Modeling the DP (Domestic

Product) Network
of

(Logistics/Operations)

Harshit P. Desai
PGDBM

Marketing
N.L. DALMIA INSTITUTE

OF

MANAGEMENT STUDIES & RESEARCH

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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 give
their 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.

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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. Desai during 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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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
 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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 INDEX
TOPIC PAGE NO.
Executive Summary 6

What is Courier?? 7-8

Courier Service 8-10

Global Logistics Industry 10-11

Indian 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

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An Interview with Michael Pereira 41
Annexure 43

Bibliography 52

EXECUTIVE SUMMARY
Logistics and supply chain management (SCM) as an area of research has
been getting increasing attention from academicians and practitioners
over the last two decades since it may lead to reduced operational costs,
improved delivery performance and increased customer satisfaction
levels, thereby making an organization more competitive in terms of cost,
quality, delivery and flexibility. The importance of logistics and SCM is
increasing also due to globalization as more and more multi-national
companies (MNC) are sourcing, manufacturing and distributing on a global
scale, 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 enable
companies get very efficient and customized logistical support while
themselves focusing on the core organizational activities.

Today, there are many large multi-national LSPs that offer complete
supply chain solutions across many diverse countries in terms of their
socio-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 sales
support, reverse logistics and so on. By outsourcing logistics, companies
can leverage the expertise of LSPs while concentrating on their core
competencies.

While SCM deals more with the linkages in the chain, contracts and
relationships, supplier selection, information and financial flows besides
materials 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 less
confined to the routine job of transportation and storage of goods.
However, if one deeply ponders, one may realize that logistics is the core
of SCM, and if logistics fails, the whole chain snaps. Though logistics deals
with mundane vehicles, warehouses, layouts, material handling
equipment, Motor, Vehicles Act, toll tax, sales tax, octroi, documentation
etc., efficient management of it has the potential to make the chain taut
and agile. Therefore, there is growing interest in logistics, and hence in
SCM, around the world.

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To survive in the cut-throat competition, the logistics organization should
forge ahead with the new ideas. The project deals with the ground
operations of Blue Dart. The project work flashes light on the introduction
of 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 courier
possess 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. To
begin 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 with
the 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 air
cargos 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 large
interest 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's
changing 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. The
official 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 them
are 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 edge
over 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 and
conditions for both the parties.

Courier Services In India

Indian courier industry had its start some 15-20 years ago. The courier
industry was initially limited to the four metros – New Delhi, Mumbai,
Kolkata, Chennai and to some extent to Bangalore. The reason was the
airport connection these metros were. But, the changing economy and
technical advancement seen on a daily basis, the industry has grown
and extended faster to several cities and even rural areas. And it is
still growing.

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

The Indian courier market is Rs 7,000-crore courier industry and it is

growing at 25% a year. Still, most of the business is in unorganized sector.

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

Mainstream companies provide a variety of services. Courier services in

India can be segregated in few categories. Basically, it begins with intra-
city services which are about speedy delivery of mails and goods within
the city. Broadening the services, inter-city services are covered. Normally
this is termed as surface cargo services where short distance and bulk
loads 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 air
express service is usually a day faster compared to air cargo. Air express
is used by the people who need to send their significant documents across
India or the world in urgency; whereas air cargo includes weighty loads
and security objects. They provide both national and international
services. Courier companies work in tandem with the foremost airlines
and in sync with their well tuned, well associated set of connections the
timely deliverance and protected service is guaranteed. Few other variant
of services could be express services, ocean freight, industry solutions,
logistic solutions, shipping tools. These particular services are individual of
a company's area of specialization and diversification.

Global Logistics Industry

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 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 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
logistics 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 in
general.

 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 infrastructural bottlenecks 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 additional services. Pressure
from clients to broaden the range of service offerings and internationalize
operations, has forced 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
scale and 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. Möller acquired P&O Nedlloyd in February,
2006, and TNT Logistics was sold to Apollo Management L. P. in
November, 2006. However, mergers and acquisitions have their own set
of problems in terms of integration of two diverse business units. 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 key customer 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 chain integration.

Indian Logistics Industry

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 billion logistics cost, almost 99% is

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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 contributed by 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 in the 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.

 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 following operating 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 that contributes 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, octroi, 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
paperwork and 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 the developed
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, and losing 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

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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 for international freight movement.

