DISSERTATION REPORT ON

“Study of the Supply Chain Management in Courier Industry”
Submitted in partial fulfillment of the award of the degree For Masters in Business Administration Submitted By Anup Dcruz (Reg. No.: 0921302)

Under the Guidance of Faculty Guide Mr. G. Ramachandaran Asst. Professor, Dept of MBA Christ University Institute of Management Bangalore

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE -560 029 MBA 2009-2011

LETTER OF THE HEAD OF DEPARTMENT

This is to certify that Mr. Anup Dcruz (Registration number :- 0921302) is a bona fide student of Christ University Institute of Management (MBA batch 2009-11) and has successfully completed his Dissertation Report on Study of the Supply Chain Management in Courier Industry in Lean Operations and Systems stream

Place:

Prof. CKT Chandrashekara Head of Department

Date:

Christ University Institute of Management Bangalore

CERTIFICATE –FACULTY GUIDE

This is to certify that this dissertation report on the title Study of the Supply Chain Management in Courier Industry is a bona fide work of Mr. Anup Dcruz under my guidance and support .This report is a part of MBA course with specialization in Lean Operations and Systems stream and the content and the work done is genuine with respect to the information covered and thought expressed.

Place:

Prof. G. Ramachandaran Senior Lecturer

Date:

Faculty CUIM

G.DECLARATION I Anup Dcruz hereby declare that the dissertation report titled Study of the Supply Chain Management in Courier Industry submitted for the partial fulfillment of the requirements for the award of the Master of Business Administration is my original project work and has been carried out under the guidance of Prof. Place: Anup Dcruz 0921302 Date: CUIM Bangalore Page | 2 . Professor).Ramachandaran (Asst. Christ University Institute of Management.

IT technology and human resources. And acceleration in manufacturing capacity is driving many producers to shutter superfluous plants. More and more courier companies appear on a regular basis. This is done via a combination of transport networking that includes road. One of the main reasons for the increase in courier companies is the boom in global trade. warehouses. This extensive distribution system is supported by infrastructure that comprises hubs. dispatching and distributing letters. Lured towards developing countries in south-east Asian region for lower-wages. probably largely down to the Internet. It involves a person or a company engaged in transporting. Couriers are basically a service for sending money or goods at some extra cost. A courier is much faster. a courier possess many added features. whereas others rely on some of the larger courier companies when it comes to providing international deliveries. The rest of the plants are gaining the developing rhythm. The study therefore focuses on the various aspect of the supply chain management in courier industry which makes it efficient to any market variation. transportation industry is stretching its reach longer than ever before. but must export overseas now to sustain their positions in the market.ABSTRACT In a move to cut down costs. reliable transportation services for documents. as well as offices in various cities. the courier market has grown due to demand from customers and businesses. Many of these courier companies operate independently. The courier industry specializes in time-definite. In a rather layman term. rail. This result in outbound logistics. parcels and mails. Simply put. Couriers have to deal with all sorts of requests from delivering simple mail documents to large electronic items like computers. and you may have noticed different courier logos and branding on vans and planes across the world. packages and freight. compared to normal mail service. It is a specialized service with authenticated signatures. printers and televisions. producers are exploring around the globe in search for the lowest cost exporters/suppliers. sea and air for door-to-door delivery. it can be said that. safer and secured than ordinary mail. Major players are focusing overseas markets for outsourcing cheap manufacturing as well as expanding their businesses. It has tracking service with each service being treated as a specific individual case. Page | 3 .

. Dart Apex……………………………………………………………… DHL…………………………………………………………………….Backbone of Courier Industry……………………………. Literature Review………………………………………………………… Courier Company Study……………………………………………… Blue Dart……………………………………………………………….. Design and Method of Study……………………………………………… 57 Design……………………………………………………………………. Introduction Background……………………………………………………………… Silent features of industry……………………………………………. Growth of courier Industry in India…………………………………… Logistics. Courier Services in India……………………………………………… 2.TABLE OF CONTENTS TOPICS Page No. Analysis……………………………………………………………………. 62 4.. Response and Analysis………………………………………………… Inbound Supply Chain ………………………………………………… Outbound Supply Chain……………………………………………….. 68 Different Steps in Study………………………………………………… 60 Preparation of questionnaire…………………………………………… 61 Layout of questionnaire………………………………………………… 61 The pilot…………………………………………………………………. 6 7 14 25 28 32 35 36 36 41 43 45 45 47 50 1. 62 Sample…………………………………………………………………… 62 Analysis……………………………………………………………………. DTDC…………………………………………………………………… First Flight……………………………………………………………… FedEx…………………………………………………………………… Research Paper on Logistics and supply chain practices in India… 3. Role of IT in Supply Chain …………………………………………… Occurrence of Waste…………………………………………………… 63 64 64 66 81 83 Page | 4 .

Topics Page No. Bibliography……………………………………………………………….. Future of Research……………………………………………………… 6. Appendices………………………………………………………………… 93 Page | 5 . 87 88 90 91 91 5. Summary and Conclusion……………………………………………… Major Finding……………………………………………………………. Limitation of Study……………………………………………………….. 92 7. Conclusion……………………………………………………………….

Introduction Page | 6 .

couriers are usually more expensive than usual mail services. Research. Types of couriers In cities. and committed delivery times. Couriers are distinguished from ordinary mail services by features such as speed. usually via commercial airlines. an assembly line stopping. and Aramex. The world's largest courier companies are DHL. UPS. and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost. Representative couriers Over time. lost sales from product or components missing a delivery deadline. there are often bicycle couriers or motorcycle couriers but for consignments requiring delivery over greater distance networks. With the increase in fuel prices and productivity goals monitored closely by companies. typically via a hub and spoke model. signature.V. and mail. and a host of other services are now offered in this new category of courier service. untimely court filing. While this type of service is the second costliest— general aviation charters are far more expensive—companies analyze the cost of service to engage an on-board courier versus the "cost" the company will realise should the product not arrive by a specified time (i. Many companies who operate under a Just-In-Time or "JIT" inventory method often utilise onboard couriers.. organ transplants). Couriers before the industrial era In ancient times runners and homing pigeons and riders on horseback were used to deliver timely messages. Different courier services operate on all scales. As a premium service. Workers in companies have more work and less time to be out of the office. packages. TNT N. in transit pet care. Page | 7 . security. to regional. from within specific towns or cities. On-board couriers are individuals who can travel at a moment's notice anywhere in the world. These offer services worldwide. this new type of all-in-one courier has developed to "take care of business". specialization and individualization of services. complex paperwork filing. tracking. which are optional for most everyday mail services. To this day there are marathons directly related to actual historical messenger routes. Before there were mechanized courier services foot messengers physically ran miles to their destinations. FedEx. railways and aircraft. Operating largely using independent contractors that have gone through a screening process and background checks have found a niche in the courier industry. national and global services. this may often include lorries.e. demand for a new type of representative courier has emerged.Background:A courier is a person or a company who delivers messages.

A customer focused definition is given by Hines (2004:p76) "Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer.  Page | 8 .Supply chain management spans all movement and storage of raw materials. certain aspects of the internal processing of materials into finished goods. and finished goods from point of origin to point of consumption (supply chain). The supply chain system must be responsive to customer requirements. The effect is to increase the number of organizations involved in satisfying customer demand. As organizations strive to focus on core competencies and becoming more flexible. The purpose of supply chain management is to improve trust and collaboration among supply chain partners. planning. and the movement of finished goods out of the organization and toward the endconsumer. and monitoring of supply chain activities with the objective of creating net value. control. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Another definition is provided by the APICS Dictionary when it defines SCM as the "design." Supply chain management is a cross-function approach including managing the movement of raw materials into an organization. strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain. bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. building a competitive infrastructure. work-in-process inventory. they reduce their ownership of raw materials sources and distribution channels. 2001)." More common and accepted definitions of supply chain management are:  Supply chain management is the systemic. Less control and more supply chain partners led to the creation of supply chain management concepts. for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et al.. Throughput efficiency must be increased. thus improving inventory visibility and the velocity of inventory movement. leveraging worldwide logistics. execution. while reducing management control of daily logistics operations.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). synchronizing supply with demand and measuring performance globally.

Inbound operations. Transportation strategy. scheduling. and planning process definition. in collaboration with all suppliers. so that new and existing products can be optimally integrated into the supply chain and capacity management activities. Tactical level        Sourcing contracts and other purchasing decisions. location. routes. including transportation from suppliers and receiving inventory. and contracting. distribution centers. including quantity. Production decisions. Order promising. direct shipping. Demand planning and forecasting. Page | 9 . and third-party logistics. Where-to-make and make-buy decisions. Focus on customer demand and Habits. including all fulfillment activities. Inventory decisions. and size of warehousing. It is for long term and needs resource commitment. Product life cycle management.Activities/Levels:Strategic level        Strategic network optimization. Production operations. and quality of inventory. including all nodes in the supply chain. warehousing and transportation to customers. accounting for all constraints in the supply chain. distribution center. Operational level          Daily production and distribution planning. manufacturing facilities. including frequency. Strategic partnerships with suppliers. including contracting. Milestone payments. including current inventory and forecast demand. including all suppliers. creating communication channels for critical information and operational improvements such as cross docking. coordinating the demand forecast of all customers and sharing the forecast with all suppliers. including the consumption of materials and flow of finished goods. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Sourcing planning. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. distributors. Outbound operations. and facilities. Information technology chain operations. Aligning overall organizational strategy with supply strategy. From production level to supply level accounting all transit damage cases & arrange to settlement at customer level by maintaining company loss through insurance company. and customers. and other customers. location. including the number.

joint ventures. changes in the business environment have contributed to the development of supply chain networks. globalization. with little concern for the internal management working of other individual players. using terms such as "Keiretsu".In general. Many researchers have recognized these kinds of supply network structures as a new organization form. "Extended Enterprise". Traditionally. such as Dell and Hewlett Packard. 2004). with the complicated interactions among the players. During the past decades. outsourcing and information technology have enabled many organizations. technological changes. or networks. which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans. 1990). particularly the dramatic fall in information communication costs. However. to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott. It is not clear what kind of performance impacts different supply network structures could have on firms. this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. complementing the earlier "Just-In-Time". have led to changes in coordination among the members of the supply chain network (Coase. 1998). a complex network structure can be decomposed into individual component firms (Zhang and Dilts. Therefore. and little is known about the coordination conditions and trade-offs that may exist among the players. 1979). which are a significant component of transaction costs. significant success factors were identified. The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC Page | 10 . 2001). In the 21st century. "Virtual Corporation".Importance of supply chain management:- Organizations increasingly find that they must rely on effective supply chains. each with their capabilities. such a structure can be defined as "a group of semi-independent organizations. the network structure fits neither "market" nor "hierarchy" categories (Powell. 1993). and "Next Generation Manufacturing System". to compete in the global market and networked economy. "Global Production Network". This inter-organizational supply network can be acknowledged as a new form of organization. First. strategic alliances and business partnerships. "Lean Manufacturing" and "Agile Manufacturing" practices. as an outcome of globalization and the proliferation of multinational companies. From a systems perspective. the choice of an internal management control structure is known to impact local firm performance (Mintzberg. Second. In Peter Drucker's (1998) new management paradigms. companies in a supply network concentrate on the inputs and outputs of the processes.

re-engineering. 1. and Globalization (Movahedi et al. The characteristics of this era of supply chain management include the need for large-scale changes. Globalization era The third movement of supply chain management development. In stage 1 type supply chain. especially with the creation of the assembly line. Material control. Specialization Phases One and Two. Although the use of global sources in the supply chain of organizations can be traced back several decades (e. downsizing driven by cost reduction programs. and widespread attention to the Japanese practice of management. Creation era The term supply chain management was first coined by a U. industry consultant in the early 1980s. and SCM 2. Integration. can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains over national boundaries and into other continents..S. various systems such as Make. these are integrated under one plan and are ERP enabled. In fact a supply chain can be classified as a Stage 1. Storage. in the early 20th century.Historical developments in supply chain management:Six major movements can be observed in the evolution of supply chain management studies: Creation. the globalization era. Integration era This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of internet-based collaborative systems. 2.. etc. Distribution. 3. This era of supply chain evolution is characterized by both increasing value-adding and cost reductions through integration. An example of this kind of supply chain is Tesco. 2 or 3 networks. are not linked and are independent of each other. it was not until the late 1980s that a considerable number of organizations started to Page | 11 . 2009). In a stage 2 supply chain. A stage 3 supply chain is one in which vertical integration with the suppliers in upstream direction and customers in downstream direction are achieved. in the oil industry). the concept of a supply chain in management was of great importance long before. However.0.g.

and outsourced those functions to other companies. market forces could demand changes from suppliers. locations and customers. suppliers. At any given moment. who work together to design. logistics providers. individual supply chains specific to products. This changed management requirements by extending the supply chain well beyond company walls and distributing management across specialized supply chain partnerships. This variability has significant effects on the supply chain infrastructure. sold off non-core operations. and service a product. This era is characterized by the globalization of supply chain management in organizations with the goal of increasing their competitive advantage. OEM‘s became brand owners that needed deep visibility into their supply base. or channel. and reducing costs through global sourcing. value-adding. execution and performance management. resulting in a proliferation of trading partner environments. it allows them to focus on their Page | 12 . They had to control the entire supply chain from above instead of from within. region. This transition also re-focused the fundamental perspectives of each respective organization. Specialization era—phase one: outsourced manufacturing and distribution In the 1990s. Contract manufacturers had to manage bills of material with different part numbering schemes from multiple OEM‘s and support customer requests for work -in-process visibility and vendor-managed inventory (VMI). 5.integrate global sources into their core business. 4. each with its own unique characteristics and demands. and from any number of these specialized participants as components of supply chain networks. The set of partners may change according to a given market. Specialization era—phase two: supply chain management as a service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done. industries began to focus on ―core competencies‖ and adopted a specialization model. and customers. The specialization model creates manufacturing and distribution networks composed of multiple. manufacture. Companies abandoned vertical integration. from the foundation layers of establishing and managing the electronic communication between the trading partners to more complex requirements including the configuration of the processes and work flows that are essential to the management of the network itself. market. collaboration. distribute. sell. warehouse management. and non-asset-based carriers and has matured beyond transportation and logistics into aspects of supply planning.

