ANALYSIS ON THE INNOVATION IN SERVICE DELIVERY

Submitted to: Shalni singh

Submitted by: Sachin Dixit (jiml-10-118) Ravi Garg (jiml-10-113) Pawan Prashad Upadhaya(jiml-10-FS-032) Utkarsh Pratap Singh(jiml-10-14) Chaitanya Mohan(jiml-10-175)

Index

ACNOWLEDGEMENT---------------------------------------------------------------------3 EXECUTIVE SUMMARIES---------------------------------------------------------------4 GLOBAL LOGISTIC SCENARIO--------------------------------------------------------5 SIZE OF GLOBAL LOGISTIC INDUSTRY -------------------------------------------8 SIZE OF THE LOGISTIC MARKET IN INDIA----------------------------------------9 COURIER INDUSTRIES-------------------------------------------------------------------9 SALIANT FEATURE OF INDUSTRIES-----------------------------------------------11 COURIER SERVICES IN INDIA-------------------------------------------------------11 RELATION BEHIND THE PROJECT -------------------------------------------------15 RESERCH METHODOLOGY-----------------------------------------------------------16 BLUE DART--------------------------------------------------------------------------------18 DTDC-----------------------------------------------------------------------------------------20 FIRST FLIGHT-----------------------------------------------------------------------------20 SUPPLY CHAIN MANAGENENT-----------------------------------------------------27 PERFOMANCE MANAGEMENT------------------------------------------------------28 CUSTOMER PERCEPTION MEASUREMENT--------------------------------------30 CONCLUSION--- --------------------------------------------------------------------------31 RECOMMENDATION--------------------------------------------------------------------31 BIBLIOGRAPHY--------------------------------------------------------------------------31

ACKNOWLEDGMENT

A project always is a result of collaborative efforts. This one has been especially so. We are indebted to many people who have made this happen. It is the right time to speak out the word of thanks for them. We sincerely admit that without their efforts & blessings, this project would not have taken its presence. We also thank to Shalini Tripathi for guiding us in this project idea. We would like to express our simple words of respect & gratitude imprinted deep in our heart to the in-charge, computer center, for providing us the guidance & never ending support.

Executive Summery
The market for courier and express services is defined as the business sector that supplies the need for rapid collection and delivery of documents and packages, including the services provided by the national post. Items covered by this definition include mail, parcels and other items with a high value-to-weight ratio and a time-sensitive delivery requirement. India's new Conservative/Liberal Democrat Coalition Government has announced that it is relaunching plans to part-privatize indicating that it would seek `an injection of private capital' into the organization. Prior to this, in February 2009, Due to lack of support for the part-privatization. the progress of the Bill was halted. Had it been passed into law, however, it would have introduced significant changes into the Indias postal services sector. The `other courier and express services' sector is concerned with the collection and delivery of time-specific items. Difficult trading conditions in 2009 which included a shift away from the more expensive next-day delivery options to economy products, and also a reduction in the average weight per consignment caused many of the leading companies to rationalize their operations. This restructuring process included reductions in the number of depots operated, in the numbers of hubs maintained, in the size of the vehicle fleets operated and in the numbers of people employed.

GLOBAL LOGISTICS SCENARIO:

