logistics derly's project

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A PROJECT REPORT

ON

Comparison of International and Indian logistics scenario

on Customer Satisfaction.

Project Submitted in fulfillment of

Post Graduate Diploma in Management (PGDM)

Submitted by:

Derly Thomas

Roll No. P1115

Batch 2011-2013

Under the guidance of

Prof. Prasanna Salvi


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Declaration

I, Derly Thomas solemnly declare that the project work entitled

Comparison of International and Indian logistics scenario onCustomer Satisfaction, is my original work, it is neither copied from

any earlier submitted work elsewhere or not merely copied, this is

specifically prepared as a part of PGDM curriculum, to be conducted

in Year 2013.

Signature of the student: ________________________

Name of the Student: Derly Thomas

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Acknowledgement

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I would sincerely thankMr. Aji Chako who has been my guiding light throughout these two months

and supported and helped me do justice to this project.

I would also thank my Institution and Prof. Prasanna Salvi without whom this project would have

been a distant reality.

Date: Sign:

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Table of Contents

Executive Summary........................................................................................................... 7

Objectives of the Project.................................................................................................... 8

Scope ............................................................................................................................. 9

Approach........................................................................................................................ 9

Limitations of the Study.................................................................................................. 9

Logistics........................................................................................................10

Origin:........................................................................................................................... 11

Production logistics.................................................................................................... 12

Logistics management............................................................................................... 14

Warehouse management systems and warehouse control systems..........................14

Third-party logistics...................................................................................................14

Fourth-party logistics................................................................................................. 14

..................................................................................................................................... 16

Logistics in International Scenario.................................................................................16

Logistics in Indian Scenario............................................................................................ 19

Customer Satisfaction............................................................................................ 24

About the Organization DHL Express..............................................................................26

..................................................................................................................................... 26

History:............................................................................................................................. 27

Domestic expansion................................................................................................... 27

Deutsche Post purchase.............................................................................................28

Services.........................................................................................................................31

DHL Aviation................................................................................................................ 31

Research Methodology..................................................................................................... 32

Sampling Technique......................................................................................................33

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Sample Size...................................................................................................................33

Methods of Data Collection........................................................................................... 33

Nature of Questions Asked............................................................................................33

Data Representation..................................................................................................... 33

Data Collection & Analysis............................................................................................... 34

1. Questionnaire............................................................................................................ 48

Suggestions for Improvement.......................................................................................... 51

Future prospects ............................................................................................................ 55

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Executive Summary

Logisticsis the management of the flow ofresources between the point of origin and the point of

destination in order to meet some requirements, for example, of customers or corporations.

The logistics of physical items usually involves the integration of information flow, material handling,

production packaging, inventory, transportation, warehousing, and often security. The complexity oflogistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The

minimization of the use of resources are common motives.

Thus, the entire supply chain and the profits thrive on how well the logistics are managed.

This project aims at:

1. Understanding the International logistics market.

2. Understanding the Indian logistics market.

3. How well the markets have developed and manage customer satisfaction

4. Establish a comparison

5. Successfully chart out solutions for improving the market

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Objectives of the

Project

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Purpose

Logistics is a vital aspect to any business which is often neglected. Purpose of this project is to study

the International players and how well have they managed customer satisfaction. Compare the samewith the Indian market conditions.

Scope

The project is defined only to the extent of information made available from the organization

Approach

1. Understanding the nature of business

2. Understanding the International Logistics market

3. Understanding the Indian Logistics market

4. Getting first hand information from organization through questionnaire

5. Comparison the Indian and international logistics market with respect to Customer Satisfaction

6. Coming to plausible solution.

Limitations of the Study

1. Information collected is limited to the scope mentioned above

2. Respondents did not have an earlier experience of answering questionnaires

3. Lack of experience as a researcher

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Logistics

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Origin:

The term logistics comes from the late 19th century: from French logistique, from loger 'to lodge'.

Logistics is considered to have originated in the military's need to supply itself with arms,ammunition, and rations as it moved from a base to a forward position. In the ancient Greek,Roman,

and Byzantine Empires, military officers with the title Logistikas were responsible for financial andsupply distribution matters.

The Oxford English Dictionary defines logistics as "the branch ofmilitary science relating toprocuring, maintaining and transporting material, personnel and facilities." However, the New OxfordAmerican Dictionary defines logistics as "the detailed coordination of a complex operation involvingmany people, facilities, or supplies", and the Oxford Dictionary online defines it as "the detailedorganization and implementation of a complex operation". Another dictionary definition is "the time-related positioning of resources." As such, logistics is commonly seen as a branch of engineering thatcreates "people systems" rather than "machine systems".

According to the Council of Logistics Management, logistics includes the integrated planning, control,realization, and monitoring of all internal and network-wide material, part, and product flow, includingthe necessary information flow, in industrial and trading companies along the complete value-addedchain (and product life cycle) for the purpose of conforming to customer requirements.

Logistics is the process of planning, implementing, and controlling the effective and efficient flow ofgoods and services from the point of origin to the point of consumption.