The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is the leading reason why supply chain specialization is gaining popularity. tools and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to the effects of global competition. Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root primarily in transportation and collaboration categories.0 has been coined to describe both the changes within the supply chain itself as well as the evolution of the processes. methods and tools that manage it in this new "era". surging oil prices. the solutions are delivered in a variety of options. mid-touch via managed services and software as a service (saas). Supply chain management 2.0 follows this notion into supply chain operations.0 is defined as a trend in the use of the World Wide Web that is meant to increase creativity. This is delivered through competency networks composed of best-of-breed supply chain domain expertise to understand which elements. rapid price fluctuations. value and success. near-/far. Web 2. short product life cycles. both operationally and organizationally. At its core. and talent scarcity. information sharing. methodologies. Finally. SCM 2. such as no-touch via business process outsourcing. are the critical few that deliver the results as well as through intimate understanding of how to manage these elements to achieve desired results. expanded specialization. SCM 2. and collaboration among users. the term SCM 2.core competencies and assemble networks of specific. This has progressed from the Application Service Provider (ASP) model from approximately 1998 through 2003 to the On6. Page | 13 . It is the pathway to SCM results. the common attribute that Web 2. It is the notion of a usable pathway. thereby increasing overall performance and efficiency.and off-shoring. a combination of the processes.0) Building on globalization and specialization.0 brings is to help navigate the vast amount of information available on the Web in order to find what is being sought. best-in-class partners to contribute to the overall value chain itself.0 (SCM 2.0 leverages proven solutions designed to rapidly deliver results with the agility to quickly manage future change for continuous flexibility. or high touch in the traditional software deployment model.

During the late 1970s small provincial and regional companies were popping up throughout the country.  International express cargo holds 6% of the express cargo industry. but four major players in the premium organized segment dominate the industry. making it one of the fastest growing segments in the transportation of cargo. The 'Man & Van'/Freelance courier business model is highly popular in the United Kingdom. including UK Mail Ltd. packages and freight. reliable transportation services for documents. Today. DHL.  Currently there are about 2300 courier companies in India.SALIENT FEATURES OF THE INDUSTRY   The courier industry specializes in time-definite.  The industry has exhibited a growth of about 30% over the past four years and is expected to grow at 25% for the next two to three years. Courier industry by country United Kingdom The genus of the UK same day courier market stems from the London Taxi companies but soon expanded into dedicated motorcycle dispatch riders with the taxi companies setting up separate arms to their companies to cover the courier work. and UK divisions of worldwide couriers such as APC Overnight. TNT and Fastway Couriers. There are many 'specialist' couriers usually for the transportation of items such as freight/palettes. with thousands upon thousands of independent couriers and localised companies. City Link Ltd.  The domestic courier industry with a turnover of Rs 20 bn is still at a nascent stage as compared to developing countries like China where the industry is five to six times bigger. but is forecasted to reach 40% by 2017. FedEx. offering nextPage | 14 .. there are many large companies offering next-day courier services. UPS. sensitive documents and liquids.

live courier tracking system. organizations prefer to use the services of larger organizations who are able to provide more flexibility and levels of service is being witnessed which has led to another level of courier company. in reality. Page | 15 . This is a benefit which is enjoyed by many of CitySprint‘s customers. over the past 5 years documentation revenues have decreased by 50 per cent.g.day and sameday services. However.g. documents represented a significant proportion of the business. These handheld computers transmit real-time information to and from the CitySprint system enabling CitySprint to have full sight of its entire courier fleet at any time. namely CityTrakkers. CitySprint took this one step further with the launch of its real-time system. the regional couriers. Prior to email and the ability to create PDFs. Some believe that an advantage of using individual couriers. Former USSR countries). offering next day and special delivery services. This has however changed. This is usually one of the local companies who have expanded to more than one office to cover an area such as LTG Couriers in Yorkshire or London Link in the south and Scarlet Couriers in the Midlands. in particular. more and more. FedEx and Interlink Express both offer next-day air delivery to many EU countries. France). CourierLocator which was the UK‘s first national. over an established same day courier firm is that they are able to offer far better rates to their customers. since the dawn of the electronic age the way in which businesses use couriers has changed dramatically. However. Lots of the smaller companies and freelance 'Man & Vans' are unable to provide this. However. strike action and a lowering public perception of the company. Royal Mail was up until recently a reasonable competitor of most of the large couriers. Another benefit of using larger courier firms is the added-value services they provide. with higher costs. it can be difficult to draw a clear-cut line between postal services and couriers. Cheaper 'By-Road' options are also available. Many companies now offer PODs online. With companies like Royal Mail & The DX (who offer a private courier 'box network'). larger organizations are far more flexible and able to offer very cost effective rates to their customers. CitySprint. Some UK couriers offer next-day services to other European countries. to up to a week (e. varying from 2 days delivery time (e. The unrivalled transparency was made possible following CitySprint‘s investment in GPS handheld units. In addition customers are also demanding more from their courier partners. foresaw the changing trends and started buying up these other companies. This is likely to be so popular because of the low business requirements (a vehicle) and the lucrative number of items sent within the UK every day. Therefore a shift where. The system enables customers to view a real-time map location of the courier undertaking their SameDay courier delivery.

900 other small businesses ranging in size from 1 employee to over 600.On right Time right Point International Air Couriers UPS FedEx DHL NAPAREX International Courier Network (ICN) Royale International Courier Inc Bid or Send Australia There are several courier companies in Australia which cover most of the land which is both sparsely populated and remote. Senders are therefore primarily in the commercial/industrial sector (and not the general public). packages and newspapers throughout the West. including DHL. FedEx and UPS. The Courier industry in the United States is a $59 billion industry. with 86% of the business shared by only four companies. the Pony Express was established to move packages more quickly than the traditional method. a concept that continued to evolve with the railroads. United States The courier industry has long held an important place in United States commerce and been involved in pivotal moments in the nation's history such as westward migration and the gold rush. some couriers such as DHL do however allow public sending (at higher cost than regular senders). Shortly afterward. automobiles and interstate highways and which has emerged into today‘s courier industry. making a Wells Fargo office in every camp and settlement a necessity for commerce and connections to home. Wells Fargo was founded in 1852 and rapidly became the preeminent package delivery company. It also illustrated the demand for timely deliveries across the nation.Large couriers often require an account to be held (and this can include daily scheduled collections).   Yellow Express Sydney Find and Freight Couriers Page | 16 . The company specialised in shipping gold. The remaining 14% shared among almost 11. These businesses comprise of mostly same day deliveries and are strong offline businesses and strong online businesses like NAPAREX and USA Couriers United States          Ondot Couriers & Cargo Ltd. which followed the stagecoach routes.

On-board Courier. Ltd.                   Freight Broker Logistics Civic Transport Parcel Post Australian Air Express Pack and Send AusPost Toll / Ipec Startrack Express Fastway Couriers Airroad express DHL.. India DTDC Gati Page | 17 . Federal Express (China) Co.. Courier & International Freight Forwarding Agency) (Beijng. AFF Courier's Please TNT and Hunter Express. Ltd. UPS Parcel Delivery Co. Allied FRF Couriers Courier Easy Australian Freight Courier Quotes Australia Royale International Couriers People's Republic of China Major players include:-            Speed Global Logistics Co. Airways Logistics Mumbai. FedEx. SF Express (ShunFeng Express) STO (ShenTong Express) YTO (YuanTong Express) Royale Asia Ltd (Hand Carry. . Shanghai. Time Critical Shipment Specialist DHL-Sinotrans International Air Courier Ltd. Handcarry.. Ltd. UPS. Ltd.. Ltd. China Railway Express Co. TNT (China) Holdings Co.. Shenzhen) Bid or Send India      DHL First Flight Couriers Ltd.

International courier services Cardinal Couriers Ltd. 8. 3. 7. 4.Local courier services DTDC Courier Serv UPS FedEx Canpar Midland Courier QA Courier . Waterloo).Local and domestic courier services Amadeos Courier Express .     Flyking Courier Services Pvt. National. International Courier Service Page | 18 . 12.Domestic and international courier services DHL Canada .Worldwide courier services Novex Clean .Domestic courier services Sameday Worldwide . 11.International and domestic courier services Greyhound Canada . . 5. 6. 14. 2. Professional Couriers Blue Dart Speed Post (indian Post) TNT Indonesia              DHL FedEx TNT DPEX UPS ARAMEX OCS Elteha JNE Titipan Kilat Pandu Logistics BYGA Cargo Herona Express Canada 1. Ltd. Purolator . 13. Ottawa. 9. 10. Toronto.Local (Montreal.Worldwide courier services ICS Courier .

Domestic and international courier services ACC. Ashena Courier Co.Iran 1. 5. Both Nationwide and GDex are public listed company while City-Link Express had remained firmly in the hands of its founder. express delivery. 3. The first local courier company to operate in Malaysia is City-Link Express (M) Sdn Bhd which began its operations in 1979. In the Malaysian Communications and Multimedia Commission ([3]MCMC) report for 1H-2008 ISSN 1823-9919 it was reported that the number of Licensed Courier Service Providers as at 30. 4.delivery in Moscow. Nationwide Express and GD Express (GDex).06. ProfKurier .2008 total 114 companies. David Tan. 4. 7. 2. DHL Iran . In the early 1970s foreign companies such as DHL and OCS beginning their operations in Malaysia.domestic International Courier & Cargo Malaysia Courier services in Malaysia are relatively young. This was followed by ABX Express (1984) and Nationwide Express (1985). 8. The major players being (alphabetical order) 1. POSLAJU (part of the Pos Malaysia) and UPS appeared in the scene in 1988. 10. In 1997 a local outfit GD Express began operating. 3. Payam Air . 9. Today the domestic courier service is mainly dominated by CityLink Express. FEDEX came in 1991. Courier delivery. Courier. 2. 6. Russia 1. courier services ABX Express (M) Sdn Bhd City-Link Express (M) Sdn Bhd DHL Worldwide Express Sdn Bhd Federal Express Services (M) Sdn Bhd GD Express Bhd Kangaroo Worldwide Express (M) Sdn Bhd Nationwide Express Courier Services Bhd Skynet Worldwide (M) Sdn Bhd TNTT Packages Express Sdn Bhd United Parcel Service (M) Sdn Bhd Page | 19 .Worldwide courier services GMS Express Pvt Ltd .

the Internal Revenue Service of the US 'tentatively decided' that FedEx Ground Division might be facing a tax liability of $319 million for 2002. with its on-demand.South Africa   Aerospeed Couriers . due to misclassification of its operatives as independent contractors. This reclassification typically results in fines being imposed on the offending courier company. Deliver in less than 24 hours and are an integral part of any modern economy. messenger centers.[citation needed] The nature of the industry. pick up and deliver on the ‗same day‘. with a view to assessing whether similar misclassification of operatives has taken place. courier companies use independent contractors to make deliveries in addition to their own dedicated employee resources. It is estimated that 50-65% of U. Reversing a 1994 decision which allowed FedEx to classify its operatives that own their own vehicles. FedEx denies that any irregularities in classification have taken place. professor of Logistics at the University of Ghent. The business model for the courier industry is particularly dependent on independent contractors. as the name suggest. archive warehousing.Local and international express delivery[4] Royale International Mexico      DHL Estafeta Multipack UPS Aeroflash Other aspects of Courier Industry:Same day couriers:Same day couriers. There are roughly seven thousand courier companies in the United States that make up this multi-billion dollar sector. Experts in this method of network delivery maintain hundreds of standby couriers in a "ready to move" status as devised by Mark Kent. small businesses which can also provide additional services such as logistics management. but is facing legal action from operatives claiming benefits that would have accrued had they been classified as employees. requires a varying number of courier drivers on any given day and time of day to complete a set service.[5] Many expedited courier companies are regional. Page | 20 . this business model is under threat from IRS Reclassification where IC's are being recategorized as W-2 employees. the IRS is auditing the years 2003 to 2006. In December 2007. outsourced mailroom services and coordinated airfreight forwarding delivery services.S. However. often unscheduled delivery model. The UK same day courier industry is highly fragmented with CitySprint assuming the largest portion at around 10 per cent.