MNCs, because of their size and operations in many countries, are able 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 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 by roadways. Slow movement of cargo due to bad road
conditions, multiple check posts and documentation 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 of shipments 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 Indian exporters 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, 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 the
availability of trucks and going rates at the destination market. Therefore,
it has to pay more. Had the market information been available to both the
shipper and the service provider, the service provider’s 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 a shipper 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

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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 visibility during 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
providers to 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. 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 have to move beyond the level of brokers and
truckers to attract and retain talent.

 Future prospects
Despite problems, The Indian logistics industry is growing at 20% vis-à-vis
the average world logistics industry growth of 10%. Since the organized
sector accounts for merely 1% of the annual logistics cost, there is
immense potential for growth of the sector. The major opportunities are
highlighted below. Many large Indian corporates such as Tata and
Reliance Industries have been attracted by the potential 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
Blue Dart 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 are now 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 GDP growth 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 Trade and Warehousing Zones
(FTWZ) in line with Special Economic Zones (SEZ) with 100% Foreign
Direct Investment (FDI) limit and public-private partnerships (PPP) in

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infrastructure development. It is expected 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
was not 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
acquisition route. 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 thus be avoided. The benefits for the acquired company include the
patronage of an MNC and access to the MNC’s global network. As an
example, DHL Danzas, the biggest logistics company in the world, has
taken over Blue Dart.

OBJECTIVES OF THE PROJECT

• Objective #1

To study the functional processes (Inbound / Outbound) of the

organization involved right from the point of Order to the point
of 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.

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 • Objective #2

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

Specific Activities to Learning Objective #2

 Gather and record the data as per STATEWISE / REGIONWISE /

HUBWISE.(Annexure, table-1)

 Design the transit map for DP(Domestic Product) transport for each
HUB.(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)

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 to

understand the ground network.

• Objective #4

To find out an alternative way to achieve time minimization, cost

minimization & profit maximization. (figure- 2)

Specific Activities to Learning Objective #4

 Initially, routes are selected from ground network, where railway

transport 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 time

from available results. (Annexure, table-5)

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 COMPANY PROFILE

BLUE DART
Blue Dart is South Asia's premier courier, and integrated express
package Distribution Company. Blue Dart has the most extensive
domestic network covering over 21,533 locations, and service more than
220 countries and territories worldwide through its Sales alliance with
DHL, the premier global brand name in express distribution services.

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."

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Milestones:

Driven by enterprise and ambition, three young entrepreneurs –

Clyde Cooper, Khushroo Dubash and Tushar Jani – came up with the
idea of starting a courier service that would deliver documents and
sample shipments overnight to international and domestic destinations.
Blue Dart courier services was launched on November 19, 1983, with
a capital base of just Rs. 30,000. The company forged ties with Gelco
Express international, UK, and introduced an international air package
express service India. Some of the key milestones in Blue Dart’s history
are:

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

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

1991:
Blue Dart Express is registered as a private limited company, and
introduces its economical logistics service option, Dart Surfaceline. It
indigenously develops its domestic tracking system, COSMAT-ITM.

1992:
Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network,
and sets up its employee satisfaction programme - Survey Feedback
Action (SFA).

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

1995:
Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO
permission. Blue Dart Express Ltd. develops its SMART (Space
Management Allocation Reservations and Tracking) system for its aircraft,
the first cargo management system in the country. Blue Dart Express Ltd.

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
is awarded the "Global Service Participant Sales Award" by FedEx for
outstanding sales performance.

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

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

1996:
Blue Dart Aviation launches India's first jet express airline. Blue Dart
Express Ltd's
turnover crosses the Rs: 1 billion mark, as it expands its domestic network
by entering into strategic alliances in North, South and West India. Blue
Dart Express Ltd. is the first express company in India to receive an ISO
9001 certification, and post its website on the internet. Blue Dart Express
Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., co-operate in
bringing the world's largest airlift of charity to Kolkata.

1997:
Blue Dart Express Ltd. signs agreements with leading international airlines
for
distribution of bonded cargo within its network. Blue Dart Aviation
launches its
domestic charter operations.

1998:
Blue Dart Aviation develops India's first Load and Trim software for its
B737F flights.
Blue Dart Express Ltd. launches SMARTBOX, its economical, packaged
door-to-door product, and extends its delivery to over 1000 locations.

