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  • Full Name Full Name Comment goes here.
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  • Hello Navin this is very informative, and would request you to share with me by sending me on my email amardavecnc@yahoo.com
    gratitude
    Amar
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  • Hi, very informative PPT. I request you to send the details on my email Id i.e. shilpalodi@gmail.com. Need it on very urgent basis

    Regards
    Shilpa Lodi
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  • can u send me a copy of this on gauravparashar929@gmail.com
    I need it badly for my project plz plz plz ....
    Thnks
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  • Very informative . I'd be very thankful if you could mail me a copy of this project at pallavi.a.ghosh@gmail.com
    Many thanks
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  • Can you email us a copy at ceo@plusgloves.com Can you also inform us if you are aware if courier companies are licenced in India and which is the licencing authority. At which forum can we complain for deficiencies in courier service?
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Courier Business In India Copy Document Transcript

  • 1. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics SUBMITTED TO UNIVERSITY OF MUMBAI PROJECT REPORT ON “Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics” SUBMITTED BY NAVIN G. TIWARI T.Y.BMS SEMESTER - V THROUGH SMT. KAMALADEVI GAURIDUTT MITTAL COLLEGE OF COMMERCE & MANAGEMENT ACADEMIC YEAR 2011-2012 Page 1
  • 2. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics DECLARATION I, NAVIN G. TIWARI OF SMT. K.G.MITTAL COLLEGE OF T.Y.B.M.S(SEMESTER-V), HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECTON “COURIER BUSINESS IN INDIA: CASESTUDY ON PRIDE INTERNATIONAL,International Courier & Logistics” IN THE ACADEMIC YEAR -2011-2012. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TOTHE BEST OF MY KNOWLEDGE...Date:___________________ (NAVIN G. TIWARI) Page 2
  • 3. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics GUIDE CERTIFICATEI ―PROF. NAMRATA ARORA‖ HEREBY CERTIFY THAT NAVIN G. TIWARI OFSMT. K.G.MITTAL COLLEGE T.Y.B.M.S (SEMESTER-V) HAS COMPLETEDPROJECT ON “COURIER BUSINESS IN INDIA: CASESTUDY ON PRIDEINTERNATIONAL, International Courier & Logistics” IN THE ACADEMIC YEAR2011-2012.THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MYKNOWLEDGE. ___________________ ___________________ _________________ __PROF. NAMRATA ARORA PROF. LEENA GADAKARI DR. JOHN D’MELLO (PROJECT GUIDE) (BMS CO-ORDINATOR) (COLLEGE PRINCIPAL)DATE: Page 3
  • 4. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics CERTIFICATEThis is to certify that, Mr. NAVIN TIWARI the student of T.Y.B.M.S. (Semester-V),has successfully completed project on “COURIER BUSINESS IN INDIA: CASESTUDY ON PRIDE INTERNATIONAL, International Courier & Logistics” in theacademic year 2011-2012 under the guidance of ―Prof. NAMRATA ARORA” ___________________ _________________________PROF. LEENA GADAKARI DR.JOHND’MELLO(BMS CO-ORDINATOR) (COLLEGE PRINCIPAL) ___________________ ___________________PROF.NAMRATA ARORA EXTERNAL EXAMINER (PROJECT GUIDE) Page 4
  • 5. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics ACKNOWLEDGEMENTThe Project on COURIER BUSINESS IN INDIA: CASE STUDY ON PRIDEINTERNATIONAL, International Courier & Logistics was a great learningexperience. I was fortunate enough to undertake such a project. I wish toacknowledge my thanks and gratitude to the following people who have helped in themaking of this project.I record hereby my special thanks & gratitude to my Project Guide Prof. NAMRATAARORA, for her unflagging encouragement & affectionate guidance in thecompletion of my project, without her this would not have been possible.I would also like to thank our BMS Co-ordinator Prof. LEENA GADKARI, for herunconditional support & valuable guidance.My thanks are also due to all my friends as well as well wishers who have helped meat various levels. I once again thank all of them whole heartedly.DATE: ----------------------------- NAVIN G. TIWARI Page 5
  • 6. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics EXECUTIVE SUMMARYA courier is much faster, safer and secured than ordinary mail. It is a specializedservice with authenticated signatures. It has tracking service with each service beingtreated as a specific individual case. The courier industry specializes in time-definite,reliable transportation services for documents, packages and freight. This is done viaa combination of transport networking that includes road, rail, sea and air for door-to-door delivery. This extensive distribution system is supported by infrastructure thatcomprises hubs, warehouses, IT technology and human resources, as well as officesin various cities.The courier industry has been the single largest beneficiary of a pickup in theeconomy. Volumes of shipments have been on an upward trend and so have theyields. This is in complete contrast to the situation a couple of years ago when theindustrys volumes were hampered on account of slowdown in industrial and exportdemand.Indian parcel courier market is estimated to be in the tune of 4000 crores and it haswitnessed an average yearly growth of 25%. Considering the fact that, market isexpected to keep up the growth and development momentum; there is a hugeopportunity for a person to start his own courier service. Courier service is such arewarding and lucrative industry for the entrepreneur that a person can consider howto start a courier business of his own. This is a solid business idea because, whilethere are already several internationally recognized courier services available, manysmall courier businesses can find great success in picking up where the larger chaincouriers leave off. This leaves plenty of room for starting a courier business thatthrives and that provides a service many individuals and businesses are looking for.Simply put, the courier market has grown due to demand from customers andbusinesses. The study therefore focuses on the various aspect of the courierindustry & supply chain management in courier industry. Page 6
  • 7. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics INDEXSr. No. Topic Page No. 1 Introduction 8 – 13 2 Courier Services in India 14 – 19 3 How to start a Courier Service 20 – 33 4 Logistics in Courier Industry 34 – 39 5 Revenue of major players & Contribution of 40 – 43 Courier Industry to Indian GDP 6 Indian Courier Summit -2010 & 2011 44 – 48 7 Study of Inbound & Outbound Supply Chain 49 – 75 8 Case Study : Pride International, International 76 – 87 Courier and Logistics  Conclusion 88 – 89  Bibliography 90 – 91 Page 7
  • 8. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 1:- Introduction  Courier Service  Types of Courier Services Page 8
  • 9. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Courier ServiceCourier 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 anddistributing 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 courieris much faster, safer and secured than ordinary mail. It is a specialized service withauthenticated signatures. It has tracking service with each service being treated as aspecific individual case. Dedicated timely deliverance is its primary hallmark. Thesefeatures do cost a bit extra but with so many features available, the cost getsleveraged.Couriers are distinguished from ordinary mail services by features such as speed,security, tracking, signature, specialization and individualization of services, andcommitted delivery times, which are optional for most everyday mail services. As apremium service, couriers are usually more expensive than usual mail services, andtheir use is typically restricted to packages where one or more of these features areconsidered important enough to warrant the cost.Today the huge global companies have their own fleet of trucks and aircrafts solelyfor the purpose of transporting the logistics whereas the mode of operation in cities isinfluenced by bicycle and motorcycle. The transporting methodology involves truckowners operating in tandem with the major logistics companies. They normally coverthe defined routes.In cities, there are often bicycle couriers or motorcycle couriers but for consignmentsrequiring delivery over greater distance networks, this may often include Lorries,railways and aircraft.Many companies who operate under a Just-In-Time or "JIT" inventory method oftenutilise on-board couriers. On-board couriers are individuals who can travel at amoments notice anywhere in the world, usually via commercial airlines. While thistype of service is the second costliest—general aviation charters are far moreexpensive—companies analyze the cost of service to engage an on-board courierversus the "cost" the company will realise should the product not arrive by aspecified time (i.e. an assembly line stopping, untimely court filing, lost sales fromproduct or components missing a delivery deadline, organ transplants). Page 9