[citation needed] Except for the metropolitan areas most of the same day couriers throughout the country now use small vans to do deliveries. These tended to evolved from taxi companies but soon regional courier companies were popping up throughout the country. Under the current financial climate the general trend has seen corporate businesses evaluate courier costs and steer away from same day couriers and tend to sway towards the cheaper next day delivery solution. Rising costs. real-time basis from the point of collection providing reassurance as customers can view the exact whereabouts of the package from collection to delivery. including insurance premiums and petrol. launched SecureData Courier which is a premium SameDay courier service designed for the safe and secure delivery of confidential. The exception to this rule is where courier companies have been able to differentiate themselves and develop services aimed at specific business needs. dedicated courier assigned to each delivery as well as a specialist support team to assist with bookings. manufacturing industry require parts to keep their plants operating smoothly. most of the couriers or dispatch riders were motorcyclists when the same day delivery business started to show up in London. ensuring a seamless hand-over. Starting in the mid-1980s. financial institutions transfer multiple documents every day between branches and processing centers.In the UK. The entire delivery journey can be tracked on a live. made motorcycle couriers less competitive. who were more economical for shorter distance deliveries. CitySprint. With the SecureData Courier service the package is delivered to the addressee only. law firms must deliver confidential signature documents on very strict deadlines for court filings and pharmaceutical distributors use couriers to transport medications to hospitals and nursing homes. While most companies use courier services certain industries depend on couriers on a daily basis. bicycle couriers.[6] began to supplant motorcycle couriers in the larger cities. as opposed to the offices or reception of the recipient. Page | 21 . Customers:These couriers specialize in delivering important or sensitive packages that need to be received in the local area. for example. The service has a number of unique features such as the use of a single. such as organs for transplant or key equipment or parts that are necessary for day to day operations. valuable and/or sensitive information. Biomedical labs need samples for testing and evaluation. and/or because of time and temperature concerns.

city to city and even company to company. will have on the U. as local ordinance.[7] It is not clear what effect this legislation. When a mistake has been discovered. with all the benefits thereof.S. then there is no doubt that costs will rise. One of the leading UK next day couriers APC Overnight ensure that any timed delivery mis-sorted parcels are urgently collected and run to their destination on same day delivery vehicles to ensure that the customer still receives the service that they paid for. Contracts governing the relationship between individual courier and company are subject as much to customary practice. CitySprint. as is the Act's intention. The employment status of the couriers of one of the UK's biggest sameday courier services. was challenged by the GMB trade union in December 2007. courier firms fill in the gap and ensure packages are delivered on time. Items that are mis sorted.Even two-day delivery services use courier firms. courier companies are forced to treat those workers that they previously declared independent contractors. courier market. as employees. The challenge arose from the firm deciding to terminate the contract of one of its self-employed couriers after a series of misdemeanors. Page | 22 . Working conditions of couriers The conditions of employment of couriers vary from country to country. if enacted. But if. In other places they will be regular employees of the courier company enjoying all the benefits thereof. forgotten or just not picked up on a larger courier‘s route. In the US. the Obama-Durbin Independent Contractor Proper Classification Act of 2007 was introduced to deal with the problem of workers 'misclassified' as independent contractors. In some places couriers are independent contractors paid on commission and do not receive benefits such as health insurance.

The Indian shipper. service standards and systems are still far below international standards.Courier industry — It's all about technology:The past years has been one of increased activity in the air express market with FedEx. He says that it is about the velocity at which you move goods. He says that as for UPS. I think that the word "courier" describes or perceives that this is an industry that is somehow involved in the movement of documents and the like. in terms of on-ground service it has its own operations. So." Mr Fairbairn says. "First. Mr Fairbairn points out that India has a long way to go in creating an environment that enables companies to truly control their supply chains with the latest technology. UPS and DHL focusing on India with services and products. therefore. UPS Jetair Express Pvt Ltd. Though the express and logistics industry has seen double-digit growth. Consolidation and going it alone is another issue that has kept the express companies busy this last year. Mr Fairbairn says there are two ways of covering a market — you either go on your own or tie up with a partner who can provide the infrastructure and reach. It is about technology. information and funds. I think that this description does not fit the industry that we are in today. has to deal with extremes — the best of technology or none at all. in that sense there has been some consolidation in the industry in India. "When there is Page | 23 . automation. He says that though it is happening the pace needs to be quicker. But Mr Jeffrey Fairbairn. not to mention the impact that can be made to a company's balance-sheet. Director and CEO. This allows it to provide and maintain the service quality offered to customers across the globe." "Our focus is clearly to work with customers on their supply chains and to ensure that they are capable of competing as a global supplier in this age of globalisation. This is another dimension and it is about real advancements in what is perceived today and what is possible. makes a distinction here.

DHL Worldwide Express (India) Pvt Ltd. For instance. Marketing Manager (India. he says.third party intervention. is the fashion solutions. FedEx has an uncanny knack of knowing the region where the growth will come from. Sri Lanka. Another product. It has tied up with Blue Dart for ground operations." Mr Fairbairn says. recently told Business Line that the investment has been made into equipping the company's own gateways at the major airports. and from four cites to 12. a part of DHL. our experience is that service levels and more importantly service standards are difficult to maintain here. this was the only company equipped to carry dangerous and valuable goods. DHL warehouses and manages inventory of these crucial parts for the companies and deliveries at the required time. Mr Chris Callen.specific products. In DHL has eight warehouses that support its strategic partners in India for their spare parts requirements. Though reluctant to reveal the actual numbers. Mr Ahluwalia says that in the last year the company has grown its retail business from five retail counters to 52. FedEx is now available out of eight gateways out of India. over a three-year period. DHL will start operating out of Delhi by October. Country Manager. says Mr Birender Ahluwalia. which is tailored to meet the needs of the Indian exporter. DHL Danzas Air and Ocean. has tied up with Lemuir for air and ocean freight which gives it this capability also. DHL Worldwide Express plans to invest euro 50 million on infrastructure in the India. he says. Mr Ahluwalia says that the company has seen growth mainly because it was able to introduce India. Then last year. Page | 24 . Bangladesh and the Maldives). He says that as early as 1997 FedEx had decided to focus on India. FedEx shifted its business model and assumed full control of its retail operations.

The reason: India's express industry is expected to register a growth of at least 20 per cent per annum during the next five years and more than double its size by 2012. The industry contributes more than Rs 1000 crore (Rs 10 billion) to the government revenues by way of service tax. "Organized sector in the domestic market is little less than 50 per cent.100 crore (Rs 71 billion) and is estimated to have grown at a CAGR of around 33 per cent over the past decade. it is expected to register a growth rate higher than of industries such as retail. According to CARE.  "The organized segment.  According to an Edelweiss Research study. Page | 25 . constitutes approximately 65 per cent of the total and is made up of a small group of fewer than two-dozen players. retail. insurance. including the international majors' share. If anything. according to a study by rating agency Credit Analysis & Research. financial.   Opening of banking. The unorganized and semi organized segments. income tax and other levies and it offers employment opportunity to about a million people. account for the rest." Edelweiss adds. the size of India's courier industry currently stands at around Rs 7.  The industry ranks amongst the fastest growing segments of the Indian economy and over the next five years. the organized part of the express industry in India is 65 per cent of the total market. several large-sized corporates and multinational express players are keen on acquiring controlling stake in some of established Indian courier companies.Growth of Courier Industry In India:   The Indian express industry is set for sizzling growth. the courier industry is larger than the tea industry and close to the size of paper and shipping industries in India. aviation and telecom sectors and their penetration to smaller cities would be the major growth driver." it says. which consist largely of regional and intracity service providers and EMS Speed post.   The industry is highly fragmented with more than 2500 express players and a few large sized players account more than half of the industry revenues. despite rising usage of facilities like short messaging services or multimedia message services. At its current estimated size. chemical and automobiles. banking.

expanding the network to reach hitherto uncovered areas. Document parcels weighing less than 300 grams account for about 70 per cent of the volume of document parcels and intra-city deliveries account for nearly 37 per cent of their turnover. The summit on courier industry will provide an opportunity to the service providers of the industry to mark their presence among 100 plus exhibition organizers from India and Overseas. India Courier Exhibition gives an opportunity to the value partners of the industry. the industry players earn about 52 per cent of its revenues from document parcels. DHL and TNT are leading international player‘s presence in the country. Page | 26 . under one roof. to showcase new trends and technologies that can add value to the efficient working of the industry. FedEx. Challenges faced by the industry include matching up to the rising expectations of the customer. India Courier Summit 2010 will endeavor to bring all the frontline stakeholders of the industry in the country. DTDC. containing rising fuel and freight costs and retention of manpower. New Delhi.    According to the CARE survey. India Courier Summit will be held on 6th & 7th April. 2010 at Hotel Le Meridian. India. to deliberate on the challenges faced by the industry and also create opportunities for networking for mutual benefit. First Flight and Overnite Express are leading express services companies in India while UPS. to meet the desired demands of discerning customer. Amongst domestic players Blue Dart. Organized by Manch Communications (P) Ltd. India Courier Summit 2010:India Courier Summit 2010 offered an ideal platform to the courier industry to discuss issues of common interest.

Exhibit Profiles:           Suppliers to courier industry from all over the world Vehicle Manufacturers Material Handling Equipment Manufacturers Barcode Sensors Companies Weighing Machines Companies Label Manufacturers Ware-House suppliers RFID Chips and Software Storage Systems Sorting Machines Visitors Profile:        Major Courier companies Industry Associations Sales Agents of Courier Companies Service Providers IT Consultants International logistic agencies Government and autonomous bodies of the Courier Industry Page | 27 .

Global transportation and relevant services includes Page | 28 . And acceleration in manufacturing capacity is driving many producers to shutter superfluous plants. but must export overseas now to sustain their positions in the market. It involves the integration of information. work in process. services and supplies are emerging vertically. warehousing. It is difficult to accomplish any marketing or manufacturing without logistical support. transportation. it is commonplace also for expert managers of local logistics to get acquainted with the complexity of international trade logistics.Logistics – The backbone of Courier Industry: Logistics is concerned with getting the products and services where they are needed when they are desired. and finished inventories where required at the lowest cost possible  The formal definition of the word ‗logistics‘ is: . inventory. But DHL is multi-faceted and offers myriad types of services. Web-based sales. Major players are focusing overseas markets for outsourcing cheap manufacturing as well as expanding their businesses. effective flow and storage of goods. GLOBAL LOGISTICS SCENARIO:  In a move to cut down costs. producers are exploring around the globe in search for the lowest cost exporters/suppliers.it is the process of planning. The expanding reach has compelled logistic industry to spur cross-border trade. and packaging.  In order to understand the concepts of logistics in terms of practical usage and to glimpse into the how a real company or organization uses logistics as a formidable tool to gain customer satisfaction. Regardless-of this outbreak of activity. The rest of the plants are gaining the developing rhythm. This result in outbound logistics. transportation industry is stretching its reach longer than ever before. material handling.  Boom in the Internet based services made overseas suppliers capable to match foot with local suppliers. services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. implementing and controlling the efficient.  The operating responsibility of logistics is the geographical repositioning of raw materials. Lured towards developing countries in south-east Asian region for lower-wages. reduce overall cost and increase efficiency we selected ―DHL‖ the world‘s leading courier Service Company.

 The business players always look for just-in-time shipments. Usually. However vendors are now offering tracking system. These kind of unpredictable losses are usual in international logistics. which cover country-specific laws and regulations. their search doesn‘t go beyond the initial service providers who cover all the minimum requirements. Normally. The boom in Internet services changed international logistics rapidly. They opt to establish their operations in each country and let them to manage logistics individually. a ship that started its journey from Asia could meet harsh weather.  Thus. vendors can cater massive numbers of global shipments. Thus. which may delay its reaching on the West Coast for three days. Once the shipment kicks off its journey towards its destination. thousands of combinations of containers. which would certainly result in big loss. which results more pressure on logistics industry. Evaluation of the arrival times of international shipments is just a magic than solid fact. It almost includes longer delivery times.  A biggest disadvantage in international logistics is the vagueness in arrival times. so they had get around by adding more safety stocks. the costs of inventory management in the overseas parts are naturally higher. On the other hand. the shipping personals would decide for carriers.  For example. Materials managers have had modest choice. Logistics industry has usually been old-fashioned traditions. The uncertainty of delivery time is due to not tapping of international shipments closely and step bystep.  International logistics vendors also maintains cost and route information on hundreds of hundreds carriers. which are operational in dozens of regions. which offers both lower freight bills and cutting of delivery times.much complex documentation than for domestic shipments. even the largest multi-national companies avoided logistic services on a worldwide basis.  At present. This is easier said than done. it is really hard to assume reaching time. which is Page | 29 . Complying with this. ports. the trucks at the West Coast would have to wait and sat empty and ideal for the three days. they create and uphold substantial databases. thus it aspires enhanced build to order model and lot-size-of-one shipments. Factually. and so on are likely counted for moving a shipment. customs agents and so on.