Field of Logistics:

Given the services performed by logisticians, the main fields of logistics can be broken down asfollows:

Procurement logistics Production logistics

Distribution logistics

After sales logistics

Disposal logistics

Reverse logistics

Global logistics

Domestics logistics

Procurement logistics consists of activities such as market research requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurementlogistics might be contradictory: maximizing efficiency by concentrating on core competences,outsourcing while maintaining the autonomy of the company, or minimizing procurement costs whilemaximizing security within the supply process.

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http://en.wikipedia.org/wiki/Greek_Empirehttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Byzantine_Empirehttp://en.wikipedia.org/wiki/Oxford_English_Dictionaryhttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Materialhttp://en.wikipedia.org/wiki/New_Oxford_American_Dictionaryhttp://en.wikipedia.org/wiki/New_Oxford_American_Dictionaryhttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Greek_Empirehttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Byzantine_Empirehttp://en.wikipedia.org/wiki/Oxford_English_Dictionaryhttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Materialhttp://en.wikipedia.org/wiki/New_Oxford_American_Dictionaryhttp://en.wikipedia.org/wiki/New_Oxford_American_Dictionaryhttp://en.wikipedia.org/wiki/Engineering


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Production logistics connects procurement to distribution logistics. Its main function is to useavailable production capacities to produce the products needed in distribution logistics. Productionlogistics activities are related to organizational concepts, layout planning, production planning, andcontrol.

Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It

consists of order processing, warehousing, and transportation. Distribution logistics is necessarybecause the time, place, and quantity of production differs with the time, place, and quantity ofconsumption.

Disposal logistics has as its main function to reduce logistics cost and enhance service related to thedisposal of waste produced during the operation of a business.

Reverse logistics denotes all those operations related to the reuse of products and materials. Thereverse logistics process includes the management and the sale of surpluses, as well as products beingreturned to vendors from buyers.

Business Logistics

One definition of business logistics speaks of "having the right item in the right quantity at the righttime at the right place for the right price in the right condition to the right customer". As the science ofprocess, business logistics incorporates all industry sectors. Logistics work aims to manage the fruitionof project life cycles, supply chains, and resultant efficiencies.

Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplyingbusinesses with materials and shipping out products in an increasingly globalized supply chain,leading to a call for experts called "supply chain logisticians".

In business, logistics may have either an internal focus (inbound logistics) or an external focus(outbound logistics), covering the flow and storage of materials from point of origin to point ofconsumption. 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 to coordinate resources inan organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of materialthrough a network of transport links and storage nodes, while the other coordinates a sequence ofresources to carry out some project.

Production logistics

The termproduction logistics describes logistic processes within an industry. Production logistics aimsto ensure that each machine and workstation receives the right product in the right quantity and quality

at the right time. The concern is not the transportation itself, but to streamline and control the flowthrough value-adding processes and to eliminate nonvalue-adding processes. Production logistics canoperate in existing as well as new plants. Manufacturing in an existing plant is a constantly changingprocess. Machines are exchanged and new ones added, which gives the opportunity to improve theproduction logistics system accordingly. Production logistics provides the means to achieve customerresponse and capital efficiency.

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Production logistics becomes more important with decreasing batch sizes. In many industries(e.g., mobile phones), the short-term goal is a batch size of one, allowing even a single customer'sdemand to be fulfilled efficiently. Track and tracing, which is an essential part of production logisticsdue to product safety and reliability issues, is also gaining importance, especially inthe automotive and medical industries.

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Logistics management

Logistics is that part of thesupply chainthat 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 alogistician.

Materials management Channel management

Distribution (or physical distribution)

Supply-chain management

The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in 1919,received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies orinstitutions for the logistics and transport sectors that offers professional qualifications or degrees in

logistics management.Warehouse management systems and warehouse control systems

Although there is some overlap in functionality, warehouse management systems (WMS) can differsignificantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activityforecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor,working in real time to get the job done by the most effective means. For instance, a WMS can tell thesystem that it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours inadvance, but by the time it acts, other considerations may have come into play or there could be alogjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to thesituation by making a last-minute decision based on current activity and operational status.

Working synergistically, WMS and WCS can resolve these issues and maximize efficiency forcompanies that rely on the effective operation of their warehouse or distribution center.

Logistics Outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (logistic serviceprovider), which, compared with basic logistics services, has more customized offerings, encompassesa broad number of service activities, is characterized by a long-term orientation, and thus has astrategic nature.

Third-party logistics

Third-party logistics (3PL) involves using external organizations to execute logistics activities that

have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house.For example, if a company with its own warehousing facilities decides to employ externaltransportation, this would be an example of third-party logistics. Logistics is an emerging businessarea in many countries.

Fourth-party logistics

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The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (nowAccenture) as an integrator that assembles the resources, capabilities, and technology of its ownorganization and other organizations to design, build, and run comprehensive supply chain solutions.Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targetsmanagement of the entire process. Some have described a 4PL as a general contractor that managesother 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility ofa complete process for the customer.

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Logistics in International

Scenario

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The global logistics industry is estimated to be worth USD 300 billion. Though most of the large

service providers are headquartered in Europe, the biggest market is the US, which captures about one-third of the world market. The global logistics industry is characterized by high costs of operations,

low margins, shortage of talent, infrastructural bottlenecks, demand from clients for investing in

technology and providing one-stop solutions to all their needs, and consolidation through acquisitions,

mergers and alliances.

