves a person or a company engaged in transporting,

dispatching and distributing letters, parcels and mails. In a rather layman

term, it can be said that, compared to normal mail service, a courierpossess many added features. A courier is much faster, safer and secured

than ordinary mail. It is a specialized service with authenticated

signatures. It has tracking service with each service being treated as a

specific individual case. Dedicated timely deliverance is its primary

hallmark. These features do cost a bit extra but with so many features

available, the cost gets leveraged.

Indian courier industry has numerous huge and effective courier

companies. In general a courier company performs on various scales. Tobegin with, it can be inter-city and intra-city. From there onwards, a

courier company can work on regional, national and even international

level. The largest companies in express and logic industry are UPS, FedEx,

and DHL to name a few.

Today the huge global companies have their own fleet of trucks and

aircrafts solely for the purpose of transporting the logistics whereas the

mode of operation in cities is influenced by bicycle and motorcycle. The

transporting methodology involves truck owners operating in tandem withthe major logistics companies. They normally cover the defined routes.

As mentioned initially, courier service rates are slightly higher than the

normal mail service. The rates are generally decided by the weight of the

package. The heavier the parcel is, the more the charges are. To take an

example, under the norm, there is a fixed charge for package weighing in

the range of 500 grams. For every additional weight, the rates increase.

The tariff is more for couriers which are intended for abroad. Many

companies offer this service of courier to abroad. This is done through aircargos which costs more.



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Indian parcel courier market is estimated to be in the tune of 4000 crores

and it has witnessed an average yearly growth of 25%. Considering the

fact that, market is expected to keep up the growth and development

momentum; many international players are betting big time on Indian

courier industry. This phenomenon has been manifested by the largeinterest shown by the courier behemoths. This has also translated into

huge investments in Indian express industry. In terms of service, there is

a lot to be done in the Indian market, but heartening factor is the

apparent set up of the process. As this industry is more about speedy

delivery and the swift, timely movement of merchandise, information and

finances. Companies are synchronizing their various processes so that

integration of the system and technology can take place in accordance

with market demands. Courier work in India is revolutionizing the way

Indian mail section used to function. The industry is changing and it'schanging for the better. Indian logistic industry is in the stage of

consolidation.

Courier Service

Mary Breckinridge is credited to pioneer the courier service. Back in First

World War, she was working in an American committee that used to deal

by taking personnel into the service whose primary job was to deliver the

medical supplies and assisting the medical staffs in far flung places. Theofficial year for record was 1928 and the term given was courier. Sooner

as was expected, its popularity increased with changing time and

mounting needs. By the end of Second World War, when the need of the

hour was urgent delivery of essential messages and commodities, courier

services witnessed many folded increase.

After Second World War, a plethora of courier companies have been

launched worldwide. Courier Company is primarily indulged in delivery of

goods and mails to any place of the world. The services offered by themare accessible almost all the time.

There are large numbers of courier companies in India. It can be

segmented into organized, semi-organized and unorganized categories.

The organized sector players are quite large in magnitude. These players

often have best of speed and reliability. As the competition is heating up,

companies are offering specialized services including online tracking of

the goods. In this service a customer can check the route via which goods

are being delivered and the exact location of the thing in the specific time



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duration. Many large companies also offer multi-point coordination and

heat control facilities for the parcels.

The major players in Indian courier industry are DHL, Blue Dart, First

Flight, Gati etc. Out of these players DHL courier definitely has an edgeover the competitors since its 81.03 percent acquisition of another big

player Blue Dart. DHL is a huge brand name in courier industry not only in

Indian context but also world wide. It is right there on the top in services

such as air shipment, worldwide express and overland transport. Even in

more specialized services such as ocean shipment and contract related

logistics, it is the number one. It has a synchronized operating system. Its

expertise lies in providing customized solutions to the customers. They

have a very potent combination of global reach and local knowledge.

Whether, its express document shipping managed through its wide-ranging network or entire aspect of supply chain management; it has

managed to carve its own niche in the courier and logistic industry.

The courier industry has some inherent fundamental courier service

contract. The details of the contract define about the few specifics

including direction related to documents and materials, Clear tariff

structures for national and international transport as well. While hiring the

courier service, a consumer is supposed to sign a copy of the receipt

which has terms of the contract mentioned over it. It clears the terms andconditions for both the parties.

Courier Services In India

Indian courier industry had its start some 15-20 years ago. The courierindustry was initially limited to the four metros New Delhi, Mumbai,Kolkata, Chennai and to some extent to Bangalore. The reason was theairport connection these metros were. But, the changing economy andtechnical advancement seen on a daily basis, the industry has grown

and extended faster to several cities and even rural areas. And it isstill growing.

A courier company in India has its primary virtue is its efficiency. Thebetter the quality of service, the more the satisfied customers, better thechances of survival. Considering this is a manpower intensive industry, sothe need for highly skilled and trained personnel is of prime importance.The industry is booming and market is brutally competitive so all thecompanies have to keep improving to sustain in the business. Theadvancement of technology has also made things slight easier.

The Indian courier market is Rs 7,000-crore courier industry and it isgrowing at 25% a year. Still, most of the business is in unorganized sector.

http://www.klickcouriers.com/http://www.klickcouriers.com/


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Few major players dominate the market .Earlier, it used to be afragmented market but, now the process of consolidation can be seen.

Mainstream companies provide a variety of services. Courier services inIndia can be segregated in few categories. Basically, it begins with intra-

city services which are about speedy delivery of mails and goods withinthe city. Broadening the services, inter-city services are covered. Normallythis is termed as surface cargo services where short distance and bulkloads are handled. Surface mode service is performed through two ways:firstly, on road (by bus or vehicle) and secondly on track (by train)services. The products are normally delivered through door to door.

Then, air express and air cargo services to send parcel to India. The airexpress service is usually a day faster compared to air cargo. Air expressis used by the people who need to send their significant documents acrossIndia or the world in urgency; whereas air cargo includes weighty loadsand security objects. They provide both national and internationalservices. Courier companies work in tandem with the foremost airlinesand in sync with their well tuned, well associated set of connections thetimely deliverance and protected service is guaranteed. Few other variantof services could be express services, ocean freight, industry solutions,logistic solutions, shipping tools. These particular services are individual ofa company's area of specialization and diversification.

Global Logistics IndustryThis section gives an overview of the size of the global logistics industryand its current status and prevailing dynamics.

Size of the global logistics industryCurrently the annual logistics cost of the world is about USD 3.5 trillion.For any country, the annual logistics cost varies between 9% and 20% ofthe GDP, the figure for the US being about 9%. US-based Armstrong &Associates, Inc. tracks the issues and trends in the world logistics marketand in the US logistics market, in particular, in their annual surveys of top

25 global LSPs. According to the firm, the global logistics market sizes in1992, 1996 and 2000 were USD 10 billion, USD 25 billion and USD 56billion, respectively. In 2003 and 2004, the corresponding figures wereUSD270 billion and USD 333 billion, registering high growth rates. Thoughmost of the large LSPs are headquartered in Europe, the US logisticsmarket is the largest in the world capturing one-third of the world logisticsmarket. In 2003, it was about USD 80 billion. In 2004, it grew to USD 89billion, and in 2005, it registered an impressive growth rate of 16% tocross the USD 100 billion mark for the first time and reach USD 103.7billion (Foster and Armstrong, 2004, 2005, 2006). However, considering

the fact that the logistics market in the US is about 10% of its annuallogistics cost (Foster and Armstrong, 2006), there is still immense



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potential for growth of 3PL in the US in particular, and in the world ingeneral.