  • 10. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsCourier ServiceMary Breckinridge is credited to pioneer the courier service. Back in First World War,she was working in an American committee that used to deal by taking personnelinto the service whose primary job was to deliver the medical supplies and assistingthe medical staffs in far flung places. The official year for record was 1928 and theterm given was courier. Sooner as was expected, its popularity increased withchanging time and mounting needs. By the end of Second World War, when theneed of the hour was urgent delivery of essential messages and commodities,courier services witnessed many folded increase.After Second World War, a plethora of courier companies have been launchedworldwide. Courier Company is primarily indulged in delivery of goods and mails toany place of the world. The services offered by them are accessible almost all thetime.In the current scenario, we are often faced with shortage of time in every activity wedo. Be it reaching the office or sending a parcel to a dearest one residing in adifferent states or city, we always wait for the last moment. If you want your parcel tobe delivered in a short period of time, you need to utilize an Express courierservice that provides express delivery service like overnight or same day delivery.Generally, such a service is available at a price higher than the standard expresscourier services. The demand for express courier services and the external factorsinvolved are responsible for the higher cost of these services. At times, the service ofairplanes or cargo planes is the only way to ensure the delivery to overseasdestination in a short span of time. Therefore, additional costs are involved.However, you should not avoid the use of such services when the parcel needs to bedelivered on time.Majority of leading courier companies provide express service. Moreover, the largecompanies also provide an express international courier service. This helps inensuring timely delivery of overseas parcels. However, the companies offering theservices of express delivery depend on a third party to carry the shipments to theirdestinations. Generally, airline companies or shipping companies are the thirdparties involved in these services. Page 10
  • 11. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsThere are several courier companies that work closely with their clients. This is doneby offering personal courier services. In this case, a personal messenger is sent tothe recipient. The person holds the responsibility of delivering the package on timeand in the perfect condition. Express couriers have trucks for transportation ofshipments. However, bike messengers are also employed for urgent deliveries insidethe city. Types Of Courier ServicesThere are many different types of courier services to suit the needs of businessesand individuals across the country. Transporting goods and information is oftencritical in terms of timing, security and correct delivery location, which is why couriersare such an in-demand and essential service.  On-Board CourierAside from chartering a plane, an on-board courier is the most expensive and indepth courier service. While being extremely expensive, these types of couriers areoften necessary when items of extreme importance need to travel (ofteninternationally). This could be the case for things such as medical cargo (such asorgans needed for a transplant), critical parts or tools or sensitive business or legalinformation.  Personal Courier ServicesThis type of courier is often used in big cities or over relatively short distances. Theycan carry a range of cargo from super-sensitive or delicate material to standardoffice documents and files. Often, these types of couriers will be used in largecompanies with complex mail systems to ensure that a package reaches the rightperson in a timely manner.In some cases, these couriers are also bike couriers in that they use a motorbike orpushbike to navigate between locations quickly. However, they may also use typicaltransport such as cars, vans and trucks. Page 11
  • 12. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics  Same Day Courier ServicesSame day courier services are often available for locations within a reasonabledistance of the sender. It‘s normally items of an urgent or delicate nature that aresent through a same day courier service, and this category may carry over to thepersonal courier service, but not necessarily if a longer distance is covered.Obviously, this type of courier service comes at an additional price.  Overnight Courier ServicesMany couriers offer overnight delivery services to certain destinations. These areoften cheaper than the courier services listed above, but can be more expensivethan standard courier services. The destinations offered vary, but many couriers cancover a large distance in this time. Typically a courier network will take care of yourpackage, and normally conditions apply such as a cut-off time to put packages in forthis service.  Standard Courier ServicesStandard courier services are the most familiar and commonly used type of servicefor individuals and businesses. While typically timely, these services are not normallyas fast as other courier services, and they are priced appropriately for this purpose.With most courier services requiring a signature of receipt and the ability to trackyour package, it offers security and timely delivery that regular mail often can‘tprovide.  Back Loads and Part Loads Courier ServicesThis type of courier service is often beneficial for businesses that rely on frequentdelivery of items from a courier. This system operates on a commonsense deliverysystem that operates less on the idea of urgency but can save the business moneywhile often still delivering a positive result.In this case, packages are delivered either when the courier is visiting an areaanyway such as in the case of someone else ordering a same day delivery service.Items to be delivered simply wait until the courier is travelling a particular direction. Ifa certain timeframe elapses, the items may be delivered anyway. Page 12
  • 13. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsFor example, a mechanic may order parts supply from a courier, but instead ofpaying a premium price for immediate delivery, they wait until another business orindividual orders courier services in their area. When that happens, the courierdelivers their parts too as part of their journey. There may be a clause that if the partis not delivered in a week, the parts are shipped anyway. Page 13
  • 14. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 2:- Courier Services in India  Courier Services in India  Salient features of the industry  Courier companies in India Page 14
  • 15. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Courier Services in IndiaIndian courier industry was initially limited to all the four metros. The reason was theairport connection these metros were having. The industry had its start some 15-20years ago. But with changing economy and technical advancement seen on a dailybasis, the industry has extended fast to several metropolis, township and even ruralareas. Train, bus, motorcycle and even bicycle have helped the industry in thisregard. Industry has traveled a long way and now it has become a very commonsight to see an office of Courier Company in the nearby locality. A courier company in India has its primary virtue is itsefficiency. The more efficient it is, better the chances of survival. Considering this isa manpower intensive industry, so the need for highly skilled and trained personnelis of prime importance. The industry is booming and market is brutally competitive soall the companies have to keep improving to sustain in the business. Theadvancement of technology has also made things slight easier. The Indian courier market is Rs 7,000-crore courier industry and it isgrowing at 25% a year. Still, most of the business is in unorganized sector. Fewmajor players dominate the market .Earlier, it used to be a fragmented market but,now the process of consolidation can be seen.Courier Services in India can be segregated into few categories: 1. Intra-city services :- which are about speedy delivery of mails and goods within the city. 2. Inter-city services :- surface cargo services where short distance and bulk loads are handled. 3. Air express/Air cargo services :- Delivery through airways. Page 15
  • 16. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 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. Page 16
