Professional Documents
Culture Documents
ON
LOGISTIC STRATEGIES AND SERVICES
IN
LOGISTICS INDUSTRY
By
V.MADHAVI
(H.T.No.08141E0032)
UNDER GUIDANCE OF
RAJESH
(Asst.professor)
I. INTRODUCTION
• Need of the study
V. FINDINGS
VII. APPENDIX
VIII. BIBILIOGRAPHY
I. INTRODUCTION:
NEED OF THE STUDY:
The logistic strategy explores how the finished products will be distributed to customers.
The module covers the number, location and type of distribution facilities, design of the transport
network, determination of inventory policies and how logistics performance will be monitored
and improved. The main Frame work of the study is to determining the current situation,
formalizing the future requirements and objectives, exploration of different options for bridging
the gap, selection and implementation of a preferred option, supporting information and
technology requirements, establishment and maintenance of a performance review process.
• The main objective of this study is to know the different logistic strategies and
services followed by the companies in the logistics industry.
• To analyze whether these methods are beneficial to the companies.
• To find and suggest the best strategies and services to the companies for improving
their performance.
• To know about the competition within the industry.
• The study is only limited to the logistic strategies done by various companies.
• The data collected for study is from secondary sources.
• The secondary sources are confined to journals and internet.
• This report gives only the strategies which are followed by some companies and
cannot be projected to the other companies.
1. TNT EXPRESS:
TNT established its Indian operations in the year 1994, making it the first multinational Express company
to set up operations in India on its own. Headquartered in Bangalore, TNT India has the pride of owning
the widest network of company owned depots in India.
Today, TNT India has a pick-up and delivery setup spanning across 614 offices, 2000 vehicles, 34 hubs,
592 depots. Their operational networks are supported by sophisticated technology which as well as
ensuring service reliability provides real-time, on-line information about the status of your consignments.
TNT N.V. is an international express and mail delivery services company with headquarters in
Hoofddorp, the Netherlands. In the Netherlands, TNT operates the national postal service under
the name TNT Post. The group also offers postal services in eight other European countries,
including the UK, Germany, Italy and Belgium.
The company's express delivery services unit, known as TNT Express, has fully owned
operations in 65 countries and delivers documents, parcels and pieces of freight to over 200
countries. TNT's express division recorded sales of over €6.6 billion in 2008, which is a 1.6%
increase over the previous year.
TNT sold its logistics unit in 2006 to focus on network activities, mail and express delivery
services. TNT's networks are concentrated in Europe and Asia, but the group is expanding its
operations worldwide, including in the Middle East and South America. In the recent years, it
acquired several road freight companies in China, India and Brazil.
TNT employs more than 163,000 people. Over 2008, TNT reported €11.1 billion in revenues and
an operating income of €982 million.
TNT is officially quoted on the Euro next Amsterdam Stock Exchange.
Its major competitors include FedEx, United Parcel Service (UPS), DHL, and national post
carriers such as US Postal Service and Royal Mail. TNT aircraft operate under the IATA code of
TAY (TNT Airways).
TNT Express - operates the largest express network by air and road in Europe, as well as TNT
Airways, an international cargo airline. TNT Express employs more than 96,000 people, flies 47
aircraft, runs about 26,800 road vehicles, and has a worldwide network of more than 2,300
depots and hubs.
MISSION:
• Their mission is to exceed customers' expectations in the transfer of their goods and
documents around the world.
• They deliver value to our customers by providing the most reliable and efficient
solutions through delivery networks.
• They seek to lead the industry by instilling pride in our people, creating value for our
stakeholders and sharing responsibility for our world.
VALUES:
Be honest
Aim to satisfy customers every time
Challenge and improve all we do
Be passionate about our people
Act as a team
Measure success through sustainable profit
Work for the world
MISSION:
• To provide organizations and individuals the best value in Integrated Logistics through.
• Extensive Global Network.
• Innovative use of Technology.
• Responsive People.
VALUES:
• We shall respect the dignity of the individual.
• We shall be transparent and fair in our behavior.
