GSCM Rosel Gupta

GLOBAL SUPPLY CHAIN MANAGEMENT

ATTAR LOGISTICS: THIRD PARTY

LOGISTICS FOR DABUR

Submitted to: Submitted by:

Ms. Ankita Bhardwaj Rosel Gupta

Senior Research Fellow (SRF) MBA-B (25)

University Business School University Business School

Panjab University, Chandigarh Panjab University, Chandigarh

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CONTENTS
INTRODUCTION....................................................................................................................3

Definition...............................................................................................................................3

Benefits..................................................................................................................................3

Cons.......................................................................................................................................4

Role of 3PL............................................................................................................................5

Types......................................................................................................................................6

Levels of Outsourcing in 3PL..............................................................................................7

DABUR......................................................................................................................................7

About the company...............................................................................................................7

ATTAR LOGISTICS...............................................................................................................9

About the company...............................................................................................................9

Operations and Client Base...............................................................................................10

Infrastructural facilities.....................................................................................................10

Network Area......................................................................................................................11

Services they provide..........................................................................................................11

A. WAREHOUSING AND LOGISTICS...................................................................11

B. BUILDING WAREHOUSES.................................................................................12

Additional Services.............................................................................................................13

REFERENCES.......................................................................................................................13
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INTRODUCTION

Definition
A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass
anything that involves management of one or more facets of procurement and fulfilment
activities. In business, 3PL has a broad meaning that applies to any service contract that
involves storing or shipping items. A 3PL service may be a single provider, such as
transportation or warehouse storage, or it can be a systemwide bundle of services capable of
handling supply chain management.

It allows a firm to outsource operational logistics from warehousing, all the way through to
delivery, and ultimately enables them to focus on other parts of their business. Third-party
logistics companies provide any number of services having to do with the logistics of the
supply chain. This includes transportation, warehousing, picking and packing, inventory
forecasting, order fulfilment, packaging and freight forwarding.

Benefits
Using a 3PL provider offers lots of advantages. The biggest is that by handing over this
logistics, company can focus on other aspects of their business such as sales, marketing and
product development. Outsourcing 3PL leaves the company with more time and resources.
Here are a few other advantages:

 Cost reduction:
3PLs have more leverage with freight companies than individual shippers do.
Working with carriers on behalf of multiple customers, 3PLs can negotiate pricing
based on volume and order frequency. Using a 3PL to manage all or part of business
supply chain also gives the freedom to invest in other key areas to grow and develop
the business.
 Scale up or down as needed:
Most businesses experience fluctuations in demand throughout the year. Using a 3PL
allows the company to manage peaks and troughs more effectively without having to
commit to capital when they don’t need to.
 Provide a better customer experience:
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Customers expect next-day or same-day shipping as standard. Using a third-party

logistics provider allows to offer fast shipping no matter where the order is being sent,
thanks to having access to the 3PL’s wide distribution network.
 Test new markets:
With an international 3PL, companies have the flexibility to test the waters in new
markets without having to commitment to any major investments like their own
warehousing space or staff.
 Mitigate risk:
Shipping delays can and do happen for a number of reasons. When unforeseen
circumstances pop up, a 3PL is responsible for making alternate arrangements to fulfil
the orders as quickly as possible. Company will also be protected in the event of
damage or loss of goods.
 Gain instant expertise and knowledge in the field:
Especially if the business is just starting out, who better to take care of its logistics
than a company that specializes in them? Fulfilment, warehousing and shipping come
with major challenges of their own, so handing it off to the experts can really make a
difference in the way it functions - and it leaves the firm to focus on increasing the
overall value to its customers.
 Get a handle on international logistics:
If a company is selling internationally, 3PLs can take care of documentation, customs,
duties and other issues that come up at the borders that can delay the shipments and
result in high costs if not done thoroughly. Plus, it saves time trying to work out
complicated rules pertaining to different countries.
 Generate cost savings:
When it comes to warehousing, not having to maintain one’s own space and staff can
be a big cost-saving measure. Also, companies that provide good inventory
forecasting can help optimize your inventory levels and save money on inventory
holding costs.

