Every company dreams of achieving the seven R's - delivering the right

product in the right quantity and the right condition, at the right place, at the right
time, for the right customer at the right cost. Effective logistics management alone
can make this possible. In due course, quality and low cost became the winning
combination.

The various processes and elements that are part of logistics as a discipline are:

Inbound logistics: Purchasing, Inbound transportation, Inventory

Management.

Manufacturing: Production planning systems, Machine scheduling system.

Outbound logistics: Order booking process, Distribution management,

outbound transportation, and Warehouse management systems.

BLUE DART is South Asia's leading integrated air express carrier and
premium logistics-services provider. It has the most extensive domestic network
covering over 13,880 locations, and service more than 220 countries and
territories worldwide through its Sales alliance with DHL, the premier global
brand name in express distribution services.

Bluedart uses Hub and Spoke Model for its supply chain distribution.
What is Hub and Spoke ?
The spoke-hub distribution paradigm is a form of transport topology
optimization in which traffic planners organize routes as a series of "spokes"
that connect outlying points to a central "hub". Simple forms of this
distribution/connection model compare with point-to-point transitsystems, in
which each point has a direct route to every other point, and which modeled the
principal method of transporting passengers and freight until the 1970s. Delta
Air Lines pioneered the spoke-hub distribution model in 1955, and the concept
revolutionized the transportation logistics industry after Federal
Express demonstrated its value in the early 1970s.
Benefits
The hub-and-spoke model, as compared to the point-to-point model, requires
fewer routes. For a network of n nodes, only n - 1 routes are necessary to
connect all nodes so the upper bound is n - 1, and the complexity is O(n). That
compares favourably to the n(n-1)/2 routes, or O(n2), which would be required
to connect each node to every other node in a point-to-point network. For
example, in a system with 20 destinations, the spoke-hub system requires only
19 routes to connect all destinations, and a true point-to-point system would
require 190 routes.
Drawbacks
The hub and spoke model are centralised, the day-to-day operations may be
relatively inflexible, and changes at the hub, even in a single route, may have
unexpected consequences throughout the network.
Problems Faced by BlueDart in recent Years
1. Delay in delivery of the products to the customers compared to the rivalry
companies (Delhivery).
2. Bluedart deliver 2.3 Million of products each day. As the company uses
hub and spoke model transit purposes and majority of shipments touch
multiple transit points it is inevitable that sometimes airlines which are
responsible to carry our load offload shipments as they cannot carry
weight more than stipulated on a plane.
3. In surface mode our containerised truck tends to breakdown in route or
meet with an accident, reasons could be numerous so these result in delay
in transit time, which is notified as “ NETWORK DELAY, WILL
IMPACT DELIVERY”.
Increase in fuel prices The Company has a ground support of 11,122 vehicles
which includes light weight vehicles and Heavy weight vehicles.

1. The fuel price such as Diesel price is at Rs.62.50/liter in 2018 on Jan 1

but in October nearly touched Rs.80/Liter, the increase in diesel prices
increased the operating expenses.
2. The increase in jet fuel from Rs.124/Litre in January to Rs.165/Litre in
October.
3. This resulted in the increase in the operating cost upto 70Crs in 2018.