1999:
Blue Dart Express Ltd. moves to its state-of-the-art Administrative,
Technology and
Operations Superhub, the Blue Dart Centre, at Mumbai. At close proximity
to both the international and domestic airports, encircled by four five-star
hotels, and equipped with the latest technology, the Superhub has
improved efficiency and increased load-handling capacity multifold. Blue
Dart Express Ltd. Launches Power Dart 2000+, a software that provides
customers free connectivity to its database, enabling customers to track
and retrieve all information related to their shipments.

2000:
Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is
scheduled for
operations on the Bangalore-Delhi-Bangalore sector. Blue Dart Express
Ltd. also
revamps its website replacing it with an interactive website to support e-
trade and
commerce and facilitate customer interface on the net.

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2001:
Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-
Bangalore sector. The Civil Aviation Ministry requisitions Blue Dart
aircrafts for relief operations into earthquake-battered Bhuj in Gujarat.
Technology tools and customer software – MobileDart, On-Line Pick Up
and ShipDart - are developed in-house and launched. Blue Dart declares
1:1 bonus shares. Blue Dart, Kolkata moves into heritage building, Kanak,
its new premises inaugurated by Sr. Nirmala of the Missionaries of Charity.
2002:
Blue Dart is re-certified as one of a handful of Indian companies to the
new global
ISO 9001 - 2000 standards for "Design, management and operations of
countrywide
express transportation and distribution service within the Indian
Subcontinent and to international destinations serviced through
multinational express companies". Blue Dart ends its contract with Federal
Express and signs a path-breaking Sales Alliance with the World's No. 1
international air express company, DHL Worldwide Express. Blue Dart
crosses 100,000 shipments per day.

2003:
Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on
strengthening infrastructure, Blue Dart establishes twelve of its own
offices in the South, delivering to an additional 198 locations, expands its
hub at Bhiwandi and sets up a bonded warehouse in Mumbai. The
company is selected a 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 19th
November 2003.

2004:
Blue Dart inducts its 4th aircraft into operation on 17th May 2004,
connecting
Hyderabad as its 6th Aviation Hub. Blue Dart also extends its brand into
Sri Lanka
through a Regional Service Alliance with Foster Agencies Pvt. Ltd.,
Member of the
Hayleys Group, one of Sri Lanka's largest diversified multinationals. The
Alliance will enable customers to use Blue Dart services between 400
locations in Sri Lanka and over 13,700 locations in India. Blue Dart
acquires its fifth Boeing 737 freighter.

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

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2006:
Blue Dart launches its unique SMS based Mobile Tracking Service. A
decade after its
launch of India's first domestic express airline, Blue Dart introduces the
first 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 from
Hyderabad and Ahmedabad is the 7th airport connected to Blue Dart's
network.

2007:
Blue Dart launches it’s fortified Ground Express Service – Dart Surfaceline
with time
bound 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 Dart’s Competitive Advantage lies in:

Blue Dart’s vast and unparalleled Domestic Network

Linked by some of the most advanced communications systems and
positioned to offer a consistent, premium,standardized quality of service

A spectrum of services to provide customized solutions.

Blue Dart is the only express carrier in the country today which offers an
entire range of services that extend from a document to a charter-load of
shipments. Blue Dart services are relentlessly monitored to deliver a net
service level of 99.96%.

Blue Dart’s Customs and Regulatory expertise

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

Blue Dart’s Technology

Designed to enhance the reliability of Blue Dart’s operations and process
efficiency, and add value to the customer through time and cost savings.

Blue Dart’s Air Network

The only one of its kind in the country today, that is focused on carriage of
packages as its prime business, rather than as a by-product of a
passenger airline. A dedicated
aviation system to support Blue Dart's services is self-sustaining, with its
own bonded warehouses, ground handling and maintenance capability.

Blue Dart’s financial credibility

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+(ind)" [F one
plus (ind)]
rating for Blue Dart’s short term debt programme of Rs. 30 crores.

Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one
plus) Rating for Blue Dart’s Commerical Paper Programme of Rs. 25
crores.

Blue Dart’s People force

Committed, diverse and over 6,966 strong are Blue Dart’s most valued
asset. All Blue
Dart achievements have been possible because they have a team who
believes in
themselves and their company, a team with a winning attitude. Blue Dart
is a learning organization, Blue Dart values self-development, and most of
Blue Dart managers are homegrown.

