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Ekta Lala Operation Management

U209018 Term - 4

Ex PGDM (PT) Home Assignment

Batch 2009-12

Page 1 of 20 10/19/2010

Take home assignment on

Operation Management

Submitted to

Dr. W. S. WilliamSubmitted by

Ekta Lala

U209018

Ex-PGDM (PT)

Batch: 2009-12




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Table of Content

Declaration.......................................................................................................................... 3

Acknowledgement .............................................................................................................. 4

Courier Industry in India ..................................................................................................... 5

Objective of the study......................................................................................................... 5

Blue Dart ............................................................................................................................. 6

About the Company ........................................................................................................ 6

Market Scenario.............................................................................................................. 7

Future Plan...................................................................................................................... 8

Products and Services ..................................................................................................... 8

Blue Dart Operations .................................................................................................... 11 BLUE DART Operation Chart ......................................................................................... 13

DTDC.................................................................................................................................. 14

About the company ...................................................................................................... 14

Future Plan.................................................................................................................... 14

Products and Services ................................................................................................... 15

DTDC Operations........................................................................................................... 16

DTDC Operation Chart .................................................................................................. 17

Improvements................................................................................................................... 18

Conclusion......................................................................................................................... 19

Introduction of people, met ............................................................................................. 19 Bibliography ...................................................................................................................... 20




U209018 Term - 4


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Declaration

This is to certify that report entitled “Comparison of two courier services”which is

submitted by me in partial fulfillment of the requirement for the award of degree Ex-PGDM to Xavier Institute of Management, Bhubneshwar comprises only my original

work and due acknowledgement has been made in the text to all other material used.

Date: 10/13/10 Name of Student: Ekta Lala

Enrollment No: U209018




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Acknowledgement

Professor W. S. William supervised the course work and project on “Operation

Management” in conjunction with the Ex PGP course at XIM Bhubaneshwar. He was

superb as an unprejudiced counselor in offering munificent support in completing the

course content, correcting our misapprehensions, miscalculations and misgivings while

exchanging multifarious ideas with us during the class hours. He had made the course

content very lucid and simple through his vast experience and exposure on the subject. I

hardly find appropriate phrases and verbiage to express our regards to him in few lines.

I thank him for all his help.

I further take this opportunity to thank Mr. Rameshwaram from Blue dart and

Mr Irfan Khan from DTDC for providing information about operation at Blue dart and

DTDC. Without their help, I would not be able to complete this project.

I thank Mr. Vishal Somani from CSC Pvt ltd, my friends and colleagues for

offering constant prompts in carrying out such assignment on Operation management.

My friends and colleagues provided the platform on which I bounced my ideas forclarifications.

Ekta Lala

Senior Engineer – Application Developer

CSC Pvt Ltd, India




U209018 Term - 4


Batch 2009-12

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Courier Industry in India

Acourier

is an entity, a person or a company, which delivers messages, packages, andmail. Its key characteristics such as speed, security, tracking, signature, specialization and

individualization of services, and committed delivery times, positions it way aboveordinary mail services. They are usually more expensive than usual mail services, and

their use is typically restricted to packages where one or more of these features are

considered important enough to warrant the cost.

A courier company may operate on an inter-city or intra-city level. Their network mayextend to regional, national or inter-national level.

History of Indian courier industry dates to some 15-20 years back, when it was first

established. The courier industry was initially limited to the four metros – New Delhi,Mumbai, Kolkata, Chennai and to some extent to Bangalore because of their good air

connectivity. With the economical progress of the country, the courier industries’ webexpanded and now extends to several cities and even to some of the remotest rural areas.

The market is estimated to be in tune of 4000 crores and has shown a steady growth of 25% annually in the recent past

Objective of the study

The objective of this project is to understand the working and operations of two of theorganizations in the Courier industry through their key features and a comparative study of the

logistics followed by them.

