Courier and Logisticsin

India

Date : 30-01-2012 MILIND VORASEMCOM

• Logistics is the management of the flow of goods, information and other resources, including energy and people.

• involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security.

Logistics

With India's gross domestic profit (GDP) growing at over 9 per cent per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion in year 2010.

Indian logistics industry to grow to $125 billion by 2010news

22 February 2007http://www.domain-b.com/industry/logistics/20070222_grow.html

• A courier is a person or company employed to deliver messages, packages and mail.

• distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of services, and committed delivery times, which are optional for most everyday mail services.

• couriers are usually more expensive than usual mail services

Courier

• Till 1980, dependent on Post-office for Mail transfer.• Then, private players relieved us from the dependent

on Post-office.• And promised to deliver documents Faster and safer.• Today industry’s 40% growth per annum. (Total

Industry Rs.7000 Cr. )• Dominant players are Blue Dart, DHL, SkyPAK, Elbee

and Speed Post.

Introduction to Courier Industry

• Aramex India - Courier & parcel delivery services

• Blue Dart - Integrated express transportation company

• DHL India - Drop-off locations and information on sending shipments to India

• Desk To Desk Courier & Cargo - Courier and cargo services

• Elbee Express - Domestic & International Express Courier Services

• FedEx India - Courier & freight forwarding services

• First Flight Couriers - Domestic & international courier services

• TNT India - Domestic courier, cargo shipping and document delivery

• Team United Express - Domestic and international courier services

• UPS India - Letters and package delivery services

• Vichare - Courier services provider

• Gurdev Courier Services Local Domestic & International

• ST Couriers - Domestic and International

• UPEX Couriers - Courier & freight forwarding services

• Overnite Express - Domestic & International Courier services

Courier Companies in India

Companies at a glance

– TNT Express• Safe and time delivery• 200 nations network• International recognition• 47 jet freighter air craft

and 26000 road vehicles• Has a network of 2300

companies

• AFL– In 1979,the company

introduced the first ever courier service by forming an alliance with DHL World Wide Express

– The company offers services like Logistics and warehousing,CourierCompany and Custom Consultant

DHL and Blue Dart

DHL• The company ranks No.1 in

the world in contract logistics and ocean freight.

• The biggest logistics and express network in the world has a network in about 220 territories and countries, 72,000 vehicles,350 Aircrafts, 36 hubs and 4,700 bases.

BLUE DART•The domestic network of the company covers about 21,340 locations and provides service to 220 countries by the company's sales alliance with DHL.•It provides the best service like Free Pick up from Your location, Regulatory Clearances, Real Time Tracking, Free Computerized Proof of Delivery etc.

GATI AND DTDCGATI

•supply chain management solutions and distribution in India since the year 1989.

The company provides services like the WareHousing, Express Cargo etc.

•Logistics Solutions of the company are Warehousing,Supply chain Management.

DTDC•The biggest Domestic Delivery Network Company is DTDC.

• The company offers high class delivery service in about 3700 Indian locations and 240 international places.

• The company dispatch about 10 million parcels in a month

Source : Sanyal (2006a) IIM A

Source : Services Marketing (2008)By Ravi Shanker

Market Share among 5 companies

In India

DHL SkyPAK Speed Post Blue Dart Elbee0

5

10

15

20

25

30

35

30

19 1917

15

Sales in Percentage

Total : 155 Cr.

SWOT Analysis

Strengths Weakness•Around 40% annual growth.•Increased multi-use applications•Greater acceptance in tune with fast lifestyle.

•Erratic airline system•Roles susceptible to increase in air rates.•Service level not yet upto demand.

Opportunities Threats

•Growing market•Can create a distinctive brand.•Meet demands of specific target groups

•Increased competition•Unrecognized sector.•Demanding clientele.

List of Top logistics companies of IndiaS.No Site

1. TNT

2. AFL

3. DHL

4. Blue Dart

5. Gati

6. Safexpress

7. Ashok Leyland

8. Agarwal Packers & Movers

9. DTDC

10. First Flight

11. Jet Airways

12. ABC India Ltd

13. Four Soft

14. Essar

15. Tata

16. Prologix

17. Welgrow Line Ind Pvt. Ltd.

18. Agil FreightLogistics Pvt.Ltd

19. Dynamic Logistics

20. Flyjac

S.No Site

IMPERIAL LOGISTICS

• Imperial Logistics was founded in 1975 and is headquartered in Germiston, South Africa with an additional office in Germany.

• The company offers vendor and inventory management, warehousing, payment audit processing, e-supply chain management, and air cargo, dry bulk, and refrigerated transportation services.

Case

• The Imperial Logistics warehouse in Clayville is an important place for the people of Gauteng.

• Distribution of the liquors and beers.• Imperial handle three liquor distribution

principals:-1. Merging and splitting orders. 2. Combined and separate picking slips.3. Nominated delivery days.

Problems

1. There is no standardization of customer numbers, and the customer names will not necessarily or even usually match.

For example, Makro Ultra Liquor Wadeville might also appear as Wadeville Macro, or Ultra Liquor Wadeville, or Makro Ultra and so on.

2. The second problem is to ensure that all orders for each outlet only come in on one day of the week.

Solutions

1. A first work through the data identified about half of the corresponding outlets. To find the rest, we wrote a report that listed all outlets within a kilometer of each other and allowed the operator to link the customers from each principal to the same delivery point.

Solutions

2. An initial nominated delivery day study to allocate each outlet to a specific day. The idea, was that each principal would change delivery days to conform to these new nominated delivery days, but this has proved to be an ongoing challenge.

FLO solved the problem of combining orders from different principals to the same customer, both from a warehouse picking, as well as an optimal routing of the combined orders on the distribution side of the business. We were able to go live with the system on extremely tight deadlines".

ConclusionThe logistics industry in India is evolving rapidly and it is the interplay of infrastructure, technology and new types of service providers that will define whether the industry is able to help its customers reduce their logistics costs and provide effective services (which are also growing). Changing government policies on taxation and regulation of service providers are going to play an important role in this process. Coordination across various government agencies requires approval from multiple ministries and is a road block for multi modal transport in India. At the firm level, the logistics focus is moving towards reducing cycle times in order to add value to their customers. Consequently, better tools and strategies are being sought by firms in order to enhance their decision making.

Bibliography

• Google.com• En.wikipedia.org• www.logisticsworld.com/logistics.htm • www.logisticsmgmt.com/ • Services Marketing (2008) -By Ravi Shanker

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