For example.necessary in continuous tracking of both international logistics network. which recognizes each container in the yard and its placement. As a result. whose place is detected by antennas located in the yard. significantly added and dedicated. Ryder. and electronic visibility in each yard and carrier. Regardless of understandable limitation. This tracking is possible by Global Positioning (GPS) systems and satellites. the pieces of the puzzle are gradually coming together. tracking completed products needs a yard management system.  An important trend among logistics services providers would aid the industry. global logistics should obviously improve. Global logistics in near future should be distant more faultless and reasonably priced than ever. the industry does not provide step-by-step tracking of container. equipment is still required. use of these systems are not usual at present.  The radio frequency Identification (RFID) tags in containers. Although there is much to be done to achieve this stage. Maintaining the clear vision also needs tracking the containers as soon as they leave the yard. and others will carry on showing the way. however. Logistics industry veterans unveil that logistics service providers are extending reach worldwide and expanding their services too. Web-based companies and technically ground-breaking carriers such as UPS Logistics. Page | 30 . Even though vendors are offering a worldwide network.

2004. In 2003. in particular. tracks the issues and trends in the world logistics market and in the US logistics market. 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. According to the firm. However. considering the fact that the logistics market in the US is about 10% of its annual logistics cost (Foster and Armstrong. it grew to USD 89 billion. For any country.7 billion (Foster and Armstrong. and in 2005. registering high growth rates. the figure for the US being about 9%.Size of the global logistics industry:Currently the annual logistics cost of the world is about USD 3. and in the world in general. 2006). in their annual surveys of top 25 global LSPs. Page | 31 . respectively. it registered an impressive growth rate of 16% to cross the USD 100 billion mark for the first time and reach USD 103. the corresponding figures were USD270 billion and USD 333 billion. 2006). 2005. In 2004. it was about USD 80 billion. 1996 and 2000 were USD 10 billion. the global logistics market sizes in 1992. Inc. US-based Armstrong & Associates. there is still immense potential for growth of 3PL in the US in particular. the annual logistics cost varies between 9% and 20% of the GDP.5 trillion. In 2003 and 2004. USD 25 billion and USD 56 billion.

it begins with intra-city services which are about speedy delivery of mails and goods within the city. well associated set of connections the timely deliverance and protected service is guaranteed. shipping tools. and Chennai and to some extent to Bangalore. inter-city services are covered. one can find them in every nook and corner of the large part of India. Economic growth. escalation of industrial sector. industry solutions. If one tries to find a courier company in India. the major courier players were centered in major metros because of their better connectivity with airport. the industry has grown and extended faster to several cities and even rural areas. Mumbai. Surface mode service is performed through two ways: firstly. courier companies are considered as vital component of any economy. ports and railways. The industry is booming and market is cut-throat competitive. logistic solutions. Courier services in India can be segregated in few categories. The numbers of courier companies in India have seen a growth reminiscent of wildfire. The reason was the airport connection these metros were.Courier Services in India:Indian courier industry had its start some 15-20 years ago. The advancement of technology and internet has things slight easier and more competitive as well. Despite that development. Many factors have contributed towards this huge spread. Basically. The products are normally delivered through door to door. Kolkata. Now a day. better the chances of survival. Few other variant of services could be express services. the more the satisfied customers. Page | 32 . ocean freight. The better the quality of service. But. But with India rapidly becoming a major economic force. the large and medium sized companies are still based in the metro cities of India. the changing economy and technical advancement seen on a daily basis. Normally this is termed as surface cargo services where short distance and bulk loads are handled. The courier industry was initially limited to the four metros – New Delhi. And it is still growing. Courier companies work in tandem with the foremost airlines and in sync with their well-tuned. technological advancements. now more and more companies are covering cities. Broadening the services. These particular services are individual of a company's area of specialization and diversification. increase in export and import and large scale effect of liberalization are few of the major reasons. In the earlier days. on road (by bus or vehicle) and secondly on track (by train) services. towns and rural areas under their wide network. A courier company anywhere in the world has its primary virtue is its efficiency to render services.

motorcycle and even bicycle have helped the industry in this regard. 2. TNT India Page | 33 . The reason was the airport connection these metros were having. Indian courier industry was initially limited to all the four metros. The industry had its start some 15-20 years ago. International express cargo holds 6% of the express cargo industry. But with changing economy and technical advancement seen on a daily basis. It is a highly disintegrated industry with nearly 20 players in the organized sector. Train. and the rest in the unorganized sector. bus.300 courier companies. Elbee Express 8. There are a few major players in the organized sector who have a combined market share of 90%. In India. These are some key players in Indian Courier Industries: 1. Blue Dart 2. various factors like growth of the industrial segment. Gati 7. India has more than 2. DHL India 3.000 in the semi organized sector. making this one of the fastest growing segments in the transportation of cargo. township and even rural areas. growth in exports and imports and overall economic scenario of the country have contributed to the growth of the courier industry. Owing to the growing demand for reduced transit time and early deliveries the industry is forecast to grow at 25% for the next two to three years. Domestic courier industry with a turnover in excess of INR 22 bn is still in a nascent stage. First Flight Couriers 5. Industry has traveled a long way and now it has become a very common sight to see an office of Courier Company in the nearby locality. but is forecasted to reach 40% by 2017. the industry has extended fast to several metropolis. FedEx India 4. AFL 6. Overnite Express 9.The courier industry has world over been recognized as an essential and indispensable part of any economy.

while the low-yield document business is the domain of the unorganized sector. Page | 34 . the second largest player. (Blue Dart) is the market leader. where it is the market leader. Revenues of Major Player in the Indian Market (Rs. Blue Dart. UPS India Blue Dart Express Ltd.10. with a 36% market share in the domestic market. (Gati) is the market leader in the domestic packages. having developed its own air network and aircraft operations. AFL-DHL is primarily focused on the international segment. has a 20% market share. is currently the market leader. ground distribution segment. In the domestic air packages segment. and Elbee Services Ltd.. bn): The organized segment dominates the package and the premium document business since it requires a strong infrastructure and resources. However in value terms the share of the organized sector is 64% and of the semi-organized and unorganized sector is 36% inspite of the large volumes it handles. whereas Gati Corporation Ltd.

Literature Review Page | 35 .

880 locations.  BLUEDART‘S vision is to establish continuing excellence in delivery capabilities focused on the individual customer. and service more than 220 countries and territories worldwide through its Sales alliance with DHL. products and services.2000 countrywide certification by Lloyd's Register Quality Assurance for their entire operations. the premier global brand name in express distribution services. dedicated capacity to support their time-definite morning deliveries through night freighter flight operations. It has the most extensive domestic network covering over 13. Space Control and Reservations. Kolkata and Hyderabad. Mumbai. In pursuit of sustainable leadership in quality services.  Warehouses at 14 locations across the country as well as bonded warehouses at the 6 major metros of Bangalore. indigenously developed.  Blue Dart Aviation. MIS.Courier Companies study:BLUE DART:-  BLUE DART is South Asia's leading integrated air express carrier and premium logisticsservices provider. for Track and Trace. ERP. Customer Service. Chennai.  ISO 9001 .  State-of-the-art Technology. Page | 36 . they have evolved an infrastructure unique in the country today. Delhi.

Its 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. Its services are relentlessly monitored to deliver a net service level of 99.96% (as on February, 2005).

 It’s Customs and Regulatory expertise
Company had 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.

 It’s Technology
Designed to enhance the reliability of our operations and process efficiency, and add value to the customer through time and cost savings.

 It’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.

 Its financial credibility
Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)" [F one plus (Ind)] rating for their short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one plus) Rating for their Commercial Paper Programme of Rs. 25 crores.

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 Its People force
Committed, diverse and over 4,000 strong are company‘s most valued asset. All company‘s 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, valuing self-development, and most of company‘s managers are homegrown.

LOGISTICS IN BLUE DART:The Information Technology industry is, perhaps, typical of the changing and escalating logistic demands of various industries today, irrespective of their category as 'old' or 'new' economy. In the IT industry, the difference between success and failure is closely linked to the supply/value chain integration, of which there are two distinct processes:

1. The delivery of goods to the customer in the most reliable transit period (and preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed transit time for packages to reach customers or the response that organizations need in the event of any exceptions.

2. The reverse flow of acknowledged signed delivery records without which, in many cases, recovery of bills are virtually impossible. Especially so in the case of companies placing multilocation orders that could cover hundreds of cities. The task for the supplier is staggering - plan logistics for deliveries to all these locations, and hope for 100% of the delivery records to be returned before bills can be submitted to the customer. In most IT companies, the role of 'logistics' or 'fulfillment' is key.

 With organizations moving towards close to perfect standards like Six Sigma, interaction with logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the organization.  Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Through its exceptional people processes, superior technology, and stress on quality systems over the last, almost two decades now, Blue Dart was quick to fulfill these needs:
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 The country's most reliable air and surface network offer a pre-determined delivery schedule with close to 100% accuracy. The IT industry could plan its production with precision and avoid expensive inventory build-up.  Blue Dart offers the country's most comprehensive communications technology. Much before the internet was prevalent; Blue Dart customers could dial into the network through Power Dart 2000 and track their packages. As an added option, Fax dart could fax a copy of the delivery record the minute the Blue Dart system was updated.  The country's only express airline with a fleet of three Boeing 737s ensured that packages were flown to their destinations overnight. Another tremendous advantage was that the individual size of packages that could be carried multiplied manifold.  Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was quick to understand this requirement and put in place a 100% retrieval system.  Blue Dart not only handles large volumes and oversize packages overnight - it also provides the industry with status of their shipments and retrieves such records as are necessary for billing. The entire cycle has been considerably shortened, enabling the industry to achieve healthy bottomline.

SERVICES OF BLUE DART:REGIONAL SERVICES IN SAARC AREA

Between India, Bangladesh, Bhutan and Nepal. Blue Dart offers the fastest, most reliable, door-to-door express deliveries for your documents and packages to countries in the SAARC region through Regional Priority. The service offers access to over 13,700 locations in India, and over 800 locations in Bangladesh, Bhutan and

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most reliable. an integrated air and ground infrastructure dedicated to express transportation and innovative technology support. Regional Priority: Documents (RPDX) The most dependable and secure delivery for non-dutiable. Regional Priority: Non-Documents (RPDT) Fast reliable and safe door deliveries for samples and non-commercial shipments. brochures and reports up to 500gms. The special benefits of this service are:      Delivery to over 13. critical and important shipments such as legal documents and tenders. door-to-door delivery service within India and to Bangladesh.700 locations in India Free pick-up from your location Real-time Tracking Regulatory Clearances Free Computerized Proof of Delivery Page | 40 . Currently available between India and Nepal only. Nepal and Bhutan for documents and small shipments under 32kgs per package. providing the widest coverage in the region through a quality network. The Blue Dart Envelope provides secure and attractive packaging for your documents.Nepal. Different type of regional services: - DOMESTIC PRIORITY The fastest.

Dart Apex offers the following benefits:         Wide Market Reach Single-window Clearance Real-time Information Time-Definite Delivery Free Proof of Delivery on Demand Speed Flexibility Economical Page | 41 . Bangalore. Dart Apex also offers a further economical option of a Door-to-Airport service. Kolkata and Hyderabad to all the Dart Apex locations serviced. Delhi. It is the fastest. or require special handling. most efficient delivery solution for commercial shipments that are time-bound and are required to undergo regulatory clearances. Mumbai. Dart Apex offers you an economical option of an Airport-toDoor service from the major airports of Chennai.DART APEX Dart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. Consignee would be required to collect the shipment from the Blue Dart Aviation office at the concerned airport. And above. A customer may book their shipments at any of company‘s locations serviced for this product to any of the major airports. A customer may book space for their shipments through company‘s Customer Service and deliver customer shipments to Blue Dart Aviation Office at the related airport.

economic. door-to-door. 10kgs and 25 kgs. ground distribution service within India for shipments weighing 10 kgs and above. packaging unit priced to include a door-to-door delivery service within India. It offers a cost-effective logistics option for your less time-sensitive shipments. The special benefits of using Smart Box are:     A wide market reach Speedy Delivery Free pick-up Real-time Tracking Page | 42 . and are designed to accommodate a variety of products.DART SURFACELINE Dart Surfaceline is an economical. with the following value-added benefits:       Time-bound Delivery Track your Shipment Regulatory Clearances Pick-up Convenience Secure Shipments Economical Tariff SMART BOX Smart Box is a convenient. The units come in 2 sizes.

the three partners took another small step that would have a profound impact on the way the world does business. DHL offers a full range of customised solutions . DHL was already present in 170 countries and had 16. In 1969. Page | 43 . Customers stood to save a fortune. then the Middle East. just months after the world had marveled at Neil Armstrong's first steps on the moon. By 1988. a new industry was born: international air express. beginning customs clearance of the ship's cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbor.In 2003. The world's largest express and logistics Network:- DHL is the global market leader in international express. It is also the world's number 1 in ocean freight and contract logistics. DHL was 100% owned by Deutsche Post World Net. At the beginning of 2002. The founders began to personally ship papers by airplane from San Francisco to Honolulu. With this concept.from express document shipping to supply chain management. overland transport and air freight. DHL.DHL:History and background:DHL are the first letters of the last names of the three company founders. Deutsche Post World Net became the major shareholder in DHL.000 employees. The company expanded westward from Hawaii into the Far East and Pacific Rim. Deutsche Post World Net consolidated all of its express and logistics activities into one single brand. the rapid delivery of documents and shipments by airplane. Adrian Dalsey. The DHL Network continued to grow at an incredible pace. Larry Hillblom and Robert Lynn. Africa and Europe. By the end of 2002.