  • 17. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Courier Companies in IndiaIf one tries to find a courier company in India, one can find them in every nook andcorner of the large part of India. The numbers of courier companies in India haveseen a growth reminiscent of wildfire.Many factors have contributed towards this huge spread. Economic growth,technological advancements, escalation of industrial sector, increase in export andimport and large scale effect of liberalization are few of the major reasons. Now aday, courier companies are considered as vital component of any economy.In the earlier days, the major courier players were centered in major metros becauseof their better connectivity with airport, ports and railways. But with India rapidlybecoming a major economic force, now more and more companies are coveringcities, towns and rural areas under their wide network. Despite that development, thelarge and medium sized companies are still based in the metro cities of India.There are large numbers of courier companies in India. It can be segmented intoorganized, semi-organized and unorganized categories. The organized sectorplayers are quite large in magnitude. These players often have best of speed andreliability. As the competition is heating up, companies are offering specializedservices including online tracking of the goods. In this service a customer can checkthe route via which goods are being delivered and the exact location of the thing inthe specific time duration. Many large companies also offer multi-point coordinationand heat control facilities for the parcels. The major players in Indian courier industry are DHL, Blue Dart, FirstFlight, Gati etc. Out of these players DHL courier definitely has an edge over thecompetitors since its 68 percent acquisition of another big player Blue Dart. DHL is ahuge brand name in courier industry not only in Indian context but also worldwide. Itis right there on the top in services such as air shipment, worldwide express andoverland transport. Even in more specialized services such as ocean shipment andcontract related logistics, it is the number one. It has a synchronized operatingsystem. Its expertise lies in providing customized solutions to the customers. Theyhave a very potent combination of global reach and local knowledge. Whether, itsexpress document shipping managed through its wide-ranging network or entireaspect of supply chain management; it has managed to carve its own niche in thecourier and logistic industry. Page 17
  • 18. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsThese are some key players in Indian Courier Industry: 1. DHLDHL is the global market leader in international express, overland transport and airfreight. It is also the worlds number 1 in ocean freight and contract logistics. DHLoffers a full range of customised solutions - from express document shipping tosupply chain management.DHL are the first letters of the last names of the three company founders, AdrianDalsey, Larry Hillblom and Robert Lynn. 2. DTDC:-DTDC is India‘s Largest Domestic Delivery Network Company offering variouscustom made services ranging from Domestic to International. DTDC delivers to theremotest places in India with the help of 4,000 business partners spread across thelength and breadth of India.DTDC Courier & Cargo Ltd. (DTDC) was incorporated in 1990. Within a span of 17years, through its business associates DTDC expanded its delivery network acrossthe length & breadth of the country, thereby creating the nations Largest DomesticDelivery Network. Today DTDC is one of the largest Indian companies in theExpress industry. DTDC can also be credited with pioneering the franchisee conceptfor 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 pin code areas and has over 4,000Franchised outlets, supported by 176 offices, which includes its Branch offices,Regional offices, Area offices, Hubs and Sub-offices. It handles 10 millionconsignments every month. DTDC serves over 240 international destinations. Page 18
  • 19. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 3. 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 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 – India‗s Largest Domestic Courier Company. 4. FedEx:- Federal Express started operations in India in 1997, and currently operates ten flights a week from Mumbai to Europe and Asia. FedEx has an operations agreement with Prakash Airfreight Pvt. Ltd., which provides all pick-up, and delivery services within India. FedEx now services from eight centers as against four centers earlier and has branch offices in Kolkata, Ahmedabad, Hyderabad and Coimbatore, in addition to the current operating locations in Delhi, Mumbai, Bangalore and Chennai.5. Blue Dart:- BLUE DART is South Asias 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. Page 19
  • 20. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 3:- How to Start a Courier Service  Courier as a Business.  Procedure to start a Courier Business Page 20
  • 21. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Indian courier industry is blossoming giving opportunities to startones own courier service in India. With many global players entering into thelucrative Indian market, there is huge untapped market which is still waiting to beexplored. Considering Indias large geographical area, emerging economy, its quiteprudent to venture into this vastly potential segment.So, how to start a courier service? To begin with, any individual who is over 18 yearsof age, has a good health and holds a legitimate passport can start his/her owncourier service. Courier as a BusinessAt first glance, the courier industry looks easy to get into. It can appear that all aperson need is an office, a telephone and a set of wheels - either two or four. As aresult, there are a lot of new businesses starting up each year. Inevitably, there is alot more to making a success of it though: very few tend to start up a couriercompany from scratch. Most of those who own courier enterprises are formercouriers themselves. Even a smallish motorbike or cycle company requiresconsiderable effort and knowledge.Cycle couriers can, by definition, only exist in an urban setting. Most cyclists coveraround a two mile radius - otherwise the same day service and ability to deal withurgent jobs is lost. As courier firms operate in cities, jobs tend to be office related -lighter packages, urgent documents and so on.Motorbike couriers are faster and can go further but, similarly, they would be morelikely to do town or city based work. For long distance journeys it makes economicsense to do more than one job at once, for which a van is obviously better suited.Prompt and courteous riders are a must as cycle couriers have had something of areputation for unreliability in the past.Unless a person have unlimited money for a fleet of motor or push bikes, he willgenerally have people working with him on a self-employed basis. They will beresponsible for providing their own bikes and equipment, as well as storing andmaintaining them. Page 21
  • 22. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsA business can therefore be run from a home office on this basis, with a computerand mobile phones rather than a radio.Although couriers are starting up all the time, this is a fluid industry. Firms merge andchange so if a person finds a niche within his area it is possible to work alongsidethem. No firm turns a job down but in a busy city there should be enough foreveryone.Cycle couriers are also a greener option with so many city centre‘s plagued by trafficand plans for no-car zones to develop. Page 22
  • 23. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsFollowing is a procedure which can be followed to start a CourierBusiness: 1. Initial requirements when starting out With just a few essentials, you can start your own courier and delivery business in no time.When starting a courier service, or other delivery service, there are certainly a fewthings that a person will have to have in order to get off to a good and profitable start.When it comes to tangible goods, there are a few obvious things. A car is the keyelement of a delivery service, and is certainly a necessity.If the company will be delivering large parcels or items, a truck may be a goodchoice. When starting, though, a person will easily be able to work with what he hasby accepting jobs that fit the parameters.Pay careful attention to insurance, however, a person will need to ensure that hispolicy covers business use of his vehicle. He will also want to ensure that he havethe money needed to cover fuel for his first few weeks of work until his clients havepaid their invoices.With the vehicle covered, a person will also need a few other basics, such as a cellphone, a clipboard, and a map or GPS system. A GPS system, even if he uses theone integrated into many cell phones, is an invaluable tool that can offer directionseven while drive, which saves both time and overall money. Page 23
  • 24. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsThe starter will also need access to a computer and printer so that he can createinvoices, tax records, and other important documents. Owning own computer ispreferred.In addition to these physical things, there are also some intangible items that areabsolutely essential to any starting business. A person needs to have the free timeneeded to do the job and to do it properly. If he is planning to make great moneywithout having enough time to do the job, it simply isn‘t going to work.A starter also needs to have a positive and friendly attitude and approach. He isn‘tgoing to become a millionaire overnight, but with friendly, quality service he can builda client list quickly.This is all that a person needs to start a great business. While he may run into moreneeds as his business grows, this is what he really needs to start. Page 24
  • 25. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 2. Research of AreaEven if a person thinks that he is familiar with the industry, it‘s very important toresearch the area he is looking to set up in. Some things are obvious. Starting up acycle courier business in the middle of the countryside isnt a good idea because hiscustomers will be too spread out to make it viable.Looking at his competitors prices will help him decide what he can afford to chargeand whether its possible to undercut them. It will also help him to see if theres aniche in his local area. He might be near an airport and focus his business there or,alternatively, he may focus his attention on delivering items such as foodstuffs. Page 25