We have chosen Blue Dart & DTDC as the two organizations. The reason being they are

two of the most competitive organizations in Courier industry. These organizations have a lot of

presence in the country and their large business volumes offer a wide scope for the study of the

way their logistics work.




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Blue Dart

About the Company

Established – 1983

Founder - Khushroo Dubash, Clyde Cooper, and Tushar Jani

Headquarters: Mumbai, India

Domestic Locations serviced: Over 25,498 locations

International Destinations serviced: More than 220 countries and territories worldwide through

sales alliance with DHL.

Network :

Domestic hubs: Mumbai, Delhi, Bangalore, Chennai, Erode, Hyderabad, Kolkata, Ahmedabad

and Guwahati.

International Outbound Gateways: Mumbai, Delhi and Chennai to Dubai, London, Frankfurt,

Bahrain, Hong Kong and Singapore.

The Board:

Sharad Upasani (Chairman)

Anil Khanna (Managing Director)Malcolm Monteiro (Director)

Clyde Cooper (Director)

Sure Sheth (Director)

Christopher Ong(Director)

Vision of Company

"To be the best and set the pace in the air express integrated transportation and distribution

industry, with a business and human conscience. We commit to develop, reward and recognize

our people who, through high quality and professional service and use of sophisticated

technology, will meet and exceed customer and stakeholder expectations profitably."






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Future Plan

- Focus on our core domestic products to expand our market share and consolidate our unique

and premium position in the Indian market.

- Leverage its vast customer base for global distribution through its alliance with DHL.

- BD would also provide global logistics customers with access to quality domestic and regional

distribution.

- BD want to position itself as the preferred, seamless link to a country projected to be an

economic superpower of the 21st Century.

- Continue to deliver value to stakeholders through BD’s People Philosophy and Corporate

Governance based on distinctive Customer Service, Business Ethics and Accountability, and

Profitability.

Products and Services

Domestic Priority 1030:

A guaranteed door-to-door time-definite delivery of shipments by air the next possible business

day by 10:30 hours, targeted at time-critical business-to-business needs. This service comes

with a money back guarantee.

Domestic Priority:

The fastest, most reliable, door-to-door day-definite delivery service within India and to

Bangladesh, Nepal and Bhutan for documents and small shipments under 32 kgs per package.

The special benefits of this service are:

Benefits:

o Delivery to over 14,965 locations in India

o Free pick-up from your location

o Real-time Tracking through the net, providing you with information on your shipments frompick-up to delivery.

o Regulatory Clearances for all States in India taken care of by our team of specialists, to resolve

your regulatory requirements.

o Free Computerized proof of delivery




U209018 Term - 4


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Dart Apex 1200:

A guaranteed door-to-door time-definite delivery of commercial shipments by Air that require

regulatory clearances and specialized handling on the next possible business day by 12:00hrs,

targeted at time-critical business-to-business needs. This service comes with a money back

guarantee. Benefits:

o Wide Market Reach

o Single-window Clearance

o Real-time Information

o Time-Definite Delivery

o Free Proof of Delivery on Demand

o Speed

o Flexibility

o Economical

Smart Box:

Smart Box - Air Express and Smart Box - Ground Express are convenient,

economic, packaging units priced to include a door-to-door delivery

service within India. The units come in 2 sizes, 10kgs and 25 kgs, and

are designed to accommodate a variety of products. The special

benefits of using Smart Box are:

o A wide market reach

o Speedy Delivery & Free pick-up

o Real-time Tracking

o Regulatory Clearances

o Proof of Delivery

o Trouble Free Service

DART SURFACELINE:

Dart Surfaceline is an economical, door-to-door, ground distribution service within India for

shipments weighing 10 kgs and above. It offers a cost-effective logistics option for your less

time-sensitive shipments, with the following value-added Benefits:

o Time-bound Delivery






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operations are supported by an in-house ground-handling and maintenance capability, as well

as bonded warehouses at all the on-line stations, and company-owned cargo handling assets.

With qualified, professionally-trained personnel, Blue Dart Aviation is positioned to offer the

most superior quality of service in the country today.