Current status and dynamics of the industry

The extant literature on the logistics industry points to a number of issuesthat service providers have to address, such as pricing pressures, highcosts of operations and low returns on investments, hiring and retainingtalent, pressure from clients to broaden the range of service offerings andinternationalize operations, demand for customized solutions and morevalue-added services, besides infrastructural bottlenecks and governmentregulations. Service providers complain that clients expect them to havethe latest software, databases and ERP (Enterprise Resource Planning)packages, and invest in new technologies such as RFID and satellite-basedreal-time tracking systems. Clients perceive that these investments are

part of the basic service package, and often do not want to match thesame with increased payments for these additional services. Pressurefrom clients to broaden the range of service offerings and internationalizeoperations, has forced service providers to look for suitable alliances,mergers and acquisitions that help fill the gaps in service offerings, andindustry verticals and geographic areas served, achieve economies ofscale and enhance service providers capability to support internationaloperations. Currently, the world logistics market is going through aconsolidation phase. Tibbett & Britten Group of North America wasacquired by Exel Logistics in August, 2004, and Deutsche Post World Net,parent company of DHL, took over Exel in December, 2005. Bax Global

was taken over by Deutsche Bahn, parent company of Schenker, inNovember, 2005 while A. P. Mller acquired P&O Nedlloyd in February,2006, and TNT Logistics was sold to Apollo Management L. P. inNovember, 2006. However, mergers and acquisitions have their own setof problems in terms of integration of two diverse business units. Recenttrends in the logistics industry indicate that to be successful, serviceproviders have to differentiate themselves from their competitors in termsof offering value-added services, focus on key customer accounts thathave the potential to generate high profitability for a long term, enter intosuitable alliances to complement the range of services offered andgeographic areas served, and sell logistics services to clients suppliersand customers, thus leading to complete supply chain integration.

Indian Logistics IndustryThis section gives an overview of the size of the Indian logistics industry,its competitive dynamics and future prospects.

Size of the Indian logistics industryThe annual logistics cost in India is estimated to be 14% of the GDP, which

translates into USD 140 billion assuming the GDP of India to be slightlyover USD 1 trillion. Out of this USD 140 billion logistics cost, almost 99% is



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accounted for by the unorganized sector (such as owners of less than 5trucks, affiliated to a broker or a transport company, small warehouseoperators, customs brokers, freight forwarders, etc.), and slightly morethan 1%, i.e. approximately USD 1.5 billion, is contributed by theorganized sector. So, one can see that the logistics industry in India is in a

nascent stage.However, the industry is growing at a fast pace and if India can bringdown its logistics cost from 14% to 9% of the GDP (level in the US),savings to the tune of USD 50 billion will be realized at the current GDPlevel, making Indian goods more competitive in the global market.Moreover, growth in the logistics sector would imply improved servicedelivery and customer satisfaction leading to growth of export of Indiangoods and potential for creation of job opportunities.

Competitive dynamics and other issues

The following problems existing in the Indian logistics industry make itunattractive for investments and also create entry barriers. Logistics is ahigh-cost, low-margin business. The problem of organized players iscompounded by unfair competition with unorganized players, who can getaway without paying taxes and following operating norms stipulated in theMotor Vehicles Act such as quality of drivers and vehicles, volume andweight restrictions, etc. Economies of scale are absent in the Indianlogistics industry. Even the organized sector that contributes slightly morethan 1% of the logistics cost, is highly fragmented. Existence of thedifferential sales tax structure also brought in diseconomies of scale.

Though VAT (Value Added Tax) has been implemented since April 1, 2005,failure in implementation of a uniform VAT structure across differentstates has let the problem persist even today. Apart from the non-uniformtax structure, Indian LSPs have to pay numerous other taxes, octroi, andface multiple check posts and police harassment. High costs of operationand delays involved in compliance with varying documentationrequirements of different states make the business unattractive. On anaverage, a vehicle on Indian roads loses 24-48 hours in complying withpaperwork and formalities at different check posts en route to adestination. Fuel worth USD 2.5 billion is spent on waiting at check postsannually. A vehicle that costs USD 30,000 pays USD 7,500 per annum inthe form of various taxes, which include the excise duty on fuel. This iswhy freight cost is a major component of the cost of a product in India.There is lack of trust and awareness among Indian shippers with regard tooutsourcing logistics. The volume of outsourcing by Indian shippers ispresently very low (~ 10%) compared to the same for the developedcountries (> 50%, sometimes as high as 80%). The unwillingness tooutsource logistics on part of Indian shippers may be attributed toskepticism about the possible benefits, perceived risk, and losing control,of sensitive organizational information, and vested interests in keepinglogistics activities in-house. Indian shippers expect LSPs to own quality

assets, provide more value-added services and act as an integratedservice provider, and institute world-class information systems for more



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visibility and real-time tracking of shipments. However, they are unwillingto match the same with increased billings; even pay little attention totimely payments that leave LSPs short of adequate working capital. Indianfreight forwarders face stiff competition from multi-national freightforwarders for international freight movement.

MNCs, because of their size and operations in many countries, are able tooffer low freight rates and extend credit for long periods. Indian freightforwarders, on the other hand, because of their smaller size and lack ofaccess to cheap capital, are not able to match the same. Moreover, clientsof MNCs often want to deal with a single service provider and especiallyfor FOB (Free on Board) shipments specify the freight forwarders, whichmost of the time happen to be the multi-national freight forwarders.

This is sort of a non-tariff barrier imposed on Indian freight forwarders.Poor physical and communications infrastructure is another deterrent toattracting investments in the logistics sector. Road transportationaccounts for more than 60% of inland transportation of goods, andhighways that constitute 1.4% of the total road network, carry 40% of thefreight movement by roadways. Slow movement of cargo due to bad roadconditions, multiple check posts and documentation requirements,congestion at seaports due to inadequate infrastructure, bureaucracy,red-tapeism and delay in government clearances, coupled with unreliablepower supply and slow banking transactions, make it difficult for exportersto meet the deadlines for their international customers. To expediteshipments, they have to book as airfreight, rather than sea freight, which

adds to the costs of shipments making them uncompetitive ininternational markets. Moreover, many large shipping liners avoid Indianports for long turnaround times due to delays in loading/unloading andhence Indian exporters have to resort to transshipments at ports such asSingapore, Dubai and Colombo, which adds to the costs of shipments andalso delays delivery. Low penetration of IT and lack of propercommunications infrastructure also result in delays, and lack of visibilityand real-time tracking ability. Unavailability and absence of a seamlessflow of information among the constituents of LSPs creates a lot ofuncertainty, unnecessary paperwork and delays, and lack of transparencyin terms of cost structures and service delivery. For example, a shipper

has to pay a higher freight rate if it cannot ensure return load. At present,there is no real time process by which a shipper may know about theavailability of trucks and going rates at the destination market. Therefore,it has to pay more. Had the market information been available to both theshipper and the service provider, the service providers cost structurewould have been transparent to the shipper and it would have endedpaying the actual market rate.