  • 26. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics3. Considerations for Recruitment of Personnel in Courier IndustryThe most viable way to recruit is to hire self-employed couriers. This means thestarter of the business wont have to fork out for a fleet of bikes or have the storagespace to cope with them.Finding good riders can be difficult. It is very difficult to source an insurancecompany that will insure motorcycle couriers aged under 25.Advertising in the local paper is the best way to start off. A person can take on thepeople who are available and train them up to be the riders he want.Riders are the public face of business. Theyre the ones who are out meeting clientsand who can break the business if they have one too many bad days. Strongsupport at the company end can help head off potential trouble. Page 26
  • 27. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 4. AdvertisingWhen the starter of the courier service is on a budget - as most people are whenstarting up a business - advertising can be the biggest headache, but unfortunatelyit‘s usually necessary. Making a simple but professional flyer and dropping it intolocal businesses is a simple and cost effective first step. Free online listings servicesare worth a look and Yellow Pages adverts are also good when money is not animportant factor.However, word of mouth is the most important thing. In terms of business tobusiness courier work, there‘s no evidence that businesses find couriers throughadvertising and marketing: it‘s mostly done through word of mouth. So a person canspend a lot of money advertising in the Yellow Pages or on a website, but there‘s noevidence that end users look at the websites when looking for a courier. They wouldlook to somebody else in the same business as them and ask which couriercompany they use.If the company deliver as promised, offers the best possible value and makes surethat the riders give exemplary service, people will recommend it. This will be the beststart business could possibly have. Page 27
  • 28. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 5. Maintaining Brand Image of the CompanyCyclists and motorcyclists are vulnerable on the roads but they can also be veryvisible. In creating image a person can therefore enhance both his rider‘s safety andcompany advertising by bright, noticeable colours or logos.A recognizable image will also make it look like the company is everywhere, evenwhen the numbers of riders are few on the road. Its important to establish theidentity from the beginning as the company can‘t afford to change its image every sixmonths - strong brands are built over time. Page 28
  • 29. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 6. Determine Charges for service Determining what to charge is one of the most important steps you will take as you begin your courier service. Luckily, several strategies that you can employ will ensure your competitiveness.The one question we get more than all the others combined is: ―How do I figure outwhat to charge for delivery services?‖The answer is that much of the pricing depends on the answers to several questions:  Where are you?  How much competition do you have and what are they charging?  What are you delivering? Is it an envelope or a big screen TV? Is this a one time delivery or a repeating scheduled delivery?  Is the delivery local or out of town?  How much is your overhead? Do you have an expensive office or do you work by yourself out of your house?  How much profit do you want to make?  How much does it cost to operate your vehicle? how much is your insurance? What is the current price of fuel in your area?These are just some of the many variables to consider when figuring out rates. Page 29
  • 30. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsThere are several simple strategies for figuring out what should be charge fromclients.Strategy One: Determine Competitors RatesFind out what other courier and delivery services in the area are charging.If a person charges more than the going rates, he will probably not get many clients.If he charges less than the market rate, at best he is leaving money on the table. Atworst, he may go out of business because his profit margins will be too thin.The most important factor is what people in the area used to and willing to pay fordelivery services. In other words, a person needs to determine the market price forhis services in his area.Strategy Two: Determine What You Want To MakeSet a target revenue goal and then work backwards. If I want to make Rs.60 perhour, then that means each minute of my time is worth Rs. 1.00. So, if a deliverytakes me 10 minutes, I‘ll charge Rs. 10. If a delivery takes me 25 minutes, I‘ll chargeRs. 25 for that delivery.This strategy can provide an easy way to provide quotes, but it‘s only effective solong as the prices quoted are still competitive in the area. So, Strategy Two must beused in conjunction with Strategy One.Also, it should be pointed out that a person should be sure to factor his expensesinto his target income goal. Even if I am earning Rs. 60 per hour, I‘m going to have tosubtract my expenses from that income. Page 30
  • 31. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsStrategy Three: Survey Your Target MarketSimilar to Strategy One, Strategy Three involves actually asking prospective clientswhat they are paying, what they are willing to pay, and, essentially, how muchservices offered are worth to them.Now, rather than simply asking them ―How much do you want to pay me?‖ which isnot likely to provide with useful information, a person can instead ask questions towrite the amount of convenience.Simply put, a person can ask them how many employees they have, who generallymake the deliveries, where the deliveries are going, what time of day their deliveriesgo, etc. Gathering this type of information should give clues to how much he cancharge. Page 31
  • 32. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Regulations: Laws of Courier BusinessThere are no specific laws attached to courier businesses. However, there areinsurance issues. The company must observe health and safety legislation andstandards.It is good practice to have goods in-transit insurance to take care of the clients‘property. There are specialist brokers that deal in insurance for couriers. For anestablished company with vans as well as bikes a person might pay around Rs.5000a year for this. Obviously with the reduced carrying capacity of a motorbike or cycle,this would be significantly reduced.Public and employers liability insurance for couriers and courier companies, as wellas courier vehicle breakdown cover, is something a person should look into unlesshis fleet is made up entirely of self-employed riders, who are responsible for theirown insurance and relevant driving license for motorbikes. All riders need to haveEC standard clothes and helmets. Again any logoed or coloured jackets thecompany wants them to wear should conform to the guidelines.Although the temptation will be that rider‘s work as hard as possible to maximize theearnings, they should have a 15 minute break every 2 hours, and can only work amaximum of 10 hours. Page 32
  • 33. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Courier Code: Responsibilities of Firm & RiderIts important to be aware of the responsibilities not only that the company owe toriders but also that they owe to the company. This is vital, both for the safety and forthe health of business. The government has a courier code. Its described as a codeof practice for firms in the courier industry and those who ride and drive for them.Responsibilities of courier firms: Riders and their vehicles need to be properly licensed, insured and roadworthy Create realistic delivery schedules to ensure your couriers dont work more than allowed working hours Deliveries should not involve dangerous loads Keep records and make regular inspections to ensure the requirements of the code are complied with Make sure riders are properly trained and licensed for dispatch operations Provide clothing and equipment for riders which show the name of the company and are suitable for their purpose Do not require riders to use a mobile phone on the moveResponsibilities of riders:To have a full license and to be properly insured for courier work. Cyclists dont haveto be insured but as a responsible road user, cover should be in place Inexperienced riders should have further training before being engaged in courier work Being alert and personally fit when riding is important Never operate under the influence of drink or drugs or use a handheld mobile while driving Cyclists should have lights for use at night, a bell and use a cycle helmet. All should comply with relevant standards Cyclists must not cycle on the pavement or across pedestrian crossings Page 33
  • 34. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 4:- Logistics in Courier Industry  What is Logistics?  About Logistics & Customer Service in Courier Industry.  Logistics management process in Courier Industry.  Future prospects of Logistics in Courier Industry. Page 34