In a move to cut down costs, producers are exploring around the globe in search for the lowest cost exporters/suppliers. Lured towards developing countries in south-east Asian region for lower-wages, transportation industry is stretching its reach longer than ever before. Major players are focusing overseas markets for outsourcing cheap manufacturing as well as expanding their businesses. This result in outbound logistics. And acceleration in manufacturing capacity is driving many producers to shutter superfluous plants. The rest of the plants are gaining the developing rhythm, but must export overseas now to sustain their positions in the market. Boom in the Internet based services made overseas suppliers capable to match foot with local suppliers. Web-based sales, services and supplies are emerging vertically. The expanding reach has compelled logistic industry to spur crossborder trade. Regardless-of this outbreak of activity, it is commonplace also for expert managers of local logistics to get acquainted with the complexity of international trade logistics. Global transportation and relevant services includes much complex documentation than for domestic shipments. It almost includes longer delivery times. Evaluation of the arrival times of international shipments is just a magic than solid fact. The business players always look for just-in-time shipments, thus it aspires enhanced build to order model and lot-size-of-one shipments, which results more
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pressure on logistics industry. Logistics industry has usually been old-fashioned traditions. Usually, the shipping personals would decide for carriers, customs agents and so on. Normally, their search doesnt go beyond the initial service providers who cover all the minimum requirements. Once the shipment kicks off its journey towards its destination, it is really hard to assume reaching time. For example, a ship that started its journey from Asia could meet harsh weather, which may delay its reaching on the West Coast for three days. On the other hand, the trucks at the West Coast would have to wait and sat empty and ideal for the three days, which would certainly result in big loss. These kind of unpredictable losses are usual in international logistics. Thus, even the largest multi-national companies avoided logistic services on a worldwide basis. They opt to establish their operations in each country and let them to manage logistics individually. The boom in Internet services changed international logistics rapidly. At present, vendors can cater massive numbers of global shipments. Complying with this, they create and uphold substantial databases, which cover countryspecific laws and regulations. Factually, thousands of combinations of containers, ports, and so on are likely counted for moving a shipment. 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. A biggest disadvantage in international logistics is the vagueness in arrival times. Materials managers have had modest choice, so they had get around by adding more safety stocks. Thus, the costs of inventory management in the overseas parts are naturally higher.
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The uncertainty of delivery time is due to not tapping of international shipments closely and step by- step. This is easier said than done. However vendors are now offering tracking system, which is necessary in continuous tracking of both international logistics network, and electronic visibility in each yard and carrier. Although there is much to be done to achieve this stage, the pieces of the puzzle are gradually coming together. Even though vendors are offering a worldwide network, significantly added and dedicated, equipment is still required. For example, tracking completed products needs a yard management system, which recognizes each container in the yard and its placement. The radio frequency Identification (RFID) tags in containers, whose place is detected by antennas located in the yard. Maintaining the clear vision also needs tracking the containers as soon as they leave the yard. This tracking is possible by Global Positioning (GPS) systems and satellites, however, use of these systems are not usual at present. As a result, the industry does not provide step-by-step tracking of container. An important trend among logistics services providers would aid the industry. Logistics industry veterans unveil that logistics service providers are extending reach worldwide and expanding their services too. Regardless of understandable limitation, global logistics should obviously improve. Web-based companies and technically ground-breaking carriers such as UPS Logistics, Ryder, and others will carry on showing the way. Global logistics in near future should be distant more faultless and reasonably priced than ever.

Size of the global logistics industry:

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Currently the annual logistics cost of the world is about USD 3.5 trillion. For any country, the annual logistics cost varies between 9% and 20% of the GDP, the figure for the US being about 9%. US-based Armstrong & Associates, Inc. tracks the issues and trends in the world logistics market and in the US logistics market, in particular, in their annual surveys of top 25 global LSPs. According to the firm, the global logistics market sizes in 1992, 1996 and 2000 were USD 10 billion, USD 25 billion and USD 56 billion, respectively. In 2003 and 2004, the corresponding figures were USD270 billion and USD 333 billion, registering high growth rates. Though most of the large LSPs are headquartered in Europe, the US logistics market is the largest in the world capturing one-third of the world logistics market. In 2003, it was about USD 80 billion. In 2004, it grew to USD 89 billion, and in 2005, it registered an impressive growth rate of 16% to cross the USD 100 billion mark for the first time and reach USD 103.7 billion (Foster and Armstrong, 2004, 2005, 2006). However, considering the fact that the logistics market in the US is about 10% of its annual logistics cost (Foster and Armstrong, 2006), there is still immense potential for growth of 3PL in the US in particular, and in the world in general.

SIZE OF THE LOGISTICS MARKET IN INDIA:

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Indian Supply Chain and Logistics Industry is more than USD 100 Billion in size and is the backbone of Indian Economy. Our industry is growing at a rate of 810% annually and has been a crucial contributor in the growth and development of the Indian economy. In the near future, Traditional Logistics services like Transportation and Warehousing would continue to growth at a good rate. However, the big ticket growth would come from the Value Added Logistics services in the near future. At present, Outsourced Logistics accounts for only one-third of the total Logistics market in India, which is a significantly lower proportion vis-a-vis the developed markets. Growth in this industry is currently being driven in India by over USD 300 billion worth of infrastructure investments, the phased introduction of VAT, the development of organized Retail and Agro-processing industries, along with a strong manufacturing growth. In addition, we expect strong Foreign Direct Investment inflows in the Indian markets, which would lead to increased market opportunities for providers of Third-Party Logistics in India. Therefore, India possesses substantial opportunities for growth in the Supply Chain & Logistics industry in the coming years, notwithstanding the temporary jolt due to the economic slowdown.