Cons
A 3PL isn’t for every business. Here are a few drawbacks to be considered:

 Lesser control over the delivery process:

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With a third-party taking care of company’s shipping, there can be challenges when
there are delays or problems in shipping a customer’s order. The customer will be
looking at the company for the resolution, not its 3PL.
 Larger upfront investment:
On the flip side of the cost issue, while hiring a 3PL can pay for itself in the long run,
the investment can still be a large cost in the beginning. If a company doesn’t need a
big warehouse or doesn’t have many orders, the cost of a 3PL can be prohibitive.
 More distance between the company and its product:
The 3PL a company chooses may position them far away from their products, which
would be an inconvenience if the company runs into quality control issues, or needs to
physically inspect their stock for any reason.

Role of 3PL
Supply chain management is all-encompassing, it isn’t just about the transportation,
procurement, or storage of goods. It actually covers the entirety of the operation. Everything
from manufacturing right down to the last-mile delivery falls well within the domain of
supply chain management. Needless to say, the fulfilment of these operations is always being
improved upon and new ways of working implemented. And a well-rounded third-party
logistics company knows how to adapt to these changes quickly and efficiently.

To give an example of the sort of work that most 3PL providers handle, let’s say we have a
shipping company that needs some logistics help. The shipper wants to start exporting their
goods overseas. But they have one major hurdle to jump; they’ve never shipped
internationally before. So, to make the process go a bit more smoothly, they hire an
experienced third-party logistics company to help them get their goods shipped.

The 3PL company searches for the best rates, most reliable carriers, and gets all the
paperwork started. Once the goods are ready for shipment, the 3PL picks up the international
order, books the carrier, and delivers the cargo to the nearest port. Finally, they make sure
that it clears customs as it travels across borders to be received by your customer on the other
side. Literally, every part of the shipping process is taken care of by one single party; a third-
party logistics company.
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Types
The following are the different types of third-party logistics services:

A. Transportation Based Third-Party Logistics Services

 Services extend beyond transportation to offer a comprehensive set of logistics
offerings.
 Leveraged 3PLs use assets of other firms.
 Non-leveraged 3PLs use assets belonging solely to the parent firm.
 Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics
B. Warehouse/Distribution Based Third-Party Logistics Services
 Many have former warehouse and/or distribution experience.
 Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics
C. Forwarder Based Third-Party Logistics Services
 Very independent middlemen with forwarder roles.
 Non-asset owners that provide a wide range of logistics services.
 Examples: AEI, Kuehne & Nagle, Fritz, Circle, C. H. Robinson, Hub Group
D. Shipper/Management Based Third-Party Logistics Services
 Focused on the management of the shipping process from beginning to end.
 Provides technology, such as a transportation management system, and integrated
freight management services to eliminate heavy process and cumbersome features
such as claims and accounting (freight payment and accounting)
 Provides management of carrier relations for ongoing rate maintenance and
negotiation
 Gives information, such as freight data and matrix reports for better visibility and
control on future logistics outcomes
 Examples: Cerasis, AFS Logistics, GlobalTranz, Worldwide Express
E. Financial Based Third-Party Logistics Services
 Provide freight payment and auditing, cost accounting and control, and tools for
monitoring, booking, tracking, tracing, and managing inventory.
 Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston
F. Information-based firms Third-Party Logistics Services
 Significant growth and development in this category of Internet-based, business-to-
business, electronic markets for transportation and logistics services.
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 Examples: Transplace, Nistevo, FreightQuote.com, uShip

Levels of Outsourcing in 3PL

Not all third-party logistics services are created equal when it comes down to the relationship
in the way a shipper will outsource to them. So, the following are the different types of levels
of outsourcing:

 Transactional Outsourcing: Based on transactions, with no long-term contracts and

no bonding between the 3PL and the outsourcing company.
 Tactical Outsourcing: Outsourcing on a long-term basis with negotiated contacts and
integrated IT systems to facilitate free information flow and create supply chain
visibility.
 Strategic Outsourcing: Based on long-term relationships with successful outcomes,
3PL companies become partners in supply chain management and establish
transactional transparency.