• We shall nurture personal initiative, commitment and loyalty.
• We shall foster team spirit.
• We shall always feel responsible to the communities in which we live and work.
Over the last six decades, AFL has pioneered and led three different segments of logistics
industry:
• Airfreight forwarding in 1945.
• Domestic Express couriering in 1979.
• Inward Money Remittance to India in 1994.
• Third Party Logistics in 1996.
• First IATA- approved Booking Agent in India.
• Established benchmarks for each industry segment.
4. BLUE DART:
About Blue Dart: It is South Asia's premier courier, and integrated express package
Distribution Company. Blue dart have the most extensive domestic network covering over
21,479 locations, and service more than 220 countries and territories worldwide through our
Sales alliance with DHL, the premier global brand name in express distribution services.
VISION: Blue dart vision is to establish continuing excellence in delivery capabilities focused
on the individual customer.
In pursuit of sustainable leadership in quality services, company has evolved an infrastructure
unique in the country today:
• State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP,
Customer Service, Space Control and Reservations.
• Blue Dart Aviation, dedicated capacity to support our time-definite morning deliveries
through night freighter flight operations.
• A countrywide Surface network to complement our air services.
• Warehouses at 52 locations across the country as well as bonded warehouses at the 7
major metros of Ahmadabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and
Hyderabad.
• ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for our
entire operations, products and services.
• Ecommerce B2B and B2C initiatives including partnering with some of the prime portals
in the country.
5. GATI:
Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain
Solutions in India. It was the revolutionary approach adopted by Gati that helped launch many
path-breaking initiatives in the logistics segment and many were the firsts for the Indian market.
In a span of 20 years, Gati has consistently explored various ways to bring premium value to the
customer, always setting benchmarks in quality of service and customer satisfaction.
Having started as a cargo management company in 1989, Gati has grown into an organization
with more than 3500 employees and a turnover of Rs 576 Crore covering 603 out of 611 districts
in India. Gati has over 4000 vehicles on road, fleet of refrigerated trucks, container vessels and
world class mechantronic warehousing facilities across India. Be it flexible point-to-point
distribution solutions or complex end-to-end integrated logistics solutions or supply chain
management, Gati does it all with great effectiveness and reliability, and enjoys the trust of a
large customer base.
Gati was also the first to run the millennium parcel express train in October 2001 between
Mumbai and Kolkata with 10 VPUs. The initiative to run a parcel express train between KYN
(Mumbai) and NGC (Guwahati) was again taken by Gati - this is a classic example of PPP
(Public Private Partnership).
The Gati advantage of seamless connectivity across air, road, ocean and rail has resulted in a
plethora of offerings to the customer unmatched in the industry. Besides having a strong network
in India, Gati has a strong market presence in the Asia Pacific region and SAARC countries.
Today, Gati has offices in China, Singapore, Bhutan, Dubai, Hong Kong, Thailand, Nepal and
Sri Lanka and has plans to foray into other markets.
Gati's shipping division, Gati Coast to Coast based at Chennai, with two decades of experience in
the industry has many firsts to its credit: first in operating direct service to Yangon; first in
operating a direct container service from Ranong Port, Thailand; and the first in operating direct
container service from Penang, Malaysia. Gati Coast to Coast today has a tonnage of 43,581
DWT and a fleet strength of six vessels.
Gati's business model is well aligned with the customers’ need, which is why the core businesses
have grown to meet the evolving needs of the customer, and this has resulted in consolidation of
services and in the development of core and critical infrastructure, thus propelling Gati to the
forefront in the logistics segment.
VISION AND MISSION:
Be a globally preferred provider of India-centric supply chain services and solutions, and a
leader in the Asia Pacific region
• Delight customers with quality service by setting new trends through innovation and
technology.
• Be the most preferred organization for all stakeholders.
• Be a responsible corporate citizen with unwavering commitment to environmental
protection and conservation.
