Ninad Tambe

1402104

BLUEDART
EXPRESS

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Bluedart

INTRODUCTION
Blue Dart is South Asia's leading integrated air express carrier and premium logistics-services
provider. They have the most extensive Domestic network covering over 3,880 locations, and
service more than 220 countries and territories worldwide through their Sales alliance with DHL,
the premier global brand name in express distribution services.
The company has been re-certified as one amongst a handful of Indian companies to the new
global ISO 9001 - 2000 standards for "Design, management and operations of countrywide
express transportation and distribution services within the Indian sub- continent and to
international destinations serviced through multinational express companies".
The Company is South Asia's leading air express transportation company and logistics service
provider and offers a comprehensive range of services and products for both domestic and
international shippers. Blue Dart's continuous commitment towards identifying and addressing
the needs and concerns of the Customers has enabled it to provide unmatched standards of
service quality with over 99.95% reliability levels in the express industry. Over the years, Blue
Dart has continuously evolved to meet the growing demands of business and customers,
innovating new products and expanding its network and infrastructure, thereby increasing its
market share in the country.
During the year under review, the company achieved yet another milestone of handling 100,000
shipments a day. Also, the company handled during the year over 28 million shipments,
weighing over 76,000 tons. Their 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.

State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP,
Customer Service, Space Control and Reservations.

Blue Dart Aviation, dedicated capacity to support our time-definite morning deliveries
through night freighter flight operations.

A countrywide Surface network to complement our air services Warehouses at 14

locations across the country as well as bonded warehouses at the 6 major metros of Bangalore,
Chennai, Delhi, Mumbai, Kolkata and Hyderabad

ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for our
entire operations, products and services.

Ecommerce B2B and B2C initiatives including partnering with some of the prime portals
in the country.

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Competitive Advantage lies in:

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
They are 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. Their services are relentlessly
monitored to deliver a net service level of 99.96%.
Customs and Regulatory expertise
They have 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.
Technology
Designed to enhance the reliability of their operations and process efficiency, and add value to
the customer through time and cost savings.
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.
People force
Committed, diverse and over 3,900 strong are their most valued asset. All their achievements
have been possible because they have a team who believes in themselves and their company, a
team with a winning attitude. They are a learning organization, they value self-development, and
most of their managers are home-grown.
Vision
To be the best and set the pace in the air express integrated transportation and distribution
industry, with a business and human conscience. They commit to develop, reward and recognize
their 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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Corporate Governance
Corporate Governance is the combination of voluntary practices and compliances with laws and
regulations leading to effective control and management of the Organization. Good Corporate
Governance leads to long term shareholders value and enhances the interest of other
stakeholders.
Blue Dart is fully committed to good Corporate Governance and has complied with the
Corporate Governance Code as stipulated under the provisions of Clause 49 of the Listing
Agreement with the Stock Exchanges. It believes in providing services through transparency in
all its dealings. It believes Corporate Governance is an important instrument for shareholders'
returns and value enhancement.
Bluedart DHL relationship
On the 12th September 2002, Blue Dart and DHL signed a Sales Alliance Agreement which
came into effect from the 1st October 2002. The Agreement is for duration of five years on a
principal to principal basis.
Blue Dart chose to ally with DHL as it is the #1 international air express company in the world,
with superior hi-tech on-ground infrastructure, unmatched cross-border specialization, greater
flexibility of its network and the strongest brand recognition in India and in the world. The
coming together of the world's No. 1 international air express service provider and India's No. 1
domestic express services provider is a logical step in a win-win relationship to benefit all the
parties involved, the customer and the stakeholders of both organizations. Blue Dart believes that
the alliance would bring the DHL advantage to Blue Dart's customers, resulting in greater
customer satisfaction.
DHL is the world's leading express and logistics company offering customers innovative and
customized solutions from a single source. With global expertise in solutions, express, air and
ocean freight and overland transport DHL combines worldwide coverage with an in-depth
understanding of local markets. DHL's harmonized international network links more than 220
countries and territories worldwide.
DHL continues to be at the forefront of technology and, with more than 150,000 dedicated
employees, guarantees fast and reliable services aimed at exceeding customers' expectations.
Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post World Net.
In addition, the alliance provides both organizations with the flexibility to grow their individual
businesses unhindered. Blue Dart has a unique domestic infrastructure and is the only domestic
cargo airline in the SAARC region, with a fleet of 3 Boeing 737 freighters. Blue Dart operates
over 50 night and 8 day missions per week, carrying and distributing via its aircraft over 600
tones of time-sensitive, express packages each week, besides an additional 1000 tones per week
through other modes. Further, its aircraft are strategically positioned in Kolkata, Chennai and
Bangalore, in close proximity to the countries of Bangladesh, Sri Lanka and the Maldives. Blue
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Dart can now offer its services to any customer, including any multi-national air express
operator, who wishes to avail of quality distribution within the country and the region.
Bluedart Aviation Ltd:
Blue Dart Aviation Ltd. was incorporated in May 1994 as a 100% subsidiary of Blue Dart
Express Limited, and launched its operations with a fleet of 2 Boeing 737-200 freighters on the
17th June 1996. Blue Dart Aviation Ltd. was created primarily to support the growing demands
of Blue Dart Express Ltd. In an express industry where growth, year over year, consistently
exceeded 35%, the management viewed the delivery capabilities of the domestic airlines
inadequate and a limitation to the explosive growth of air express.
The restricted day flights and capacities oriented to passenger requirements were not consonant
with the demands of the express market, which is committed to morning deliveries that rely on
guaranteed space and late night operations. Taking a cue from the enormous success of the U.S.
express industry, which started with a 4% share in 1977, averaged a compounded annual growth
rate of 25% and progressed to claim close to 60% of the U.S. market, Blue Dart Express Ltd.
made a path-breaking decision to create its own infrastructure and buy its own aircraft. It set up
the first and, till date, only domestic freighter operations in India.
The night operations were designed to meet the specific needs of the business community as
they focused on late night cut-offs and early morning deliveries. Shipments originating from a
city at the end of the business day could arrive before the start of the next business day at their
destinations. Customers could now rely on air capacity that was focused to service business
needs and not passenger travel schedules. Demand for express package services surged, spurring
capacity addition and Blue Dart added a fifth aircraft to its fleet in 2004. Blue Dart Express
Limited has divested 60% of its shareholding in Blue Dart Aviation Ltd. on 11th March 2005,
and Blue Dart Aviation has since been contracted to provide dedicated services to Blue Dart
Express Limited.
Blue Dart Aviation Ltd. has many firsts to its credit:
The first Indian-manufactured main deck loaders at all its 5 on-line stations - Chennai,
Bangalore, Mumbai, Delhi and Kolkata. The specs were provided by Blue Dart Aviation, and
design and manufacture undertaken by a Coimbatore-based manufacturer, MAK Control, in a 4month period at less than 20% of the cost of the international equivalent.
In collaboration with the Madras Institute of Technology, it has developed the only Indian
software for handling of the Load and Trim Sheet, STAB (System of Trimming and Balancing),
curtailing handling time by 80%. It has also developed the following software applications, inhouse, that have resulted in improved safety standards, enhanced efficiency in daily operations,
better time-management, lower manpower costs, and cost-savings in operations because of
increased fuel efficiency:
- SALIM (System for Aircraft Logistics Inventory Management
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- FUSION (Flight Updating, Scheduling, Inquiries and Operational Notes)