This section gives an overview of the size of the global logistics industry and its current status and

prevailing dynamics.

Size of the global logistics industry

Currently 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% of the GDP, the figure for the US being about 9%. US-

based Armstrong & Associates, Inc. tracks the issues and trends in the world logistics market and inthe US logistics market, in particular, in their annual surveys of top 25 global LSPs.

According to the firm, the global logistics market sizes in 1992, 1996 and 2000 were USD 10 billion,

USD 25 billion and USD 56 billion, respectively. In 2003 and 2004, the corresponding figures were

USD270 billion and USD 333 billion, registering high growth rates.

Though most of the large LSPs are headquartered in Europe, the US logistics market is the largest in

the world capturing one-third of the world logistics market. In 2003, it was about USD 80 billion.

In 2004, it grew to USD 89 billion, and in 2005, it registered an impressive growth rate of 16% to

cross the USD 100 billion mark for the first time and reach USD 103.7 billion (Foster and Armstrong,

2004, 2005, 2006).

However, considering the fact that the logistics market in the US is about 10% of its annual logisticscost (Foster and Armstrong, 2006), there is still immense potential for growth of 3PL in the US in

particular, and in the world in general.

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Current status and dynamics of the industry

The extant literature on the logistics industry points to a number of issues that service providers have

to address, such as pricing pressures, high costs of operations and low returns on investments, hiring

and retaining talent, pressure from clients to broaden the range of service offerings and internationalize

operations, demand for customized solutions and more value-added services, besides infrastructuralbottlenecks and government regulations.

Service providers complain that clients expect them to have the latest software, databases and ERP

(Enterprise Resource Planning) packages, and invest in new technologies such as RFID and satellite-based real-time tracking systems. Clients perceive that these investments are part of the basic service

package, and often do not want to match the same with increased payments for these additionalservices.

Pressure from clients to broaden the range of service offerings and internationalize operations, hasforced service providers to look for suitable alliances, mergers and acquisitions that help fill the gaps

in service offerings, and industry verticals and geographic areas served, achieve economies of scaleand enhance service providers capability to support international operations. Currently, the world

logistics market is going through a consolidation phase.

Tibbett & Britten Group of North America was acquired 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, in November, 2005 while A. P.

Mller acquired P&O Nedlloyd in February, 2006, and TNT Logistics was sold to ApolloManagement L. P. in November, 2006.

However, mergers and acquisitions have their own set of problems in terms of integration of twodiverse business units. Carbone and Stone (2005) tracked the evolution of 20 leading European LSPs

between 1998 and 2004 in terms of their approach to mergers, acquisitions and alliances, and foundthat although growth led to more coverage, integration of two different cultures was one of the most

difficult challenges faced by these firms in the consolidation process.

Recent trends in the logistics industry indicate that to be successful, service providers have to

differentiate themselves from their competitors in terms of offering value-added services, focus on keycustomer accounts that have the potential to generate high profitability for a long term, enter into

suitable alliances to complement the range of services offered and geographic areas served, and sell

logistics services to clients suppliers and customers, thus leading to complete supply chainintegration.

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Logistics in Indian

Scenario

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This section gives an overview of the size of the Indian logistics industry, its competitive dynamics

and future prospects.

Size of the Indian logistics industry

The 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 slightly over USD 1 trillion. Out of this USD 140 billionlogistics cost, almost 99% is accounted for by the unorganized sector (such as owners of less than 5

trucks, affiliated to a broker or a transport company, small warehouse operators, customs brokers,

freight forwarders, etc.), and slightly more than 1%, i.e. approximately USD 1.5 billion, is contributedby the organized 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 bring down 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 GDP level, making Indian goods more competitive in the global market. Moreover, growth inthe logistics sector would imply improved service delivery and customer satisfaction leading to growth

of export of Indian goods and potential for creation of job opportunities.

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Competitive dynamics and other issues

The following problems existing in the Indian logistics industry make it unattractive for investments

and also create entry barriers.

Logistics is a high-cost, low-margin business. The problem of organized players is compounded by

unfair competition with unorganized players, who can get away without paying taxes and followingoperating norms stipulated in the Motor Vehicles Act such as quality of drivers and vehicles, volume

and weight restrictions, etc.

Economies of scale are absent in the Indian logistics industry. Even the organized sector thatcontributes slightly more than 1% of the logistics cost, is highly fragmented. Existence of the

differential 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 different states has let the problem persist even today.

Apart from the non-uniform tax structure, Indian LSPs have to pay numerous other taxes, octrois,and face multiple check posts and police harassment. High costs of operation and delays involved in

compliance with varying documentation requirements of different states make the business

unattractive. On an average, a vehicle on Indian roads loses 24-48 hours in complying with paperworkand formalities at different check posts en route to a destination. Fuel worth USD 2.5 billion is spent

on waiting at check posts annually. A vehicle that costs USD 30,000 pays USD 7,500 per annum in the

form of various taxes, which include the excise duty on fuel. This is why 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 to outsourcing logistics. The

volume of outsourcing by Indian shippers is presently very low (~ 10%) compared to the same for thedeveloped countries (> 50%, sometimes as high as 80%). The unwillingness to outsource logistics on

part of Indian shippers may be attributed to skepticism about the possible benefits, perceived risk, andlosing control, of sensitive organizational information, and vested interests in keeping logistics

activities in-house.