Another example would be that LTL (Less than Truckload) shipments costmore than FTL (Full Truckload) shipments. Now, when a shipper books a

LTL shipment, it has no idea about the status of its shipment after itleaves the warehouse at the origin and before it reaches the warehouse at



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the destination. The service provider may still convert this LTL shipmentinto a FTL shipment at its own warehouse before delivering at thedestination. So, the shipper ends up paying LTL rates for a FTL shipment.Had there been visibility during delivery, this problem would not haveoccurred. Since most of the LSPs are of relatively small size, they cannot

provide the entire range of services. However, shippers would like serviceproviders to offer more value-added services and a single-stop solution toall their logistical problems. The inability of service providers to go beyondbasic services and provide value-added services such as small repairwork, kitting/dekitting, packaging/labeling, order processing, distribution,customer support, etc. has not been able to motivate shippers to go foroutsourcing in a big way. Service tax levied on logistics service fees(currently 12.36% with educational cess) may make outsourcing costlyand outweigh the possible benefits. There is lack of skilled andknowledgeable manpower in the logistics sector. Management graduatesdo not consider logistics as a prime job. To improve the status of theindustry, service providers have to move beyond the level of brokers andtruckers to attract and retain talent.

Future prospectsDespite problems, The Indian logistics industry is growing at 20% vis--visthe average world logistics industry growth of 10%. Since the organizedsector accounts for merely 1% of the annual logistics cost, there isimmense potential for growth of the sector. The major opportunities arehighlighted below. Many large Indian corporates such as Tata andReliance Industries have been attracted by the potential of this sector and

have established logistics divisions. They started providing in-houselogistics services, and soon sensing the growth of the market, havestarted providing services to other corporate as well. Large express cargoand courier companies such as Transport Corporation of India (TCI) andBlue Dart have also started logistics operations. These companies enjoythe advantage of already having a large asset base and an all-Indiadistribution network. Some large distributors have also forayed into thelogistics business for their clients. Since logistics service can be providedwithout assets, there is growing interest among entrepreneurs to ventureinto this business. Indian shippers are gradually becoming more aware ofthe benefits of logistics outsourcing. They are now realizing that customerservice anddelivery performance are equally important as cost to remain competitivein this global economy.

The Indian economy is growing at over 9% for the last couple of years(compared to the world GDP growth rate of 3%), which implies moreoutputs and more demand for specialized logistics services. The Indiangovernment has focused on infrastructure development. Examples includethe golden quadrilateral project, east-west and north-south corridors(connecting four major metros), Free Trade and Warehousing Zones

(FTWZ) in line with Special Economic Zones (SEZ) with 100% ForeignDirect Investment (FDI) limit and public-private partnerships (PPP) in



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infrastructure development. It is expected that infrastructure developmentwould boost investments in the logistics sector. In India, 100% FDI isallowed in logistics whereas in China, until recently, foreign investmentwas not allowed in domestic logistics.

Almost all large global logistics companies have their presence in India,mainly involved in freight forwarding. For domestic transportation andwarehousing, they have tie-ups with Indian companies. As the Indianlogistics scenario looks promising, these MNCs are expected to play abigger role, probably forming wholly-owned subsidiaries or taking theacquisition route. The latter may be the preferred route of investmentsince the target company is readily acquired with its asset base anddistribution network, and the need for building everything from scratchcan thus be avoided. The benefits for the acquired company include thepatronage of an MNC and access to the MNCs global network. As anexample, DHL Danzas, the biggest logistics company in the world, hastaken over Blue Dart.

Objective #1

To study the functional processes (Inbound / Outbound) of theorganization involved right from the point of Order to the pointof Delivery.

Specific Activities to Learning Objective #1

Study the INBOUND / OUTBOUND processes at the service centre.

Study the entire process from Inscan Segregation Consolidation Outscan at the Bombay HUB.

Observe the final phase of delivery at BLUE DART AVIATION.


OBJECTIVES OF THE PROJECT


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Objective #2

To study the current network in the DP(Domestic Product) segment.


Gather and record the data as per STATEWISE / REGIONWISE /HUBWISE.(Annexure, table-1)

Design the transit map for DP(Domestic Product) transport for eachHUB.(Annexure, table-2)

Objective #3

To study the present scenario of the organization in the surface(SFC) and Apex (Air Package Express) transportation. (figure- 1)


Observe the transit time (in terms of days) for Surface routes forspecific locations with the help of in-house software, COSMAT-II.

Study the available transit time for specific surface routes tounderstand the ground network.

Objective #4

To find out an alternative way to achieve time minimization, costminimization & profit maximization. (figure- 2)


Initially, routes are selected from ground network, where railwaytransport can be introduce.

Design the surface transit map for surface transport. (Annexure,table-3)

Design the railway transit map for multimodal (Surface + Rail)transport. (Annexure, table-4)

Calculate the difference between surface and railway transit timefrom available results. (Annexure, table-5)



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BLUEDARTBlue Dart is South Asia's premier courier, and integrated express

package Distribution Company. Blue Dart has the most extensivedomestic network covering over 21,533 locations, and service more than220 countries and territories worldwide through its Sales alliance withDHL, the premier global brand name in express distribution services.

Vision:

"To be the best and set the pace in the express air and 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."


COMPANYPROFILE


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Milestones:

Driven by enterprise and ambition, three young entrepreneurs Clyde Cooper, Khushroo Dubash and Tushar Jani came up with theidea of starting a courier service that would deliver documents andsample shipments overnight to international and domestic destinations.Blue Dart courier services was launched on November 19, 1983, witha capital base of just Rs. 30,000. The company forged ties with GelcoExpress international, UK, and introduced an international air packageexpress service India. Some of the key milestones in Blue Darts historyare:

1984:Blue Dart Courier Services becomes a Global Service Participant of FedExwith the acquisition of Gelco Express International by FedEx. Blue Dart

Courier Services is the first carrier in India to provide domestic andinternational 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 allinternational shipments through COSMOS, the FedEx track and tracesystem.

1991:Blue Dart Express is registered as a private limited company, and

introduces its economical logistics service option, Dart Surfaceline. Itindigenously 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 FeedbackAction (SFA).

1994:Blue Dart Express Ltd. goes public with an equity offer of 2.55 millionshares, at a premium of 14 times, worth Rs: 382.5 million . Blue DartExpress Ltd. launches Dart Apex (Domestic Air Package Express), a multi-modal, premium package delivery service, and COSMAT-IITM, anadvanced system which includes track and trace. Blue Dart Aviation isregistered as a public limited company and becomes the first privatecompany to receive government permission for operation of cargo aircraftin India.