  • 35. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics What is Logistics?Logistics is concerned with getting the products and services where they are neededwhen they are desired. It is difficult to accomplish any marketing or manufacturingwithout logistical support. It involves the integration of information, transportation,inventory, warehousing, material handling, and packaging.Logistics is an organized process of managing the flow of merchandise from thesource of supply - the vendor, wholesaler or distributor - through internal processingfunctions like warehousing and transportation, until the merchandise is sold anddelivered to the end customer. Logistics management aims to reduce inventory-holding costs and improveprofits, while enhancing customer satisfaction. Page 35
  • 36. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics About Logistics & Customer Service in Courier Industry:Logistics contributes to an organization‘s success by providing customers with timelyand accurate product delivery. The key question is who is the customer? For courierindustry, the customer is any delivery destination. Typical destinations range fromconsumer‘s homes to offices or any other destination of delivery. In some cases thecustomer is a different organization or individual who is taking ownership of theproduct or service being delivered. Regardless of the motivation and deliverypurpose, the customer being serviced is the focal point and driving force inestablishing logistical performance requirements. It is important to fully understandcustomer service deliverables when establishing logistical strategies.Whereas logistics is not capability that contributes to overall success, it isfundamental to servicing customers. In a typical marketing situation, the desiredcustomer service performance changes over time.In terms of overall logistical performance, the basic customer service platform orprogram should be the level of support provided to all customers. Page 36
  • 37. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Logistics Management Process in Courier Industry:The various processes and elements that are part of logistics in courier industry areas below:Inbound logistics: Inbound transportation, Inventory Management.Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicingstandards, fast cycle time has become the key factor for courier business success,whether it is a cargo shipment anywhere in the world or a local courier delivery. Significant benefits can be reaped through the multiplier effectof better logistics in the courier industry. Page 37
  • 38. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Future Prospects of Logistics in Courier Industry: There are three revolutionaries responsible for future growthprospect of logistics in the courier industry. They are (1) the globalisation of trade; (2) the coming of the information era; (3) more demanding consumers and continuously changing consumer preferences. The main characteristics of the future logistics development in thecourier industry are:• Government role: To keep competitiveness of the courier industries, thegovernment has to lead the way to assist the logistics industries. For instance, theidea of village courier provides the environment to promote logistics efficiency and toreduce operation costs. However it involves large of investments and some problemsrelating laws and national policies. Without the lead and support of government,achieving the plan is difficult.• Growth of international goods transport: The up-growth of internationalfreight transport is contributed by several factors. Firstly, the blossoming of E-commerce pushes ahead the international business activities. Secondly, the changeof production strategy needs international co-operation, e.g. importing the semi-finished products from countries and assemble the final goods. Thirdly, the pressureof globalised market, such as World Trade Organization (WTO), pushes localindustries to promote themselves to reach an international standard and face theworldwide competition.• Improvement of services: Providing a good customer service becomes anecessary requirement for any courier operation with the intense competition ofglobal market. The quality of services is the main factor to affect consumers. Theservice systems involve several developed techniques now, such as EfficientConsumer Response (ECR) and Quick Response (QR). In the near future, more newtechniques would be applied in providing better services for customers. Page 38
  • 39. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics• Freight transport: The alliance between middle-small size delivery companiesis an important trend in the future. The strategy could help to expand service areasand increase service quality, and meanwhile raise the loads of single trips to reducedelivery costs• Specialized logistics delivery: One of the notable trends of courier & Cargoindustries is specialized delivery service. For instance, Computer chips, gases andpetroleum need particular conveyances to carry. These demands are rising since theproducts became more and more delicate. Page 39
  • 40. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 5:- Revenue of Major Players & Contribution of Courier Industry to Indian GDP  Revenue of major Players in Indian Market.  Contribution of Courier Industry to Indian GDP. Page 40
  • 41. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Revenue of major Players in Indian Market (Rs. bn):Blue Dart Express Ltd. (Blue Dart) is the market leader, with a 36% market share inthe domestic market, and Elbee Services Ltd., the second largest player, has a 20%market share. AFL-DHL is primarily focused on the international segment, where it isthe market leader, whereas Gati Corporation Ltd. (Gati) is the market leader in thedomestic packages, ground distribution segment. In the domestic air packagessegment, Blue Dart, having developed its own air network and aircraft operations, iscurrently the market leader. Revenue in the financial year 2010 – 2011. Page 41
  • 42. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Revenue in the financial year 2010 – 2011.The organized segment dominates the package and the premium documentbusiness since it requires a strong infrastructure and resources, while the low-yielddocument business is the domain of the unorganized sector. However in value termsthe share of the organized sector is 64% and of the semi-organized and unorganizedsector is 36% in spite of the large volumes it handles. Page 42
  • 43. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Contribution of Courier Industry to Indian GDP:Indian GDP: Contribution by Sector: Agriculture : 16.1% Industry : 28.6% Services : 55.3% The contribution of Courier & Logistics Industry: 13 – 14%Contribution of Courier & Logistics to GDPIndian economy has been showing robust growth coupled with domesticconsumption and international trade (import & export) supporting growth in courier &logistic industries. Moreover, during the period 1991-2005, India‘s imports have goneup at an average rate of 8.8 %, while exports have registered a growth rate of about9.27% annually. These have positive impacts on the courier & logistic industry as awhole. Contribution of courier & logistics industry to India‘s GDP has risen in recentyears. Estimates from various published sources indicate that courier & logistics inthe country at present contributes around 13-14% of the GDP.Indias ascending fortunes in the manufacturing sector over the last few years hasopened several windows of opportunities for the courier & logistics market, and thistrend is likely to gain pace as the wave of global economic slowdown is graduallyreceding and India emerging as one of the earliest major economies to recover fromrecession. This fast-paced growth of the industrial sector, coupled with the moresturdy progress of the agricultural sector, has necessitated extensive supply chainsacross the country to facilitate sourcing and distribution of production. Page 43
  • 44. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 6:- Indian Courier Summit– 2010 & 2011  Event profile.  About Organizer.  Objective of the Summit.  Areas covered.  Exhibitors profile.  Visitors profile.  Highlights. Page 44
  • 45. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Event ProfileIndia Courier Summit 2010 & 2011 offered an ideal platform to the courier industry todiscuss issues of common interest. India Courier Exhibition gave an opportunity tothe value partners of the industry, to showcase new trends and technologies that canadd value to the efficient working of the industry, to meet the desired demands ofdiscerning customer.Organizer:- Manch Communication (P) Ltd, IndiaDate for 2010:- 6th & 7th April, 2010Date for 2011:- 15th & 16th April 2011Venue:- Hotel Le Meridian, New Delhi, India. About OrganizerFor more than a decade, Manch Communications has pioneered a differentapproach of hosting shows and managing visitor‘s promotion. With major eventspresent in the profile, the company has efficiently emerged as a single viablealternative for organizers to provide back end support. Based in New Delhi, thecompany has effectively managed shows in Mumbai, Bangalore, Chennai,Hyderabad, Dhaka and Colombo. In June, 2009 with a successful launch of ExpoSummit 09, Manch Communications has established itself as one of the mostreputed conference organizers. It has a uniquely talented team of professionalswhich is backed with outstanding skills and other complementary disciplines. Page 45