- SODA (System of Digital Flight Data Recorder Analysis)
- VINDAS (Voice Integrated Data Analysis System) - integrating the cockpit voice recorder in
real-time with the Digital Flight Data Recorder.
Its own maintenance capability to clear aircraft through the D-Check level.
Warehouses at all the 6 airports are equipped with X-ray machines, making it the only private
operator capable of accepting freight without the requisite cooling-period for security.
Bonded warehouses with customs personnel to enable transshipment of cargo within India.
Established at substantial initial investment to the company, this facility has enabled distribution
of imports within the country, has provided exports access to and from the gateways of
international airlines, and resulted in returns for
the organization. Given the high operating costs and decreasing yields, this facility provides
international airlines a cost-effective option to restrict their on-line stations and enhance their
marketing possibilities by utilizing the distribution capabilities of Blue Dart Aviation
A third aircraft was inducted into the network in February 2001, to meet increased customer
demand. A fourth aircraft was acquired in June 2003 to augment capacity and connect a sixth
aviation hub, Hyderabad, and a fifth aircraft has been inducted in December 2004, to support
Blue Dart's future expansion plans.
Blue Dart Aviation Limited,
The only Jet Cargo Aviation Company possessing B737-200 freighters in India, operating and
connecting the metro cities of Chennai, Bangalore, Mumbai, Delhi and Calcutta.
Profile
Blue Dart, a Public Company registered under the Indian Companies Act, 1956 situated at
Chennai, India, operates B737-200 freighter version modified aircraft. Blue Dart operates the
aircraft at night ex - Chennai and Calcutta connecting enroute Bangalore, Bombay and Delhi for
overnight next day delivery of Express and Cargo loads.
Blue Dart has in-house Engineering, Quality Control, Ground Handling, Security facilities to
meet the business of carriage of Express and Cargo loads on the above sectors. Blue Dart is the
only jet cargo airline in India who offer various services including Air Cargo Movement
(Charters), Engineering, Software Development, Aviation Projects and Flight Handling Services.

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HISTORY AND MILESTONES

1983:
Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart Courier Services with a
capital base of Rs: 30,000. They forge ties with Gelco Express International U.K., and introduce
India's first international air package express service.
1984:
Blue Dart Courier Services is the first carrier in India to provide domestic and international onboard couriers, a hub-and-spoke system and a 10.30 a.m. delivery service.
1988:
Blue Dart Courier Services establishes real-time, on-line tracking for all international shipments.
1991
Blue Dart Express Ltd. was incorporated on 5th April. The company was converted into a
public limited company on June 15th, 1994 and the certificate of incorporation on change of
name was issued on June 17th,1994. The Company is engaged in the courier business for
carriage and door-to-door delivery of commercial documents, samples, panels and printed matter
in India and throughout the world.
The name of the firm was changed to Blue Dart Express on October 1st,1990 and the firm was
registered as a private limited company on April 5th 1991. The Company acquired, developed
and set up a centralised international and domestic super hub with computerised links to all it
major centres.The Company also plans to link its major centres by satelite very small Aperture
terminals. The Company proposes to add to its existing fleet of light commercial vehicles and
pick up vans at various placesto cater to the growing business needs.
Some of the new products include:
(i) Voice Dart: This is 24hr. hotline available to the customer in selected cities of the country. It
is an interactive voice response computer system that enables customers to access key