1995:Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATOpermission. 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.



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is awarded the "Global Service Participant Sales Award" by FedEx foroutstanding sales performance.

Blue Dart, Calcutta is proud to have the office inaugurated by MotherTheresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.

1996:Blue Dart Aviation launches India's first jet express airline. Blue DartExpress Ltd'sturnover crosses the Rs: 1 billion mark, as it expands its domestic networkby entering into strategic alliances in North, South and West India. BlueDart Express Ltd. is the first express company in India to receive an ISO9001 certification, and post its website on the internet. Blue Dart ExpressLtd., FedEx and the Heart-to-Heart Foundation, U.S.A., co-operate inbringing the world's largest airlift of charity to Kolkata.

1997:Blue Dart Express Ltd. signs agreements with leading international airlinesfordistribution of bonded cargo within its network. Blue Dart Aviationlaunches itsdomestic charter operations.

1998:Blue Dart Aviation develops India's first Load and Trim software for itsB737F flights.

Blue Dart Express Ltd. launches SMARTBOX, its economical, packageddoor-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 andOperations Superhub, the Blue Dart Centre, at Mumbai. At close proximityto both the international and domestic airports, encircled by four five-starhotels, and equipped with the latest technology, the Superhub hasimproved efficiency and increased load-handling capacity multifold. BlueDart Express Ltd. Launches Power Dart 2000+, a software that provides

customers free connectivity to its database, enabling customers to trackand retrieve all information related to their shipments.

2000:Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft isscheduled foroperations on the Bangalore-Delhi-Bangalore sector. Blue Dart ExpressLtd. alsorevamps its website replacing it with an interactive website to support e-trade and

commerce and facilitate customer interface on the net.



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2001:Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-Bangalore sector. The Civil Aviation Ministry requisitions Blue Dartaircrafts 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 declares1:1 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 thenew globalISO 9001 - 2000 standards for "Design, management and operations ofcountrywideexpress transportation and distribution service within the IndianSubcontinent and to international destinations serviced throughmultinational express companies". Blue Dart ends its contract with FederalExpress and signs a path-breaking Sales Alliance with the World's No. 1international air express company, DHL Worldwide Express. Blue Dartcrosses 100,000 shipments per day.

2003:Blue Dart acquires its fourth Boeing 737 freighter. With a thrust onstrengthening infrastructure, Blue Dart establishes twelve of its ownoffices in the South, delivering to an additional 198 locations, expands itshub at Bhiwandi and sets up a bonded warehouse in Mumbai. Thecompany is selected a Superbrand 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 19thNovember 2003.

2004:Blue Dart inducts its 4th aircraft into operation on 17th May 2004,connectingHyderabad as its 6th Aviation Hub. Blue Dart also extends its brand intoSri Lankathrough a Regional Service Alliance with Foster Agencies Pvt. Ltd.,Member of the

Hayleys Group, one of Sri Lanka's largest diversified multinationals. TheAlliance will enable customers to use Blue Dart services between 400locations in Sri Lanka and over 13,700 locations in India. Blue Dartacquires its fifth Boeing 737 freighter.

2005:DHL Express (Singapore) Pte. Ltd. completes the acquisition of 81.03% ofthe equitycapital of Blue Dart Express Limited. Blue Dart continues to operate as anindependent brand and provides a complete spectrum of domestic and

international express services through synergies with DHL.



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2006:Blue Dart launches its unique SMS based Mobile Tracking Service. Adecade after itslaunch of India's first domestic express airline, Blue Dart introduces thefirst Boeing 757 freighters in the Indian skies on the 1st June 2006 with 2

of these aircraft connecting the 5 major metros of Delhi, Mumbai,Chennai, Bangalore and Kolkata. A second flight is launched fromHyderabad and Ahmedabad is the 7th airport connected to Blue Dart'snetwork.

2007:Blue Dart launches its fortified Ground Express Service Dart Surfacelinewith timebound deliveries and features like DOD (Demand Draft on Delivery), FOD(Freight on Delivery) and FOV (Freight on Value) - Insurance Arrangement.Blue Dart inducts 3rd Boeing B757 freighters.

2008:25th year of operations in India.

Blue Darts Competitive Advantage lies in:

Blue Darts vast and unparalleled Domestic NetworkLinked by some of the most advanced communications systems andpositioned 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 anentire range of services that extend from a document to a charter-load ofshipments. Blue Dart services are relentlessly monitored to deliver a netservice level of 99.96%.

Blue Darts Customs and Regulatory expertiseWe have a dedicated team of specialists who provide the expertise forcustoms as well as regulatory clearances at all States within the country,to support seamless service to the customer.

Blue Darts TechnologyDesigned to enhance the reliability of Blue Darts operations and processefficiency, and add value to the customer through time and cost savings.

Blue Darts Air NetworkThe only one of its kind in the country today, that is focused on carriage ofpackages as its prime business, rather than as a by-product of apassenger airline. A dedicatedaviation system to support Blue Dart's services is self-sustaining, with itsown bonded warehouses, ground handling and maintenance capability.

Blue Darts financial credibility

http://www.bluedart.com/customs.htmlhttp://www.bluedart.com/technology.htmlhttp://www.bluedart.com/financial.htmlhttp://www.bluedart.com/customs.htmlhttp://www.bluedart.com/technology.htmlhttp://www.bluedart.com/financial.html


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Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+(ind)" [F oneplus (ind)]rating for Blue Darts short term debt programme of Rs. 30 crores.

Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one

plus) Rating for Blue Darts Commerical Paper Programme of Rs. 25crores.

Blue Darts People forceCommitted, diverse and over 6,966 strong are Blue Darts most valuedasset. All BlueDart achievements have been possible because they have a team whobelieves inthemselves and their company, a team with a winning attitude. Blue Dartis a learning organization, Blue Dart values self-development, and most ofBlue Dart managers are homegrown.

Fact Sheet

Description : South Asia's premier courier and integrated air

expresspackage distribution company.

Began Operations : November, 1983.

Headquarters : Mumbai, India.

The Board : Sharad Upasani (Chairman)Anil Khanna (Managing Director)

Malcolm Monteiro (Director)

Clyde Cooper (Director)Suresh Sheth (Director) Christopher Ong (Director)

Revenues(Jan - Dec 2008) ` : Rs.9825 million

Number of Shareholders(as on 31stDecember,2008) : 5078

Domestic Locations

Serviced : Over 21,533 locations

http://www.bluedart.com/careers.htmlhttp://www.bluedart.com/boardofdirectors.html#ramdashttp://www.bluedart.com/boardofdirectors.html#anilhttp://www.bluedart.com/boardofdirectors.html#malcolmhttp://www.bluedart.com/boardofdirectors.html#cooperhttp://www.bluedart.com/boardofdirectors.html#shethhttp://www.bluedart.com/boardofdirectors.html#crishttp://www.bluedart.com/careers.htmlhttp://www.bluedart.com/boardofdirectors.html#ramdashttp://www.bluedart.com/boardofdirectors.html#anilhttp://www.bluedart.com/boardofdirectors.html#malcolmhttp://www.bluedart.com/boardofdirectors.html#cooperhttp://www.bluedart.com/boardofdirectors.html#shethhttp://www.bluedart.com/boardofdirectors.html#cris


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International DestinationsServiced : More than 220 countries and territoriesworldwide

through sales alliance with DHL.

