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R1 mr final

  1. 1. AcknowledgementThis research has been accomplished with the contributions and encouragements from manypeople. I would like to express my gratitude to all supports. Without these supports I wouldhave had a tough time.Firstly, big thanks are addressed to my thesis advisor Prof. Vijay Kapoor, FMS, DelhiUniversity. His knowledge and helps has really been useful while making this thesis.Further, his kind encouragements and patience in providing valuable comments andrecommendations on the beginning draft. Without him, this research would not have beensuccessfully carried out.The deep appreciations are also addressed towards all the people who had read and gavethe information and advice that have made this thesis possible.Finally I would like to thanks to all the people who had answered to my questionnaire. Indian Postal Service Vs Private Courier Service 1|P a g e
  2. 2. Executive SummaryThe British East India Company first established post office in Mumbai, Chennai and Kolkatafrom 1764-1766, during Warne Hasting’s Governorship, postal service was made availableto the general public. A letter would cost 2 annas (one-eighth of a Rupee) for distances up to100 miles. Payments would be done through copper tokens; a letter was hand stamped “postpaid” if paid for, otherwise it was stamped “post unpaid” or “bearing”.In 1839, North West Province circle was formed and since then, new postal circles wasformed needed. In December 1860 Punjab Circle, in 1861 Burma Circle, in 1866+ CentralProvince Circle and in 1869 Sind Circle were formed. By 1880 Circles had been formed inOudh (1870), Rajputana (1871), Assam (1873), Bihar (1877), Eastern Bengal (1878) andCentral India (1879).The usage of the stamps began on 1 July 1852 in Scinde/Sindh district, with the use of anembossed pattern on paper or wax. The stamps were issued by the British East IndiaCompany, which first printed a 1/2a vermilion in April.The Department of posts functioning under the brand name India Post is governmentoperated postal system in India; is generally referred to within India as “The post office”.The postal service, with 155,333 post offices, is the most widely distributed post officesystem in the world. China is the next widely distributed post office system with 57000 postoffices. The Indian postal service is also involved in other services such as small savingsbanking and financial services.Vision Statement of India Post: “India Post will be a socially committed technology driven,professionally managed & forward looking Organization”Mission Statement of Indian post: “To provide high quality mail, parcel and relatedservices in India and throughout the world; to be recognized as an efficient and excellentorganization exceeding the expectations of the customers, employees and the society”.Department of posts is committed to providing universal access to basic postal services inthe country at affordable prices. Its objectives are to:- • Ensure availability of postal services in all parts of the country, including tribal, hilly and remote areas. • Provide efficient reliable and economic service. Indian Postal Service Vs Private Courier Service 2|P a g e
  3. 3. • Provide value added services according to requirements. • Modernize the services to handle the growing volume of work with efficiency and thereby enhance customer and employee satisfaction. • Be a forward looking organization and • Generate more resources and improve financial performance.The postal service comes under the department of posts which is a part of Ministry ofCommunications and Information Technology under the Government of India. The threemembers hold the portfolios of Operations & marketing, Infrastructure & Financial Servicesand Personnel.India has been divided into 22 postal services. Each circle is headed by Chief PostmasterGeneral. Each Circle is further divided into Regions comprising field units, called Divisions,headed by a postmaster General.The primary virtue of any postal/courier company in the world is its efficiency to renderservices. The better the quality of service, the more the satisfied customers, better thechances of survival. The industry is booming and market is cut-throat competitive. Theadvancement of technology and internet has things slight easier and more competitive aswell.Courier services in India can be segregated in few categories. Basically, it begins with intra-city services which are about speedy delivery of mails and goods within the city. Broadeningthe services, inter-city services are covered. Normally this is termed as surface cargoservices where short distance and bulk loads are handled. Surface mode service isperformed through two ways: firstly, on road (by bus or vehicle) and secondly on track (bytrain) services. The products are normally delivered through door to door.Courier/Postal service management is the part of the supply chain management, whichplans, implements and controls the efficient, effective, forward and backward flow, storage ofgoods, services, and information between point to point and the point of consumption inorder to meet customer’s requirements.The goal of courier/postal service work is to manage the function of projects life cycles,supply chain and resultant efficiencies. It involves the generation of inventory, warehousing,information, transportation, material handling and packaging. The operating challenges of Indian Postal Service Vs Private Courier Service 3|P a g e