"We will continually improve ABC to provide our clients top quality logistics services by
removing inefficiencies, using current technology and respecting our team and environment"
ACTIVITIES:
Types of Cargo Handled Regular Cargo- either Full Truck Loads or Smalls within
India Turnkey Projects- all types of cargo from ports to the project site for big projects, be it
power, refineries, or manufacturing units Odd-Dimension Cargo and Heavy Weight Cargo- from
port and Customs handling to all corners of India over all terrain's International Cargo- either a
container load or a less- than container load, from clearing Customs to delivering at the doors of
your international clients Export Cargo- from your factory to your customers' warehouse using a
single document for multi-modal transportation Household Goods- to make your move trouble-
free, from anywhere in the world to anywhere in India Hazardous Materials- including
radioactive materials to destinations in India and abroad
7. DTDC:
DTDC with 13,000 individuals as its strength, delivers at over 10,000 zip (pin code)
areas, handling 10 million consignments every month. DTDC serves over 240 international
destinations.
DTDC is India’s Largest Domestic Delivery Network Company offering various custom made
services ranging from Domestic to International. DTDC delivers to the remotest places in India
with the help of 3700 business partners spread across the length and breadth of India.
From Leh, Kalimpong, 24 Parganas to Seatle and Tokyo, DTDC offers services arraying from
Domestic Express, Domestic Air Cargo, and Domestic Ground Express to International Air
Express, International Economy Express and many more services taking shape.
On the anvil: Internet shopping through the DTDC SHOPPING NET.
DTDC Courier & Cargo Ltd. is one of the leading Express distribution companies in India
covering both domestic and international services. Incorporated in the year 1990, DTDC is in its
20th year of operations in India. It has a large delivery network covering close to 10,000 Pin
codes giving its customers the best reach in the country. Its efficient international network spans
over 240 global destinations supported by its own offices in US, UK and DUBAI and associate
offices in all the important global destinations.
Head quartered in Bangalore DTDC has its Zonal offices in Bangalore, Mumbai, Delhi and
Kolkata supported by 200 plus own offices and over 4000 channel partner offices spread across
the country delivering over 100 million shipments every year. Company has the state of art IT
infrastructure to support their operations and has built many customized applications for its
corporate clients.
Under the leadership of Mr. Subhasish Chakraborty, the founder chairman of the organization,
DTDC has an efficient team of management professionals who are working round the clock
delivering value to their customers.
DTDC has been innovating constantly to provide products and services that meet customers
current and future needs. Today you will find DTDC offering wide range of services like Express
courier, cargo, end to end supply chain solutions, Retail services like ticketing solutions, bill
payments, Mobile & DTH top ups apart from Training supply chain professionals through its
supply chain training institute.
DTDC’s Customer profile cuts across the industry verticals covering banking, insurance,
telecom, manufacturing and IT. Company provides excellent solutions for E commerce business
and has capability of seamless integration of applications with the customer providing efficient
transaction and database management.
DTDC has strategic equity participation by ADAG group. DTDC plans to consolidate its growth
and its vision is to interface with customers more often in their value chain by offering wide
range of products and services.
VISION:
Its vision is to be the most Admired and Successful Express Distribution Company in
India by meeting and exceeding our Customers' expectation of services.
MISSION:
• To focus on Customer Loyalty and make it the goal of our Organization.
• To encourage our people for adoption of new technologies, processes and systems for
improved, reliable and speedy service.
• To relentlessly monitor to reach a minimum net service level of 98% delivery.
III. REVIEW OF LITERATURE
• "Logistics means having the right thing, at the right place, at the right time"
• Logistics - (business definition) Logistics is defined as a business planning framework
for the management of material, service, information and capital flows. It includes the
increasingly complex information, communication and control systems required in
today's business environment.
• Logistics - (military definition) The science of planning and carrying out the movement
and maintenance of forces.... those aspects of military operations that deal with the design
and development, acquisition, storage, movement, distribution, maintenance, evacuation
and disposition of material; movement, evacuation, and hospitalization of personnel;
acquisition of construction, maintenance, operation and disposition of facilities; and
acquisition of furnishing of services.
• Logistics - The procurement, maintenance, distribution, and replacement of personnel
and materiel.