  • 46. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Objective of the SummitIndia Courier Summit 2010 endeavored to bring all the frontline stakeholders of theIndustry in the country, under one roof, to deliberate on the challenges faced by theIndustry and also create opportunities for networking for mutual benefit.The Summit offered an ideal platform to the Courier Industry to discuss issues ofcommon interest and also give an opportunity to the value partners of the Industry, toshowcase new trends and technologies that can add value to the efficient working ofthe Industry, to meet the desired demands of the customer. Areas covered: Multinational players and Indian players on Indian Courier industry – Vision 2020. Growth inhibitors of the sector – Price War: A limitation in the growth of the sector. Potential of Public Private partnership models in Indian Courier Post sector. Growing need of security enhancement in the facility courier companies. Taxation issues addressed by representative of KPMG / PWC. Developing network round the globe. The benefits of automating operation of Courier and Logistics sectors. Importance of meeting time lines: A key to customer satisfaction. Managing transport fleet to optimize collections and deliveries. Emerging need of IT in this sector to squeeze the collection-delivery time period. Page 46
  • 47. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Exhibitors Profile:-Targeted exhibitors at India Courier Summit were: Vehicle Manufacturers Material Handling Equipment Manufacturers Barcode Sensors Companies Weighing Machines Companies Label Manufacturers, Ware-House suppliers RFID Chips and Software Storage Systems and Sorting Machines. Visitors Profile:Visitors at India Courier Summit 2010 were: Courier Companies Courier Operations Experts Courier Agents Logistics Consultants Service Providers IT Consultants Government and autonomous bodies of the Courier Industry. Page 47
  • 48. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics HIGHLIGHTS of the Summit: India Courier Summit brought in the opportunity for the entire sector to give the presentations on the potential and common challenges of the Industry in front of the policy makers. The Summit served as vehicle in the augmentation process of the Courier and Logistics industry by generating the unanimous voice for its augmentation. It showcased new trends & technologies that can add value to the efficient working of the Industry to meet the desired demands of discerning customer. It serves as an opportunity for the leading exhibitors, to demonstrate their most recent products and services on the display. It is an ideal event to exchange expertise and thoughts, with leading edge professionals and to make professional approach in the Courier Industry. With presentations from leading industry experts, Q&A sessions and open forums, the conference provided valuable insight into some of the most important issues within the industry. The summit gave networking opportunity to meet the key decision makers from many of the Leading companies in express, cargo & Logistics companies, shipping & supply chain companies and concerned government departments & Trade commissions. Page 48
  • 49. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 7:- Study of Inbound & Outbound Supply Chain in Courier Industry Page 49
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  • 55. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Inbound Supply Chain:Q.1. How many parcels do your company receive every day?200-400 [2] 400-600[4] 600-800[2] more than 800[2] 10 9 8 7 6 5 4 3 2 1 0 200-400 400-600 600-800 > 800Analysis:- From the above response we can see that the number of parcel handlinglies around 400 to 600 parcels every day. Companies can increase this by increasingthe number of customer base and by incorporating information technology. Page 55
  • 56. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics2. How many authorized dealers of the company are there in the city?10-20[2] 20-30[4] 30-40[2] 40-50[2] 10 9 8 7 6 5 4 3 2 1 0 10–20 20-30 30-40 40-50Analysis:- The number of authorized dealer lies around 20 to 30 for 4 respondents,and 30 to 40 for 2 respondents as well as 40 to 50 dealers for 2 respondents. Thiscould be seen that courier companies are trying to increase their customer networkthroughout the city. More number of authorized dealers means better service to thecustomer and addition of more number of customers. Page 56
  • 57. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics3. How many area hubs are there in the Mumbai city?Less than 5[0] 5-7[2] 8-11[6] more than 11[2] 10 9 8 7 6 5 4 3 2 1 0 <5 5–7 8–11 40-50Analysis:- Large number of courier company have around 8 to 11 area hubs. Areahubs can be defined as a centralized location of a courier company in a location fromwhere it can collect/distribute parcels in and around the location. More numbers ofarea hub could lead to better collection and distribution network and better customersatisfaction. Page 57
  • 58. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics4. How are the receipts generated at the authorized dealer while receiving the parcel?Computerized receipt[2] Manual receipt[8] 10 9 8 7 6 5 4 3 2 1 0 Computerized receipt Manual receiptAnalysis:- Majority of the authorized dealers still use manual receipts to give tocustomers this could be because of the fact that majority of the dealers are notwilling to use computer as it need extra skills and required investment. Page 58
  • 59. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics5. Please tick Yes/No for the information which is printed on the receipt: Particulars Yes No Customer Name 10 Recipient Name 10 Customer Address 10 Recipient Address 10 Customer Phone Number 10 Recipient Phone Number 10 Bar Code 10 Customer Care Number 10 Policies and Regulation 10 10 9 8 7 6 5 4 3 2 1 0Analysis:- A receipts can be defined as a formal document which is received by thecustomer who orders for a service. In a courier industry all the company‗s provide areceipt to its customer during the time when the customer places a order for sendinga courier. The receipts consist of full details of the customer and recipients, alongwith that all the courier company mention bar code as well as its customer carenumber. In order to avoid any legal issues during the transaction of courier,companies do mention about the policies and regulations at the back of the receiptsfor the customers to read. Page 59
  • 60. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics6. How are parcels brought from the authorized dealer to the area hub?Motorbikes[8] Small trucks[2] 10 9 8 7 6 5 4 3 2 1 0 Motorbikes Small TrucksAnalysis:- More number of courier company‗s prefer to use motorbikes to bring thecourier parcel from its authorized dealer to its area hub, the main reason for the useof motorbikes is its cheap and easy to maintain compared to a small truck. Alsomotorbikes give a good mileage compared to a small truck. Motorbikes can even goto locations where small trucks can‘t enter. Page 60
  • 61. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics7. How many trips in a day are made for collecting parcels from the authorizeddealer?1 trip[2] 2 trip[6] 3 trip[2] more than 4 trip[0] 10 9 8 7 6 5 4 3 2 1 0 1 trip 2 trip 3 trip > 4 tripAnalysis:- Majority of the courier operators have two trips per days to bring theparcels from its various authorized distributors, one trip in the morning and the otherin the evening. The reason for having 2 trips can be attributed to the fact that it givessufficient time for the dealers to get more parcels to deliver when the next vehiclecomes for pick up. More of the courier companies limit their pick up upto 2 trips perday as it is more economical. Page 61
  • 62. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics8. Total number of vehicles which are available to collect the parcels from the dealer?1-5[2] 5-10[6] 10-15[2] 15-20[0] 10 9 8 7 6 5 4 3 2 1 0 1–5 5–10 10–15 15–20Analysis:- More number of courier operators possess around 5 to 10 number ofvehicles which included both 2 wheelers as well as 4-wheelers. The total number ofvehicles are decided by the courier company on the basis of the location of the areahub, numbers of the authorized distributors, number of parcels received/dispatch in aday, number of employees etc. therefore on an average we can see that for each ofthe area hub the number of vehicles ranges from 5 to 10. Page 62
  • 63. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics9. What is the number of employees working in the area hub?Less than 5[0] 5-10[4] 10-15[2] more than 15[4] 10 9 8 7 6 5 4 3 2 1 0 <5 5–10 10–15 >15Analysis:- More number of employees refers to better management of the parcels,quicker delivery of the parcels and other benefits. Page 63
  • 64. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics10. On an average how long does it take to do the segregation of parcels from different location prior to dispatch?15-30 min[2] 30-45 min[4] 45-60 min[4] more than 60 min[0] 10 9 8 7 6 5 4 3 2 1 0 15-30 min 30-45 min 45-60 min > 60 minAnalysis:- The segregation of the parcels in a particular area hub is carried out in anaverage time of about 30 to 60 min. The segregation process includes thedifferentiation of various parcels on the basis of the type, location, state, country etc.the segregation is made much easier with the use of bar code machine which couldread each of the parcel and segregate it. Page 64