  4. 4. logistics is the geographical repositioning of raw materials, work in process and finishedinventories where required at the lowest cost possible.In Indian postal/courier services industry, there are international markets in the sector ofglobal express services as well as domestic markets. Besides Indian Post, there are multipleprivate organizations in the competition. The major domestic delivery network companies areBlue Dart, DTDC, Overnite Couriers, First flight etc. The Focus of the project report isIndian Postal Vs Pvt. Courier Services in the domestic sector.The main objective of this project is to • Study the performance of Indian postal services in comparison with the Private Courier Competitors. • To study the impact of postal/courier services on performance of other industry • To study the postal/courier service cost associated in different industries. • To study the transportation cost associated with different modes and their choice to choose mode. • To study the current scenario and Future Prospects of Indian postal/courier services industry.Each of these points has broadly discussed in this report. Each element has discussed in-depth to understand the sector opportunities in detail. The details was covered includeoverview of the element in Indian postal/courier services, importance of the element, marketanalysis, market competition, stakeholders, end-user analysis, needs and future trend, rules,and opportunities in the sector.This project report is prepared mostly based on secondary data, from various sources ofbooks and journals of the researchers. Primary data is also collected directly from customersbased on questionnaire as well as interview with the Indian Post office and privatecompanies. Indian Postal Service Vs Private Courier Service 4|P a g e
  5. 5. Table of ContentsIntroduction……………………………………………………………………………….…………P-6Research Hypothesis……………………………………………………………….……………...P-8Research Methodology……………………………………………………………….…………....P-8Primary data Collection………………………………………………………….….……………..P-8Survey Data Collection………………………………………………………….…….…………...P-9Steps followed while conducting Research……………………………………..…………...… P- 9Developing Questionnaire…………………………………………………….……………….…P-10Indian Postal ServiceNetwork & Computerization……………………………………………………….……………..P-12Type of Postal Service..…………………………………………………………………….….…P-13Mail Service..…………………………………………………………………………………..…..P-13Postage for Mail Service…………………………………………………………………….…...P-15Banking Service………………………………………………………………….…………….….P-16Insurance Service………………………………………………………………………...……….P-17Private Courier Service..………………………………………………………………………....P-18Industry Involvement…………………………………………………………………………...…P-19Mail Transmission……………………………………………………………………………...…P-19Present Scenario…………………………………………………………………..............….….P-20Future Growth & Competition………………………………………………….…..……….……P-20 Indian Postal Service Vs Private Courier Service 5|P a g e
  6. 6. Survey………………………………………………………………………….……………..……P-22Empirical Result & its Analysis………………………………………….…….……………..…..P-22Limitations……………………………………………………………………………..….……….P-26Conclusion……………………………………………………………….…….……...…...…..….P-27Bibliography…………………………………………………………….…….…………..….…....P-28Annexure- Goods (Parcels)A………………………………………………………………….……......………..…P-29Annexure- CommunicationB………………………………………………………………………………………..P-30 Payment (Funds)Introduction Flows Activity PlatformsPosts are part of aregion’s overhead capital and networks of transportation. Settlements and communicationsmediate exchange of goods, information and money between firms and consumers. Inaddition, they support inter-firm communications and social communication. Firms Households Households Indian Postal Service Vs Private Courier Service 6|P a g e
  7. 7. Fig 1Postal and Courier infrastructure services provide essential two-way links that bring buyersand sellers together, forge markets, build relationships, act as a distribution channel andcollector of revenue, facilitate and complete transactions and fulfill demand or orders.The Courier and Express • Information Sell LettersService are • Payments Response Counters operationallydistinct from • Goods Fulfill Packages the traditionalpostal services, geared toa higher level of speed and reliability. The essence of Courier services lie in the seamlessand efficient coordination of collection, transportation and the delivery of items. They haveexplored and developed a niche for urgent exchange of physical communications, making itinto a billion dollar global business. Postal and Courier services can be categorized ascommunications and logistic service.The Postal service forms part of the daily life of people all over the world. Even in the digitaland electronic age the Post remains for millions of people, the most accessible means ofcommunication and message delivery available.During the past fifteen years, a wide variety of forces caused Postal services to re-think theirrole in the communications market. The combined effects of direct and indirect competition,privatization of Postal services especially in industrialized countries, the separation of theOperator and Regulator function, liberalization, customer demands for better and morereliable products, and the advent of new communications technologies, convinced Postal Indian Postal Service Vs Private Courier Service 7|P a g e