You can order a pick-up. check service availability or track your shipments from any location. Global Facts and Figures:Number of Employees: around 285. through the entire process.000 DHL Web Shipping: DHL WEB SHIPPING's new. With a click of a mouse customers can:        Select the right shipping and value-added services for each shipment Prepare air waybills and customs documentation on-line Get the latest service bulletins and customs information Book collections and track shipments on-line Save up to 300 customer addresses Access shipment records for 99 days Alert recipients and other interested parties DHL WEB SHIPPING is also perfect for telecommuters.Below are the global facts and figures that show you the scale of the world's largest express and logistics network. Page | 44 .500 Number of Hubs. Warehouses & Terminals: more than 450 Number of Gateways: 240 Number of Aircraft*: 420 Number of Vehicles: 76. direct from your wireless laptop.5 billion Destinations Covered: 120. simplified navigation guides customers. So they can respond to any shipping request within minutes. in real time. quickly and easily.000 Number of Offices: around 6.200 Number of Countries & Territories: more than 220 Shipments per Year: more than 1.

but the fruits of an early realization and recognition of the tremendous potential that the Indian subcontinent offered in terms of market size. It was the foresight and dynamism of the Founder Chairman and Managing Director. O. Page | 45 . It all began with the setting up of three offices at Kolkata.DTDC:DTDC is India’s Largest Domestic Delivery Network Company offering various custom made services ranging from Domestic to International. Saboo which created a spring board for the organization to catapult into what it is today – India‘s Largest Domestic Courier Company. and today has the largest franchisee network. Regional offices. DTDC Courier & Cargo Ltd.000 pincode areas and has over 4. Within a span of 17 years. Kolkata. through its business associates DTDC expanded its delivery network across the length & breadth of the country. thereby creating the nation's Largest Domestic Delivery Network. which includes its Branch offices. with 4 of its Zonal Offices at Delhi. supported by 176 offices. Chennai & Mumbai. Today DTDC is one of the largest Indian company in the Express industry. P. DTDC currently serves around 10. Area offices. DTDC can also be credited with pioneering the franchisee concept for the courier industry in India. DTDC serves over 240 international destinations. (DTDC) was incorporated in 1990. 17th November 1986.000 Franchised outlets. It handles 10 million consignments every month. First Flight: First Flight Couriers came into being on Monday. Its headquarter is at Bangalore. The overwhelming response from customers. Hubs and Sub-offices. Mumbai and Delhi. DTDC delivers to the remotest places in India with the help of 4. was not just a dream come true.000 business partners spread across the length and breadth of India.

930 First Flight Offices across India 2208 Authorized Collection Centers 452 Franchisee Locations Serving over 5000 Pincode Destinations across India Dedicated Worforce of over 10000 plus employees Strategically located 8 own International Offices Serving over 220 countries globally The fast paced growth and widening network is the outcome of four basic beliefs: Speed Safety Reliability Economy As a natural corollary to its growth endeavor. In keeping with times. First Flight‘s commitment to corporate excellence and its yearning for making it a common household name opens floodgates of opportunities and challenges and to meet it head on. Inventory Management. First Flight continues to invest substantial effort in building a State-ofthe-Art Super Information Technology highway. Supply Chain Services and Distribution Channels. shall be the co:rner stone of its philosophy. thereby providing total end-toend solutions to customers. First Flight is in the process of setting up a large scale integrated Logistics Division to offer an entire gamut of Warehousing. Page | 46 .

Hyderabad and Coimbatore. Mumbai. Ltd. Bangalore and Chennai. which provides all pickup. FedEx now services from eight centers as against four centers earlier and has branch offices in Kolkata. and delivery services within India. in addition to the current operating locations in Delhi. FedEx has an operations agreement with Prakash Airfreight Pvt.FedEx:   Federal Express started operations in India in 1997. Page | 47 . Ahmedabad. and currently operates ten flights a week from Mumbai to Europe and Asia..

Page | 48 . Order administration – efficiently manage the processes associated with order Fulfillment and transportation 2. Connectivity – provides multiple access points to key members of your supply Chain. Real time visibility – provides a view into inventory at rest and in motion Throughout the supply chain 3.Online Tools:FedEx Global Supply Chain Services technology platform offers features such As:1.

PACKTRACK:   Pack Track is an API (Applications Program Interface) designed for any client involved in logistics. SHOP TRACK:  Shop Track is an API (Applications Program Interface) designed specifically to support and enhances the services provided by a portal or any e-business. SMART is built on Oracle technologies.    It ensures that the aircraft is filled profitably.SMART: SMART (Space Management Allocation Reservation and Tracking). It has been designed to streamline and integrate shipping processes. customized solution. The Portal can decide how to display the data elements and may even store them in their database. is an in-house developed state-of-the-art technology system.  Shop Track is another time and cost-saving tool created to arm Blue Dart's customers with a competitive edge. Pack Track can be integrated into the client's systems and enables him to keep track of the entire distribution status of all his customers. Customers no longer have to leave the Portal site to track their purchases. which allows real-time space and revenue management on the Blue Dart Aviation network. distribution and inventory control. Shop Track provides an effortless. Page | 49 . SMART dovetails into COSMAT II leveraging on the infrastructural strength of the system. and that all customers with space confirmed on the aircraft have the assurance that their packages would travel. with the database housed on Oracle 8i (Release 2).

expert professionals and academicians to address logistics and supply chain practices at the national level. infrastructural bottlenecks. It is borne out of the felt need by managers. Field visits to at least one major facility of 25 firms were carried out during 2005. They face issues related to choosing and working with the right supply chain partners (suppliers. shortening of product life cycles and proliferation of product variety have forced Indian firms to look beyond their four walls. Our exploratory study is based on both field visits and secondary data. Globalization of businesses. We capture facts. customers and logistics service providers). Management Development Institute. transportation and logistics and the role of Information and Communications Technologies (ICT). We focus on supply chain collaboration and partnerships. figures as well as qualitative responses about the logistics infrastructure and supply chain practices. increasing uncertainty of supply chain networks.Logistics and Supply Chain Management Practices in India Samir K. The paper gives insights into how far the firms and their supply chains in India have come in dealing with major logistics and supply chain issues. Gurgaon. We analyze and assess existing logistics and SCM practices and discern emerging trends as well as areas of concern. we present a snapshot picture of logistics and Supply Chain Management (SCM) practices in India. India ABSTRACT India is the fourth largest country in terms of Purchasing Power Parity (PPP) and constitutes one of the fastest growing markets in the world. Srivastava. We also highlight and address a few issues related to supply chain managers and policy makers. facilities network design. the practices they focus on or need to focus on. Page | 50 . supply chain structure. In this paper. fostering trust between them and designing the right system of gauging performance.

we find that the important supply chain practices concerns are mainly related to: 1. Chin et al. He finds significant differences in inventory held in the supply chain by the US and European grocery retailers. Page | 51 . 4. Moberg et al. (2002) state that there is little literature on information exchange. there is a dearth of empirical studies examining logistics and SCM practices. Supply Chain Collaboration and Partnership with various stakeholders such as the product developers. (2003) report the current status of SCM in New Zealand. which could be explained by difference in degrees of their SCM adoption. Based on literature. Basnet et al. These surveys rank the perceived importance of some SCM activities. He lists nine important supply chain concerns such as lack of sophisticated ICT infra-structure. (2003) discuss supply chain strategies and structures in India. 2.LITERATURE REVIEW Literature portrays logistics and SCM practices from a variety of different perspectives with a common goal of ultimately improving performance and competitiveness. types of hindrances and management tools on the success of SCM using representative samples mostly from manufacturing. Fernie (1995) carries out an international comparison of SCM in the grocery retailing industry. Tan and Wisner (2000) compare SCM in the US and Europe. Feldmann and Muller (2003) examine the problem of how to establish an incentive scheme to furnish reliable and truthful information in supply chains. suppliers. Use of Information and Communication Technologies (ICT) to facilitate the above. Tan (2002) relates SCM practices and concerns to firm’s performance based on data from US companies. Galt and Dale (1991) study ten organizations in the UK and find that they are working to reduce their supplier base and to improve their communications with the suppliers. while Sahay et al. Forecasting and Demand Management to cope with supply chain complexity in a costeffective and delivery-efficient way. channel partners and end-users. (2004) conduct a survey that examines the success factors in developing and implementing supply chain management strategies for Hong Kong manufacturers. insufficient integration due to lack of trust and collaboration among the supply chain stakeholders and thereby lack of supply chain effectiveness and efficiencies. Supply Chain Structure including facilities network design taking into account related transportation and logistics. While there is plenty of published literature that explains or espouses SCM. They analyze the change of SCM both in terms of operational practices and organizational capabilities. Quayle (2003) surveys supply chain management practice in UK industrial SMEs (Small Manufacturing Enterprises) while Kemppainen and Vepsalainen (2003) probe current SCM practices in Finnish industrial supply chains through interviews of managers in six supply chains. 3.

In context of ICT.There is little literature on logistics and SCM practices in India.. So.com. Kankal and Pund. Global estimates for this vary and are around 13% of GDP in China and about 9% of GDP in the US. This in turn allows companies to protect operating margins during downturns and make above-normal profits during upturns. 2004) or on re-engineering of internal operations of the firms (Deshmukh and Mohanty. Page | 52 . 67% of truck ownership is in the hands of small unorganized players. 2006). extent of use and integration of IT-based systems.etintelligence. Available literature focuses either on the best practices (Joshi and Chopra.org). Various SCM spend indicators such as in-bound transportation costs. Global averages are around 9-12%. Though enormous maritime routes are available combination of poor government policies and lack of initiative from the private sector. they are coming down over a period of years. including distribution. 2004). Saxena and Sahay (2000) compare the manufacturing intent to be an agile manufacturer and their Information Technology (IT) infrastructure in terms of scope of use. Vrat (2004) discusses some issues and challenges as well as the potential of SCM in India. Sahay et al.gov. warehousing. The aggregate of the same for nine major manufacturing industries for four years are shown in Table II. as per Centre for Monitoring Indian Economy (CMIE). water which is probably the cheapest mode of transport is barely used.nhai. 2003. LOGISTICS AND SCM PRACTICES FROM SECONDARY SOURCES Industry and academic estimates put logistics and SCM spend in India at approximately 13% of the Gross Domestic Product (GDP). All these studies find Indian firms generally lagging behind their counterparts in the developed countries. with more than half the goods being moved by road. However. www.in/) and the total road length is 3315231 kilometers (Available at: http://www. Air as a mode is limited to a small percentage of courier shipments. inventory related costs and distribution expenses as percentage of net sales vary from industry to industry. The more recent studies are mainly based on questionnaire surveys and secondary data sources (Sahay and Mohan. Road is followed by rail and finally coastal shipping.indianrail. and inventory. Trucking accounts for nearly 70% of transportation and accounts for 60% of all logistics cost. These industries spent nearly 17-18% of their net sales on various logistics activities. there is ample scope to reduce spends on logistics. 2004. Rail has been steadily losing ground due to myopic government strategies and inherent inefficiencies. The freight movement of Indian railways has risen to 411354 net tonne-kilometers (Available at: http://www. The transportation cost in India accounts for nearly 40% of the cost of production.

the use of GPS for supply chain management in India is relatively low. Time lags here can be pre-determined. Maruti Udyog Limited. Firms like Bajaj. this is no longer the issue.2% 17. and another 26% had plans to do so.1% 17.9% 13. 2001-02 1. Depending on the number of times the SMS signal is polled and sent by to the base station.34 million for GPS in their trucks.5% 2002-03 1.8% 2. Almost every firm found this practice to yield good results in revealing consumer trends. Another method gaining popularity is the use of SMS (Short Messaging Service).4% 2003-04 1.1% 13. For supply chain tracking. However.3% 13. patterns and potential segments.1% 3.com/) have implemented ERP and three-fourths of these find ERP to be extremely effective in business.etintelligence.4% 13.8% 18.7% 17. The ERP industry in India is worth US$ 300 million and is growing at over 15% a year.2% Page | 53 . the most preferred method is the truck driver reporting his location. TVS Motors and Bharat Shell are already using TCI’s GPS systems. 44% of the companies surveyed had already implemented data warehousing and mining applications. Service providers like Transport Corporation of India (TCI) have poured in US$ 0. the location of the vehicle can be accurately determined.0% 2. With Global Positioning Systems (GPS). 52% of the respondents in ETIG (Economic Times Intelligence Group) SCM 2004 survey (Available at: http://www.8% 2.Table II: SCM Spend in 9 Major Indian Manufacturing Industries SCM Spend Indicator In-bound Transportation Costs as percentage of Net Sales Inventory-related Costs as percentage of Net Sales Distribution Expenses as percentage of Net Sales Total SCM Spend as percentage of Net Sales Source: CMIE The focus on costs and ICT-enabled services is leading to electronic procurement that cuts time and costs (including transaction costs) and brings in transparency and speed.3% 2004-05 1.