Courier Industries:

Couriers are basically a service for sending money or goods at some extra cost. It involves a person or a company engaged in transporting, dispatching and distributing letters, parcels and mails. In a rather layman term, it can be said that, compared to normal mail service, a courier possess many added features. A courier is much faster, safer and secured than ordinary mail. It is a specialized service with authenticated signatures. It has tracking service with each service being treated as a specific individual case. Dedicated timely deliverance is its primary hallmark. These features do cost a bit extra but with so many features available, the cost gets leveraged. The courier industry specializes in time-definite, reliable transportation services for documents, packages and freight. This is done via a combination of transport networking that includes road, rail, sea and air for door-to-door delivery. This extensive distribution system is supported by infrastructure that comprises hubs, warehouses, IT technology and human resources, as well as offices in various cities. More and more courier companies appear on a regular basis, and you may have noticed different courier logos and branding on vans and planes across the world. Many of these courier companies operate independently, where as others rely on some of the larger courier companies when it comes to providing international deliveries. One of the main reasons for the increase in courier companies is the boom in global trade, probably largely down to the Internet. Couriers have to deal with all sorts of requests from delivering simple mail documents to large electronic items like computers, printers and televisions. Simply put, the courier market has grown due to demand from customers and businesses.

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SALIENT FEATURES OF THE INDUSTRY

The courier industry specializes in time-definite, reliable transportation services for documents, packages and freight.
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, making it one of the fastest growing segments in the transportation of cargo. International express cargo holds 6% of the express cargo industry, but is forecasted to reach 40% by 2017. 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. Currently there are about 2300 courier companies in India, but four major players in the premium organized segment dominate the industry.

COURIER SERVICES IN INDIA:

The courier industry has world over been recognized as an essential and indispensable part of any economy. In India, various factors like growth of the industrial segment, growth in exports and imports and overall economic scenario of the country have contributed to the growth of the courier industry.
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Domestic courier industry with a turnover in excess of INR 22 bn is still in a nascent stage. India has more than 2,300 courier companies. It is a highly disintegrated industry with nearly 20 players in the organized sector, 2,000 in the semi organized sector, and the rest in the unorganized sector. There are a few major players in the organized sector who have a combined market share of 90%. Indian courier industry was initially limited to all the four metros. The reason was the airport connection these metros were having. The industry had its start some 15-20 years ago. But with changing economy and technical advancement seen on a daily basis, the industry has extended fast to several metropolis, township and even rural areas. Train, bus, motorcycle and even bicycle have helped the industry in this regard. 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. 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, making this one of the fastest growing segments in the transportation of cargo. International express cargo holds 6% of the express cargo industry, but is forecasted to reach 40% by 2017.

These are some key players in Indian Courier Industries:

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1. Blue Dart 2. DHL India 3. FedEx India 4. First Flight Couriers 5. AFL 6. Gati 7. Elbee Express 8. Overnite Express 9. TNT India 10.UPS India Blue Dart Express Ltd. (Blue Dart) is the market leader, with a 36% market share in the domestic market, and First flight Services Ltd., the second largest player, has a 20% market share. AFL-DHL is primarily focused on the international segment, where it is the market leader, whereas Gati Corporation Ltd. (Gati) is the market leader in the domestic packages, ground distribution segment. In the domestic air packages segment, Blue Dart, having developed its own air network and aircraft operations, is currently the market leader.

Revenues of Major Player in the Indian Market (Rs. bn):

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The organized segment dominates the package and the premium document business since it requires a strong infrastructure and resources, while the lowyield document business is the domain of the unorganized sector. 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.