The key activities required to facilitate the flow of a product from point of origin to point
of consumption. All of these activities, listed alphabetically below, may be considered
part of the overall logistics process.
CUSTOMER SERVICE:
Customer service has been defined as "a customer-oriented philosophy which
integrates and manages all elements of the customer interlace within a predetermined
optimum cost-service mix. Customer service is the output of the logistics system. It
involves getting the right product to the right customer at the right place, in the right
condition and at the right time, at the lowest total cost possible, Good customer service
supports customer satisfaction, which is the output of the entire marketing process.
DEMAND FORECASTING/PLANNING:
There are many types of demand forecasts. Marketing forecasts customer demand
based on promotions, pricing, competition, and so on. Manufacturing forecasts
production requirements based on marketing's sales demand forecasts and current
inventory levels. Logistics usually becomes involved in forecasting in terms of ho\v
much should be ordered from its suppliers (through purchasing), and how much of
finished product should be transported or held in each market that the organization
serves. In some organizations, logistics may even plan production. Thus, logistics needs
to be linked to both marketing and manufacturing forecasting and planning.
INVENTORY MANAGEMENT:
Inventory management involves trading off the level of inventory held to achieve
high customer service levels with the cost of holding inventory, including capital tied up
in inventory, variable storage costs, and obsolescence. These costs can range from 14 to
over 50 percent of the value of inventory on an annual basis! With high costs for items
such as high-tech merchandise, automobiles, and seasonal items that rapidly
become/obsolete, many organizations, include Hewlett Packard. Xerox, and Sears, is
giving inventory management much more attention.
LOGISTICS COMMUNICATIONS:
Communications are becoming increasingly automated, complex, and rapid.
Logistics interfaces with a wide array of functions and organizations in its
communication processes. Communication must occur between:
1. The organization and its suppliers and customers.
2. The major functions within the organization, such as logistics, engineering,
accounting, marketing, and production.
3. The various logistics activities listed previously.
4. The various aspects of each logistics activity, such as coordinating warehousing of
material, work in process, and finished goods.
5. Various members of the supply chain, such as intermediaries and secondary
customers or suppliers who may not be directly linked to the firm.
Communication is key to the efficient functioning of any system, whether it be the
distribution system of an organization or the wider supply chain.
MATERIAL HANDLING:
Materials handling is a broad area that encompasses virtually all aspects of all
movements of raw materials, work in process, or finished goods within a plant or
warehouse. Because an organization incurs costs without adding value each time an item
moves or is handled, a primary objective of materials management is to eliminate
handling wherever possible. That includes minimizing travel distance, bottlenecks,
inventory levels, and loss due to waste, mishandling, pilferage, and damage. Thus, by
carefully analyzing material flows, materials management can save the organization
significant amounts of money.
ORDER PROCESSING:
Order processing entails the systems that an organization has for getting orders
from customers, checking on the status of orders and communicating to customers about
them, and actually filling the order and making it available lo the customer. Part of the
order processing includes checking inventory status, customer credit, invoicing, and
accounts receivable. Thus, order processing is a broad, highly automated area. Because
the order processing cycle is a key area of customer interface with the organization, it can
have a big impact on a customer's perception of service and. therefore, satisfaction.
PACKAGING:
Packaging is valuable both as a form of advertising/marketing, and for protection
and storage from a logistical perspective. Packaging can convey important information to
inform the consumer. Aesthetically pleasing packaging also can attract the consumer's
attention. Logistically, packaging provides protection during storage and transport. This
is especially important for long distances over multiple transportation modes such as
international shipping. Packaging can ease movement and storage by being properly
designed for the warehouse configuration and materials handling equipment.
PARTS AND SERVICE SUPPORT:
In addition to supporting production through the movement of materials, work in
process and finished goods, logistics also is responsible for providing after-sale service
support. This may include delivery of repair parts to dealers, stocking adequate spares,
picking up defective or malfunctioning products from customers, and responding quickly
to demands for repairs.