  8. 8. services that they should modify their operational and financial strategies in order to remaincompetitive.As markets were liberalized, Postal services became more vulnerable. At the same timeopportunities were afforded to exploit new markets by taking advantage of the developmentof International trade. Posts worldwide were therefore influenced to reform by: • The emergence of the private sector as a dominant force in the transportation and communications sector, • Lobbying groups established by private Couriers which, though claiming that a level playing field was needed, were actively pushing to reduce the Postal monopoly, • The orientation of financial and development agencies like the World Bank and the IMF, which under financial assistance programmes are advocating less Government and more private initiatives for the sector.Research HypothesisPerformance of Indian postal service is more secure & reliable in comparison with theprivate competitors.Research Hypothesis was proved from the response of the survey questionnaire as shown inpage no.23-24, wherein 66.67% (Agree + Strongly Agree) respondents are in favour of Indian Postal Service Vs Private Courier Service 8|P a g e
  9. 9. Indian Postal Service and 46% against. Further detail data summary have been shown inAnnexure-B. The purpose of this research is to understand and to find out factors that affectcustomer’s satisfaction level and user decision in postal/courier service products. Deductiveapproach was applied in this research because this approach was support to confirm andreject all issues that were form based on previous researches and theories. Furthermore,Quantitative approach was an appropriate way to find out the tendency of courier service andcustomer’s experience toward postal/courier service. Moreover, quantitative approach wasalso useful to evaluate, summarize and report the finding accurately.MethodologyA quantitative research is a method based on statistic data’s gathering via questionnaires orsurveys, in order to know the general public tendency. A qualitative research is the secondresearch method, which evaluates information about opinions and values, at the contrary ofstatistic data. A quantitative approach is constructed as a research strategy that emphasizesquantification in the collection and analysis of data. Furthermore, quantitative methods givespriority to fixed measurement, hypothesis and a lesser flexible form of fieldwork involvement.Quantitative method projects for reliability by utilizing tools such as standardizedquestionnaires.Data collection: Instrument/technique to collect dataPrimary data collection: Primary data is the specific data which the researchers collect orobserve by themselves such as conducting a questionnaire and interview. This specific datacan be seen as an important data because the data is unique and it is collected andobserved according to the specific purpose of the research. In this research, I conductedquestionnaire for gathering all concrete information to analyze and answer all the issues inthis research question. Primary data is seen as valuable and essential data in the researchregarding to an exclusive result that the authors obtained directly from the survey. TheQuestionnaire and the Result of survey are shown in Annexure.Secondary data collection: Secondary data collection can be seen as a beginning of thisresearch. Firstly, I had studied and reviewed many relevant data to know and understand thearea of the research. Secondly, I used secondary data as an indicator to do further research.Secondary analysis is the scrutiny of available data by previous studies or other researcherswho probably have not been involved in the collection of those data. This data is concernedas an important tool for gathering all relevant data according to the purposes of this thesis.Moreover, secondary data provides many benefits to this research such as cost and time Indian Postal Service Vs Private Courier Service 9|P a g e