Revenue Distribution:

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Rationale behind doing this project: In the transport segment, courier companies are playing major role to provide services in India. There are three crucial elements which are involved in the supply chain management of the courier companies. 1. Procurement 2. Process and 3. Delivery. In a comparative business environment the companies will have to manage these things with low-cost, customer satisfaction and justin-time. If any company fulfils customer satisfaction with low cost strategy and just in time, the company will be effectively more competitive. So at the managerial point of view, it is very good opportunity for me to learn that how the courier companies manage the above things. The project report is useful to courier agencies in relation to improving the operational efficiency, timeliness of the delivery scheduling and overall customer satisfaction. The courier companies can analyze the efficiency and
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time management through this project. And they will also well aware about their strength and weaknesses in comparison to other courier companies. Objectives and scope of study: 1. In-depth study of the supply chain structure, operation linkages and process integration.
2.

Testing of the marketing strategy based on just in time concept of the supply chain.

3. Marketing and growth strategy of the courier companies with focus on cargo operation and improving service quality. 4. Comparison of Service quality the companies for customer satisfaction.

RESEARCH METHODOLOGY:
The objective of the present study can be accomplished by conducting a systematic market research. Market research is the systematic design, collection, analysis and reporting of data and findings that are relevant to different marketing situations facing the company. The marketing research process that is adopted in the present study consists of the following stages: 1. Defining the problem and the research objective : The research objective states what information is needed to solve the
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problem. The objective of the research is to study the Indian Logistics industry growth drivers and its comparison with the other countries. 2. Developing the research plan: Once the problem is identified, the next step is to prepare a plan for getting the information needed for the research. The present study adopted the descriptive approach wherein there was a need to gather large amount of information before making a conclusion.

3. Collection and Sources of data: Primary Data: Primary data will be collected from the customers through the questionnaire. The sample size will be 200 from the five representative courier companies. Secondary Data: Secondary data will be collected from the authorized agents of the companies, magazines, newspapers and internet. 4. Analyze the collected information: This involves converting raw data into useful information. It involves tabulation of data, using statistical measures. Statistical Tools: Bar Diagrams Column Diagram etc. 5. Report research findings:
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This phase marks the culmination of the marketing research effort. The report with the research findings is a formal written document.

BLUE DART:
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. BLUEDARTS vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, they have evolved an infrastructure unique in the country today.

Its Competitive Advantage lies in:

Blue darts 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.
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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). Its 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. Its Technology Designed to enhance the reliability of our operations and process efficiency, and add value to the customer through time and cost savings. Its 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 selfsustaining, 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. Its People force Committed, diverse and over 4,000 strong are companys most valued asset. All companys achievements have been possible because they have a team
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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 companys managers are homegrown.

DTDC:
DTDC is Indias Largest Domestic Delivery Network Company offering various custom made services ranging from Domestic to International. DTDC delivers to the remotest places in India with the help of 4,000 business partners spread across the length and breadth of India. DTDC Courier & Cargo Ltd. (DTDC) was incorporated in 1990. Within a span of 17 years, 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. Today DTDC is one of the largest Indian company in the Express industry. DTDC can also be credited with pioneering the franchisee concept for the courier industry in India, and today has the largest franchisee network. Its headquarter is at Bangalore, with 4 of its Zonal Offices at Delhi, Kolkata, Chennai & Mumbai, DTDC currently serves around 10,000 pincode areas and has over 4,000 Franchised outlets, supported by 176 offices, which includes its Branch offices, Regional offices, Area offices, Hubs and Sub-offices. It handles 10 million consignments every month. DTDC serves over 240 international destinations.

First Flight:
First Flight Couriers came into being on Monday, 17th November 1986. It all began with the setting up of three offices at Kolkata, Mumbai and Delhi. The overwhelming response from customers, was not just a dream come true, but the fruits of an early realization and recognition of the tremendous
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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. P. Saboo which created a spring board for the organization to catapult into what it is today Indias Largest Domestic Courier Company. 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, First Flight is in the process of setting up a large scale integrated Logistics Division to offer an entire gamut of Warehousing, Inventory Management, Supply Chain Services and Distribution Channels, thereby providing total end-to-end solutions to customers. In keeping with times, First Flight continues to invest substantial effort in building a State-of-the-Art Super Information Technology highway. First Flights 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, shall be the corner stone of its philosophy.
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C pany WhichPeoplePrefferm om ostly

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26 DHL Blue Dart

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First Flight DTDC

40

Here are the companies through which people will having the services and amongst them Blue Dart is the leading company which having 40% of customers for courier services.