Regional Services: -

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.

International Services

Blue Dart offers DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and the

Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10 kgs.), a one-stop shipping process for

reliable, time-definite, door to door delivery of international documents and packages. The

service offers access to 220 countries and territories worldwide and the extensive, quality

network of Blue Dart and DHL.

****Above Information taken from

http://www.bluedart.com/aboutus.html

http://www.bluedart.com/futureplans.html

http://logisticsweek.com/news/2010/10/blue-dart-dhl-honored-with-global-hr-excellence-awards-at-the-asia-pacific-hrm-

congress-2010/

http://logisticsweek.com/news/2010/09/dhl-blue-dart-win-frost-sullivan-2010-awards-for-excellence-in-logistics/


Blue Dart Operations

1. Customer courier document/parcel from nearest BD office. The document/ parcel can be

picked up also for extra cost. BD office can be a main Office or RSP(Regional Service Provider).

There are no franchisees involved. RSP can only pick and drop documents/parcel. Customer is

given one of the three copies of receipts associated with a courier. This part is customer copy.

2. A number on customer copy can be used online to track the parcel during its travel. Various

softwares used for online tracking by Blue Dart are COSMAT 2, COSMAT 3, AnyWHERE, etc.

3. Along with this customer has to fill up a declaration form and a state tax form (and pay fees),

if required. No packages outside the network area covered is accepted.

4. Documents/parcels are packed in small plastic bags from Main Office/RSP, destination wise

based on PIN CODE. All the items which are banned to transfer via air will be transferred thru

road. Beside banned items, documents parcel worth more than 2000 will be transferred

through road.

5. Each item is accompanied with a copy of receipt which is one of the 3 receipts associated with



http://logisticsweek.com/news/2010/10/blue-dart-dhl-honored-with-global-hr-excellence-awards-at-the-asia-pacific-hrm-congress-2010/













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every courier. This part acts as POD (proof of delievery) and travels back to the main office.

Remaining third copy is kept as record for accounting purpose by main office. RSP keep only

manual records and all the receipts are given to main office. Main offices maintain the records

for 6 months.

6. These plastic bags are having a scanned slip on it for a particular area/city. All the plastic bagsof near by area are packed again into a Canvas bag and this canvas bag is coded with a

number for that broader destination, which can be state or some part of it like northern part

of M.P. or eastern part of Gujrat.

7. These Canvas bags are now sent to HUB. These HUBS are present very less in numbers. They

are mostly in Metros only. Two of the Major Hubs where the bags go from MP are Mumbai

and Delhi. All the Bags going north go via Delhi and Bags going South go through Mumbai.

Even a bag destined for Nagpur will go via Mumbai.

8. At a HUB, these canvas bags are opened and courier from different main offices are sorted

according to destination and a new sets of canvas bags are prepared and sent to applicableHUBs or Main Offices.

9. At Main offices, these canvas bags are finally opened and plastic bags belonging to area under

different Main offices or RSP are sent to their respective destinations. Same activity might be

carried out at HUBs in case the parcels are supposed to reach an area near HUB. A part of HUB

acts as a Main office in such cases.

10. Finally the plastic bags are opened at main office /RSP and the parcels are delivered to

their exact PIN CODE via Courier guys. POD after the sign from receiver travels back to main

office.




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BLUE DART Operation Chart

International

Outbound

Gateway

Domestic

Hub

Domestic

Hub

Main

office

Main

office

Main

office

RSP RSP RSP

Domestic

Hub

Main office Main office Main office

RSP RSP RSP




U209018 Term - 4


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DTDC

About the company

Established – 1990

Founder - Mr. Subhasish Chakraborty

HeadQuarter: Bangalore

Domestic Locations serviced: Over 10,000 locations

International Destinations serviced: More than 240 global destinations.