Fact Sheet
Description : South Asia's premier courier and integrated air
express
package 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 31st
December,2008) : 5078

Domestic Locations
Serviced : Over 21,533 locations

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
International Destinations
Serviced : More than 220 countries and territories
worldwide
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 shipments
handled (in million) : Jan-Dec 2008
Domestic - 79.00
International - 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 accessed
by 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

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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 require
unfailing reliability and speed.

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

 SmartBox:
A ready convenient, cost effective packaging unit that includes a personal
pickup from a customer’s door step to the delivery. The easy to assemble
units come in sizes of 10 kg and 25 kg, and are designed to securely
accommodate a variety of products.

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

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

 Air Freight Services Offerings:

Large shipment delivery capability, through India’s only dedicated air
services, with night operations by a fleet of two Boeing 757 and five
Boeing 737 freighters.

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

 Interline Services:
Transhipments of customs-bonded import & export loads to and from six
of India’s main international gateways. This facilities is available with
more than 20 major international airlines who are Blue Dart’s interline
partners.

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
 Charters:
Blue Dart’s freighters offer capacity for carriage of urgent, time sensitive,
emergency material between major airports in India, and to some
international airports in the region. Blue Dart’s freighters offer the highest
payload available in the Indian skies.

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Technological innovations by Blue Dart:
Technology has been an intrinsic part of Blue Dart’s business since 1988,
differentiating it from competition and positioning the company at the
forefront of the industry. The company has an in-house development team
and has invested substantially in technology.

The technology innovations by the in-house development team are:

 COSMAT II
Computerized Online System For Management Accounting And Tracking –
a complete ERP System developed by Blue Dart.

 TrackDart
Track the status of shipments by using the TrackDart box that is available
on the upper left panel for every page on BlueDart’s website. TrackDart
can track multiple shipments sent on BlueDart services.

 MailDart
Track the status of shipments via e-mail. E-mails which are sent to
track@bluedart.com with the way bill numbers, will receive an automated
response providing the latest status of the shipments.

 InternetDart
For more advanced users, InternetDart allows filtered views of tracking
data for all packages dispatched.

 MobileDart
Track the status of the shipment from anywhere across the country by
sending an SMS to 6767.

 PackTrack
An applications program interface designed for any client involved in
logistics, distribution and inventory control. It has been designed to
streamline and integrate shipping processes.

 ShopTrack
Designed specially to support and enhance the services provided by a
portal or any e-business. The customer needs to enter the order-number
of the purchase, shipping and delivery details are displayed on the same
page.

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
 ImageDart
Allows the users of Blue Dart’s apex and Surfaceline services to download
the Proof of Delivery and Delivery Challans online from the Blue Dart
website.

 ShipDart
Enables user control over shipping and tracking processes. For regular
customers, it is installed at the customer’s premises in order to interface
with their own system for the preshipping and post-tracking activities.

 Sentor
Status Entry Offline for Regional Service Participants/Remote Locations –
an application provided to Blue Dart channel partners and Blue Dart
offices in remote areas. Via internet, SENTOR users received detailed
information on inbound packages for delivery.

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

 Shield
The online security module simplifies tracking of any security incident
across the country. It enables the regional security team to track the
cases till closure, and derive trends as an effective management tool.

 Sa’fire
Enables Blue Dart’s salespersons to log in their entire day’s activities-
collections, follow-ups as well as new leads. This indigenously developed
software not only helps the sales person organize his daily individual sales
activity but also aids in giving a holistic view of the customer
performance.

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 Supply Chain Management

Supply chain management (SCM) is the management of a network of

interconnected businesses involved in the ultimate provision of product
and service packages required by end customers (Harland, 1996). Supply
Chain Management spans all movement and storage of raw materials,
work-in-process inventory, and finished goods from point of origin to the
point of consumption.

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

management of the flow of materials, information, and funds across the
entire supply chain, from suppliers to component producers to final
assemblers to distribution (warehouses and retailers), and ultimately to
the consumer.1 In fact, it often includes after-sales service and returns or
recycling. Figure 1 is a schematic of a supply chain. In contrast to multi
echelon inventory management, which coordinates inventories at multiple
locations, SCM typically involves coordination of information and materials
among 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.