TRAFFIC AND TRANSPORTATION:
A key logistics activity is to actually provide for the movement of materials and
goods from point of origin to point of consumption, and perhaps to its ultimate point of
disposal as well. Transportation involves selection of the mode (e.g., air, rail, water,
truck, or pipeline), the routing of the shipment, assuring of compliance with regulations
in the region of the country where shipment is occurring, and selection of the carrier. It is
frequently the largest single cost among logistics activities.
IV. DATA AND DATA ANALYSIS
1. TNT EXPRESS:
Domestic Express Delivery:
• Overnight 9:00: Pick-up before the close of business, for delivery by 9:00am on the
following business day.
• Overnight First Class: When goods need to be delivered overnight to any location
Australia-wide.
• Road Express: Road Express is TNT’s most cost effective means of transporting goods,
door-to-door, Australia-wide.
• Same day Nationwide: Open 24 hours a day, 365 days of the year, same day Nationwide
provides immediate door-to-door delivery, anywhere in Australia.
• Same day Local: TNT same day Local provides a range of courier options for deliveries
around the corner or across town.
Standard:
Pick-up and delivery within 2.5 hours throughout the metropolitan area
Metro area only – 30km radius of pickup
Premium:
Urgent deliveries
Pick-up and delivery within 1.5 hours throughout metropolitan area
Direct:
Very urgent deliveries
Immediate pick-up by the first available vehicle, for direct delivery throughout the metropolitan
area
Approx 1 hour from time of booking
• Exclusive Hire: Dedicated vehicle(s) working as directed from 1-Tonne vehicles to semi
trailers charged out on an hourly basis.
• Prepaid- E-Prepaid
OPTIONAL EXTRAS:
Domestic Extended Warranty:
• TNT Express has introduced a range of Extended Warranty options which
provides our customers with a comprehensive alternative replacing all previous TNT
Express insurance offerings.
• Exceptional pick-up and delivery times
• Packaging
• Dangerous goods services
• Secure transport
ADDITIONAL FEATURES:
• Door-to-door service
• No consignment note necessary
• Confirmation of collection and/or delivery status available
• Real-time tracking of shipments and secure delivery
• Transportation of dangerous goods available on application
• Extended warranty available on application
2. AFL: AFL Logistics is in the business of providing Third Party Logistics services (3PL)
and Distribution solutions.
With state of the art Warehousing facilities and a strong Distribution Network, AFL Logistics
has the capability to extract maximum value for its customers.
Warehousing:
• With a nationwide reach, operational excellence, flexible services and careful monitoring every
step of the way AFL offer efficient transportation solution.
TRANSPOTATION:
Special Pick-up and Delivery Services: DHL offers a range of special collection and delivery
options
Information Services: An extensive selection of information services are available for
individual or complete shipment management
Customs Clearance Services
• Dangerous Goods
Payment/Billing Services
Insurance
Packaging
Express Services:
• Same Day Services
• Time Definite
• Start Day Express
• Mid Day Express
• Airport to Door Express
• Day Definite road express services
• Specialized Services
Specialized Services:
• University Express
• Exhibition Express
• Mango Express
• Express Pallet
• Jumbo Box
• Festival Express
• Export Express
4. BLUE DART
Delivery to over 14,965 locations in India
• Free pick-up from your location
• Real-time
• Regulatory
• Free Computerized Proof of Delivery
Dart Apex
Smart Box: Our Smart Box services are available in air express and ground express modes
subject to our Terms and The special benefits of using Smart Box are:
• A wide market reach
• Speedy Delivery
• Free pick-up
• Real-time Tracking
• Regulatory Clearances
• Proof of Delivery
• Trouble Free Service
Regional Services
Airport to Airport
Charters
Interline
International Services: The special benefits of the International Services are
• A Convenient Solution for your Urgent, International Documents & Shipments
• Customs Clearance Expertise
• Real-time Tracking
• A Cost-effective Option
• Packaging
5. GATI:
Gati Surface Express: With the widest network, the best of cargo movement facilities and
several value added services to choose from, Gati Express is the preferred distribution solution
provider in India today.