  10. 10. saving with high-quality data. Those are the reasons to support why secondary data wasapplied in this research.Steps Followed While Conducting ResearchPopulation and sampleDefining the Target population:The survey is about to understand the Customer experience between Indian Postal serviceand Private courier service in terms performances, the choice of focusing the questionnaireson customer, who are generally use the Postal/courier service.i) Sample Element: Students/Office Executives/Businessmen. a. Sample Unit: Professional Institute & Pvt./Govt. Office complex are chosen as sample unit to conduct this study. b. Extent: West Delhi, North Delhi & West Delhi.The extent of study includes Delhi University North & South campus, & market complex inDwarka, West Delhi. c. Time: Monday to SaturdayWorking days are choosen for the purpose of conducting study. The time chosen is 1730 –1830 hrs for FMS and 1000 – 1600 hrs. for AAI office complex and Dwarka. d. Sample Frame: i) FMS, South Campus & North Campus (MBA-PT) ii) AAI Operational office complex, Rangpuri, New Delhi iii) Market & Residential Complex, Sector-6,10,11,12,4 & 5, Dwarka, New Delhi.FMS (North & South campus) and AAI is taken as a place where the data is collected bygetting the questionnaire filled from the student and office executives, whereas MarketComplex, Dwarka is taken to collect the data basically from businessmen.ii) Sampling procedure: Random SamplingThere will be no. of people coming to FMS (MBA-PT) and AAI, operational office includingboth men and women and no. of businessmen are available in market complex, Dwarka. For Indian Postal Service Vs Private Courier Service 10 | P a g e
  11. 11. the study purpose random sampling is done in which both males & females wereapproached.iii) Sample Size: 300Developing Questionnaire1. QuestionnaireThe questionnaire has been prepared based on personal data and Customer Experience.Closed-ended questionnaire were applied in this research. All questions in personal data partasked about age, educational qualification and occupation. All questions consist of customerexperience towards security & reliability, prompt service, pricing, customer feedback,customer friendly/convenience, preference of Indian Postal service or courier service etc.This questionnaire was created to understand the customer experiences towards IndianPostal service and private courier service performance.2. Pre Test the QuestionnaireBefore everything, it was important to pre-test the questionnaire with ten or so persons inorder to see if the analysis was relevant or not, and in this case, if it will be important tomodify some questions. The pre-test was relevant with the following findings fromQuestionnaire while pre testing it: a. The question option “Rural & Urban Network” has been modified and made two questions instead of one as (i) wide rural network coverage and (ii) wide urban network coverage. b. The question option “Customer friendly” has been modified to “Customer friendly/convenience”.3. Final QuestionnaireAfter modifying the questionnaire as per observations through pre testing phase, the finalquestionnaire was drafted. All aspects related to Indian Postal & Private courier serviceincluded as a part of questionnaires. The Final Questionnaires was distributed to around 350respondents as per identified sample elements with the pre identified sampling extent, frameand procedure. Indian Postal Service Vs Private Courier Service 11 | P a g e
  12. 12. Indian Postal ServiceNetwork & ComputerizationIndian Postal Network is the largest postal network in the world having more than 1.5 lakhpost offices all over the country. The system is managed, operated, and controlled by theDepartment of Post under the Ministry of Communication, Government of India. Indian Postal Service Vs Private Courier Service 12 | P a g e
  13. 13. The postal network consists of different categories of post offices, viz., General Post Offices(GPO), Head Post Offices, Foreign Post Office, Sub-Post Offices etc. To facilitate sorting anddelivery of mails, India is divided into eight postal zones. Each zone is then subdivided intomany postal circles. Under each circle, head post offices and sub-post offices are there. Tospeed up the sorting and delivering process and also for identification, a specific six-digitnumber is allotted to each post office of our country. This number is called Postal IndexNumber (PIN). Each digit of postal index number has a meaning and serves a specificpurpose.From 2008 to 2010, a total of 10,000 POs were computerized. Around 1233 offices havebeen networked with the National Data Centre. A range of services have been e-enabled.The online domestic money transmission service, iMO5, launched in 2006 and madefunctional in over 1,000 locations. Electronic Clearance Service (ECS) is offered in RBI and21 locations of the SBI for payment of monthly interest under Monthly Income Scheme. Theelectronic money order (eMO), launched in October 2008. e-Payment is now available inabout 5,700 POs and will soon be extended to all 9,693 computerized POs.The following are the zones and their jurisdiction.Zone States and Union Territories 1 Delhi, Haryana, Punjab, Chandigarh, Himachal Pradesh and Jammu & Kashmir 2 Uttar Pradesh and Uttaranchal 3 Rajasthan, Gujarat, Daman & Diu and Dadra & Nagar Haveli 4 Maharashtra, Goa, Madhya Pradesh and Chhatisgarh 5 Andhra Pradesh and Karnataka 6 Tamil Nadu, Kerala and Lakshadweep 7 West Bengal, Andaman & Nicobar Islands, Orissa, Arunchal Pradesh, Assam, Manipur, Meghalaya, Nagaland and Tripura 8 Bihar and JharkhandTypes of Postal ServiceIndian postal services are mainly concerned with collection, sorting, and distribution ofletters, parcels, packets, etc. Besides, a number of other services are also provided to thegeneral public as well as business enterprises under the following main headings. • Mail service Indian Postal Service Vs Private Courier Service 13 | P a g e