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information regarding the range of services offered by the company, to track the states of their
consignment and leave messages via a mailbox all in a voice form;
(ii) Power Dart: a software-run-system which is installed at the customer premises. Through a
dial-up computer modem installed at the customer premises, he can directly access the
company's database and retrieve relevant information of his shipments;
(iii) Dart Collect: Offers the overseas consignees receiving shipments from India, the facility to
pay the freight changes in foreign currency;
(iv) Dart Apex: This is a day definite door-to-door product for shipments above 20 kgs.
travelling to select cities within the company network;
(v) IXF-2: This is a day definite door-to-door service for international shipments weighing
above 45 kgs. to destinations in the USA.
1992
The Company finalised negotiations with Federal Express International Inc. in respect of Global
service program contract and with federal Express Corporation in respect of Trademark use
Agreement and End User Agreement for cosmos software.
1993
The Company introduced barcode scanners and bar coded Air waybills to enhance the quality of
tracking operations. The company has more than 400 users who communicate through E-Mail.
The Company was appointed as General Sales agent in India of Gederal Express enabling the
company to pickup heavy weight commercial shipments for door-to-door delivery.
1994
A New product `Dart Apex' for door to door shipments above 20 kgs was launched. Other
systems installed to offer greater reliability to customers are oracle platform, bancode technology
etc. The Cosmat II has enabled decentralisation of Company's operation. The Company acquired
premises in Bangalore for provision of warehousing facility.
60,50,000 No. of equity shares of Rs 10 each issued, subscribed and paid-up (1,00,000 shares to
promoters on 5.4.1991; 1,00,000 Rights equity shares in proportion 1:1 on 11.10.1993;
24,00,000 bonus equity shares allotted on 6.1.1994 prop. 1:12; 32,50,000 bonus equity allotted
on 3.6.1994 in prop. 1:1.25; 2,00,000 shares to employees/directors/associates on 13.6.1994);
25,50,000 No. of equity shares of Rs 10 each were issued at a premium of Rs 140 per share to
the public in September 1994. (25,50,000 shares partly paid up). The Company has established
computer installations at 38 major offices.
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VSATs were installed at eight locations across the country to help E-mail networks in India as
well as the Domestic (Cosmat-2) and international (cosmos) tracking system and central aviation
load booking systems (SMART).
Two software packages viz. `Powerdart' using which the customer can log into the Company's
database and access data relating to his shipments and the other one `Faxdart' is a tool to
automatically fax to the customer relevant information about his shipments was developed
during the year.
The Company acquired 2 Boeing 737-200 aircraft offered by Indian Airlines. The aircrafts were
sent to USA for conversion from passenger to cargo version and named as vision I and vision II.
The Company proposed new ATA (Airport to Airport), DTA (Door to Airport), and ATD (Airport
to Door) Products. The Company signed an agreement with Federal Express International Inc.
through which it became the official GSA of Fed Ex in India. The Company entered into an
agreement for purchase of 35,000 sq. ft.of land situated in the vicinity of International Airport
for constructing Superhub & Technology centre for housing the company's communication and
data processing facilities. Blue Dart Aviation Ltd. is a subsidiary of the Company and launched
door-to-door domestic express cargo aviation system. The Company signed an agreement with
Federal Express International Inc., through which it became the official GSA of FedEx in India
for air freight products. FedEx has taken a significant step forward to receive the ISO 9001
certification and is the first Express Company in the world to have received this certification.
1996
The Company has developed two software packages - namely `Powerdart' and `Faxdart.' The
Company has entered into an agreement with its wholly owned subsidiary company for lease of
the 2 aircraft. The Company has received a `AA-' rating for its proposed issue of Rs. 15 crores
Non-convertible debentures to be issued on a private placement basis from Credit Rating
Information Services of India Limited for this instrument. The Company has entered into a
commercial understanding with its wholly owned subsidiary Blue Dart Aviation Limited
whereby the Company has hired the entire aircraft payload capacity of two B737-200 cargo
aircraft of approximately 16 tonnes per aircraft. 2,50,000 shares issued (prem. Rs 35 per share)
on conversion of warrants.
1997
The Company has signed a new 5 year Global Service Program Contract with Federal Express
(FedEx), which became effective from 1st October. The company has entered into various
strategic alliance with regional/express courier companies in lieu of expanding its market share.
Blue Dart recently became the first Express Company in India to get the ISO 9001 Certification.
Federal Express Corporation (FedEX), the world's largest express transportation company, will
enter the Indian air express market through a new agreement with Blue Dart, India's express
company. The Company has launched its Smart Box in the eastern region to cater to the needs of
small business.
1998
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The Company had undertaken with the set up of the aviation system, was completed during the
financial year under consideration.
The Company has set up customs bonded warehouse at Chennai, Mumbai and Calcutta and
transhipment facilities at all the 5 major domestic airports through which it operates. The
Company has entered into appropriate interline agreements with 9 international carriers viz. Air
India, Air France, British Airways, Emirates, Singapore Airlines Swissair, Air Canada, Cargolux
and FedEx for movement of interline cargo. The Company has issued 23,00,000 debentures of
the face value of Rs.100/- each aggregating to Rs. 2300 lakhs to Newfields Holdings Limited.
The Company has subscribed to the Rights issue of 100 lakh shares of Rs. 10 each, aggregating
to Rs. 1000 lakhs of Blue Dart Aviation Limited - a 100% subsidiary. The Company has entered
into lease agreements for the rental of property, vehicles, computers, equipment and other assets.
Blue Dart Aviation, a subsidiary of Blue Dart Express Limited has introduced India's first load
and trim software for their Boeing 747 flights. Blue Dart Aviation Ltd, a wholly-owned
subsidiary of Blue Dart Express Ltd, is to establish a hangar facility at Chennai airport. Blue
Dart has already signed an agreement with Lufthansa Cargo. Debentures were converted into
3,066,667 No. of equity shares of Rs 10/- each at a premium of Rs 65 per share.
1999
The Company has launched its services in the Kashmir Valley. The company has entered into a
regional service participant (RSP) agreement with Priority Courier Services to service the
Kashmir Valley region. The company has received A+ rating from Crisil for its proposed nonconvertible debentures.The Company will be setting up its Business Logistics designs.
2000
Duff and Phelps India has assigned a D1+ rating to the Rs 10 crore CP issue of the company.
BDEL claims to be the largest express company in the country. - Blue Dart has a tie-up with
Federal Express for this business. Blue Dart is the leader in the domestic courier industry with a
market share of around 36 per cent. The Company has entered into a strategic alliance with
Super Fast Courier Service in the east as part of its move to expand its reach in the secondary
markets. The Company, the country's largest integrated air express company, has tied-up with
China Airlines.
2001
Domestic courier major Blue Dart Express has declared a 1:1 bonus. Blue Dart Express Ltd.,
India's leading integrated air express and logistic service provider has signed an exclusive
agreement with Crown Couriers, a leading courier company. Blue Dart Express Ltd, integrated
air express and logistics company, has opened its office in Bangalore, strategically located close
to the airport.
2002
Company has high load factor of 86% on its aircraft.Ties up with DHL Worldwide Express
which is a five year sales alliance. Llyod's Register Quality Assurance certifies the company's
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new global standard ISO 9001:2000 for all its products/services.Enters into an interline
agreement with South African Airways.
2003
Begins customer satisfaction standard 'net service levels' .Acquires 4th aircraft, Boeing 737 as
part of its fleet expansion plans. Mr Kushroo Dubash, Director along with his family members
purchases 6415 shares. Places 90-day Commercial paper at 5% with a state run bank for Rs.5 cr.
Bhiwandi emerges as a warehousing hub for the company. Blue Dart inks pact with Sri Lankan
Airlines
2004
Blue Dart joins hand with Hayleys
2007
Blue Dart Express Ltd has informed that Mr. Thomas Murphy as a Director of the Company
with effect from September 03, 2007. Blue Dart Express Ltd has informed that the Board of
Directors approved the appointment of Mr. Daniel J McHugh as an Additional Director of the
Company with effect from December 23, 2008.
2009
Blue Dart Express Ltd has informed that the Board of Directors approved the appointment of
Mr. Christopher Ong as an Additional Director of the Company with effect from June 02, 2009.
2010
Blue Dart honoured with 'Customer & Brand Loyalty' Award. Blue Dart Wins Four Accolades in
a Row. Blue Dart wins Jamnalal Bajaj Fair Business Practices Award 2010. Blue Dart offers
Express Pallet (Domestic): Convenient, Flexible, Specialized Palletized Packaging Solution
priced to include door-to-door delivery service within India both by Air and Ground mode.-DHL
& Blue Dart Take Gold in Reader's Digest Trusted Brand 2010 Awards. Blue Dart wins Award
for Best Motivational Practice in Services
2011
DHL and Blue Dart steer India's logistics in a new direction with the launch of Smart Truck.
DHL and Blue Dart win a host of awards at the 5th Express Logistics & Supply Chain Conclave
2012
Blue Dart accorded 'Customer & Brand Loyalty' Award second time in a row. -Blue Dart and
DHL sweep awards at the 6th Express, Logistics & Supply Chain Conclave. Blue Dart amongst
the Top 25 'India's Best Companies to Work For 2012'