  • 65. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Outbound Supply Chain1. How many vehicles are there to dispatch the parcels to the destination?1-5[2] 5-10[6] 10-15[2] 15-20[0] 10 9 8 7 6 5 4 3 2 1 0 1–5 5–10 10–15 15–20Analysis:- More number of courier operators possess around 5 to 10 number ofvehicles which included both 2 wheelers as well as 4-wheelers. The total number ofvehicles are decided by the courier company on the basis of the location of the areahub , numbers of the authorized distributors, number of parcels received/dispatch ina day, number of employees etc. therefore on an average we can see that for eachof the area hub the number of vehicles ranges from 5 to 10. Page 65
  • 66. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics2. Do your company outsource the logistics to the third party vendor? Yes[2] No[8] 10 9 8 7 6 5 4 3 2 1 0 Yes NoAnalysis:- Majority of the companies do no outsource their logistics to a third partyvendor, the main reason being courier company have better control of the vehiclesas the courier industry is fully dependent upon the logistics part, therefore thecompany‗s do not want to compromise on the issues which could result with thirdparty company if it outsource. Page 66
  • 67. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 3. How many trips of vehicle are made for the dispatch of parcels to the destination in a day?1 trip[2] 2 trip[6] 3 trip[2] more than 4 trip[0] 10 9 8 7 6 5 4 3 2 1 0 1 trip 2 trip 3 trip > 4 tripAnalysis:- Majority of the courier operators have two trips per days to bring theparcels from its various authorized distributors, one trip in the morning and the otherin the evening. The reason for having 2 trips can be attributed to the fact that it givessufficient time for the dealers to get more parcels to deliver when the next vehiclecomes for pick up. More of the courier company limit their picks up upto 2 trips perday as it is more economical. Page 67
  • 68. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics4. Is the facility for tracking the package available online? Yes[10] No[0] 10 9 8 7 6 5 4 3 2 1 0 Yes NoAnalysis:- Almost all the courier companies have the facility to track the packageanywhere in the world with the help of internet. It is helpful for both company as wellas the customer to know the status of the parcel and also eliminate the chance ofany parcel getting lost. Page 68
  • 69. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics5. On an average how many days does it take to send a parcel anywhere in India?1 day[2] 2 days[6] 3 days[2] more than 4 days[0] 10 9 8 7 6 5 4 3 2 1 0 1 day 2 days 3 days >4 daysAnalysis:- On an average it roughly takes 2 days to send a courier to anywhere inIndia. The average number of days usually depends upon the availability of thevehicle, delays of vehicle, delay in processing the parcel delivery etc. The delivery ofthe parcel also depends upon the destination distance from the source. Closedestination could even be reached within 1 day. Page 69
  • 70. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics6. On an average how many days does it take to send a parcel outside India?1 day[0] 2 days[0] 3 days[2] more than 4 days[8] 10 9 8 7 6 5 4 3 2 1 0 1 day 2 days 3 days >4 daysAnalysis:- The average number of days for sending a parcel anywhere outside Indiatakes more than 4 days which again is a subject the location of the country and theresources available at the right time. It also totally depends upon the use ofinformation technology for the transport of the parcels. Most of the delivery is carriedwith the help of airplane as it is fast and reliable. Page 70
  • 71. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics7. What kind of vehicles are used to dispatch parcels from the area hub to the customer’s address? Motorbikes[8] Small trucks[2] 10 9 8 7 6 5 4 3 2 1 0 Motorbikes Small TrucksAnalysis:- More number of courier company‗s prefer to use motorbikes to bring thecourier parcel from its authorized dealer to its area hub, the main reason for the useof motorbikes is its cheap and easy to maintain compared to a small truck. Alsomotorbikes give a good mileage compared to a small truck. Motorbikes can even goto locations where small trucks can‘t enter. Page 71
  • 72. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Role of Information Technology in Supply Chain Management1. Does your courier company use computer application to process packages? Yes[10] No[0] 10 9 8 7 6 5 4 3 2 1 0 Yes NoAnalysis:- The importance of computer application can be understood with the factthat all the courier companies are using it to deal with the business. The computerapplication has helped to better manage the whole process. It has helped to reducethe overall cost to a greater extent and also helped to automate few processes. Page 72
  • 73. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics2. Please rate response on the scale of 5 (1-stongly disagree 5-strongly agree) a) Has the computer application helped in? 1 2 3 4 5 Fulfilling the overall need of the company 0 0 2 2 6 Reduce the package processing time 0 0 2 6 2 Improve the delivery speed 0 0 2 6 2 Improvised logistics management 0 0 2 6 2 Reduce the overall cost 0 2 4 2 2 10 9 8 7 6 5 4 3 2 1 0 Strongly Disagree Disagree neither agree or Agree Strongly Agree diagree Page 73
  • 74. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics b) Occurrence of waste. 1 2 3 4 5 Are the vehicles well maintained? 0 0 2 4 4 Are regular emission are inspections are 0 4 2 2 2 conducted? Do paper & office waste occur? 0 0 2 4 4 Route planning for vehicle is done for 0 0 0 4 6 shortest delivery time? 10 9 8 7 6 5 4 3 2 1 0 Strongly Disagree neither Agree Strongly Disagree agree or Agree diagree Page 74
  • 75. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Limitations of the study :- The research work carried to understand the various aspects of supplychain management in the courier industry gives us the snapshot of the activitiescarried out in the industry. Therefore the courier locations sites selected forconducting the study may not be true representation of the supply chainmanagement carried out in various Courier companies worldwide. The data collectedwere from only from 5 courier companies having hubs in different parts of Mumbaicity. Further, as the concept of Supply Chain Management is complex, its entiredomain cannot be covered in just one study. The views of the respondents are doubled to provide efficient graphicalrepresentation of the study. Page 75
  • 76. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Chap. 8:- Case Study: PRIDE INTERNATIONAL Couriers & Logistics Page 76
  • 77. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics FACT SHEET  Company Name : PRIDE INTERNATIONAL International Courier & Logistics  Year of Establishment : 2006  Legal Status of the Firm : Sole Proprietorship (Individual)  Owner : Mr. Rajeev Dubey  Nature of Business : Service Provider  Number of Employees : 46  Number of Branches in Mumbai : 6  Head Office : A/407, Western Tower, Above Amaron Batteries, Western Express Highway, Andheri (East). Mumbai – 99  Major Markets : USA, CANADA, UK, CHINA, UAE Page 77
  • 78. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics PRIDE INTERNATIONAL COURIER & LOGISTICSPride International is the leading reputed service provider of cargo in Mumbai. TheirOrganization is capable of transporting consignment via air and sea; depending uponthe requirement and budget of the client. They provide Sea Shipping Services toclients who need to ship their bulk consignments to different parts of the world. Theirsea shipping services are mainly availed by companies which need to transportheavy goods and products to different parts of the world. Some of the features oftheir sea shipping services are as follows: • Suitable for shipping bulk and heavy goods • Ensured safety of products • Can reach to otherwise inaccessible coastal areasThe organization also specializes in providing excellent Air Shipping Services to itsclients. These are suitable for shipping of products and material via air, which is thefastest mode of transportation. Their services are also availed by individuals whowant their goods and cargo to be shipped in shortest possible time. Some of thefeatures of their air shipping services are as follows: • Impeccable delivery time • Fast and securedThe firm is expeditiously guided by its owner, Mr. Rajeev Dubey, who has 10 yearsof valuable experience. He is well assisted by a team of diligent professionals,comprising field officers, packaging experts and logistic experts. Their motto is tofurther expand the business operations in international markets, and bring laurelsand accolades for the organization. Page 78
  • 79. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics  Pride International is integrated air express carrier and logistics-services provider. It has the extensive network covering over 13,880 locations, and service more than 220 countries and territories worldwide through its distribution alliance with DHL, the premier global brand name in express distribution services.  Pride International‘s 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.  Pride International was established in the year 2006 by Mr. Rajeev Dubey.  State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control and Reservations. Page 79