Indian shippers expect LSPs to own quality assets, provide more value-added services and act as an

integrated service provider, and institute world-class information systems for more visibility and real-time tracking of shipments. However, they are unwilling to match the same with increased billings;

even pay little attention to timely payments that leave LSPs short of adequate working capital.

Indian freight forwarders face stiff competition from multi-national freight forwarders

forinternational freight movement. MNCs, because of their size and operations in many countries, areable to offer low freight rates and extend credit for long periods. Indian freight forwarders, on the

other hand, because of their smaller size and lack of access to cheap capital, are not able to match the

same. Moreover, clients of MNCs often want to deal with a single service provider and especially for

FOB (Free on Board) shipments specify the freight forwarders, which most of the time happen to be

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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 to attracting investments in the

logistics sector. Road transportation accounts for more than 60% of inland transportation of goods, and

highways that constitute 1.4% of the total road network, carry 40% of the freight movement byroadways. Slow movement of cargo due to bad road conditions, multiple check posts anddocumentation requirements, congestion at seaports due to inadequate infrastructure, bureaucracy, red-

tapeism and delay in government clearances, coupled with unreliable power supply and slow banking

transactions, make it difficult for exporters to meet the deadlines for their international customers. To

expedite shipments, they have to book as airfreight, rather than sea freight, which adds to the costs ofshipments making them uncompetitive in international markets. Moreover, many large shipping liners

avoid Indian ports for long turnaround times due to delays in loading/unloading and hence Indianexporters have to resort to transshipments at ports such as Singapore, Dubai and Colombo, which adds

to the costs of shipments and also delays delivery.

Low penetration of IT and lack of proper communications infrastructure also result in delays, and

lack of visibility and real-time tracking ability. Unavailability and absence of a seamless flow of

information among the constituents of LSPs creates a lot of uncertainty, unnecessary paperwork and

delays, and lack of transparency in terms of cost structures and service delivery. For example, ashipper 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 the availability of trucks and going rates at the destinationmarket. Therefore, it has to pay more. Had the market information been available to both the shipper

and the service provider, the service providers cost structure would have been transparent to the

shipper and it would have ended paying the actual market rate. Another example would be that LTL

(Less than Truckload) shipments cost more than FTL (Full Truckload) shipments. Now, when ashipper books a LTL shipment, it has no idea about the status of its shipment after it leaves the

warehouse at the origin and before it reaches the warehouse at the destination. The service provider

may still convert this LTL shipment into a FTL shipment at its own warehouse before delivering at the

destination. So, the shipper ends up paying LTL rates for a FTL shipment. Had there been visibilityduring delivery, this problem would not have occurred.Since most of the LSPs are of relatively small

size, they cannot provide the entire range of services. However, shippers would like service providersto offer more value-added services and a single-stop solution to all their logistical problems. The

inability of service providers to go beyond basic services and provide value-added services such as

small repair work, kitting/dekitting, packaging/labeling, order processing, distribution, customer

support, etc. has not been able to motivate shippers to go for outsourcing in a big way.

Service tax levied on logistics service fees (currently 12.36% with educational cess) may make

outsourcing costly and outweigh the possible benefits.

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There is lack of skilled and knowledgeable manpower in the logistics sector. Management graduates

do not consider logistics as a prime job. To improve the status of the industry, service providers haveto move beyond the level of brokers and truckers to attract and retain talent.

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Customer

Satisfaction

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Customer satisfaction, a term frequently used in marketing, is a measure of how products and servicessupplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the

number of customers, or percentage of total customers, whose reported experience with a firm, itsproducts, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 seniormarketing managers, 71 percent responded that they found a customer satisfaction metric very usefulin managing and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. Ina competitive marketplace where businesses compete for customers, customer satisfaction is seen as akey differentiator and increasingly has become a key element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus employeeson the importance of fulfilling customers expectations. Furthermore, when these ratings dip, theywarn of problems that can affect sales and profitability. These metrics quantify an important dynamic.

When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free andhighly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this,firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service has met or

exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers havehigh expectations and the reality falls short, they will be disappointed and will likely rate their

experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower

satisfaction rating than a budget moteleven though its facilities and service would be deemed

superior in 'absolute' terms."The importance of customer satisfaction diminishes when a firm has increased bargaining power.

A multitude of companies today has already identified the need to create a loyal customer base and

acknowledges that maintaining existing customers and extending business with them is significantly

less expensive than acquiring new customers. Empirical proof of the proliferation of such customer

loyalty efforts in the business world is e.g. provided in the form of loyalty programs, which many

companies have installed during the past years. By engaging in efforts aimed at creating customer

loyalty, which in turn fosters financial success in monetary terms firms react to increasing competitive

challenges.