Conclusion
Supply chain management is an exploding field, both in research and in
practice. Major international consulting firms have developed large
practices in the supply chain field, and the number of research papers in
the field is growing rapidly. Our treatment covered twelve areas often
seen in supply chain research and practice. These areas appear to be
somewhat disparate, but they are all linked by the integrated nature of
the problems at hand. Firms operate in global environments, deal with
multiple suppliers and customers, are required to manage inventories in
new and innovative ways, and are faced with possible channel

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
restructuring. The field promises to continue growing as the research
advances and as firms continue to apply new knowledge in their global
networks. Finally, as the Internet changes fundamental assumptions about
business, 22 firms operating in supply chains will be required to
understand this new phenomenon and respond accordingly.

Supply Chain Management at Blue Dart

HUB (NEAR FROM HUB (NEAR FROM

SERVICE CENTER) SERVICE CENTER)

BRANCH / SERVICE BRANCH / SERVICE

CENTER CENTER

CONSIGNOR / CONSIGNEE /
SHIPPER RECEIVER

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 Objective #1Analysis
To study the functional processes (Inbound / Outbound) of the
organization involved right from the point of Order to the point
of 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.

At first we were asked to understand hoe BlueDart actually handles

the shipments right from point of order to the point of delivery. In
order to understand the entire process we were first asked to visit
one of BlueDart’s service center[Adarsh Service Center (ADR)]. Here
we understood both the Inbound & Outbound process.

Inbound-Loads coming into Bombay for delivery into locations

within
Bombay.
Outbound-Loads originated from various locations in Bombay for
delivery
into locations outside Bombay.

Next we visited the Bombay Hub and study the operations done
over there. The Bombay Hub receives loads from all the service
centers located in Bombay. After receiving the loads, the loads are
In-Scanned, then Segregated according to the locations and
consolidated into Canvas Bags. The Canvas Bags are then Out-
Scanned. All these operations take place in the night.

Also we visited BlueDart’s AVIATION center, the last point through

which the loads pass while going out of Bombay & the first point
through which the loads enter into India.

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Outbound / Inbound

AWB AWB AWB AWB

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

In Scan/ Out
Plastic Bag Plastic Bag Scan
No. 1 No. 2
(MAWB No.) Reconciliation
(MAWB No.)
COSMAT II COSMAT II

Canvas Bag Canvas Bag

No. 1 (CB No.) No.2 (CB No.) In Scan/ Out
Scan
COSMAT II COSMAT II Reconciliation

Link CB to Link CB to
Run Run Un-Connected
Shipment
Report

Connection Flight Connection Flight

for Destination 1 for Destination 2 Un-Connected
COSMAT II COSMAT II Shipment
Report

Pre Alert for Pre Alert for

Destination 1 Destination 2 Un-Connected
Shipment
COSMAT II COSMAT II
Report

D File(Shipment
Data) of Origin
Service Centre 1

COSMAT II (DBF)
A

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 DBOM.PRN log

A
file

D File(Shipment D File(Shipment
TRANXlog.DBF
Data) of Origin Data) of Origin
Service Centre 1 Service Centre 2
COSMAT II (DBF) COSMAT II (DBF)
Exception
Reports
(Central EDP)

Regional Regional Regional Regional

EDP EDP EDP EDP Acknowledgeme
nt Reports
(Central EDP)

Exception
Central Billing
Reports
Data (Central EDP)
Oracle 10g

“Pick Up”- Pick up Sheet is generated from the CS Data Pick Up Module.
Pick Up
Sheet may be for Call & Regular Customer. Call Customer may be a
Cash/Credit
customer. Each Call-in customer is allocated a Token Number. Token
Number is
in turn allocated to pick up staff. After pick ups, the details of shipments
brought
into the service centers are then entered into the COSMAT II.

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

basis.

“AWB In Scan”- Each Shipment (i.e. AWB) is then scanned(In Scan) to

capture 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 to
Current Date.

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
“AWB Data Entry”- After In scan And Batch creation, the AWB Data is
then entered into the COSMAT II capturing details of customers, Weight,
Product Type, Destination, DOX or DUTS, Pick-Up & Shipment Date(these
date can be 10 days prior to Current Date). Multiple AWBs are entered in a
single Batch. Same AWB cant be entered in two different Batches.

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

“Batch Confirmation”- Once Batch is created and AWB Data is entered

against it, the same is confirmed.