Air Support : 3 Boeing 737 and 4 Boeing 757 freighters

Ground Support : 5,663 vehicles

Network : Domestic hubs :

Mumbai,Delhi,Bangalore,Chennai,Erode,Hyderabad,Kolkata,Ahmedabad and Guwahati.

International Outbound Gateways :Mumbai,Delhi and Chennai to

Dubai,London,Frankfurt,Bahrain,Hong Kong and Singapore.

Number of shipmentshandled (in million) : Jan-Dec 2008

Domestic - 79.00International - 0.72

Tonnage handled(in tonnes) : 231,900

No. of computer terminals(as on 31st, May, 2009) : Over 3,979 E-mail at 186 locations accessedby over

3,767 users.

Technology : Cosmat IITM, SMARTTM,ShopTrackTM, PackTrackTM,MobileDartTM, TrackDartTM, MailDartTM,

InternetDartTM,ShipDartTM, ImageDartTM and Schedule a Pick-up.,SENTOR,CARESS and SHIELD.

People Force : Over 6,966

http://www.bluedart.com/technology.htmlhttp://www.bluedart.com/ecom.html#cosmathttp://www.bluedart.com/ecom.html#cosmathttp://www.bluedart.com/ecom.html#smarthttp://www.bluedart.com/ecom.html#smarthttp://www.bluedart.com/ebusinesstools.html#shopthttp://www.bluedart.com/ebusinesstools.html#shopthttp://www.bluedart.com/ebusinesstools.html#packthttp://www.bluedart.com/ebusinesstools.html#packthttp://www.bluedart.com/ebusinesstools.html#mdarthttp://www.bluedart.com/ebusinesstools.html#mdarthttp://www.bluedart.com/ecom.html#trackdhttp://www.bluedart.com/ecom.html#trackdhttp://www.bluedart.com/ecom.html#maildhttp://www.bluedart.com/ecom.html#maildhttp://www.bluedart.com/ebusinesstools.html#idarthttp://www.bluedart.com/ebusinesstools.html#idarthttp://www.bluedart.com/ebusinesstools.html#Sdarthttp://www.bluedart.com/ebusinesstools.html#Sdarthttp://www.bluedart.com/ebusinesstools.html#Imagehttp://www.bluedart.com/ebusinesstools.html#Imagehttp://www.bluedart.com/scheduleapickup.htmlhttp://www.bluedart.com/technology.htmlhttp://www.bluedart.com/ecom.html#cosmathttp://www.bluedart.com/ecom.html#smarthttp://www.bluedart.com/ebusinesstools.html#shopthttp://www.bluedart.com/ebusinesstools.html#packthttp://www.bluedart.com/ebusinesstools.html#mdarthttp://www.bluedart.com/ecom.html#trackdhttp://www.bluedart.com/ecom.html#maildhttp://www.bluedart.com/ebusinesstools.html#idarthttp://www.bluedart.com/ebusinesstools.html#Sdarthttp://www.bluedart.com/ebusinesstools.html#Imagehttp://www.bluedart.com/scheduleapickup.html


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5N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH


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Products of Blue Dart:

Domestic Priority:Available at over 14400 locations across india, this service is for delivery

of documents and packages, under 32 kg per piece, which requireunfailing reliability and speed.

Dart Apex:Efficient, time definite supply-chain support for commercial shipmentsthat require regulatory expertise and clearances. Shipments are handleddoor-to-door through an integrated air and ground network.

SmartBox:A ready convenient, cost effective packaging unit that includes a personal

pickup from a customers door step to the delivery. The easy to assembleunits come in sizes of 10 kg and 25 kg, and are designed to securelyaccommodate a variety of products.

Dart Surfaceline:An economical, door-to-door, ground distribution option for shipments thatare less time sensitive. Surface vehicles operate all around the country tofixed, predetermined time schedules from company warehouses, toensure reliability and security.

International services:Deliveries to more than 220 countries and territories worldwide as a partof DHL Worldwide Express.

Air Freight Services Offerings:Large shipment delivery capability, through Indias only dedicated airservices, with night operations by a fleet of two Boeing 757 and fiveBoeing 737 freighters.

Domestic Airport-to-Airport:Late cut-offs and early morning deliveries to the seven major metros ofAhmadabad, Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Mumbai.Shipments are checked at screening facilities available in dedicatedwarehouses at the airports.

Interline Services:

Transhipments of customs-bonded import & export loads to and from sixof Indias main international gateways. This facilities is available with

more than 20 major international airlines who are Blue Darts interlinepartners.



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Charters:

Blue Darts freighters offer capacity for carriage of urgent, time sensitive,emergency material between major airports in India, and to someinternational airports in the region. Blue Darts freighters offer the highestpayload available in the Indian skies.



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ImageDartAllows the users of Blue Darts apex and Surfaceline services to downloadthe Proof of Delivery and Delivery Challans online from the Blue Dartwebsite.

ShipDartEnables user control over shipping and tracking processes. For regularcustomers, it is installed at the customers premises in order to interfacewith their own system for the preshipping and post-tracking activities.

SentorStatus Entry Offline for Regional Service Participants/Remote Locations an application provided to Blue Dart channel partners and Blue Dartoffices in remote areas. Via internet, SENTOR users received detailedinformation on inbound packages for delivery.

CaressComplaint Appreciation, Resolution and Evaluation to Satisfaction System this indigenously-developed solution system allows logging, resolution,closure and analysis of customer complaints.

ShieldThe online security module simplifies tracking of any security incidentacross the country. It enables the regional security team to track thecases till closure, and derive trends as an effective management tool.

SafireEnables Blue Darts salespersons to log in their entire days activities-collections, follow-ups as well as new leads. This indigenously developedsoftware not only helps the sales person organize his daily individual salesactivity but also aids in giving a holistic view of the customerperformance.



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Supply chain management (SCM) is the management of a network ofinterconnected businesses involved in the ultimate provision of productand service packages required by end customers (Harland, 1996). SupplyChain Management spans all movement and storage of raw materials,work-in-process inventory, and finished goods from point of origin to thepoint of consumption.

Supply chain management (SCM) is the term used to describe the

management of the flow of materials, information, and funds across theentire supply chain, from suppliers to component producers to finalassemblers to distribution (warehouses and retailers), and ultimately tothe consumer.1 In fact, it often includes after-sales service and returns orrecycling. Figure 1 is a schematic of a supply chain. In contrast to multiechelon inventory management, which coordinates inventories at multiplelocations, SCM typically involves coordination of information and materialsamong multiple firms.