Network:

Zonal offices: Banglore, Mumbai, Delhi and Kolkata

DTDC own offices: more than 200

Channel partner offices: more than 4000

The Board:

Mr. Subhasish Chakraborty (Chairman & Managing Director)

Mr. Suresh Kumar Bansal (Director)

Mrs. Tapasi Chakraborty (Director)

Mrs. Arpita Chakraborty Mittra (Director)

Mr. Abhishek Chakraborty (Director)

Vision of Company:

“To be the most Admired and Successful Express Distribution Company in India by meeting and

exceeding our Customers' expectation of services.”

Future Plan

DTDC is geared up to provide end to end supply chain solutions to its customers.

Scale up infrastructure and ramp up state of the art IT capability to remain always ahead

of the dynamic needs of the business.

Expand product and services to be able to provide more value added services to its

customers.

Expand and diversify in to related business to be able to interface with customers more

often in their value chain.




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Products and Services

Prime Time Plus: is a guaranteed service for time definite deliveries of consignments within the

next possible business day targeted at Time Critical Business to Business ( B2B) and Business to

Customer ( B2C) Segments.

Benefits

» Assured Time Definite Delivery with Money Back Guarantee

» Tamper Proof Security Pouch for Safe delivery.

» Real time Tracking and Status update.

» Dedicated High Performing Team to Manage the service End to End.

» Distinct High Priority Operation Process.

» Dedicated Customer Support.

DTDC Blue... Premium Express Product: DTDC BLUE provides assured second business day

delivery service to places far and wide across the country, to a large no of destinations which

due to distance and connectivity cannot be delivered as Next Business day

Benefits

» Assured Second Business Day delivery

» 100% Money Back Guarantee if not delivered within committed delivery period

» Service to locations beyond DTDC plus lanes

» Tamper-proof Security Pouch

DTDC Lite: DTDC offer DTDC lite services covering Domestic and international Express and cargo

services The service is available for a large no of destination in India and abroad.Benefits

» Larger coverage of domestic and international destinations

» Express and cargo services covering Documents and parcels

» Web tracking

» Email alerts

Student Academy Express: Specially for Student community reaching to International

universities

*****Above information are taken from

http://www.dtdc.in/subpages/company/about_dtdc.html

http://www.dtdc.in/subpages/press_room/press.html








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DTDC Operations 1. Customer courier document from nearest DTDC office. DTDC office can be franchisee,

super franchisee, master franchisee, branch office and area office, regional office. Customer is

given one of the three copies of receipts associated with a courier. This part is customer copy.

Online tracking is supported via this copy. The online tracking system used by DTDC is CITYBS.

Customers may choose to call and get their parcel picked up. This is usually done

by some contractors.

2. Customer may be required to provide extra documents like declaration or state tax form

and fees, if applicable. Out of area deliveries may be done on Sub-contractors network DTDC is

having in Destination area.

3. Document/parcel are sorted according to area PINCODE and packed in small packets. All

the items which are banned to transfer via air will be transferred thru road. Each item isaccompanied with a copy of receipt which is one of the 3 receipts associated with every courier.

This part acts as POD (proof of delivery and travels back to the main office). Remaining third

copy is kept as record for accounting purpose by service provider.

4. From franchisee, super franchisee and master franchisee, destination wise and sent to

upper level. Blue arrow in below figure shows flow of document from customer to regional

office or destination area or branch office.

5. Packets collected from Lower level (for example for a super franchisee, franchisee would

be a lower level) along with the courier packets collected on their own are sent to the next level,

unless they reach Area offices.

6. At Area offices, these packets are put in a master bag which has a code marked on them

according to the destination/region. This is sent to regional office based on region of destination

like a courier for Bangalore will go to Mumbai regional office first. Master bags which will travel

from air will go thru coloaders like POBC. DTDC gives master bag to co-loader and then their job

is to hand over master bags to DTDC at destination.

DTDC – POBC (co-loader)Airport authorityPOBCDTDC

7. At regional office, master bags are opened and courier from different area offices are

sorted again according to destination and another master bag is prepared and sent to

corresponding area offices or other regional offices.