“Plastic Bagging”-
 Normal Bagging :-
Shipments brought into the service center and after scanning & Data
Entry same are first put into a Plastic Bag. Each Plastic Bag is identified
with a Master AWB No.
(MAWB No.) in the COSMAT II. Each Consignment (i.e. AWB No.) is then
‘Connected’ to a Plastic Bag(i.e. MAWB No.) in system. Multiple Shipments
are put in a single Bag. Same shipment (i.e. AWB No.) cant be
put(Connected) in two Bags(i.e. MAWB No.). Plastic Bag(i.e. MAWB No.)
are product specific and destination specific. Maximum of 35 Shipments
can be put in a single Plastic Bag. Each Plastic Bag(i.e. MAWB No.) is
specific to a Product Type & Destination. AWB No.(Shipment) booked in
the 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 In
Scan.

 Rapid Bagging :-
In case where Shipment (i.e. AWB No.) is In Scanned but Data Entry and
Batch Confirmation is not done, such Shipment(i.e. AWB No.) can be still
be Connected to Plastic Bag(i.e. MAWB No.) via Rapid Bagging Data Entry
option. Here at the time of Connecting Shipment(i.e. AWB No.) to Plastic
Bagging(i.e. MAWB No.) system makes it mandatory entry of following
details of shipment :

a) Customer Code b) Weight c) Destination

d) AWB No. e) DOX/DUT f) Origin Code
g) Destination h) No. of pieces

After using rapid Bagging Data Entry option the AWB No. will still appear
in Pending AWB Data Entry Report and same will get cleared only after full
data 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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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
“Canvas Bagging”- Plastic Bags are then put into Canvas Bags. Each
Canvas 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 (CB
No.) in the system. Multiple Plastic Bags are put in a Canvas Bag. Same
Plastic 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 destination
specific. MAWB No. (Shipment) booked in the system for one destination
cannot be Connected to CB No. (Canvas Bag) booked in the system for
another destination. For Connecting Shipment (i.e. AWB No.) directly
Canvas Bag(i.e. CB No.) weight of shipment has to be minimum 5 kg, else
system will show an error message. For shipments having weight below
below 5 kg, Plastic Bagging(i.e. Connecting AWB No. to MAWB No.) of
shipment is mandatory in the system. Plastic Bags(i.e. M AWB No.) not
created in the system cannot be Connected to Canvas Bag(i.e. CB No.). In
case of AWB having weight above 5 kg, if Data Entry is not done and same
is tried to be Connected to Canvas Bag system will generate an error
message and will require AWB Data entry prior to including to Canvas
Bag.

‘Un-Connected Shipment Report’ is generated which shows Plastic

Bags(i.e. MAWB No.) In Scanned in the system but not ‘Connected’ to
Canvas 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.) is
linked to ‘Run’. ‘Link to Run’ is a process where origin service centers
identifies the Hub to which shipments are to be sent. Each Run has a
unique number. In system a Canvas Bag(i.e. CB No.) cannot be Linked to
multiple Run Nos.
Link C/B to Run I/O Reconciliation is generated at this stage.

“Connect Flight”- This is the process for generation of Transfer

Challan(TC) after Link Run Processes. Transfer Challan travels with the
shipment from service centers to Hub. System does not allow generation
of 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 Total
Weight of Canvas bag, Total No. of Plastic Bags, Total No. of loose pieces,
etc.

‘Un-Connected Shipment Report’ is generated which shows

Shipments(i.e. AWB No.) In Scanned in the system but not Connected to
Plastic Bags(i.e. MAWB No.), Plastic Bags(i.e. MAWB No.) not connected to
Canvas Bags(i.e. CB No.), Canvas Bags(i.e. CB No.) not yet closed.

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N.L. DALMIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
“Pre-Alert generation”- After Connect Flight i.e. generation of Transfer
Challan, Pre-Alerts are generated for each “Run No.”. Pre-Alerts will have
following 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. On
successful generation of D-file, a log file(PRN file) is created
capturing details of records contained in the D file. Once
DBOM file is generated Batch Control Slip is A generated
from the system.

“Transmission to Regional EDP”- After generation of D-files same is

transmitted to Regional EDP using File Transmission module. An entry is
appended in log file(TRANXLOG.DBF) regarding success or failure of D-file
transmitted. Regional EDP intimates Local EDP regarding exceptions in
transmission like CRC failures. Missing files, last file not found, Control
Total Errors, etc.