  14. 14. • Remittance service • Banking service • Insurance service • Other servicesMail ServiceMail service is one of the main services of post office that deals with collection of letters andparcels from the sender to distribute among the receivers. Indian Postal service deals withboth inland and international mails. While sending a written message, the sender can makeuse of a post card, inland letter card or envelop. For sending an article in a packet or parcel,a wrapper (thick paper or cloth) can be used. These are the alternative means of sendingany mail through the post office.Post Card: Post card is the cheapest means of written communication. It is a card on bothsides of which we can write our message. It has a specified space to write the address of thereceiver. In the post office, two different types of post cards are available. One is ordinarypost card and the other is competition post card.Inland: Like post card, written messages can also be sent using inland letter card. This cardis sold by post offices and is commonly used for sending messages within our country.Unlike post card, the written portion of the inland letter card is folded and sealed. Only namesand addresses of the receiver and the sender remain open.Envelope: It is a small size paper packet having one side open. Postal Envelopes areavailable at all post offices. These are widely used for mailing letters and other documents inall government and private offices as well as in business firms. In these envelopes there isno need to affix any additional postage if the weight of your enclosure is upto a certain limit. Ifit exceeds that limit, then additional postage will have to be affixed according to the postalrates.Parcel Post: The postal facility through which articles can be sent in the form of parcels isknown as Parcel Post. It provides reliable and economical parcel delivery service. Underparcel post services, parcels of specified size and weight can be sent across the country aswell as outside the country. Indian Postal Service Vs Private Courier Service 14 | P a g e
  15. 15. Book Post: Articles in the form of printed materials, printed books, periodicals, greetingcards can also be mailed as book post. Under book post, envelopes containing books ordocuments should only be closed but not sealed.Specialized Mail ServiceFor convenience of people post office also offers various mail services having some extraadvantages like sending mails faster, ensuring certainty of delivery of mails, compensatingthe sender in case of loss or damage to the mail during transit etc. We can avail of thebenefit of all these facilities by paying additional postage.Certificate of Posting: When ordinary letters are posted, the post office does not issue anyreceipt. In case if a sender wants a certificate can be obtained from the post office onpayment of prescribed fee. This is called ‘certificate of posting’. It may serve as an evidenceof posting in case of any dispute about communication.Registered Post: To ensure that mail is definitely delivered to the addressee otherwise itshould comeback to the sender. In such situations, the post office offers registered postfacility through which we can send our letters and parcels.Insured Post: Insured post is a type of mail service through which valuable articles may besent after insuring these upto a specific amount. In case of any loss or damage to the letteror parcel, the post office shall compensate for it.Speed Post: Here post office provides time-bound as well as guaranteed mail deliverythrough its Speed Post Service. Under this service, letters, documents and parcels aredelivered faster i.e., within a fixed time frame. This facility is available at specific post offices.Post Restante: When it is necessary to send letter to a person whose exact address is notknown you can send it to the postmaster of that area in which the receiver resides. Theseletters are called Post Restante Letters. With this indication the letter will be retained at thepost office at the receiving end (maximum for 14 days) and delivered to the addressee on hiscalling the postmaster concerned.Postage for Mail ServiceIn our country there is a uniform rate for all types of mails (except speed post) that movewithin the country. For mail outside the country or by speed post, the postage varies on the Indian Postal Service Vs Private Courier Service 15 | P a g e