Transportation and logistics is generally through their own fleet. The positive business atmosphere and a burgeoning consumer market are making the shipper community push the logistic service providers hard for efficient supply chain value propositions. In automobiles sector. Presently. clarity of demand. retail. The firms are generally going for global procurement and long-term strategic deals. However. primary focus is still on in-house manufacturing though trend towards contract manufacturing is on the upswing. They seem to be catching up fast with their counterparts in the developed world. In some cases. There is big focus on vendor development. especially in the automotive. Many firms in our study have gone for spend management outsourcing instead of procurement management. the utilization of such tools is still at a relatively low level. High collaboration and partnerships with vendors is strongly evident in this sector. Firms have few manufacturing facilities with 20-24 warehouses and many dealers. there is collaboration and partnerships downstream with the dealers as well. some benefits are being derived. responsiveness (delivery speed. shortening delivery cycle. They have multiple channels downstream so as to achieve door-step reach to the ever-increasing customer base in India. Extranet and Internet. Firms focus on developing vendors in geographical proximity. However. Another discernible trend is the gradual shifting of responsibilities and risks to vendors. it is outsourced. This is an area where they are much behind. they are still informal in nature and not strictly binding. cost and service.LOGISTICS AND SCM PRACTICES OBSERVED ON-SITE IN 25 FIRMS In our on-site observations. Relationships are messy and partnerships are short of true strategic alliances. Still. In firms with manufacturing as the core process. High collaboration and partnerships with partners can be seen. The focus of most of the service firms is on express deliveries and logistics solutions. we find that the primary focus is on quality. Firms show relatively high awareness of modern supply chain planning and control tools. including software and mathematical models. reliability of partners. volume flexibility and innovation) is also catching up management attention. Routing and Page | 54 . Transportation and logistics being non-core activities are generally outsourced. The firms appreciate the importance of inventory and order tracking for which they use Wide Area Network (WAN). As regards implementation and utilization of ICT. Sharing of benefits within the supply chains has not yet gained much attention. Correspondingly. Recently. production and logistics flexibility and innovation in supply chain practices. They focus on efficient and effective service and better customer reach. Quality assurance has become an order qualifier rather than being an order winner. forecasting is still based on targets from dealers/ sales force. Firms. the major concerns in all these firms and their supply chains are related to costs. The emergence of Service Level Agreements (SLAs) with internal customers can be seen in most of the firms. while one uses in-house developed legacy software. Most of the firms have established highly responsive call centers with stringent performance metrics. 6 out of 8 firms use standard ERP software. are increasingly opting to outsource their logistic requirements to specialized service providers. This number of warehouses is a direct consequence of the tax-holidays and the erstwhile excise and custom duty structure in India. manufacturing and FMCG sectors.

Production process is mainly “pull” system.scheduling software are increasingly being used for these activities. Reasons cited for the same range from long. most of the firms use ERP and forecasting is based on data from dealers/ sales force. Here too. but are pilot testing RFID and other smart card technologies as well. is growing rapidly. Most of them are smaller replica of retail chains in the developed countries or famous shopping cities like Singapore and Dubai. Transportation is mainly by road and the lead-time of these supply chains is still as high as 9-12 weeks. In FMCG and perishables sector. One firm uses ERP and another uses in-house developed Resource Enterprise Management (REM). Based on our observations and secondary data. openness of partners to technology adoption and standardizing technology across them. firms are negotiating long-term strategic deals. Their facilities are expanding to meet the increasing demands. However. There is high focus on tracking of customer orders and and technologies like bar codes and GPS are being employed. Forecasting is based on historical data which is tinkered by management intervention. the primary focus is on product availability (refilling the shelves). the goods are packaged near the markets. primary focus is on expansion and reaching the consumer. The sector is witnessing tremendous growth with increasing acceptability by the growing Indian middle class. Packaging is generally outsourced. The companies have few manufacturing facilities with complex distribution channels. none of the family-owned firms uses it. In contrast. lack of data and ICT integration to lack of funds to go in for automation. Two of the retail chains in our study are low cost mass market players. resistance to change within and outside the firms. complex supply chains. The implementation and utilization of ICT though limited. sharing real-time demand data across partners to ensure demand visibility in the supply chain. Transportation and logistics services are generally outsourced to third parties. Page | 55 . There is a very high collaboration with suppliers and firms are going for global procurement. In retail chains. field force automation and cheaper software. At the same time. A majority of the Indian subsidiaries and joint venture firms use real-time data sharing and find it extremely effective. Eprocurement is on the rise. the major challenges to logistics and SCM practices in India are related to integrating the supply chain. We find that most of the firms are not getting or using real-time demand data from customers. given the size of India and the state of its infra-structural facilities. Transportation and Logistics is outsourced. These firms have not only gone for bar coding of items. they are making greater investments in ICT. interfacing supply chain department within a firm with other functions. This is quite understandable. while the third one is mainly into branded apparel. These firms have their own warehouses and retail outlets. evolution of logistics solution providers. Mostly. There are multiple channels downstream so as to meet the objective of next-door reach. The firms have high collaboration and partnerships with their suppliers who are generally located in close proximity. 5 out of 6 firms use standard ERP software. The layouts of these facilities are still evolving. aligning supply chain partners to common objectives.

Supply Chain Management: Practices. and Mohan. 43. 15-24.F. 63-73. Sahay. Chin. Deshmukh S. Leung. International Journal of Physical Distribution & Logistics Management.. Stock No. A study of supply chain management practice in UK industrial SMEs. Rao Tumalla. Corner. J. Saxena K..C. and Mohan. Galt.. and Tan. (2003). (2006). and Mohanty. A study on supply chain management practices: The Hong Kong manufacturing perspective. 134-147. Supply Chain Management for Global Competitiveness. Managing IT for world-class manufacturing: the Indian scenario. Sahay.S. (2004). Page | 56 . 27. 505-524. (2002). Feldmann. Re-engineering of supply chain: Lessons from Select Case Studies.N. K-S. R. Macmillan. R. 34.). In Sahay. Research Paper Series of the APICS Educational and Research Foundation and The Supply-Chain Council. B. Supply chain management practices in Indian industry.. M. 07029. Supply Chain Management Practices in the United States and Europe.P. An incentive scheme for true information providing in Supply Chains. 33. International Journal of Physical Distribution & Logistics Management.C. Concerns. 8. New Delhi. C. M. 15. 79-86.D. J. J. Wisner. 11. (1995). Service Industries Journal. B. J.A. 2nd Edition. Managing supply chains for competitiveness: the Indian scenario. (2003).B. Tan. and Muller.S. V. Supply Chain Management: An International Journal. 509-526. International Journal of Information Management. 35. 57-64. S. (Ed. and Wisner. Supply Chain Management: An International Journal. Tan.. Supply Chain Management: An International Journal.P. The Journal of Supply Chain Management. 16-22..S.. International Journal of Purchasing & Materials Management. J.. and Tang. R. (2003). (2000). International Comparisons of Supply Chain Management in Grocery Retailing. B G. 51-62. 31. (2003). Gupta. (2000). and Dale. B. B.M. 20. K-C. J.C. and Performance Issues. K. Supplier Development: A British Case Study. 29-57. Quayle. 8.S. Fernie. Omega.REFERENCES Basnet. (1991). and Sahay. K. pp. Benchmarking supply chain management practice in New Zealand. (2004).G. J. X. 582-606.D.

DESIGN AND METHOD OF STUDY Page | 57 .

The ―who‖-questions are concerned with the characteristics of the respondents. Common for these types of questions is that they are all suitable for a survey study (Pinsonneault & Kraemer.e. to what extent does the actors jointly plan logistics activities?  Other important groups of questions to be answered in this thesis can be labeled ―who‖ and ―where‖-questions. Yin. Page | 58 . For example. the word ―what‖ dominates in all the research questions? ―What‖-questions can be further divided into exploratory and descriptive ―what‖-questions.  Researchers in the area point out that there is a difference between ―surveys‖ and ‖survey research‖. are there any differences among industries considering how much collaboration that can be seen? An example of a ―where‖-question is where in the supply chain is collaboration performed?  To conclude. and therefore this approach was chosen for this study. and can be characterized as ―how many‖ and ―how much‖-questions. While a survey can be made for many reasons not connected to research. ―what‖. and ―why‖-questions. 1994).  With regard to the research questions of this thesis. Examples of such questions are how many of the respondents have defined and documented their collaboration in terms of a process?. survey research aims to increase the scientific knowledge in a research area. ―who‖. Yin (1994) presents five different types of questions.Design: When deciding the research approach for a study. the researcher can choose between several approaches. all characterized by specific strengthens and weaknesses. the research questions in this thesis can all be characterized as typical ―what‖. ―how‖. 1993. The most important condition for choosing an appropriate approach is to identify the type of research questions that should be answered. In this study the latter type is represented. i. ―who‖ and ―where‖-questions. and how much joint planning can be seen in the collaboration. ―where‖. such as political opinion investigations and TV viewing polls.

First. Again. the collection of information in done by asking people in a structured manner. Second. 1993. The main reason for mailing the questionnaire instead of using email (which would have been even cheaper and reached even more possible respondents) was the belief that a mailed questionnaire would result in a better response rate. 2002). groups or organizations. information is generally gathered from a sample. or telephone calls. descriptive. The sample should be chosen in such a manner that the answers from the sample can be generalized to the whole population. This is typical of a mailed questionnaire and is also a rather cheap way of conducting a survey.e. Examples of a descriptive survey can be to investigate the level of adoption of software for statistical process control (Forza. (Pinsonneault & Kraemer. which is a fraction of a specific population. explorative.g. Depending on its purpose. Malhotra & Grover. three different kinds of survey research are presented in research literature. to describe a situation. interviews face to face. and explanatory surveys. Third.Three main characteristics distinguish a survey approach from other approaches such as case studies or experimental studies. in accordance with the purpose and research questions in this study. or documenting the types of manufacturing processes being used by small and large manufacturing firms (Malhotra & Grover. Page | 59 . Collection methods in a survey approach could be mailed questionnaires. a survey approach is a quantitative method that demands standardized information from and/or about the studied subject. i. 1998). individuals. it is important that the chosen method can reach many potential respondents. 1998) In this thesis a suitable method to collect the empirical material was a questionnaire which was mailed to logistics managers. the questionnaire in this thesis can in the first place be characterized as a descriptive survey. e. Since the purpose of this thesis is to describe logistics collaboration.

The different steps in the study:Background and Purpose Theoretical Framework Research questions Preparation of Questionnaire Pilot study Data collection Missing data analysis Coding into Excel Quantitative analysis In excel Further analysis and conclusions Page | 60 .

Layout of the questionnaire:The final version of the questionnaire consists of 20 questions on twenty pages and can be seen in the questionnaire is divided into four main sections where the first deals with the inbound supply chain questions about the respondent‘s company and their internal process approach. It included the sending of the parcel from the courier hub to its destination. namely what type of information was shared.Preparation of a questionnaire:Constructing a questionnaire means a thorough break down procedure starting with the purpose and ending with a number of questions that are possible for a respondent to answer in a questionnaire (Forza. All the factors involved in the outbound logistics and the communications were included in the outbound questionnaire. the content aspect information sharing was narrowed down to include four more concrete questions. and what communication means that were used in the collaboration. As stated above all the questions in the questionnaire have their origin in the SCM literature and can therefore be related back to existing literature about SCM and collaboration. In the next section questions were asked about the outbound supply chain of the company. The presentation of the purpose and the focus of this study should be seen as the first step in the break down process. This means that the empirical material can be compared with existing literature in order to investigate e. the degree of processed data. All the factors which make the business for the courier industry efficient were included. The next section included the questionnaire about the role of IT (Information Technology) in the business process for the courier industries. what parts that really are applied in existing collaborations. Page | 61 . 2002). In connection to the research questions a short discussion followed each research question where it was further defined and broken down. The breakdown procedure in this study should be regarded as a translation of the theoretical concepts and ideas presented in the frame of reference into concrete questions. For example.g. the frequency of sharing.