The twelve categories we define are

location

transportation and logistics inventory and forecasting

marketing and channel restructuring

sourcing and supplier management

information and electronic mediated environments

product design and new product introduction

service and after sales support

reverse logistics and green issues

outsourcing and strategic alliances

metrics and incentives

global issues.

ConclusionSupply chain management is an exploding field, both in research and inpractice. Major international consulting firms have developed largepractices in the supply chain field, and the number of research papers inthe field is growing rapidly. Our treatment covered twelve areas oftenseen in supply chain research and practice. These areas appear to besomewhat disparate, but they are all linked by the integrated nature ofthe problems at hand. Firms operate in global environments, deal with

multiple suppliers and customers, are required to manage inventories innew and innovative ways, and are faced with possible channel


Supply Chain Management
http://en.wikipedia.org/wiki/Supply_chain_networkhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/w/index.php?title=End_customers&action=edit&redlink=1http://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Supply_chain_networkhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/w/index.php?title=End_customers&action=edit&redlink=1http://en.wikipedia.org/wiki/Raw_material


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restructuring. The field promises to continue growing as the researchadvances and as firms continue to apply new knowledge in their globalnetworks. Finally, as the Internet changes fundamental assumptions aboutbusiness, 22 firms operating in supply chains will be required tounderstand this new phenomenon and respond accordingly.

Supply Chain Management at Blue Dart


HUB (NEAR FROMSERVICE CENTER)

CONSIGNOR /SHIPPER

CONSIGNEE /RECEIVER

BRANCH / SERVICECENTER

BRANCH / SERVICECENTER

HUB (NEAR FROM

SERVICE CENTER)


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Objective #1 Analysis

To study the functional processes (Inbound / Outbound) of theorganization involved right from the point of Order to the pointof Delivery.


Study the INBOUND / OUTBOUND processes at the service centre.

Study the entire process from Inscan Segregation Consolidation Outscan at the Bombay HUB.

Observe the final phase of delivery at BLUE DART AVIATION.

At first we were asked to understand hoe BlueDart actually handlesthe shipments right from point of order to the point of delivery. In

order to understand the entire process we were first asked to visitone of BlueDarts service center[Adarsh Service Center (ADR)]. Herewe understood both the Inbound & Outbound process.

Inbound-Loads coming into Bombay for delivery into locationswithin

Bombay.Outbound-Loads originated from various locations in Bombay fordelivery

into locations outside Bombay.

Next we visited the Bombay Hub and study the operations doneover there. The Bombay Hub receives loads from all the servicecenters located in Bombay. After receiving the loads, the loads areIn-Scanned, then Segregated according to the locations andconsolidated into Canvas Bags. The Canvas Bags are then Out-Scanned. All these operations take place in the night.

Also we visited BlueDarts AVIATION center, the last point throughwhich the loads pass while going out of Bombay & the first pointthrough which the loads enter into India.



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Outbound / Inbound


AWB(1) AWB(2) AWB(3) AWB(4)

Plastic BagNo. 1

(MAWB No.)

Plastic BagNo. 2

(MAWB No.)

Canvas Bag

No. 1 (CB No.)

COSMAT II

Canvas Bag

No.2 (CB No.)

COSMAT II

Link CB to

Run

Link CB to

Run

Connection Flightfor Destination 1

COSMAT II

Connection Flightfor Destination 2

COSMAT II

Pre Alert forDestination 1

COSMAT II

Pre Alert forDestination 2

COSMAT II

D File(Shipment

Data) of Origin

Service Centre 1

COSMAT II (DBF)

A

In Scan/ Out

Scan

Reconciliation

In Scan/ Out

Scan

Reconciliation

Un-Connected

Shipment

Report

Un-Connected

Shipment

Report

Un-Connected

ShipmentReport


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Pick Up- Pick up Sheet is generated from the CS Data Pick Up Module.Pick UpSheet may be for Call & Regular Customer. Call Customer may be aCash/Creditcustomer. Each Call-in customer is allocated a Token Number. TokenNumber isin turn allocated to pick up staff. After pick ups, the details of shipmentsbroughtinto the service centers are then entered into the COSMAT II.

A Pick Up Tally Report is generated from system and reviewed on dailybasis.

AWB In Scan- Each Shipment (i.e. AWB) is then scanned(In Scan) tocapture its Bar Code in the system.

Batch Creation- A Batch is created in the system for AWB Data Entry.Batch No. is entered manually. There can be multiple Batches in a day.Batch Date is entered Manually. Batch Date can be 10 days prior toCurrent Date.


A

D File(ShipmentData) of Origin

Service Centre 1COSMAT II (DBF)

D File(ShipmentData) of Origin

Service Centre 2COSMAT II (DBF)

RegionalEDP

RegionalEDP

RegionalEDP

Regional

EDP

Central Billing

Data

Exception

Reports

(Central EDP)

Exception

Reports

(Central EDP)

Acknowledgement Reports(Central EDP)

TRANXlog.DBF

DBOM.PRN log

file


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AWB Data Entry- After In scan And Batch creation, the AWB Data isthen entered into the COSMAT II capturing details of customers, Weight,Product Type, Destination, DOX or DUTS, Pick-Up & Shipment Date(thesedate can be 10 days prior to Current Date). Multiple AWBs are entered in asingle Batch. Same AWB cant be entered in two different Batches.

AWB Data Entry Pending Report is generated from the system whichcaptures Shipments(AWB) In Scanned but Data not entered. For RapidBagging Data entry refer Plastic Bagging below.

Batch Confirmation- Once Batch is created and AWB Data is enteredagainst it, the same is confirmed.

Plastic Bagging- Normal Bagging :-

Shipments brought into the service center and after scanning & DataEntry same are first put into a Plastic Bag. Each Plastic Bag is identifiedwith a Master AWB No.(MAWB No.) in the COSMAT II. Each Consignment (i.e. AWB No.) is thenConnected to a Plastic Bag(i.e. MAWB No.) in system. Multiple Shipmentsare put in a single Bag. Same shipment (i.e. AWB No.) cant beput(Connected) in two Bags(i.e. MAWB No.). Plastic Bag(i.e. MAWB No.)are product specific and destination specific. Maximum of 35 Shipmentscan be put in a single Plastic Bag. Each Plastic Bag(i.e. MAWB No.) isspecific to a Product Type & Destination. AWB No.(Shipment) booked inthe system for one destination cannot be Connected to MAWB(Plastic Bag)

booked in the system for another destination. In the system Shipment(i.e.AWB No.) can be Connected to Plastic Bag(i.e. MAWB No.) only after InScan.

Rapid Bagging :-In case where Shipment (i.e. AWB No.) is In Scanned but Data Entry andBatch Confirmation is not done, such Shipment(i.e. AWB No.) can be stillbe Connected to Plastic Bag(i.e. MAWB No.) via Rapid Bagging Data Entryoption. Here at the time of Connecting Shipment(i.e. AWB No.) to PlasticBagging(i.e. MAWB No.) system makes it mandatory entry of followingdetails of shipment :

a) Customer Code b) Weight c) Destinationd) AWB No. e) DOX/DUT f) Origin Codeg) Destination h) No. of pieces

After using rapid Bagging Data Entry option the AWB No. will still appearin Pending AWB Data Entry Report and same will get cleared only after fulldata entry for that AWB No. and Batch Confirmation.