Pick Up Sheet
(Customer
Details)
COSMAT II AWB Confirmation
COSMAT II
Pick Up List
(AWB Details)
COSMAT II
Plastic Bag
Scanning
(Out Scan)
Physical COSMAT II
Verification
Canvas Bag
Scanning
(Out Scan)
AWB Scanning COSMAT II
(In Scan)
COSMAT II Connect Flght
(Out Scan)
COSMAT II
AWB Data
Entry
COSMAT II
Pre Alert
Destinationwise
COSMAT II 5
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 D File Shipment
Data

• Objective #2 Analysis
To study the current network in the DP(Domestic Product) segment.

Specific Activities to Learning Objective #2

 Gather and record the data as per STATEWISE / REGIONWISE /

HUBWISE.(Annexure, table-1)

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

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

The transit map of the DP product gives a clear picture of the no. of
days required for a shipment to get delivered from one particular
location to any other location in India. It gives an indication of the
time commitment (24hr,48hr,72hr) attached to each location i.e.
whether the time required to deliver a shipment from one location
to 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 of
the new flights. With these flights, Blue Dart can look for
opportunities 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 this
data into a software which gives the entire connectivity from one
location to each & every location anywhere in India with just a click
of a button.
A

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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 to

understand the ground network.

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

Specific Activities to Learning Objective #4

 Initially, routes are selected from ground network, where railway

transport 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 time

from available results. (Annexure, table-5)

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PRESENT SCENARIO OF BLUE DART:

APEX- Air Package Express

SFC- Surface

COS
A

E GAP TO
BE S
X FILLED
F

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

OBJECTIVE OF BLUE DART: APEX- Air Package Express

RAIL
SFC- Surface

A
R
P
COS
A
T E
S
I
X
F
L
C

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

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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.

RECOMMENDATIONS
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

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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 is
infrastructure—both air and surface. Space at airports, airside (the part of
an airport directly involved in the arrival and departure of aircraft) and
city side infrastructure are often inadequate. In addition, parking bays,
airside/city side access and traffic congestion adversely impact costs as
well as service quality. Air express companies are constrained by the size
of the facilities at the airports, as they have remained the same while the
loads have increased manifold.

What is the size of the Indian market in terms of domestic and

international 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 express
market is pegged between Rs1,500 crore and Rs1,800 crore.
The outlook for the air express industry in 2009 is probably best described
as extremely challenging. What’s difficult at this moment is predictability
of the market movement. These are tough times, but cyclical happenings.
We believe that these inconsistencies will bottom out with the revival of
the 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 a
market share of 43% in the domestic air express industry.
Various airlines are contemplating their entry into the sector, which is a
positive sign of the growth and potential of the industry. Moreover, India’s
projected growth (rates) are encouraging, and we have a large population
entering the consuming segment. Business now extends to the smaller
towns and cities of the country, giving ample scope for express (services).
In fact, an efficient express (service) now forms the core of every
successful business. Therefore, every player has an opportunity to find its
niche 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 the
country—Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Kolkata,
Ahmedabad. As a validation of the 80-20 rule, these key routes account
for maximum traffic. However, smaller business centers now evolving in
the burgeoning cities and towns... are increasingly demanding express
solutions.
Blue Dart connects the seven metros through direct flight connections
every 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 and
most comprehensive express and express network worldwide, covering
over 220 countries, and offers an entire spectrum of distribution services
including air express, freight forwarding, supply chain solutions and
customs clearance.

How do you manage last-mile connectivity and how critical is

that?
Blue Dart provides door-to-door express solutions, where air
transportation is one key component, the others being an integrated air-
ground infrastructure to enable last-mile deliveries within a short time
frame 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 and
optimizing resources becomes of paramount importance.
The traditional modes of fleet tracking in India, which include making
long-distance calls en route, predefined points or asking the driver to keep
reporting on its location at regular intervals, are now passé. Technology
has now moved to the next level in the form of a new tool—GPS (Global
Positioning system)— and Blue Dart being the technology leader in the
industry has already upgraded its systems to accommodate this
revolutionizing technology.
In Blue Dart, we have initiated the use of GPS in all our vehicles as we
recognize the fact that synchronization of all activities makes for an
efficient supply chain.
Moreover, our shipment track and trace facilities via Internet allow total
visibility 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 and
regional 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.

ANNEXURE

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

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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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 BIBLIOGRAPHY

• 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.

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