Much of the existing research on SCM issues is performed on this group and it can therefore be considered as a target group for SCM research. Page | 62 . pivot tables and a macro programming language called Visual Basic for Applications. Excel forms part of Microsoft Office. Even if the researcher has a perfect understanding of the content and knows exactly how it should be analyzed. Furthermore.. Analysis methods in Excel:Microsoft Excel is a commercial spreadsheet application written and distributed by Microsoft for Microsoft Windows and Mac OS X. Thereafter the questionnaire was further developed using their opinions. The main reason for choosing this population is that this type of Hubs is the one most considered in SCM literature. The current versions are 2010 for Windows and 2011 for Mac. firms or plants or things that the researcher wishes to investigate‖ . The population. Above all these colleagues looked for important questions that were not in the questionnaire and for readability. which in literature can be defined as ―the entire group of people. but which have many similar logistics challenges in common. especially since version 5 in 1993. this population also represents different courier company‘s which all have specific characteristics and constraints. For the research work the questionnaire were entered as an input in terms of the number of respondents for each set of questions.Final section included questionnaire based on the various waste occurring in the courier industry.Therefore in the research several courier Hubs were selected in various regions in Bangalore City. It has been a very widely applied spreadsheet for these platforms. how difficult/easy it was to understand the questions. The sample:To fulfill the purpose of this thesis. the answers can be useless if the respondents interpret the questions in a different manner. Furthermore. the population only covers companies which reside in the main locations in Bangalore. The pilot:An obvious prerequisite for properly carried out survey research is that the respondents must understand and interpret the questionnaire in the same way as the researcher. i. The respondents response were taken as using the response graph was plotted using pie chart. suitable respondents had to be found. graphing tools. To avoid this. histogram etc. The whole idea was to find out as to what type of waste are prevailing in the courier industry and some remedies which could be found out to reduce the waste or to eliminate it. It features calculation.e. senior colleagues at the department were engaged as test persons.

Analysis Page | 63 .

RESPONSE AND ANALYSIS Inbound supply chain:1) How many parcels do your company receives every day? 200-400 6 400-600 8 600-800 4 more than 800 2 Analysis:From the respondents we can see the number of parcel handling lies around 400 to 600 parcels per day. The ability to handle huge number of parcels could be attributed to better value chain increase number of customer base and incorporation of information technology. Page | 64 .

and 30 to 40 as well as 40 to 50 dealers for 5 respondents.2) How many authorized dealers are available in the city for the company? 10-20 3 20-30 7 30-40 5 40-50 5 Analysis:The number of authorized dealer lies around 20 to 30 for 7 respondents. This could be attributed to the fact that courier companies are trying to increase their customer network throughout the city. More number of authorized dealers means better service to the customer and addition of more number of customer. Page | 65 .

More numbers of area hub could lead to better collection and distribution network and better customer satisfaction.3) How many numbers of area hubs are available in the Bangalore city? Less than 5 0 5-7 3 8-11 14 more than 11 3 Analysis:Large number of courier company have around 8 to 11 area hubs. Area hubs can be defined as a centralized location of a courier company in a loction from where it can collect/distribute parcels in and around the location. Page | 66 .

Page | 67 .4) How are the receipts generated at the authorized dealer while receiving the parcel? Computerized receipts 2 Manual Receipts 18 Analysis:Majority of the authorized dealers still use manual receipts to give to customers this could be attributed to the fact that majority of the dealers are not willing to use computer as it need extra skills and required investment.

In order to avoid any legal issues during the transaction of courier .5) Please tick Yes/No for the information which is printed on the receipts:Particulars Customer Name Receipts Name Customer Address Receipts Address Customer Phone Number Receipts Phone Number Bar Code Customer Care Number Policies and Regulations Yes 20 20 20 20 20 20 20 20 20 No Analysis:A receipts can be defined as a formal document which is received by the customer who orders for a service. In a courier industry all the company‘s provide a receipt to its customer during the time when the customer places a order for sending a courier. along with that all the courier company d mention bar code as well as its customer care number. Page | 68 . The receipts consist of full details of the customer and receipients. companies do mention about the policies and regulations at the back of the receipts for the customers to read.

Also motorbikes gives a good mileage compared to a small truck. Page | 69 . the main reason for the use of motorbikes is its cheap and easy to maintain compared to a small truck.6) How are the parcels brought from the authorized dealer to the area hub? Motorbikes 19 Small Truck 1 Analysis:More number of courier company‘s prefer to use motorbikes to bring the courier parcel from its authorized dealer to its area hub. Motorbikes can even go to locations where small trucks cant enter.

one trip in the morning and the other in the evening. Page | 70 .7) How many trips in a day are made for collecting parcels from the authorized dealers? 1 trip 3 2 trip 14 3 trip 3 more than 4 trip 0 Analysis:Majority of the courier operators have two trips per days to bring the parcels from its various authorized distributors. More of the courier company limit there pick up upto 2 trips per day as it is more economical. The reason for having 2 trips can be attributed to the fact that it gives sufficient time for the dealers to get more parcels to deliver when the next vehicle comes for pick up.

8) Total Numbers of vehicles which are available to collect the parcels from the dealers? 1-5 5 5-10 12 10-15 2 15-20 1 Analysis:More number of courier opeators posseses around 5 to 10 number of vehicles which included both 2 wheelers as well as 4-wheelers. The totall number of vehicles are decided by the courier company on the basis of the location of the area hub . Page | 71 . numbers of the authorized distributors. number of employees etc. therfore on an average we can see that for each of the area hub the number of vehicles ranges from 5 to 10. number of parcels received/dispatch in a day.

quicker delivery of the parcels and other benefits.9) What are the numbers of employees working in the area hub? <5 0 5-10 7 10-15 4 more than 15 9 Analysis:More number of courier operators have employee strength of more than 15 . More number of employees refers to better management of the parcels. it is due to the fact that it is a people management industry where majority of the work is done by the human resource. Page | 72 .

country etc. location. Page | 73 . state. The segregation process includes the differentiation of various parcels on the basis of the type.10) On an average how long does it take to do the segregation of parcels from different location prior to dispatch? 15-30 min 4 30-45 min 8 45-60 min 6 more than 60 min 2 Analysis:The segregation of the parcels in a particular area hub is carried out in an average time of about 30 to 45 min. the segregation is made much easier with the use of bar code machine which could read each of the parcel and segregate it.

OUTBOUND SUPPLY CHAIN:- 1) How many vehicles are available to dispatch the parcels to the destinations? 1-5 5 5-10 12 10-15 2 15-20 1 Analysis:More number of courier opeators posseses around 5 to 10 number of vehicles which included both 2 wheelers as well as 4-wheelers. numbers of the authorized distributors. therfore on an average we can see that for each of the area hub the number of vehicles ranges from 5 to 10. Page | 74 . number of employees etc. number of parcels received/dispatch in a day. The totall number of vehicles are decided by the courier company on the basis of the location of the area hub .

Page | 75 .therefore the company‘s do not want to comprimise on the issues which could result with third party company if it outsource.2) Does your company outsource the logistics to a third party vendor? Yes 3 No 17 Analysis:Majority of the company do no outsource there logistics to a third party vendor. the main reason being courier company have better control of the vehicles as the courier industry is fully dependent upon the logistics part.

one trip in the morning and the other in the evening. More of the courier company limit there pick up upto 2 trips per day as it is more economical.3) How many trips of vehicle are made for the dispatch of parcels to destination in a day? 1 trip 3 2 trip 14 3 trip 3 more than 4 trip 0 Analysis:Majority of the courier operators have two trips per days to bring the parcels from its various authorized distributors. The reason for having 2 trips can be attributed to the fact that it gives sufficient time for the dealers to get more parcels to deliver when the next vehicle comes for pick up. Page | 76 .

4) Is the facility for tracking the package available online? Yes 20 No 0 Analysis:Almost all the courier company‘s have the facility to track the package anywhere in the world with the help of internet. Page | 77 . It is helpful for both company as well as the customer to know the status of the parcel and also eliminate the chance of any parcel getting lost.

5) On an average how many days does it take to send a parcel anywhere in India? 1 day 3 2 days 14 3 days 2 > 4 days 1 Analysis:On an average it roughly takes 2 days to send a courier to anywhere in India. The average number of days usually depends upon the availability of the vehicle. delay in processing the parcel delivery etc. delays of vehicle. Page | 78 . Close destination could even be reached within 1 days. The delivery of the parcel also depends upon the destination distance from the source.

Page | 79 .Most of the delivery is carried with the help of airplane as it is fast and reliable.6) On an average how many days does it take to send a parcel outside India? Less than 3 days 0 3-5 days 1 5-7 days 4 more than 7 days 15 Analysis:The average number of days for sending a parcel anywhere outside India takes more than 4 days which again is a subject the location of the country and the resources available at the right time. It also totally depends upon the use of information technology for the transport of the parcels.

Motorbikes can even go to locations where small trucks cant enter.7) What kinds of vehicles are used to dispatch the parcel destination area hub to the customer address? Motorbikes 19 Small trucks 1 Analysis:More number of courier company‘s prefer to use motorbikes to bring the courier parcel from its authorized dealer to its area hub. the main reason for the use of motorbikes is its cheap and easy to maintain compared to a small truck. Page | 80 . Also motorbikes gives a good mileage compared to a small truck.

Role of Information Technology in Supply Chain Management:1) Does your courier company use computer application to process packages (if yes which one)? No 0 Yes 20 Analysis:The importance of computer application can be understood with the fact that all the courier company‘s are using it to deal with the business. The computer applications has helped to better manage the whole process. Page | 81 . It has helped to reduce the overall cost to a greater extent and also helped to automate few process.

It has not only helped to understand the overall value chain but also helped to eliminate any non value activities. By properly routing the vehicle with the use of technology of GPS courier company are able to reduce time cost and improvise better customer satisfaction.2) Please rate your response on the scale of 5 (1-stongly disagree 5-strongly agree) Has the computer application helped in? 1 0 0 0 0 0 2 0 0 0 0 4 3 3 2 2 3 11 4 4 12 14 14 3 5 13 6 4 3 2 Fulfilling the overall needs of the company Reduce the package processing time Improved the delivery speed Improvised logistic management Reduce the overall cost Analysis:Analysing the above likert scale we see that majority of the company‘s do believe that Information technology has helped to improvize the business of the company. and thus making the whole process much effiecient. Page | 82 . This has therefore helped to reduce the overall time which it took in a traditional manual work to a greater extent. The courier industry also believe that the use of IT has helped to improve the delivery speed as well as improvise the logistics. It has also helped in package processing time by making the whole process automated with the help of Bar code being printed on the parcel.

00 1.88 Improvised logistic management 20 4 0. Null hypothesis: mean rating <= 3 Alternate hypothesis: mean rating > 3 The results show that p-value is < a=0.72 19.90 19.76 3.00 0.20 0.82 19.45 To study the usefullness of computer in managing supply chain in Courier Industry factors like fulfilling the overall needs of the company.00 0.00 Reduce the package processing time 20 4.23 0.00 0.00 0. Improved delivery speed.62 3.00 0.00 1.1 0.00 0.00 0.05 for fulfilling the overall needs of the company. The level of significance is a=0.13 7.14 8.96 19.2 0. Reduce the package processing time.00 0.50 0. Upper tail test is conducted.00 0.12 8. Page | 83 . Reduce the package processing time.56 3. improved logistics management and reduced the overall cost were taken and were rated on the scale of 1 to 5 (1 for least and 5 for maximum) by the respondents.00 Improved the delivery speed 20 4.05.00 0.00 3.15 0. Improved delivery speed. improved logistics management whereas P value is > a=0.00 0.00 Reduce the overall cost 20 3.00 1.77 19.05 for reduce the overall cost which conveys that majority respondents have a neutral feeling about the computer leading to the reduction to the overall cost.Usefullness of Computer Application:Hypothesis test about a population mean with unknown Standard deviation Fulfilling the overall needs of the company Sample Size Sample mean Std Deviation Hypothesized value Standard error Test Statistic t Degrees of freedom p-value (lower tail) p-value (upper tail) p-value (two tail) 20 4.55 3.17 8. 3 is taken as neutral and the hypothesized value.00 1.00 0.00 0.77 0.00 0.