Un-Connected Shipment Report is generated which shows Shipments

(i.e. AWB No.) In Scanned in the system but not Connected to Plastic Bag(i.e.M AWB No.)



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Canvas Bagging- Plastic Bags are then put into Canvas Bags. EachCanvas Bag is identified with a Number (CB No.) in the COSMAT II.

(Canvas Bag series numbers are allocated by HUB to Service Centers).Each Plastic Bag (i.e. M AWB No.) is then Connected to a Canvas Bag (CBNo.) in the system. Multiple Plastic Bags are put in a Canvas Bag. SamePlastic Bag(i.e. MAWB No.) cant be put (Connected) in two Canvas Bags(i.e. CB No.) in the system. Canvas Bag (i.e. CB No.) are destinationspecific. MAWB No. (Shipment) booked in the system for one destinationcannot be Connected to CB No. (Canvas Bag) booked in the system foranother destination. For Connecting Shipment (i.e. AWB No.) directlyCanvas Bag(i.e. CB No.) weight of shipment has to be minimum 5 kg, elsesystem will show an error message. For shipments having weight belowbelow 5 kg, Plastic Bagging(i.e. Connecting AWB No. to MAWB No.) ofshipment is mandatory in the system. Plastic Bags(i.e. M AWB No.) notcreated in the system cannot be Connected to Canvas Bag(i.e. CB No.). Incase of AWB having weight above 5 kg, if Data Entry is not done and sameis tried to be Connected to Canvas Bag system will generate an errormessage and will require AWB Data entry prior to including to CanvasBag.

Un-Connected Shipment Report is generated which shows PlasticBags(i.e. MAWB No.) In Scanned in the system but not Connected toCanvas Bag(CB No.)

Link to Run Processes- After Connecting Plastic Bags(i.e. MAWB No.)to Canvas Bags (i.e. CB No.) in system each Canvas Bag(i.e. CB No.) islinked to Run. Link to Run is a process where origin service centersidentifies the Hub to which shipments are to be sent. Each Run has aunique number. In system a Canvas Bag(i.e. CB No.) cannot be Linked tomultiple Run Nos.Link C/B to Run I/O Reconciliation is generated at this stage.

Connect Flight- This is the process for generation of TransferChallan(TC) after Link Run Processes. Transfer Challan travels with the

shipment from service centers to Hub. System does not allow generationof Transfer Challan unless and until Link C/B to Run I/O Reconciliation.Each TC is specific for a specific Run No. it captures details like TotalWeight of Canvas bag, Total No. of Plastic Bags, Total No. of loose pieces,etc.

Un-Connected Shipment Report is generated which showsShipments(i.e. AWB No.) In Scanned in the system but not Connected toPlastic Bags(i.e. MAWB No.), Plastic Bags(i.e. MAWB No.) not connected toCanvas Bags(i.e. CB No.), Canvas Bags(i.e. CB No.) not yet closed.



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A

Pre-Alert generation- After Connect Flight i.e. generation of TransferChallan, Pre-Alerts are generated for each Run No.. Pre-Alerts will havefollowing information:

Details of Plastic Bags(i.e. MAWB No.) contained in (i.e. Connected to)Canvas Bags(i.e. CB No.)

Details of Shipments(i.e. AWB No.) contained in (i.e. Connected to )Plastic Bags.

Details of individual shipments(i.e. AWB No.)Pre-Alerts can be generated for Closed canvas Bags(i.e. CB No.)

D-file Generation- D- file contains shipment data in various tables. D-files are generated at the end of the day after generation of Pre-Alerts. Onsuccessful generation of D-file, a log file(PRN file) is createdcapturing details of records contained in the D file. Once

DBOM file is generated Batch Control Slip is generatedfrom the system.

Transmission to Regional EDP- After generation of D-files same istransmitted to Regional EDP using File Transmission module. An entry isappended in log file(TRANXLOG.DBF) regarding success or failure of D-filetransmitted. Regional EDP intimates Local EDP regarding exceptions intransmission like CRC failures. Missing files, last file not found, ControlTotal Errors, etc.


Pick Up Sheet(Customer

Details)

Pick Up List(AWB Details)

COSMAT II

PhysicalVerification

AWB Scanning(In Scan)

COSMAT II

AWB Data

Entry

AWB ConfirmationCOSMAT II

Plastic BagScanning

(Out Scan)

Canvas BagScanning

(Out Scan)

Connect Flght(Out Scan)COSMAT II

Pre AlertDestinationwise

COSMAT II


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A

Objective #2 Analysis

To study the current network in the DP(Domestic Product) segment.


Gather and record the data as per STATEWISE / REGIONWISE /HUBWISE.(Annexure, table-1)

Design the transit map for DP(Domestic Product) transport for eachHUB.(Annexure, table-2)

With the help of the Network Service Guide and the COSMAT IIsoftware, we recorded all the locations serviced by Blue Dart. Wethen arranged the locations according to STATEWISE, REGIONWISE& also HUBWISE. This exercise gave a clear picture of the no. oflocations within each state and also the span of each Region & alsothe locations falling under each HUB.

The transit map of the DP product gives a clear picture of the no. ofdays required for a shipment to get delivered from one particularlocation to any other location in India. It gives an indication of thetime commitment (24hr,48hr,72hr) attached to each location i.e.whether the time required to deliver a shipment from one locationto another is 24hr,48hr or 72hr.

What BlueDart is going to do with this data??With more no. of flights introduced, Blue Dart can take advantage ofthe new flights. With these flights, Blue Dart can look foropportunities where it can cut down the transit time from 48hrs to

24hrs or 72hrs to 36hrs.With the help of their IT people, Blue Dart is planning to compile thisdata into a software which gives the entire connectivity from onelocation to each & every location anywhere in India with just a clickof a button.


D File Shipment

Data


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Objective #3

To study the present scenario of the organization in the surface(SFC) and Apex (Air Package Express) transportation. (figure- 1)

Specific Activities to Learning Objective #3 Observe the transit time (in terms of days) for Surface routes for

specific locations with the help of in-house software, COSMAT-II.

Study the available transit time for specific surface routes tounderstand the ground network.

Objective #4To find out an alternative way to achieve time minimization, costminimization & profit maximization. (figure- 2)


Initially, routes are selected from ground network, where railwaytransport can be introduce.

Design the surface transit map for surface transport. (Annexure,table-3)

Design the railway transit map for multimodal (Surface + Rail)transport. (Annexure, table-4)

Calculate the difference between surface and railway transit timefrom available results. (Annexure, table-5)



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PRESENT SCENARIO OF BLUE DART:

APEX- Air Package Express

SFC- Surface

figure -1, Source- Blue Dart Express Pvt. Ltd.