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MERGERS AND ACQUISITION

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SERVICES
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
Nepal, providing the widest coverage in the region through a quality network, an integrated air
and ground infrastructure dedicated to express transportation and innovative technology support.
different type of regional services: DOMESTIC PRIORITY

The fastest, most reliable, door-to-door delivery service within India and to Bangladesh, Nepal
and Bhutan for documents and small shipments under 32kgs per package. The special benefits of
this service are:
Delivery to over 13,700 locations in India
Free pick-up from your location
Real-time Tracking
Regulatory Clearances
Free Computerized Proof of Delivery
DART APEX
Dart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. And
above. It is the fastest, most efficient delivery solution for commercial shipments that are timebound and are required to undergo regulatory clearances, or require special handling. Dart Apex
offers you an economical option of an Airport-to-Door service from the major airports of
Chennai, Bangalore, Mumbai, Delhi, Kolkata and Hyderabad to all the Dart Apex locations
serviced. A customer may book space for their shipments through companys Customer Service
and deliver customer shipments to Blue Dart Aviation Office at the related airport. Dart Apex
also offers a further economical option of a Door-to-Airport service. A customer may book their
shipments at any of companys locations serviced for this product to any of the major airports.

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Consignee would be required to collect the shipment from the Blue Dart Aviation office at the
concerned airport.

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
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:
Time-bound Delivery
Track your Shipment
Regulatory Clearances
Pick-up Convenience
Secure Shipments
Economical Tariff
SMART BOX

Smart Box is a convenient, economic, packaging unit 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:
A wide market reach
Speedy Delivery
Free pick-up
Real-time Tracking
Regulatory Clearances
Proof of Delivery
Trouble Free Service
AIR CARGO MOVEMENT
Blue Dart is established with a commitment to grow and meet the requirement of movement of
Express and Cargo loads within the country and also support the interline movement of Cargo.
Blue Dart has planned to specialize in domestic Charter to meet thegrowing needs of quick and
reliable movement of cargo.
MAINTENANCE AND ENGINEERING