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About the Organization DHL

Express

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Deutsche Post purchase

Deutsche Postbegan to acquire shares in DHL in 1998, finally reaching majority ownership in 2001.Following the completion of the purchase in 2002, Deutsche Post effectively absorbed DHL into itsExpress division, while expanding the use of the DHL brand to other Deutsche Post divisions, businessunits and subsidiaries. Today, DHL Express shares its well-known DHL brand with other Deutsche

Post business units, such as DHL Global Forwarding, DHL Freight, DHL Supply Chain, and DHLGlobal Mail.

All US domestic flights were handled by DHL Airways, Inc. which in 2003 was renamed ASTAR AirCargo. DHL's first airline still remains with over 550 pilots in service, as of October 2008.

2001: Deutsche Post acquired a majority (51%) of DHL's shares, and the remaining 49% in2002. The new DHL was launched by merging the old DHL, Danzas and Securicor Omega EuroExpress.

2001: The Packstation, an automated delivery booth, is introduced as a pilot project inDortmund and Mainz.

2002: Bashkirian Airlines Flight 2937, a Tupolev Tu-154 passenger jet, collided with DHLFlight 611, aBoeing 757-200 cargo jet, at 35,000 ft (11,000 m) overberlingen, Germany. The 69people aboard the Tupolev (consisting mainly of Russian schoolchildren) and the two pilots of theBoeing were killed.

December 2002: Introduced red and yellow new color scheme and logo.

August 2003: Deutsche Post acquires Airborne Express, and begins to integrate it into DHL.The Airborne Express Airline named ABX Air is to provide contract ACMI service until 2011.

22 November 2003: DHL shootdown incident in Baghdad: Iraqi insurgents fired an SA-7

"Grail"surface-to-air missile at a European Air TransportAirbus A300 operating on behalf ofDHL. The aircraft had taken off from Baghdad airport. The missile struck the left wing, disablingall three hydraulic systemsand setting the wing on fire. The aircraft began adangerous phugoid (vertical oscillation) but the crew managed to land safely at the airport despiteonly being able to control the aircraft by adjusting the engine thrust.

September 2004: a planned expansion by DHL at Brussels International Airport created apolitical crisis in Belgium.

21 October 2004: DHL Express announced that it would move its European hub from BrusselstoLeipzig, Germany (Vatry,France was considered and rejected). DHL's unions call a strike in

response, paralyzing work for a day.

8 November 2004: DHL Express invests 120 million in Indian domestic courierBlueDart and becomes the majority shareholder in the company.

September 2005: Deutsche Post made an offer to buy contract logistics company Exel plc,which had just acquired Tibbett & Britten Group.

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http://en.wikipedia.org/wiki/Deutsche_Posthttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/ASTAR_Air_Cargohttp://en.wikipedia.org/wiki/ASTAR_Air_Cargohttp://en.wikipedia.org/wiki/Euro_Expresshttp://en.wikipedia.org/wiki/Euro_Expresshttp://en.wikipedia.org/wiki/Packstationhttp://en.wikipedia.org/wiki/Bashkirian_Airlines_Flight_2937http://en.wikipedia.org/wiki/Tupolev_Tu-154http://en.wikipedia.org/wiki/DHL_Flight_611http://en.wikipedia.org/wiki/DHL_Flight_611http://en.wikipedia.org/wiki/Boeing_757-200http://en.wikipedia.org/wiki/%C3%9Cberlingenhttp://en.wikipedia.org/wiki/Airborne_Expresshttp://en.wikipedia.org/wiki/DHL_shootdown_incident_in_Baghdadhttp://en.wikipedia.org/wiki/SA-7_Grailhttp://en.wikipedia.org/wiki/SA-7_Grailhttp://en.wikipedia.org/wiki/Surface-to-air_missilehttp://en.wikipedia.org/wiki/European_Air_Transporthttp://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Hydraulic_systemhttp://en.wikipedia.org/wiki/Phugoidhttp://en.wikipedia.org/wiki/Brussels_International_Airporthttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Leipzighttp://en.wikipedia.org/wiki/Vatryhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Labor_unionhttp://en.wikipedia.org/wiki/Blue_Dart_Aviationhttp://en.wikipedia.org/wiki/Blue_Dart_Aviationhttp://en.wikipedia.org/wiki/Exelhttp://en.wikipedia.org/wiki/Tibbett_and_Brittenhttp://en.wikipedia.org/wiki/Deutsche_Posthttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/ASTAR_Air_Cargohttp://en.wikipedia.org/wiki/ASTAR_Air_Cargohttp://en.wikipedia.org/wiki/Euro_Expresshttp://en.wikipedia.org/wiki/Euro_Expresshttp://en.wikipedia.org/wiki/Packstationhttp://en.wikipedia.org/wiki/Bashkirian_Airlines_Flight_2937http://en.wikipedia.org/wiki/Tupolev_Tu-154http://en.wikipedia.org/wiki/DHL_Flight_611http://en.wikipedia.org/wiki/DHL_Flight_611http://en.wikipedia.org/wiki/Boeing_757-200http://en.wikipedia.org/wiki/%C3%9Cberlingenhttp://en.wikipedia.org/wiki/Airborne_Expresshttp://en.wikipedia.org/wiki/DHL_shootdown_incident_in_Baghdadhttp://en.wikipedia.org/wiki/SA-7_Grailhttp://en.wikipedia.org/wiki/SA-7_Grailhttp://en.wikipedia.org/wiki/Surface-to-air_missilehttp://en.wikipedia.org/wiki/European_Air_Transporthttp://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Hydraulic_systemhttp://en.wikipedia.org/wiki/Phugoidhttp://en.wikipedia.org/wiki/Brussels_International_Airporthttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Leipzighttp://en.wikipedia.org/wiki/Vatryhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Labor_unionhttp://en.wikipedia.org/wiki/Blue_Dart_Aviationhttp://en.wikipedia.org/wiki/Blue_Dart_Aviationhttp://en.wikipedia.org/wiki/Exelhttp://en.wikipedia.org/wiki/Tibbett_and_Britten