DABUR
(Company availing the service)

About the company

Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand
identities -- Dabur as the master brand for natural healthcare products, Vatika for premium
personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for
fairness bleaches and skin care products.

Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The ayurvedic company has a wide distribution
network, covering 6.7 million retail outlets with a high penetration in both urban and rural
markets.
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Dabur's products also have huge presence in the overseas markets and are today available in
over 100 countries across the globe. Its brands are highly popular in the Middle East, SAARC
countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over
27% of the total turnover.

The 135-year-old ayurvedic company, promoted by the Burman family, started operating in
1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of
Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-
owned consumer goods companies with the largest herbal and natural product portfolio in the
world. Overall, Dabur has successfully transformed itself from being a family-run business to
become a professionally managed enterprise. What sets Dabur apart from the crowd is its
ability to change ahead of others and to always set new standards in corporate governance &
innovation. Dabur also recommends various Ayurvedic Home Remedies formulated using
ayurvedic plants & herbs which are natural & chemical free.

Vision
"Dedicated to the health & well-being of every household"

Mission
 Ownership- Accept personal responsibility, and accountability to meet business
needs.
 Passion for winning- Everyone is a leader in their area of responsibility, with a deep
commitment to deliver results. Company is determined to be the best at doing what
matters most.
 People Development- People are the most important asset. Dabur adds value through
result driven training, and encouragement & reward excellence.
 Consumer Focus- They have superior understanding of consumer needs and develop
products to fulfil them better.
 Team Work- They work together on the principle of mutual trust & transparency in a
boundary-less organization. They are intellectually honest in advocating proposals,
including recognizing risks.
 Innovation- Continuous innovation in products & processes is the basis of success.
 Integrity- They are committed to the achievement of business success with integrity.
Dabur is honest with consumers, with business partners and with each other.
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ATTAR LOGISTICS
(Company proving the service)

About the company

A leading 3PL services company specializing in logistics and warehousing development and
management with a strong presence in North India. The company specializes in delivering
optimal road transport solutions ensuring goods to be delivered in right place and right time.
The solutions are customized and a robust technology enabled feedback mechanism is in
place that allows total transparency and round the clock monitoring. They are proud of their
hardworking team and freight movers who are ably supported by our assets and infrastructure
of brand-new fleet and extensive warehousing facilities.

It is a Non-govt company, incorporated on 15 Feb, 2010. It's a private unlisted company and
is classified as company limited by shares. Company's authorized capital stands at Rs 49.0
lakhs and has 100.0% paid-up capital which is Rs 49.0 lakhs. Attar Logistics Private Limited
last annual general meet (AGM) happened on 30 Sep, 2017. The company last updated its
financials on 31 Mar, 2017 as per Ministry of Corporate Affairs (MCA). Attar Logistics
Private Limited is majorly in Transport, storage and Communications business from last 10
years and currently, company operations are active.

It is a pioneer in Logistics and Supply Chain Solutions in India. Attar Logistics offers
comprehensive supply chain services to their Trade Partners. They are one of the fastest
growing Corporate Empires in North India. Being an integrated 3 PL Service provider in
Ware Housing, Carrying and Forwarding, and Supply Chain and having an expertise,
excelled in this field for the last more than 40 years.

Vision
They aspire for a position of pre-eminence in their business through diligence, total client
satisfaction and acts of responsibility towards society and environment.

Mission
Partnering in the progress by:
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 Trust, Integrity and value-based approach.

 Commitment and reliability at all levels.
 Bringing new technologies and upgrading our infrastructure for better services.
 Proactive and innovative approach for providing solutions to the logistic needs.
 Providing better facilities and easy access to meet client needs.

Operations and Client Base

Already operating in Jammu and Kashmir since 1952 with Nestle, 1958 with Bawa Masala
Company, 1996 with Dabur India Limited and other Companies as detailed in the profile and
thereon started expanding to Punjab, Himachal Pradesh with Dabur India Limited, Jallandhar
since 2011, Asian Paints, Ludhiana since, 2008; LG Electronics India Private Limited, since
2006; Shell India Markets Private Limited, since 2009. Our vision has always been to look
for top rated business houses where we can provide best of the services.