8. At area office, master bag are opened and packets belonging to area under different

branches are sent to their respective branches.

9. At branch office, these packets are again divided based on areas and sent to respective

master franchisee and then to super franchisee and then to franchisee and then sent to

destination. Super franchisee, master franchisee and branch offices are also responsible for drop




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of couriers to destinations come

under their areas. If it is an Out of network delivery, it is passed to associated contractors or

local vendors.

10. Few branches have direct connection and packets need not travel from area office and

regional offices. Similarly few area offices are also directly connected.

DTDC Operation Chart From bottom to top flow

= flow of document from customer to destination

Regional

office

Area

office

Area

office

Branch

office

Branch

office

Branch

office

Master

franchis

Maste

r

franch

Maste

r

franch

Super

Franc

hisee

Super

Franc

hisee

Super

Franc

hisee

Super

Franc

hisee

Franc

hisee

Franc

hisee

Franc

hisee

Master bag is prepared at Area office

and then sent to regional office.

At regional office, master bags areopened and rearranged in different

master bag according to destination

and again sent to area office for that destination.

Packets made

based on

destination aresent to super

franchisee

Packets from franchisee & madeat Super franchisee are sent tomaster franchisee

Packets from franchisee& made at Super

franchisee are sent to

master franchisee




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From top to bottom flow

= flow of document from regional office to destination

Improvements: -

Both BD and DTDC are one of best logistics companies in India. DTDC is best in franchisee

network and BD does not have franchisee and sub-office concept.

One thing I observed in BD’s operations that BD’s all the docs have to have travel from its

domestic hubs. I think BD can reduce time of delivery by connecting its main offices with each

other.

BD can generate a system to move docs directly from main office to other main office without

going thru domestic offices as done in case of DTDC for branch,master and area offices.

Regional

office

Area

office

Area

office

Branch

office

Branch

office

Branch

office

Master

franchiseeMaster

franchisee

Master

franchisee

Super

Franchi

see

Super

Franchi

see

Super

Franchi

see

Super

Franchi

see

Franchi

see

Franchi

see

Franchi

see




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DTDC’s many offices at branch level, master level and area level are directly connected and

documents pass directly to those offices without going thru regional offices which save time of

travel and redistribution of master bags.

BD is having more market share than DTDC due to its aviation services. DTDC can think toexpand in that area as it is untouched by most of courier companies and there is lots of scope.

DTDC should plan to target that segment of market by expanding its product line by introducing

services like Airport to airport, charters, interline as provided by BD.

Conclusion

India in present day offers a tremendous scope for growth of all players in the market.

Leaders like Blue Dart and DTDC are effectively covering and gradually grabbing the

bigger market share.

A few changes in their way of operations can provide them with a major boost in their

growth in a faster way and in form of a stronger opportunity to place them at the zenith of the industry. These organizations can surely show a brighter face of courier industry to

the whole country.

Introduction of people, met

Mr. Irfan Khan

Company - DTDC

Location – Indore

Mr. RameshwaramCompany - Blue DartLocation - Indore




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Bibliography

1. http://logisticsweek.com/news/2010/10/blue-dart-dhl-honored-with-global-hr-

excellence-awards-at-the-asia-pacific-hrm-congress-2010/

2. http://logisticsweek.com/news/2010/09/dhl-blue-dart-win-frost-sullivan-2010-

awards-for-excellence-in-logistics/

3. http://www.bluedart.com/aboutus.html

4. http://www.bluedart.com/futureplans.html

5. http://www.dtdc.in/subpages/company/about_dtdc.html

6. http://www.dtdc.in/subpages/press_room/press.html

7. http://www.articlesbase.com/direct-mail-articles/courier-services-in-india-

769851.html

8. http://www.courier.co.in/

*********************** Thank You ***************************************

*********************** End of Report*************************************









http://www.articlesbase.com/direct-mail-articles/courier-services-in-india-769851.html












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