The maintenance activity is usually include regular checking for any issues with the vehicle. Page | 84 . Occurrence of waste in terms of paper and office waste are very much prevailing in the courier industry. emission test is generally carried out occasionally as the vehicles are busy for the logistics activities. the main reason being even though computer technology has been implemented its scope are very limited and are used in few areas.Occurrences of Waste:Strongly disagree Are the vehicles well maintained? Are Regular emission inspections are conducted? Do paper and office waste occur? Route planning for vehicle is done for shortest delivery time? 0 0 0 Disagree Neither agree or disagree 2 7 2 Agree Strongly agree 9 2 8 0 8 0 9 3 10 0 0 1 9 10 Analysis:Analyzing the above chart we see that most of the company spends a good deal of time in the maintenance activity of the vehicle as its full operation is totally depended on the vehicles. whereas in other areas the job is done manually which requires paper work to be done which leads to wastage of papers. The route planning is also done in order to reduce time in delivering the package to the customer and to reduce the overall cost associated.

00 1.22 19.59 0.00 0.00 Page | 85 .60 Hypothesized value 3.67 20 2.00 3.72 19.00 0.00 0.22 -0.00 p-value (lower tail) p-value (upper tail) p-value (two tail) 1.00 Standard error Test Statistic t Degrees of freedom 0.66 20 4.15 9.35 0.00 0.83 1.Hypothesis on Occurrences of Waste:Hypothesis test about a population mean with unknown Standard deviation Are Regular Are the emission vehicles well inspections maintained? are conducted? Do paper and office waste occur? Route planning for vehicle is done for shortest delivery time? Sample Size Sample mean Std Deviation 20 4.00 0.00 20 4.00 0.00 3.3 0.95 1.00 19.00 0.45 0.00 0.00 0.41 0.00 0.14 10.85 19.15 8.00 3.

Analysis: To study the occurrence of waste in courier industry factors like maintenance of vehicles.3 is taken as neutral and the hypothesized value. emission inspection.05. Page | 86 . paper waste occurrence.05 for maintenance of vehicles. paper waste occurrence. The level of significance is a=0.05 for emission inspection which means that large number of respondents feels that the vehicles are not inspected for the emission. Upper tail test is conducted. which means respondents feels the above wastes are prevailing in the courier industry whereas p> 0.   Null hypothesis: mean rating <= 3 Alternate hypothesis: mean rating > 3  The results show that p-value is < a=0. routing planning done for shortest delivery time. routing planning done for shortest delivery time were considered and were rated between 1 to 5(1 for least importance and 5 for high importance).

SUMMARY AND CONCLUSIONS Page | 87 .

 More number of courier operators have employee strength of more than 15 .  In a courier industry all the company‘s provide a receipt to its customer during the time when the customer places a order for sending a courier. The receipts consist of full details of the customer and receipients. Logistics are the backbone of any courier industry. the main reason for the use of motorbikes is its cheap and easy to maintain compared to a small truck. Also motorbikes gives a good mileage compared to a small truck. More number of employees refers to better management of the parcels. From the respondents we can see the number of parcel handling lies around 400 to 600 parcels per day.  Majority of the authorized dealers still use manual receipts to give to customers this could be attributed to the fact that majority of the dealers are not willing to use computer as it need extra skills and required investment. therefore in order to improve the service time as well as the customer satisfaction an efficient supply chain management is required. More numbers of area hub could lead to better collection and distribution network and better customer satisfaction.  More number of courier company‘s prefer to use motorbikes to bring the courier parcel from its authorized dealer to its area hub. along with that all the courier company d mention bar code as well as its customer care number. companies do mention about the policies and regulations at the back of the receipts for the customers to read. quicker delivery of the parcels and other benefits. More number of authorized dealers means better service to the customer and addition of more number of customers. In order to avoid any legal issues during the transaction of courier . The whole process of designing the inbound as well as the outbound logistics can be formulated by understanding the value added process as well as non-value added process. it is due to the fact that it is a people management industry where majority of the work is done by the human resource.Major findings: Analysing the results obtained from the excel after given the data‘s as input from the questionnaire we find that there are various parameters which need to be taken care of while doing business in courier industry.  In order to manage a large number of customers and to offer the best service almost all the courier agency works on a large scale in terms of handling and delivering thousands of parcels every day. Motorbikes can even go to locations where small trucks cant enter. The ability to handle huge number of parcels could be attributed to better value chain increase number of customer base and incorporation of information technology. Page | 88 .  Courier companies are trying to increase their customer network throughout the city.

number of employees etc. The courier industry also believe that the use of IT has helped to improve the delivery speed as well as improvise the logistics. and thus making the whole process much effiecient. the main reason being even though computer technology has been implemented its scope are very limited and are used in few areas. therfore on an average we can see that for each of the area hub the number of vehicles ranges from 5 to 10. The route planning is also done in order to reduce time in delivering the package to the customer and to reduce the overall cost associated. It has not only helped to understand the overall value chain but also helped to eliminate any non value activities. This has therefore helped to reduce the overall time which it took in a traditional manual work to a greater extent. The computer applications has helped to better manage the whole process. emission test is generally carried out occasionally as the vehicles are busy for the logistics activities.  Information technology has helped to improvize the business of the company. number of parcels received/dispatch in a day. whereas in other areas the job is done manually which requires paper work to be done which leads to wastage of papers. Page | 89 .  The importance of computer application can be understood with the fact that all the courier company‘s are using it to deal with the business. It has helped to reduce the overall cost to a greater extent and also helped to automate few process.Most of the delivery is carried with the help of airplane as it is fast and reliable. It also totally depends upon the use of information technology for the transport of the parcels. It has also helped in package processing time by making the whole process automated with the help of Bar code being printed on the parcel. numbers of the authorized distributors.  The average number of days for sending a parcel anywhere outside India takes more than 4 days which again is a subject the location of the country and the resources available at the right time. More number of courier opeators posseses around 5 to 10 number of vehicles which included both 2 wheelers as well as 4-wheelers. Occurrence of waste in terms of paper and office waste are very much prevailing in the courier industry. By properly routing the vehicle with the use of technology of GPS courier company are able to reduce time cost and improvise better customer satisfaction.  The maintenance activity is usually include regular checking for any issues with the vehicle. The totall number of vehicles are decided by the courier company on the basis of the location of the area hub .

These differences. Page | 90 . This demands collaboration on a strategic level and that all involved actors have a true supply chain orientation. which in turn demands an extensive strategic change in the mindsets of the supply chain actors. The supply chain should be managed as one single entity where end customer satisfaction is the superior goal for all involved actors. the description of logistics collaboration given in this thesis shows that companies involved in collaboration are still concerned with operative issues and that their collaboration is seldom brought to a strategic level. The study also shows that it is more intensive collaboration on an operative level that contributes to the achievement of better results. The results of this study confirm previous findings that the reality is far from that total SCM environment described in many conceptual articles on the subject. For a number of firms. (1998) identify some main differences in attitude and behaviour depending on whether the collaboration is performed with a supplier or a customer. In addition to this. This new way of thinking. opportunities have been lost and many challenges remain. In fact. If this is true. and that top management involvement has shown to be an important driver for such collaboration. Despite success stories where logistics collaboration has contributed to extraordinarily positive benefits. SCM aims to improve the total supply chain performance through collaboration among independent actors in the supply chain. we have implied that business has yet to crack the code. Mattsson (2002) describes this phenomenon as ―the traditional view‖ of supplier-customer relations where the customer ―demands what he wants‖ from the supplier. most companies of today have not understood the potential of SCM based collaboration. They are still occupied with internal optimisations and have not adopted the SCM philosophy. Speakman et al. Such collaboration based on a supply chain orientation has however proved to be a rare occurrence in real existing supply chains. which are in conflict with a true supply chain orientation.Conclusion:As discussed in the background chapter of this thesis. should enable them to work and act in one common direction towards common goals. the results indicate that there are serious differences in attitude and behaviour between supplier and customer collaborations. The reason for these differences is that the customer in many cases has a stronger position for negotiation and that this position is used to optimise the own company‘s business. supply chain partners still do not share a common vision or react to the same set of metrics. In addition to this. can have serious consequences for the supply chain: ―In summary. talk is cheap and supply chain management is still only part of today‘s jargon.

Three areas of special interest for further research can be identified in this study. One possible reason for the lack of process approach could be that in reality most companies have to manage several relations that they consider to be collaborations. On a basic level this question is concerned with the classic conflict between a functional oriented organization and the process approach advocated by SCM.Limitations of the study :The research work carried to understand the various aspects of supply chain management in the courier industry gives us the snapshot of the activities carried out in the industry. This would make the research into SCM and its consequences progress. Therefore this area has a great potential for improvement in the collaboration. Further. . One of the most interesting results from this study is the respondents‘ low degree of process approach in their collaborations. its entire domain cannot be covered in just one study. As a first step the reasons for the low figure must be investigated and analyzed further. A change could be difficult to realize due to interest conflict between different relations. Since a process approach encourages continuous improvements of the activities involved. It is my belief that more studies on SCM issues with a company perspective should be undertaken. Here more in-depth studies have to be performed in order to increase the understanding for the underlying reasons. Page | 91 . More research is needed on the subject of why functional interests still seem to override a process approach in the organization. The data collected were from only from 20 courier agencies having hubs in different parts of Bangalore city. as the concept of logistics and SCM is complex and involves a network of companies in the effort of producing and delivering a final product. the focal company will have to constantly evaluate such a change for all relations they have. Therefore the courier locations sites selected for conducting the study may not be true representation of the supply chain management carried out in various Courier compnay worldwide. Future research:This study takes the perspective of a focal company on SCM and collaboration issues in a supply chain.

Bibliography:http://www.etintelligence.com/ http://www.indianrail.gov.in/ http://www.nhai.org/ http://www.weforum.org/ Joshi, V. and Chopra, S.K. (2004). Best Practices in Supply Chain Management at Modi Xerox. In Sahay, B.S. (Ed.), Supply Chain Management for Global Competitiveness, 2nd Edition, Macmillan, New Delhi, 549-562. Kankal, R.A. and Pund, B.S. (2004). Reengineering of supply chain: The case of Crompton Greaves. In Sahay, B.S. (Ed.), Supply Chain Management for Global Competitiveness, 2nd Edition, Macmillan, New Delhi, 527-537. Kemppainen, K. and Vepsalainen, A.P.J. (2003). Trends in industrial supply chains and networks. International Journal of Physical Distribution & Logistics Management, 33, 701-719. Moberg, C.R., Cutler, B.D., Gross, A. and Speh, T.W. (2002). Identifying antecedents of information exchange within supply chains. International Journal of Physical Distribution & Logistics Management, 32, 755-770. Quayle, M. (2003). A study of supply chain management practice in UK industrial SMEs. Supply Chain Management: An International Journal, 8, 79-86.

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Appendices:INBOUND SUPPLY CHAIN:1) How many parcels do your company receives every day? 200-400 400-600 600-800 more than 800

2) How many authorized dealers are available in the city for the company? 10-20 20-30 30-40 40-50

3) How many numbers of area hubs are available in the Bangalore city? Less than 5 5-7 8-11 more than 11

4) How are the receipts generated at the authorized dealer while receiving the parcel? Computerized receipts Manual Receipts

5) Please tick Yes/No for the information which is printed on the receipts:-

Particulars Customer Name Receipts Name Customer Address Receipts Address Customer Phone Number Receipts Phone Number Bar Code Customer Care Number Policies and Regulations

Yes

No

6) How are the parcels brought from the authorized dealer to the area hub? Motorbikes Small Truck

Page | 93

7) How many trips in a day are made for collecting parcels from the authorized dealers? 1 trip 2 trip 3 trip more than 4 trip

8) Total Numbers of vehicles which are available to collect the parcels from the dealers? 1-5 5-10 10-15 15-20

9) What are the numbers of employees working in the area hub? <5 5-10 10-15 more than 15

10) On an average how long does it take to do the segregation of parcels from different location prior to dispatch? 15-30 min 30-45 min 45-60 min more than 60 min

OUTBOUND SUPPLY CHAIN:-

1) How many vehicles are available to dispatch the parcels to the destinations? 1-5 5-10 10-15 15-20

2) Does your company outsource the logistics to a third party vendor? Yes No

3) How many trips of vehicle are made for the dispatch of parcels in a day? 1 trip 2 trip 3 trip more than 4 trip

4) Is the facility for tracking the package available online? Yes No

5) On an average how many days does it take to send a parcel anywhere in India? 1 day 2 days 3 days more than 4 days

6) On an average how many days does it take to send a parcel outside India?
Page | 94

Less than 3 days 3-5 days 5-7 days more than 7 days 7) What kinds of vehicles are used to dispatch the parcel destination area hub to the customer address? Motorbikes Small trucks Role of Information Technology:1) Does your courier company use computer application to process packages (if yes which one)? No Yes 2) Please rate your response on the scale of 5 (1-stongly disagree 5-strongly agree) Has the computer application helped in? 1 Fulfilling the overall needs of the company Reduce the package processing time Improved the delivery speed Improvised logistic management Reduce the overall cost 2 3 4 5 Occurrences of Waste:Strongly disagree Are the vehicles well maintained? Are Regular emission inspections are conducted? Do paper and office waste occur? Route planning for vehicle is done for shortest delivery time? Disagree Neither agree disagree Agree or Strongly agree Page | 95 .

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