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According to our survey 50% of the people are using the monthly basis services and rest of the people use 25% for daily as well as weekly basis.

Different Occupation which use Services:

40 35 30 25 20 15 10 5 0 Service Business 20 40 40

Proffsional

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After using the services offered by the companies 55% of the people are very much satisfied with the overall performance offered by the companies and rest of the people are not so much very clear about their ideas towards the services.

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Belief of People whether they want any change or not in Courier Industry

50 45 40 35 30 25 20 15 10 5 0 Strongly Ag ree Ag ree Can't Say Disagree 15 30 45

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According to our survey report we came to know that 45% of the people are not sure that whether they want any changes in industry or not only 15% of the people thinks that they will follow the changes if any there in the Industries.

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After having the services offered by the courier services 50% of the people has a good experience with the services, 25% of people have excellent opinion about the services and rest of the people has a mix opinion about the services according to our survey.

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According our survey mostly the documents are sent to the clients through courier company with 60% of wattage and rest of the things are divided in to small numbers.

Supply Chain Management:

Definition for supply chain management Supply chain management is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. Explanation: The supply chain is the network of organizations that are involved through upstream and downstream linkages, in the different processes and activities that

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produce value in the form of products and services in the hands of ultimate consumer. Supply Chain Optimisation Good design is at the heart of an effective supply chain solution. DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control. Their in-house teams have contributed to the solutions design of some of the world's leading brands and enabled to win key contacts.

DHL solutions design team offers a wide portfolio of expertise and services, from logistics network strategy, transport design, warehouse design and simulation, through to operational improvement and inventory analysis.

International Supply Chain Extended Supply Chain Services Implementation Services Outsourcing Projects

Performance Management :
Performance management is a key part of the supply chain. Measured elements are reviewed as a system, as each component interacts with all the other parts around it. Performance measuring not only records historical performance but also provides early indication of any service slippage. In this second role, the measures provide a valuable contribution to DHL's Continuous Improvement Program.
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Innovative Supply Chain Development:

Supply Chain Management services are delivered across industry sectors and provide expertise, knowledge and resources in terms of personnel and supply chain tools. All services are targeted at optimizing logistical operations in both process and strategy, and are aligned to the client's commercial expectations. The services are as follows:

Strategic Logistics Consulting Lead Logistics Provider Consulting and providing Transport optimization: Route-Pro and Trans-Pro Consulting and providing Supply Chain Design Consulting and providing Transportation Engineering, optimization and re-engineering Implementation and Project Management Process Management Outsourcing

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Customer Perception Measurement:

To succeed in any activities of business one has to always cater to and satisfy the needs of the customer. To do so, it is essential for one to know how the customer thinks in order to meet his needs in a more satisfying manner. Therefore, an important component of leading edge logistical performance is the regular measurement of customer perceptions. Such measures can be obtained through surveys or by systematic order follow up. These surveys can be company - or industry sponsored. Such surveys ask questions regarding the firms and the competitors performance in general or for a specific order in particular. Most of the surveys incorporates measurement of customer perceptions regarding availability, performance-cycle time, information availability, problem resolution and product support. The survey may be developed and administered by the firm itself or by consultants, delivery agents or industry organizations.

Conclusion:
Courier Service believes in "Backup". Backup couriers are on duty at all times. A knowledgeable professional is one call away for information, directions, vehicle
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breakdown, etc. Upon receiving/delivery a receipt is issued for inventory purposes. In conclusion, Courier Service believes in positive result solutions. They will not treat any company or customer, regardless of size or financial status, with more prestige than others. They promise to give customers their very best effort and to treat each account as if it were the only account.

Recommendation:
Offering services according to the geographical location; Like (villages, small cities, large cities, metros) Building of the Data Base of addresses to improve the quality of services. Technological changes should be adopted by the services provider to sustain in the market; otherwise they will loose their customers. Low customer satisfaction due to late delivery of mail and services. And to improve such a thing there should be proper chain of delivery so that customers can get their services speedy as well as fast.

Bibliography:
www.google.com www.dhlcourierservices.com www.bluedartcourierservices.com www.firstflightcourierservices.com

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