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On December 14, 2005, Deutsche Post announced the completion of the acquisition of Exelplc. When integrating Exel into its Logistics division, it added its well-known DHL brand acquiredwith the purchase of DHL Express to form the name DHL Exel Supply Chain. Following the latestdeal, DHL have a global workforce of 285,000 people (500,000 people including DPWN and othersister companies) and roughly $65 billion in annual sales.

September 2006: DHL wins ten-year contract worth 1.6 billion, to run theNHS SupplyChain (part of the UK's National Health Service). DHL will be responsible for providing logisticsservices for over 500,000 products to support 600 hospitals and other health providers in England.As part of this new contract, in 2008 DHL will open a new 250,000 sq ft (23,000 m 2) distributioncentre to act as a stock holding hub for food and other products, with another distribution centreopening in 2012. The two new distribution centres will create around 1,000 new jobs.

September 2007: DHL Express co-founds new cargo airline AeroLogic, based at Leipzig/HalleAirport, in a 50:50 joint venture with Lufthansa Cargo. The carrier will operate up to 11 Boeing777Fs by 2012.

December 2007: DHL becomes the first ever carrier to transport cargo via wind powered shipsflyingMS Beluga Skysails kites.

May 2008: DHL Aviation moved their central depot to Leipzig; Germany, resulting in asignificant positioning for improved service and timeliness to the European Union.

28 May 2008: DHL Express announced the restructuring plans for its United States network,including terminating its business relationship with ABX Airand entering into a contract withcompetitorUPS for air freight operations. Its cargo hub would shift from Wilmington toLouisville. The Air Line Pilots Association, International protests.

October 2008: Two DHL Express Middle East senior executives, David Giles and JasonBresler, were assassinated in Kabul, by one of their own Afghan employees; they received militaryhonors by the U.S. military, the first of such kind in Afghanistan .

10 November 2008: DHL announces that it is cutting 9,500 jobs as it discontinues domestic airand ground operations within the United States to deal with economic uncertainty. It is retaininginternational services, and is still in talks with UPS to transport DHL packages between U.S.airports.

January 2009 DHL ends domestic pick up and delivery service in the United States, effectivelyleaving UPS and FedEx as the two major express parcel delivery companies in the United States

Limited domestic service is still available from DHL, provided that the packages are tenderedto USPS for local delivery. New Egg is one such company that uses this option as of May 10,2011.

April 2009: UPS announced that DHL and UPS have ended negotiations for an agreement forUPS to provide airlift for DHL packages between airports in North America. DHL said in astatement, "We have not been able to come to a conclusive agreement that is acceptable to both

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http://en.wikipedia.org/wiki/DHL_Exel_Supply_Chainhttp://en.wikipedia.org/wiki/NHS_Supply_Chainhttp://en.wikipedia.org/wiki/NHS_Supply_Chainhttp://en.wikipedia.org/wiki/National_Health_Servicehttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/AeroLogichttp://en.wikipedia.org/wiki/Leipzig/Halle_Airporthttp://en.wikipedia.org/wiki/Leipzig/Halle_Airporthttp://en.wikipedia.org/wiki/Lufthansa_Cargohttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/MS_Beluga_Skysailshttp://en.wikipedia.org/wiki/ABX_Airhttp://en.wikipedia.org/wiki/United_Parcel_Servicehttp://en.wikipedia.org/wiki/Air_Line_Pilots_Association,_Internationalhttp://en.wikipedia.org/wiki/United_States_Postal_Servicehttp://en.wikipedia.org/wiki/DHL_Exel_Supply_Chainhttp://en.wikipedia.org/wiki/NHS_Supply_Chainhttp://en.wikipedia.org/wiki/NHS_Supply_Chainhttp://en.wikipedia.org/wiki/National_Health_Servicehttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/AeroLogichttp://en.wikipedia.org/wiki/Leipzig/Halle_Airporthttp://en.wikipedia.org/wiki/Leipzig/Halle_Airporthttp://en.wikipedia.org/wiki/Lufthansa_Cargohttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/MS_Beluga_Skysailshttp://en.wikipedia.org/wiki/ABX_Airhttp://en.wikipedia.org/wiki/United_Parcel_Servicehttp://en.wikipedia.org/wiki/Air_Line_Pilots_Association,_Internationalhttp://en.wikipedia.org/wiki/United_States_Postal_Service


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parties." DHL will continue to use its current air cargo providers, ASTAR Air Cargo and ABX Airfor now.