Gati Air Express: Gati Air Express delivers shipments across all major locations the
very next day during business hours, and to some prime locations even before noon! A
fleet of dedicated freighters (cargo planes)that fly during the night, and a seamless
multimodal network that goes down to the last mile, to ensure that your shipments arrive
on time.
Gati Coast to Coast
Gati Desk to Desk Cargo
Gati logistics package: The unique features of this package are:
ABCO Lines, an International Freight forwarding division of ABC India Limited is fully
equipped to handle customer’s Door to Door movement of containerized and Bulk cargo from
India to rest of the world. They have an association with many Freight Forwarding Companies
all over the World to reach all corners of global.
House Hold Goods Movement:
Surface Transport: ABC's network of 200 offices and agents makes us close to every customer,
every source of raw material, every distribution centre and every plant in the country.
Transportation:
Turnkey Projects:- Custom Handling
• Documentation for custom clearance
• Registration of the contract with customs for the project clearance
• Custom clearance of the import cargo at the port of entry
• Reconciliation of the contract after completion of import
• Providing suggestion to the customer on documentation of purchase and effective
package
7. DTDC:
AIR EXPRESS - DOMESTIC AND INTERNATIONAL AIR EXPRESS SERVICES :-
This service is the first choice for customers who need to send vital documents or small parcels
across India or to the world in a hurry.
INTRA-CITY SERVICES:-
DTDC Intracity Courier Ltd is a venture promoted & managed by professionals with over two
decades domain experience in the courier service industry. Now with “Intra-City” Courier
Service as the core focus, this Endeavour promises to deliver professional service at a friendly
price.
DATA ANALYSIS:
The companies in this industry create a logistics strategy which defines the service levels
at which its logistics organization is at its most cost effective.
Because supply chains are constantly changing and evolving, the companies in this
industry develop a number of logistics strategies for specific product lines, specific
countries or specific customers.
The companies identify the impact of imminent changes and make organizational or
functional changes to ensure service levels are not reduced.
The companies of this industry also review how each separate function in the logistics
organization is to achieve functional excellence.
The key to developing a successful logistics strategy for the companies under logistics
industry is how it is to be implemented across the organization.
The plan for implementation will include development or configuration of an information
system, introduction of new policies and procedures and the development of a change
management plan.
VI. SUGGESTIONS AND CONCLUSIONS
SUGGESTIONS:
• All components of the operation should be examined to ascertain whether any potential
cost benefits can be achieved.
• The companies have to concentrate on reverse logistics.
Reverse logistics (Warranty Management): The return movement of goods and
services in the supply chain has been coined reverse logistics. The formal definition of
reverse logistics is defined as “the process of moving goods from their typical final
destination for the purpose of recapturing value, or proper disposal.”
• The company’s logistics strategy should examine the structural issues of the logistics
organization, such as the optimum number of warehouses and distribution centers or what
products should be produced at a specific manufacturing plant.
• The focal point of many contemporary supply chain logistics is sales and planning of the
outbound process, from raw materials to manufacturing to final consumption. But firms
should realize that reaching the final customer does not necessarily represent the end of
the journey for a product.
CONCLUSIONS:
• The success of the logistics industry depends on the promptness with which the products
can be delivered to a particular destination or to a client. Time and location are two
factors which can either make or mar the logistics industry. The logistics industry is
governed by technology, integration, globalization, legislation and confederations.
• The logistic strategy explores how the finished products will be distributed to customers.
the module covers the number, location and type of distribution facilities, design of the
transport network, determination of inventory policies and how logistics performance
will be monitored and improved.
• Sometimes products flow backward after reaching their point of consumption for
numerous reasons. A recent study reported that 51.65% of apparel companies agree to
take back returned apparel because it is defective or it was damaged in shipment.
• Approximately 48% take back merchandise, not because it was defective, but because the
wrong model or size was purchased. Other apparel companies report that they take back
product in an effort to maintain customer satisfaction and loyalty as well as to create
good will.
VI. BIBLIOGRAPHY