OBJECTIVE OF BLUE DART: APEX- Air Package Express

SFC- Surface

figure -2, Source- Blue Dart Express Pvt. Ltd.


A

P

E

XS

F

C

GAP TO

BE

TIM

COS

A

P

E

X

R

A

I

L

S

F

C

TIM

COS

RAIL


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The task is to fill the gap between surface and air transport by introducing multimodal

transportation so that it will be helpful to achieve profit maximization, time & cost

minimization and ultimately customer satisfaction. Hence to achieve the same

objectives, company is designing the product named as Day Definite Delivery, which

is the introduction of multimodal transport in the family of Blue Dart Express Pvt.

Ltd. The operation department is working throughout the day to complete the

objective.

To fulfill the aims of on organization regarding this project, some recommendations

are suggested as follows:

Map the transit time of surface transportation in tabulation form.

Map the transit time of Rail transportation in tabulation form.

Analyze the observed routes by comparing beneficial routes of Blue Dart with

the competitor.

Give preference to the routes which are showing most beneficial characteristics.

Observe the routes which are beneficial in terms of cost cutting and time saving.

From the observed routes, Eastern part of the network is showing desirable

response.

Ultimately, if the Blue Dart works on Eastern part of present network, it may prove

beneficial, to fulfill the objectives which are defined by the organization.

IN AN INTERVIEW WITH


RECOMMENDATIONS


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Michael Pereira [General Manager - Operations(AI)]

What are the key challenges you face in air express operations?One of the biggest challenges facing express operators today isinfrastructureboth air and surface. Space at airports, airside (the part ofan airport directly involved in the arrival and departure of aircraft) andcity side infrastructure are often inadequate. In addition, parking bays,airside/city side access and traffic congestion adversely impact costs aswell as service quality. Air express companies are constrained by the sizeof the facilities at the airports, as they have remained the same while theloads have increased manifold.

What is the size of the Indian market in terms of domestic andinternational express services? What are the growth prospects?The domestic organized air express market is pegged between Rs1,250

crore and Rs1,500 crore while the domestic organized ground expressmarket is pegged between Rs1,500 crore and Rs1,800 crore.The outlook for the air express industry in 2009 is probably best describedas extremely challenging. Whats difficult at this moment is predictabilityof the market movement. These are tough times, but cyclical happenings.We believe that these inconsistencies will bottom out with the revival ofthe economy...Several air express carriers are waiting in their wings.

Is there a market for more competitors?Blue Dart, operating for the last 25 years, is the leader in the industry. It

has been the pioneer having critical domain expertise and enjoys amarket share of 43% in the domestic air express industry.Various airlines are contemplating their entry into the sector, which is apositive sign of the growth and potential of the industry. Moreover, Indiasprojected growth (rates) are encouraging, and we have a large populationentering the consuming segment. Business now extends to the smallertowns and cities of the country, giving ample scope for express (services).In fact, an efficient express (service) now forms the core of everysuccessful business. Therefore, every player has an opportunity to find itsniche to fulfil the growing demand for distribution, from production to

consumption.

Which are the key routes for an express airline and why?The key routes domestically would include the seven major metros of thecountryDelhi, Mumbai, Chennai, Bangalore, Hyderabad, Kolkata,Ahmedabad. As a validation of the 80-20 rule, these key routes accountfor maximum traffic. However, smaller business centers now evolving inthe burgeoning cities and towns... are increasingly demanding expresssolutions.Blue Dart connects the seven metros through direct flight connectionsevery night to service the growing demands in these areas while it also

connects and provides services to 21,471 locations across India.



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Any plans to fly international?As part of the DHL Group, Blue Dart already accesses the largest andmost comprehensive express and express network worldwide, coveringover 220 countries, and offers an entire spectrum of distribution servicesincluding air express, freight forwarding, supply chain solutions and

customs clearance.

How do you manage last-mile connectivity and how critical isthat?Blue Dart provides door-to-door express solutions, where airtransportation is one key component, the others being an integrated air-ground infrastructure to enable last-mile deliveries within a short timeframe and at globally benchmarked quality levels.Our ground fleet of 5,669 vehicles ensures last-mile connectivity.Advanced technology is an intrinsic part of the process, as tracking andoptimizing resources becomes of paramount importance.The traditional modes of fleet tracking in India, which include makinglong-distance calls en route, predefined points or asking the driver to keepreporting on its location at regular intervals, are now pass. Technologyhas now moved to the next level in the form of a new toolGPS (GlobalPositioning system) and Blue Dart being the technology leader in theindustry has already upgraded its systems to accommodate thisrevolutionizing technology.In Blue Dart, we have initiated the use of GPS in all our vehicles as werecognize the fact that synchronization of all activities makes for anefficient supply chain.

Moreover, our shipment track and trace facilities via Internet allow totalvisibility to customers.

What are the future plans of Blue Dart?Focus on our core domestic products to expand our market share and

consolidate our unique and premium position in the Indian market. 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 customized solutions to the

changing and evolving demands of the customer. We would also provide

global logistics customers with access to our quality domestic andregional distribution. Our domestic network will continue to differentiate

itself in all areas of our core competencies - supply chain management,

logistics and Ecommerce.

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



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Philosophy and Corporate Governance based on distinctive Customer

Service, Business Ethics and Accountability, and Profitability.

Table 1 (a) STATEWISE SERVICE LOCATIONS

Table 1 (b) REGIONWISE SERVICE LOCATIONS

Table 2 TRANSIT MAP FOR DP(DOMESTIC PRODUCT)

SEGMENT

Table 3(a) SURFACE TRANSIT MAP FOR SURFACE TRANSPORT

(SOUTH TO NORTH)

Table 3(b) SURFACE TRANSIT MAP FOR SURFACE TRANSPORT

(NORTH TO SOUTH)

Table 4 RAILWAY TRANSIT MAP FOR MULTIMODAL

TRANSPORT

Table 5,6 COMPARISON BETWEEN SFC & RAILWAY TRANSIT TIME

TABLE 7 ANALYSIS OF MAPPED ROUTES


ANNEXURE


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Table 2 TRANSIT MAP FOR DP(DOMESTIC PRODUCT) SEGMENT

BOMBAY HUB-OUTBOUND



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BOMBAY HUB-INBOUND



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Table 4(A) Railway Transit Map for MULTIMODAL Transport



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www.bluedart.com

Network Service Guide, Jan-March, 2009, Blue Dart Express Pvt. Ltd., Mumbai.

Employee Handbook, Edition- 2009, Blue Dart Express Pvt. Ltd., Mumbai.

www.courier.co.in

Global Logistics and Supply Chain Strategies.

Seturam, S., 1999. Corporate Profitability and Supply Chain. In: Sahay, B.S. (ed.),

Supply Chain Management for Global Competitiveness, Macmillan, 77-93.

BIBLIOGRAPHY
http://www.bluedart.com/http://www.courier.co.in/http://www.bluedart.com/http://www.courier.co.in/

summer project harshit

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