On 18 March 2010 a DHL Antonov An-26 aircraft made an emergency landing on thefrozen Lake lemiste, close to Lennart Meri Tallinn Airport. Initial reports indicated problemswith the landing gear and one of the engines. The flight was being operated by Exin on behalf of

DHL. The aircraft involved was SP-FDO and the flight had departed from Helsinki Airport. Twoof the six crew members were injured.

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http://en.wikipedia.org/wiki/Antonov_An-26http://en.wikipedia.org/wiki/Lake_%C3%9Clemistehttp://en.wikipedia.org/wiki/Lennart_Meri_Tallinn_Airporthttp://en.wikipedia.org/wiki/Exinhttp://en.wikipedia.org/wiki/Antonov_An-26http://en.wikipedia.org/wiki/Lake_%C3%9Clemistehttp://en.wikipedia.org/wiki/Lennart_Meri_Tallinn_Airporthttp://en.wikipedia.org/wiki/Exin


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Research Methodology

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Sampling Technique

The sampling technique used is simple convenience sampling method. Information is collected only

from a representative part of the population; the method of collection is called sampling.

Sample Size

The total population of employees at Greaves Cotton ltd. (Head office Prabhadevi) approximate 100

out of which the sample size taken is 15.

Methods of Data Collection

The data was collected through:

Primary data: Questionnaires and Interviews

Secondary data: Online, books.

Nature of Questions Asked

The questionnaire consists of:

Close-ended,

Dichotomous questions

Data RepresentationThe data are presented through Pie-charts and graphs.

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Data Collection &

Analysis

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1. Customers overall experience to accessibility and responses of DHL representative through

Telephone.

Options Respondents Percentage

Excellent 16 20 %

Very Good 16 20 %

Good 32 40 %

Fair 16 20 %

Poor 0 0 %

Total 80 100 %

Interpretation:

20 % of the customers responded that their overall experience to accessibility and responses through

Telephone is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer.

Final 20 % is not so satisfied so they said that the service is fair.

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Excellent

20%

Very Good

20%

Good

40%

Fair

20%

Poor

0%

Excellent

Very Good

Good

Fair

Poor

3. Clearance representative ability to help customer issue/need


Excellent 15 19 %

Very Good 17 21 %

Good 22 28 %Fair 19 24 %

Poor 7 9 %

Total 80 100 %

Interpretation:

19 % of the customers responded that their overall experience to ability to help resolve issue or need is

Excellent. Next 21 % says it is very good. Good being awarded by 28 % of the customer. 24 % is

somewhat satisfied so they said that the service is fair. 9 % is not satisfied with the service.

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Excellent

19%

Very Good

21%

Good

27%

Fair24%

Poor

9%

Excellent

Very Good

Good

Fair

Poor

4. Customers Overall experience with DHL Clearance Department


Excellent 17 21%

Very Good 15 19%

Good 14 18%

Fair 30 38%

Poor 4 5%

Total 80 100 %

Interpretation:

21 % of the customers responded that their overall experience with DHL clearance department is

Excellent. Next 19 % says it is very good. Good being awarded by 18 % of the customer. 38% is

somewhat satisfied so they said that the service is fair. 5 % is not satisfied with the service.

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8. Customer Responses or Reasons for Dissatisfaction with DHL Express Pvt Ltd

Original Bill of Entry getting only after 3 days after our follow up, this should come along with

delivery

Freight Bill received 30 days after delivery this should deliver within 24 hrs, so that your

payment will not be delayed

The currency some times wrongly mention in the B/E before filing with Customs, check the

invoice or check with the customer - this will help avoiding mistake.

In some of the instances your response is not proper

Since express service is preferred only when there are some urgency, though the cargo reaches

at airport. clearance team takes minimum 7-25days takes for customs clearance

Commitment not met in several cases

Interpretation:

Various reasons are given by customers for dissatisfaction. The company need more focused approach

for satisfying the customers

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1. Questionnaire

Q1. Your overall experience and response of DHL express through telephone.

O Excellent O Very good O Good O Fair O Poor

Q2. Your overall experience to accessibility and response of DHL representatives through e-mail.


Q3. Clearance representative ability to help customer issue/need.


Q4. Your overall experience with DHL Clearance department.


Q5. Your overall experience with DHL shipment delivery.


Q6.Satisfaction level with DHL express

O Extremely satisfied O satisfied O Neutral O Dissatisfied O Extremelydissatisfied

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DHL has many satisfied customers and it must tap the dissatisfied customers and convert them into

satisfied ones only to expand themselves further.

Indian Logistics face tough competition from the companies like DHL, Fedex and other big names like

these.

Thus, they should learn the art of developing customer satisfaction and growing their market throughthem.

Also, the Indian logistics industry is concerned, logistics managers of user firms need to realize that,

with supply chains getting more and more complex, outsourcing part or all of their logistical activitiesto experienced LSPs will help reduce their overheads, streamline supply chains, reduce costs and

improve service delivery. The organizational interests should be put above vested interests, if any.

They need to realize that organized LSPs are professionals, who will maintain confidentiality of

sensitive client information.

Since clients usually prefer a single-point solution to all their logistical problems, managers need to

broaden the range of their service offerings, internationalize operations and cover as 8 many industryverticals as possible. They may focus on key customer accounts gradually moving away from accounts

generating low, even negative, profitability.