They service domestic majors and multi-national corporations like Dabur, LG, Pepsico,
Kellogg’s, Cargill, British Paints, Exide, Dawaat, Shell and dozen others.

They help their clients in the following manner:

 Clearing & Forwarding Services.
 Distribution Services.
 Transport Services.
 Warehouse Services

Infrastructural facilities
 Vehicle types available: TATA-207, TATA-407, CANTER, LPT-1109, LPT-Trucks.
 Warehouse Space: More than 5 lacs square ft.
 GPS available in own vehicles
 GR in ALPL: Software managed
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Network Area

Services they provide

A. WAREHOUSING AND LOGISTICS
They receive goods from the companies of the principal (or consignment agents) and
according to the dispatch orders, arrange dispatch of goods to the distributors and the end
user. Their warehousing solutions are customizable according to the customer needs. The
services are available on short term as well as long duration basis. Selection of the
warehouses is aligned to the objectives and needs of the customer.

a. Primary Logistics
Through their own fleet, as well as that of their sub-contractors, they arrange optimal road
transport solutions from manufacturing hubs to warehouses or warehouse to warehouse, thus,
ensuring that the goods are picked up and delivered at the right place and at the right time.
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Their approach is bespoke and there is a feedback mechanism in place that allows total
transparency and round the clock monitoring.

b. Secondary Logistics
Their services include delivery and logistics of products from warehouses to smaller
distribution centres and the end users. They also facilitate reverse logistics on need basis from
smaller distribution centres to the warehouses or to the manufacturing hubs.

B. BUILDING WAREHOUSES
‘Our expertise and your needs.'

 They design and construct warehouses for accommodating loads, the associated
handling equipment, receiving and shipping operations and associated trucking, and
the needs of the operating personnel.
 Their warehouses best accommodate business service requirements and the products
to be stored/handled.
 Their warehouses not only look after the current needs, but can be adapted to future
requirements like offices, computer centres or light industrial fabrications.
 They can address material handling technologies and business processes like “Just-in-
time.”
 They have built-in extra structural capacity to handle addition of future rooftop
equipment. They are designed with fire protection capacity.

Their warehouses are:

 Functionally efficient
 Safe and comfortable
 Increase productivity
 Reduce operating cost

Health/comfort features they provide:

 Proper ventilation
 Proper local exhausts
 Proper integration of daylight and electrical lighting
 Minimized sound effects
 Unique character and 'sense of space
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Additional Services
Through their commitment to ensure the safety, health and overall well-being of their
associates, trade partners, employees and stakeholders they:

 Provide adequate resources to ensure continuous improvement in their Occupational

Health and Safety performance.
 Set appropriate objectives and targets and conduct periodic performance reviews
against these targets.
 Adopt measures and processes that focus on prevention of occupation- related
accidents, injuries, illness and strive to continuously improve upon such processes.
 Communicate, involve, and consult associates on Health and Safety provisions and
ensure their commitment and participation in the implementation of policies and
processes.
 Ensure occupational health and safety awareness and build competency among
associates at all levels to handle individual responsibilities, through appropriate
training, and proactively adhere to all health and safety requirements to ensure a safe
work place for themselves as well as others.
 Mock drills are carried out from time to see that the efficacy and efficiency of the
organization is in place.

REFERENCES
 The Essential Guide to Third Party Logistics: What is a 3PL, Considerations for
Hiring, & How to Select & Implement a 3PL by Cerasis
 An Overview of Third-Party Logistics by Chrisoula Papadopoulou, Phd, MIT
 https://www.attarlogistics.com/index.php
 https://www.dabur.com/
 https://www.scribd.com/document/28745434/Dabur-Over-the-Years
 http://www.attarlogistics.com/dabur_celeb.php
 https://www.sci.ca/the-hub/sci-news/what-is-3pl-logistics/
 https://www.tradegecko.com/supply-chain-management/what-is-3pl
 https://en.wikipedia.org/wiki/Third-party_logistics