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Blue Dart has established captive consumption, maintenance facilities for servicing, rectification
and repair of B737-200 aircraft including modification. The established facilities are equipped to
undertake "D" Check, SSID, and CPCP. Service bays for radio, electrical, wheels & brakes are
also established. Blue Dart continuously and progressively strives to enhance the above
capabilities.
THIRD PARTY JOBS
Blue Dart has in-built capacity to undertake third party maintenance, repairs, modification on
airframe, including modification of component in service bays. The above facilities have been
availed by various airlines in the course of thirty months from inception.
SOFTWARE DEVELOPMENT
Blue Dart has developed in - house various packages to meet the requirements; Flight Updating
Scheduling Inquiries and Operational Notes - FUSION, System for Aircraft Logistics Inventory
Management - SALIM, System for DFDR Analysis for Crew Performance Monitoring - SODA,
System of Aircraft Trimming and Balancing - STAB. The above systems are in use by Blue Dart
and can be modified for specific customer needs.
AVIATION PROJECT CONSULTANCY
Blue Dart offers aviation project consultancy relating to Flight Operations, Training, Aircraft
Maintenance, Quality Control, including set up of an aviation operation in India and has a
dedicated team of experienced professionals to meet customer requirements.
FLIGHT HANDLING
Blue Dart possesses trained personnel and equipment including main deck loaders, pallet
movement trolleys, and pallet builds up facilities, X-ray screening and security facilities, suitable
for B727/ 737 aircraft. Blue Dart can provide services to customers at Chennai, Bangalore,
Bombay, Delhi and Calcutta
MAINTENANCE SERVICES
Blue Dart can provide Engineering Services including "C" and "D" checks, modifications
including STCs and Corrosion Prevention and Control Programmed, Structural Inspection.
Besides scheduled checks specific services for work on engines, airframes, avionics, sheet metal,
painting, structural repairs, and heavy maintenance services can provide at most competitive
rates. Even though Blue Dart does not possess the Hangar, we can make suitable arrangements at
reasonable rentals.
ENGINEERING MANPOWER

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The in-house team of Engineers is led by the Chief Engineering Manager credited with20 "C"
checks, 12 "D" Checks (Check II), duly assisted by experienced licensed engineers and
technicians capable of NDT, Boroscope inspection, structural inspection and others, besides
modifications such as TCAS, MODE "S" SB 1080 etc.
QUALITY CONTROL
Blue Dart further has Quality Control Department, to meet the QC requirements of the customer.
EQUIPMENT & TOOLS
Blue Dart possesses complete range of tools, test equipment, ground support equipment and
general purpose tools including specific test equipment and non- destructive testing equipment
for B737-200 maintenance and "D" Checks as also engine change equipment.
INVENTORY
Blue Dart possesses adequate Inventory for B737-200 spares (in excess of 7000 line items) to
meet Customer requirements arising out of Maintenance orders. Blue Dart has long term
established relationships with overseas reputed suppliers from USA to meet urgent maintenance
requirements.
LOCAL REGULATORY (DGCA) APPROVALS
Blue Dart has approval for servicing B737-200 aircraft, battery shop, brake assembly shop,
wheel shop, NDT shop, SSFDR/CVR Readout, VHF Tx Rx shop, Electrical repair shop, pipeline
fabrication shop, sheet metal shop. Blue Dart has approval for servicing B727-200 wheel and
brake assemblies.
THIRD PARTY MAINTENANCE ASSIGNMENTS
Blue Dart has successfully completed various jobs on Third Party aircraft of customers like
PLM, GECAS, AER LINGUS, Sahara India, and Lufthansa Cargo. The assignments
successfully completed for the above parties include engine change and trim run, fitment of
major components like undercarriage flaps, DGCA callouts, retrieval after prolong grounding,
flight release certification, C of A renewal, Export C of A, Non- destructive testing on aircraft,
overhaul of brakes, wheels etc. Blue Dart can arrange customer representative review of our
facilities i.e., tools, equipment and stores on request.
E-COMMERCE INITIATIVES
E-vision:
To enable global connectivity to Blue Dart's present and future interactive technology strengths,
for value added solutions. To facilitate seamless integrated transportation, distribution and
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supply chain management, from, to and within the region, thereby increasing value to our
customers and shareholders.
As a technology leader in the business of supply-chain management in the country, Blue Dart
Express Limited recognized the far-reaching scope of the internet in 1996, and has been
exploring web-based solutions to extend the range of services available to its customers and
integrate them into its core products. It has evolved an e- strategy. This e-strategy encompasses
E-Solutions to deliver additional process efficiencies to business by allowing them access to
Blue Dart's e-shipping tools and integration with its e-business tools. An individual solution is
available for each business, big or small, transacting off the internet or on the internet, and
ranging from a stand-alone to a fully integrated one.
Shipping
Uses the following tools to simplify the shipping process:
Location Finder: Find the service locations of Blue Dart as well as the Blue Dart counter located
closest to you. You may search by city, or pin code to find one of over 13,880 locations serviced
in India, Nepal, Bangladesh or Bhutan or in more than 220 countries and territories worldwide.
Transit Time Finder: Check the transit times for your domestic and international shipments, and
for the various services offered by Blue Dart to help you identify the service that meets your
requirements
Price Finder: Calculate your shipping costs for your domestic and international shipments by
using our Price Finder. If you are a regular customer in need of customized pricing. Schedule a
pickup on-line from anywhere in the world.
Ship DartTM: A complete downloadable package for all Shipping and Tracking needs of
frequent, high-volume users and e-shops.
Billing
The Bills and Payments tool enables credit customers to receive invoices online. You may view
your out standings and download and print the invoice. You have the option to pay on-line, either
through internet banking or credit card.
You will receive the following on request:

Invoice
Debit Note

Schedule a pickup (only for registered users)

Online "Schedule-a-pickup" service is designed for added speed, convenience and flexibility in
logging your pickup requirements. Schedule-a-pickup service allows you to register a pickup
online for all services that require a door pickup. This service is available for locations serviced

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Bluedart

by Blue Dart. Currently, this service is only available from Kolkata, Delhi, Mumbai, Bangalore
and Chennai - Mondays to Saturdays.