  • 80. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Its Competitive Advantage lies in:- Pride International’s Domestic & International Network:Linked by some of the most advanced communications systems and positioned tooffer a consistent, premium, standardized quality of service. It has the extensivenetwork covering over 13,880 locations, and service more than 220 countries andterritories worldwide through its distribution alliance with DHL, the premier globalbrand name in express distribution services. A spectrum of services to provide customized solutions.Pride International offers an entire range of services that extend from a document toa charter-load of shipments. It’s Customs and Regulatory expertiseCompany had a dedicated team of specialists who provide the expertise for customsas well as regulatory clearances to support seamless service to the customer. It’s TechnologyDesigned to enhance the reliability of operations and process efficiency, and addvalue to the customer through time and cost savings. Its People forceThey have a team who believes in themselves and their company, a team with awinning attitude. Page 80
  • 81. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics LOGISTICS IN Pride International:- The Information Technology industry is, perhaps, typical of thechanging and escalating logistic demands of various industries today, irrespective oftheir category as old or new economy. In the IT industry, the difference betweensuccess and failure is closely linked to the supply/value chain integration, of whichthere are two distinct processes: 1. The delivery of goods to the customer in the most reliable transit period (and preferably the shortest) possible. Reliable alludes to a certain guaranteed transit time for packages to reach customers or the response that organizations need in the event of any exceptions. 2. The reverse flow of acknowledged signed delivery records without which, in many cases, recovery of bills are virtually impossible. Especially so in the case of companies placing multi-location orders that could cover hundreds of cities. The task for the supplier is staggering - plan logistics for deliveries to all these locations, and hope for 100% of the delivery records to be returned before bills can be submitted to the customer. In most IT companies, the role of logistics or fulfillment is key. 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. Pride International applied and found solutions to these critical demands through its exceptional people processes, superior technology, and stress on quality systems. It offers a pre-determined delivery schedule with close to 100% accuracy. The IT industry could plan its production with precision and avoid expensive inventory build-up. Retrieval of signed delivery records posed the industrys most intriguing problem. Pride International was quick to understand this requirement and put in place a 100% retrieval system. Pride International 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-line. Page 81
  • 82. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Services of Pride International:Pride International provides different range of services as follows: • International Courier • Door to Door Express – Courier & Airfreight-Import Export • Door to Door Economy Cargo – Sea Freight – Import Export • Door to Airport-Airfreight-Import/Export-Air/Sea • Airport to Door-Airfreight-Import/Export-Air/Sea • Airport to Airport-Airfreight-Import/Export-Air/sea NetworkThe company is associated with major International Global Courier & Cargo ServiceProviders which enables them to provide most competitive rates and the bestavailable services to and from any part of the world. Page 82
  • 83. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics PRIDE PRIORITYThe fastest, most reliable, door-to-door delivery service within India, Bangladesh,Nepal and Bhutan for documents and small shipments under 32kgs per package.The special benefits of this service are: Delivery to over 13,000 locations in India Free pick-up from your location Real-time Tracking Regulatory Clearances Free Computerized Proof of Delivery Page 83
  • 84. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics PRIDE APEX Pride Apex is a door – to – door delivery service for shipments weighing10kgs and above. It is the fastest, most efficient delivery solution for commercialshipments that are time-bound and are required to undergo regulatory clearances, orrequire special handling. Pride Apex offers you an economical option of an Airport-to-Door servicefrom the airports of Mumbai to all the locations serviced.Pride 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 Page 84
  • 85. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Economical PRIDE SURFACELINE Pride Surfaceline is an economical, door-to-door, ground distribution servicefor shipments weighing 10 kgs and above. It offers a cost-effective logistics option foryour 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 Page 85
  • 86. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics SMART BOX Smart Box is a convenient, economic, packaging unit priced to include a door-to- door delivery service. 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 Page 86
  • 87. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics REGIONAL SERVICES IN SAARC AREABetween India, Bangladesh, Bhutan and Nepal.Pride International offers the fastest, most reliable, door-to-door express deliveriesfor your documents and packages to countries in the SAARC region throughRegional Priority. The service offers access to over 13,000 locations in India, andover 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coveragein the region through a quality network, an integrated air and ground infrastructurededicated to express transportation and innovative technology support. Page 87
  • 88. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics Conclusion Page 88
  • 89. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsAs I have surveyed few companies in Mumbai, the result states that the companiesare trying to increase their customer network by incorporating informationtechnology. More number of authorized dealers means better services to customersand addition of more number of customers. Information technology increasesefficiency of the company. Outsourcing logistics has not been a trend as majority ofcompanies do not outsource their logistics to a third party vendor. The main reasonbeing courier company have better control of the vehicles as the courier industry isfully dependent upon the logistics part, therefore the company‗s do not want tocompromise on the issues which could result with third party company if it outsource.Courier Industry is one of the most promising and fastest growing industries in India.It has contributed 13 – 14% annually to the GDP. It is giving opportunities to newpeople to start their own services by investing few thousands. Its contribution to theemployment has been significant. With the growth of city culture in India andemergence of many tier-2 cities apart from metropolitan cities, companies see themas a new market and trying to explore them by opening new branches and offeringnew and affordable services.Courier industries in India face many problems due to lack of infrastructure whichmakes it difficult to reach far inner places. This also increases the cost of service. Tilltoday most of the courier companies don‘t offer services to most of the villages dueto their bad connectivity with the cities. In India courier is more confined to cities. Thebad roads cause delay in transportation. According to a survey, Indian trucks travelon an average 250 to 300 kilometers in a day as compared to 450 to 500 kilometersin developed countries. The reason for this is bad roads, many check points, octroiclearance etc. The government‘s role in such situation becomes important. Forinstance, the idea of village courier provides the environment to promote logisticsefficiency and to reduce operation costs. However it involves large of investmentsand some problems relating laws and national policies. Without the lead and supportof government, achieving the plan is difficult. Page 89
  • 90. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & LogisticsCustomer service is the most important aspect in the courier industry. A starter inthis business faces this difficulty due to few numbers of delivery destinations. In sucha case small companies can tie up with major companies for their delivery by sharingthe profit. Bibliography Page 90
  • 91. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics  Primary Information:- Sr. Name(Person Company Designation/ Department No. Interviewed) 1 Rajat Tiwari Pride International, Business Development International Courier & Manager Logistics 2 Rakesh Shree Ram Worldwide Branch Manager Jhunjhunwala Express 3 Balesh Shukla Harsh Enterprises, Proprietor Domestic & International Courier & Cargo Services 4 Kevin Joseph Sky Net Worldwide Express Channel Sales Manager 5 Sunny Rajwal Orbit Worldwide Express Branch Manager  Secondary Information:-Reference books: 1. Book Name: Elements of Logistics Management Author: V.V. Sople Publication House: PEARSON (1st edition)Websites: 1. courier.co.in 2. prideintl.net Page 91
  • 92. Courier Business in India: Case study on PRIDE INTERNATIONAL, International Courier & Logistics 3. scribid.com Page 92