However, small-to-medium-sized companies that seem to have high growth potential should not be

ignored in the process. In order to become a single point of contact for clients, logistics companiesmay pursue acquisitions or alliances, which, however, pose the challenge of integration of diverse

cultures.

Attracting, recruiting, training, motivating and retaining management talent are also a great challengethat logistics managers need to take on.

A survey of North American LSPs found that logistics managers perceived internationalization of

operations, industry focus or specialization, investment in information systems, availability of skilledlogistics professionals, integration of supply chains, customer focus and breadth of service offerings as

the most important factors for success as a LSP.

However, the survey identified significant gaps between expectations and actual achievements of LSPs

with respect to internationalization of operations, skilled logistics professionals and integration of

supply chains, which should be seriously looked into by managers.The survey also established relationships among a set of performance metrics and key success factors

to identify significant predictor and criterion variables. One of the most important observations was

that collaborative relationships with clients and investments in assets are necessary but not sufficientconditions for success in logistics. The findings of the survey may provide a useful guideline to

logistics managers for allocation of scarce resources.

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As far as the Indian logistics industry is concerned, logistics managers of user firms need to realize

that, with supply chains getting more and more complex, outsourcing part or all of their logisticalactivities to experienced LSPs will help reduce their overheads, streamline supply chains, reduce costs

and improve service delivery. The organizational interests should be put above vested interests, if any.

They need to realize that organized LSPs are professionals, who will maintain confidentiality of

sensitive client information.

The Indian government should also focus on developing infrastructure and encourage public-private

partnerships in investments in infrastructure. Highway projects such as golden quadrilateral and east-

west, north-south corridors connecting all four metros are already underway.

Private investments in inland containerized transportation by railroad, which was a monopoly ofContainer Corporation of India Limited (CONCOR), a subsidiary of Indian Railways, until recently,

have been allowed.

100% FDI is also allowed in Free Trade and Warehousing Zones (FTWZ) to create necessary trade-

related infrastructure to facilitate import and export of goods and services. The government may createlogistics SEZs (Special Economic Zones) or logistics hubs with concessions in land and tax rates.

Incentive schemes may also be extended for construction of modern automated warehouses and coldchains.

Access to cheap capital should be made available to LSPs for investments in infrastructure, enabling

them to extend longer credit periods to their clients and supplementing their working capital.

The government may create a uniform tax structure and do away with multiple check points and

documentation requirements, which would lead to speedier delivery of cargo.

To generate awareness, the government may organize seminars, workshops, exhibitions and meetingsto bring in representatives of logistics users, service providers and government under one roof, and

also sponsor courses in leading Indian institutes to attract talent. Growth of the logistics industry in

India will not only contribute to the GDP, but also generate employment.

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Future prospects

Despite problems, The Indian logistics industry is growing at 20% vis--vis the average world logistics

industry growth of 10%. Since the organized sector accounts for merely 1% of the annual logisticscost, there is immense potential for growth of the sector. The major opportunities are highlighted

below.

Many large Indian corporate such as Tata and Reliance Industries have been attracted by thepotential of this sector and have established logistics divisions. They started providing in-house

logistics services, and soon sensing the growth of the market, have started providing services to other

corporate as well.

Large express cargo and courier companies such as Transport Corporation of India (TCI) and BlueDart have also started logistics operations. These companies enjoy the advantage of already having a

large asset base and an all-India distribution network. Some large distributors have also forayed into

the logistics business for their clients.

Since logistics service can be provided without assets, there is growing interest among entrepreneurs

to venture into this business.

Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing. They arenow realizing that customer service and delivery performance are equally important as cost to remain

competitive in this global economy.

The Indian economy is growing at over 9% for the last couple of years (compared to the world GDPgrowth rate of 3%), which implies more outputs and more demand for specialized logistics services.

The Indian government has focused on infrastructure development. Examples include the golden

quadrilateral project, east-west and north-south corridors (connecting four major metros), Free Tradeand Warehousing Zones (FTWZ) in line with Special Economic Zones (SEZ) with 100% Foreign

Direct Investment (FDI) limit and public-private partnerships (PPP) in infrastructure development. It isexpected that infrastructure development would boost investments in the logistics sector.

In India, 100% FDI is allowed in logistics whereas in China, until recently, foreign investment wasnot allowed in domestic logistics. Almost all large global logistics companies have their presence in

India, mainly involved in freight forwarding. For domestic transportation and warehousing, they have

tie-ups with Indian companies. As the Indian logistics scenario looks promising, these MNCs are

expected to play a bigger role, probably forming wholly-owned subsidiaries or taking the acquisitionroute. The latter may be the preferred route of investment since the target company is readily acquired

with its asset base and distribution network, and the need for building everything from scratch can thusbe avoided. The benefits for the acquired company include the patronage of an MNC and access to the

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Conclusion:

This project has helped me understand the logistics market in International scenario as well as Indian

scenario. It has helped me understand the importance of customer satisfaction and how markets can

develop and grow.

Also, it has helped understand the potential of Indian market when it comes to Logistics and its future

prospects.

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logistics derly's project

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