INTERNATIONAL SERVICE
International services of Blue dart are taken over DHL EXPRESS in 2002. Blue Dart Express
Limited, through its International Sales alliance with DHL, the premier global brand name in
express distribution services, offers DHL Document Express (DOX), DHL Worldwide Package
Express (WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10 kgs.), a onestop shipping process for reliable, timedefinite, 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.
The special benefits of the International Services are:
1) A Convenient Solution for Urgent, International Documents & Shipments.
2) Documents and packages will be picked-up from location, cleared through customs and
delivered to consignee.
3) Customs Clearance Expertise Specialists conversant with customs formalities in India as well
as in 228 countries worldwide, and pre-clearance for shipments in transit available for most
destinations, ensure efficient delivery.
4) Real-time Tracking.
5) A Cost-effective Option.
6) Packaging.
VALUE ADDED SERVICES
Value added services on the rise. Blue Dart has started providing value-added services like
logistics management, supply chain management and warehousing facilities to its clients.
Going forward demand for such services from corporates is likely to grow at a fast clip. This is
because by outsourcing such services to third party service providers they would be able to cut
down on costs and improve their efficiency levels. For the courier companies such services
would be part of the overall value proposition they would be offering their clients apart from the
normal pickup and delivery. Such services have the potential for enhancing the margins of
courier companies like Blue Dart. We believe that Blue Dart is best equipped to capitalize on the
growing opportunities in the emerging areas of warehousing and supply chain management.

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FINANCIALS
Key Balance Sheet items (in Rs.Mn.)
Particulars

March 14

March13

Reserves

619.20

636.15

Networth

642.96

659.91

Total Current Assets

375.88

471.21

Current Liabilities

241.93

175.75

Net Current Assets

382.16

404.24

Total Assets

642.96

659.91

Total debt

Key income statement items (in Rs. Cr.)

Particulars

2013-14

2012-13

Income

1934.1

2206.0

PBIDT

214.5

305.7

PBIDT Margin

11.1%

13.9%

Net Profit

124.4

188.7

Net Profit Margin

6.4%

8.6%

Key financial ratios of bluedart

Investment Valuation Ratios
Face Value

Mar '13 Dec '11

Dec '10

10.00

10.00

10.00

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Dividend Per Share
Operating Profit Per Share (Rs)
Net Operating Profit Per Share (Rs)
Free Reserves Per Share (Rs)
Bonus in Equity Capital

Bluedart
71.00
112.23
913.06
-73.71

2.00
75.04
627.78
267.35
73.70

1.00
65.79
483.57
218.16
73.70

12.29
10.50
10.70
10.11
10.11
8.55
8.55
41.74
29.03
29.03
273.81
273.81
41.74

11.95
10.34
10.50
9.43
9.43
8.08
8.08
27.26
18.57
18.40
277.37
277.37
27.26

13.60
11.87
11.93
9.88
9.88
8.18
8.18
26.23
17.43
17.50
228.17
228.17
26.23

Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio
Financial Charges Coverage Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
Asset Turnover Ratio

2.02
2.01
---

2.90
2.86
---

2.53
2.49
---

Average Raw Material Holding

Average Finished Goods Held
Number of Days In Working Capital
Profit & Loss Account Ratios

Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax Margin(%)
Gross Profit Margin(%)
Cash Profit Margin(%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net Profit Margin(%)
Return On Capital Employed(%)
Return On Net Worth(%)
Adjusted Return on Net Worth(%)
Return on Assets Excluding Revaluations
Return on Assets Including Revaluations
Return on Long Term Funds(%)
Liquidity And Solvency Ratios

27,123.00199,344.33
--30,571.00123.08
22,315.0089.08

10,146.46
-127.51
90.81

921.92
10.41
921.92
6.50
3.54
--

-8.70
---2.48

-8.22
---2.32

--69.35

--89.35

--73.92

--

--

--

--

Material Cost Composition

-Imported Composition of Raw Materials
-Consumed

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Selling Distribution Cost Composition
Expenses as Composition of Total Sales

Bluedart
-1.64

0.16
1.19

0.12
0.98

89.29
75.49
10.71
24.51
--

3.88
3.29
96.09
96.68
--

2.51
2.08
97.50
97.92
--

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
AdjustedCash Flow Times

Earnings Per Share

Book Value

Mar '13 Dec '11

Dec '10

79.51
273.81

39.77
228.17

51.52
277.37

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Bluedart

FUTURE PLANS OF BLUEDART

Focus on our core domestic products to expand our market share and consolidate our unique and
premium position in the Indian market, and expansion into the near Mid-East and Far East
markets and the SAARC(South Asian Association of Regional Co-operation) countries. Blue
Dart would also leverage its vast customer base for global distribution through its alliance with
DHL. We plan to leverage our established infrastructure to continue adding value and
customised solutions to the changing and evolving demands of the customer. We would also
provide global logistics customers with access to our quality domestic and regional distribution.
Our domestic network will continue to differentiate itself in all areas of our core competencies supply chain management, logistics and Ecommerce. Position ourselves as the preferred,
seamless link to a country projected to be an economic superpower of the 21st Century. Through
our technology development, premium services, quality network and strategic alliances, we plan
to carve for ourselves a leadership position in the industry as India's and the region's link to the
world. Continue to deliver value to our stakeholders through our People Philosophy and
Corporate Governance based on distinctive Customer Service, Business Ethics and
Accountability, and Profitability.

Key Challenges and Mitigants

Dependence on Macroeconomic and Business Environment
Develop alternate and innovative customer-centric solutions
the economic sentiment

to counter any dampening in

Exposure to fluctuations in Crude Oil, Diesel and Currency

Fuel Surcharge based pricing mechanism to counter rise in crude prices
Fuel Surcharge based pricing mechanism to counter rise in diesel prices
Have introduced CAF (Currency Adjustment Factor) to counter fluctuations in currency
Entry of New Organized Players as Industry Matures
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Bluedart

Significant barriers to entry due to infrastructure bottlenecks like limitations of airside space,
time slots, licensing and others

Availability of Skilled Front-Line Manpower

Tie-up with multiple manpower recruitment agencies

Changes in Regulatory Environment: Postal Bill, Carriage by Road Act, 2007, Karnataka Stamp
Duty Act and Kerala VAT Regulations
Closely monitor the developments and adapt as necessary

SUPPLY CHAIN
LOGISTICS IN BLUE DART
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.
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.
Blue Dart offers the country's most comprehensive communications technology
and customer software to support critical supply-chain distribution demands. The country's only
express service provider with a dedicated fleet of five Boeing 737s ensures that packages are
flown to their destinations overnight. These freighters offer capacity and volumes not available
with any other carrier in the domestic air space. 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 bottom lines.

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Bluedart

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Bluedart

CURRENT MODEL EXISTING WITH IN KARNATAKA

Blue Dart offers the country's most comprehensive communications technology and customer
software to support critical supply-chain distribution demands. Blue dart mainly has two
operations
INBOUND OPERATION:
The inbound operation starts with receiving the packages or the goods from theout bound station
and comes in to HUB and in hub the Dart apex and the Dart surface are handled by the Blue Dart
Aviation dept. Dart apex and the Dart surface are scanned and by the Blue Dart Aviation dept.
Dart Apex is reaching directly to the specified destination any where in Karnataka through road
ways or air ways and will reach the respective destination and gets delivered by the Blue Dart
Aviation dept Dart surface is specifically through road ways and from hub it goes to the
warehouses and then it routed according to the specified destination through vans or trains or by
buses by the Blue Dart Aviation dept through out Karnataka
Domestic Priority (DP) are handled by the Blue Dart express and Blue Dart Aviation dept will
scan it (x-ray) and handle the shipment to Blue Dart express then the Blue Dart express will
further scan each and every document (i.e. in scan and out scan) and then segregate it according
to the route and are put in to the canvas bag according to the destination and through vans are
delivered to the various service centers in Bangalore and to other parts of Karnataka.
Thus the inbound operation in Blue Dart is carried out at the fast phase. Blue Dart Aviation dept
will clear all the shipment with in 45 -50 min after the shipment is arrived and they load the
shipments in to the service centers. Blue Dart express is responsible for the Domestic Priority
(DP) and they in scan it and out scan it and then load it to the vans and sends to destination and
again they in scan it and out scan it and delivery boys deliver the goods to the end customer thus
the whole process is carried out in the inbound operations in the Blue Dart
The following figures shows the model they follow in Karnataka for various operations

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Bluedart

OUT BOUND OPERATION:

In the outbound operation starts with the carrier receiving the order and arrives at the shipper and
than take the shipment to the respective service center. Than they will in scan the document and
further they segregate the shipment and out scan the shipment, than load it to the hub. Again in
the hub it is scanned (x-ray) and further loaded to the destination.
Dart Apex is reaching directly picked up through road ways or air ways and will reach the hub
and gets scanned, than to the respective destination and gets delivered by the Blue Dart Aviation
dept Dart surface is specifically through road ways and from the pick up point, it directly goes to
the warehouses and then it is transferred to the hub for the routing according to the specified
destination through vans or trains or by buses by the Blue Dart Aviation dept throughout
Karnataka
Domestic Priority (DP) are handled by the Blue Dart express .The Blue Dart express will first in
scan the document and than out scan each and every document and then segregate it according to
the route and are put in to the canvas bag according to the destination and through vans are
delivered to the hub and then it is routed accordingly by specified destination. Thus the out
bound operation happens to be in the evening and the shipment will be cleared by the night and
shipped to the destination by various modes of transportation and thus will be delivered to the
customer within one day in metros and two days to other parts of the Karnataka. Thus the
operation is carried over night and they are quick enough to deliver to the customer with high
speed.

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Bluedart

INTERNATIONAL SERVICES:
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In international logistics systems, there is need to determine the best ports of loading and
unloading, and the best border customs points. Another very important consideration in
international logistics systems is that of optimal transfer prices. The logistics network must be
designed in such a way that it takes maximum advantage of tax differentials and other national
factors in arriving at the optimal structure. DHL is responsible for the International services has
it has the strategic alliance with Blue Dart, the model is shown below:

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Bluedart

SUGGESTIONS WITH RESPECT TO THE EXISTING MODEL OF

BLUEDART
A change in the lifestyle of consumer and increase in competition generate issues like customer
loyalty, pricing and quality of products and services offered taking prominence. Time taken to
reach the destination in the Route is high for Bluedart as well as the number of delivery points
for sharing of load should maximum. There is delay in the getting the materials and processing it
from the pickup point to the hub to destination. Further it is identified that the major part of the
time is delayed by the employees in getting the shipment from the pick point to the service
centers and there is delay in entering the details of the customer because of the wired bar code
scanner. Bar code scanner does not perform all the functions, and these data are feed manually
The major findings in Blue Dart are pointed out as follows:

Blue Dart has the efficient model with them but they are delayed due to the inefficient
use of technology.
Blue Dart is delayed in entering the data as they make use of the bar code scanner to scan
each and every document.
Blue Dart is scanning for two times one is in scan and the other is out scan which will
take more time.
Blue Dart is not much dedicated front end employees and they are not properly trained.
Hub is too away from the service centers which in turn makes shipments to be delivered
gets delayed.
Blue Dart has lower number of service centers.
Blue Dart have traditional logistics model and they should try to adopt new technology
which gives them better result and increase efficiency in delivery.
Blue Dart is delivering the shipments to metro cities within one day but to other parts of
Karnataka they take two days to deliver the goods.
Blue Dart is not focusing much on the late delivery Blue Dart have quiet efficient 3PL,
over night transportation, next day delivery
Blue Dart has created a good brand in the minds of the customer
Blue Dart is utilizing all the 7 P's of services marketing mix to full extent
Blue Dart provides taking orders over telephone, picking up packages at the shipper's
location, tracking the shipments etc

When we focus on the shipments from the hub to the service centers with auto scan there may be
a chance of risk associated with it, it shows that its not a feasible option as the cost is concerned
because of loading and unloading will be higher when there is a multi point delivery. But if there
is an increase in demand to reach the destinations soon within Karnataka then Blue dart should
shift to new Model where in shipments can be scanned directly and time is minimized and with
less time it can reach the destination from Blue dart. It is feasible to directly scan the shipments
from service centers and forward it to destinations instead of wasting time in entering the data
and delaying.
Provide comprehensive logistics and financial solutions
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Bluedart

Many companies have decided to outsource the part of their logistics to cut cost and to improve
service.
Blue dart should redesign and operate supply chains for major companies in the India
They should focus on the technology and the management-based solutions for their Customers
rather than the more traditional logistics
More business- to-business (B2B) solutions
Blue dart should continue to develop more e-business tools and provide more solutions to
address customers need in the whole chain
Creating Information Visibility
Supply chain integration must be accomplished not only within one enterprise but also within
those of its customers and employers (and often their customers' as well). Processes within all of
these organizations must be evaluated and updated or even overhauled to meet efficiency and
logistical expectations. Information visibility will help companies to include more dynamic,
collaborative communication networks in their offerings, giving birth to collaborative commerce
and helping to improve communication beyond the transactional supply chain.

Use of Information Technology yields the following

Prevents Inventory Buildup

Customize the logistics according to customer segments need

Service the customers according to their needs

Provides fast delivery time

Choice of transport
Transport selection should follow the following steps

Identify those factors affecting the choice transport selection

Categorize the significant factors and identify potential risks

Determine the distribution network in terms of number of service centers and the size

Apply matrix analysis to select the most appropriate transport method

Measure operational success

Thus factors affecting the choice of transport selection are

o Customer charteristics
o Product charteristics
o Environmental charteristics
o Company charteristics
Sharing Benefits
Sharing benefits is an important success factor for many companies. Although there are a lot of
challenges to the implementation, the gains to be realized with the supply chain outweigh the
concerns and hence more and more organizations are moving towards automating their supply
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chain. The benefits should be equally shared within supply chain members; it is not good to
sacrifice others benefit for gaining more, and this kind of relationship will not last long.
Developing a framework for Integrated virtual logistics network for quick response which
would factor in the existing processes, systems and organizations roles and the governments
proposed investments in the e-commerce and e-governance infrastructure, and designing a
technology transformation road map.
Need for Integrated Logistics Model and Applications
Mobile transaction processing capability coupled with a proper combined electronic business
management model helps in integrating the manufacturers, transport service providers, financial
institutions along with government agencies like regional transport department, central excise
and customs, warehousing. Interviews with truck drivers/fleet operators reveal that the losses at
check posts for larger trip lengths of more than 1500 km. constitute 30 to 35 percent of the total
journey time. This could be reducedby 10 to 15 percent if the virtual logistics model is
implemented by all the agencies in its totality.The approach for virtual logistics network is
comprised of solutions, which are built on services, which are, in turn, comprised of
competencies.
Competencies:
These are the building blocks that enable an organizations service offerings. Typically, a given
competency plays a role in more than one service but, in some instances, a competency may also
be a service in its own right.
Services:
Services are the market needs. These are the comprehensive capabilities that customers want and
understand. Shipper includes third party logistics providers, freight forwarders, demand
aggregators and any party who needs to ship goods. Carrier represents truck load carriers, less
than truck load carriers, intercontinental carriers/ocean liners, small package carriers, cargo
airlines, and rail.
Virtual Logistics:
This solution is intended for organization that is willing to have a third party manage their entire
transportation, logistics and fulfillment needs. The primary customers for thisorganization are
the ones who desire to focus on their core competencies and let the expert handle the rest.
The virtual logistics network framework addresses services in the areas such as asset
management, logistics productivity, global reach, inventory chain optimization, distribution
management, reverse logistics, warehouse management, transport capacity matching, transport
brokerage and real time interface with federal agencies for speedy document clearance. The
brokers/agents could make use of this portal and in turn advice their clients i.e. individual truck
owners/operators to increase the utilization of trucks at least in the return trips. In addition, if all
the check posts are linked with concerned government agencies the delay could be considerably
reduced. These processes in turn increase the productivity of the truck and enhance the
profitability of operators.
Technology
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The system should make use of GPRS and GPS technology for wired and wireless
communication between front and backend and for location tracking of delivery vans. The
system should have wireless Bar Code scanner with front-end application and RFID integration
with front-end application. The system should try to use the AUTO SCAN process. They should
also provide SUPER TRACKER to increase efficiency and reduce time.
Material Handling
In the last several years materials handling has become a new, complex, rapidly evolving
science. A huge range of new techniques, devices and machines has been introduced and
different methods have been developed for handling different products. Any type of goods
movement that is performed more than a few times per hour is worth mechanizing.
Trolleys:
Hand trolleys are relatively small and slow so they are really only efficient with small volumes
over short distances. Motorized trolleys like tow trains, conveyor towed trolleys and automated
guided vehicles can carry multiple unit loads over long distance with a relatively low labour
costs. Various trolleys are:
Manual trolleys
Roll pallets
Motorized trolleys
Toe trains
Driverless trolleys
Forklift trucks
The main advantage of this machine is that, as well as transporting material, they can load and
unload other vehicles and lift pallet loads up high for storage. Major types of trucks are;
Straddle truck , Reach truck Counter balanced truck
Conveyors
Conveyors excel at straightforward transportation because they eliminate rehandling before and
after each function. These days they can also be loaded and unloaded automatically. They have
the advantage of being able to take away a carton, a work tote or a unit load as it becomes
available. No extra labour is needed.
Conveyors of various types

Belts, Rollers, Wheels, Chains.

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