  16. 16. basis of weight as well as distance. The payment to post office for the service is madethrough postal stamp.Postal Stamp: Postal stamps of various rates are available in all Post office. The postage wepay while buying post cards, inland letter cards and envelopes (with stamp) available in thepost office, only for the minimum permissible weight of our documents. If the weight exceedsthat limit we have to affix additional postage.Franked postage: In large offices where hundreds of letters have to be stamped everyday,the post office provides another facility to affix stamps through a machine known as ‘frankingmachine’. This machine can print postage of different denominations, which are calledfranked postage.Payment without affixing any stamp: These are certain types of mail where the postage ispaid by the sender either well before dispatching the mail or by the receiver after receivingthe mail. The Postal Department carries braille literatures free of charge.Computerized Slip: In some post offices now-a-days computer generated slips are pastedon the mails. There is no need to affix any postal stamp separately. The amount of postagepaid, date and time is mentioned on the slip. This facility is available for registered letters,speed post letters, etc. and not for ordinary letters.Remittance ServiceMoney Order: Money can be sent through post office under money order service. Moneyorder is an order issued by one post office to another post office to pay a certain sum ofmoney only to the person named therein. For the convenience of customers, post officeoffers different types of money order services like Ordinary Money Order, Telegraphic MoneyOrder, Satellite Money Order, Speedpost Money Order, etc. For the convenience ofbusinessmen it also offers Corporate Money Order service.Postal Order: Like Money Order, money can also send through postal order i.e., IndianPostal Order (IPO). It is a convenient method of sending money from one place to anotherplace. Postal Orders are available at all post offices in different denominations like Re.1/-,Rs.2/-, Rs.5/-, Rs.7/-, Rs.10/-,Rs.20/-, Rs.50/-, and Rs.100/-.Banking Service Indian Postal Service Vs Private Courier Service 16 | P a g e
  17. 17. Post offices undertake some of services like accepting deposits from the public andwithdrawal of deposits. Under this service it offers various schemes to encourage the savingsand motivate people to save. Some of the important savings schemes offered by post officeare:Post Office Savings Bank Account: It is a type of account in which we can deposit oursavings in post offices and withdraw it whenever required. The account can also be jointlyoperated. Post office pays interest on our deposits, which is totally exempted from incometax.5-Year Post Office Recurring Deposit Scheme: A Recurring Deposit account can beopened for any amount, which is a multiple of Rs.5/- without any maximum limit. The depositis to be made every month for a period of 5 years.Post Office Time Deposit Account: Any individual can open this account with a minimumbalance of Rs.50/-, without any maximum limit. The depositor makes deposit in lump sumand that amount matures after the expiry of a fixed period like one, two, three or five years.Interest on this account is given on annual basis but computed quarterly. The deposit amountas well as interest income is exempted from tax.Post Office Monthly Income Scheme: Under this scheme a fixed sum of money isdeposited for six-years and the depositors get the interest on it every month. A minimumamount of Rs.1, 000/- and maximum of Rs.3 lakh in individual account and Rs.6 lakh in caseof joint account can be deposited. In addition to interest the deposit amount also earns bonusat the rate of 10% which is payable on maturity. Both interest as well as bonus is exemptedfrom tax.6-Year National Savings Certificates (VIII Issue) Scheme: National Savings Certificates(NSC) can be purchased from the post office. Interest is compounded half-yearly andpayable also half-yearly. After 6 years, these certificates can be encashed from the postoffice. Interest income is treated as re-investment and is subject to tax rebate. This depositscheme is very popular among the income tax payers.15 Year Public Provident Fund Account (PPF Account): Individuals can open this accountin their own name or in the name of their minor child. In this account atleast one deposit isrequired in every year. A minimum deposit of Rs. 500/- is required to be made each year.The deposit amount gets rebate under income tax and the interest income is fully tax-free. Indian Postal Service Vs Private Courier Service 17 | P a g e
  18. 18. Kissan Vikas Patra Scheme: In this scheme a fixed sum of money gets doubled within acertain period. There is no maximum limit of investment. Money can be withdrawn before itsmaturity but there is a minimum period called lock-in period within which your money cannotbe withdrawn.Insurance ServicesIn addition to dealing with mail and remittance of money, post offices also provide lifeinsurance coverage to individuals. Post offices offer life insurance under two schemes; (i)Postal Life Insurance (PLI), and (ii) Rural Postal Life Insurance (RPLI).Postal Life Insurance: Postal Life Insurance (PLI) was initially introduced for postalemployees. Over the years it has been extended to the employees of central and stategovernments, public sector undertakings, universities, government aided institutions,nationalized banks and financial institutions. The post office allows the employees of theseorganizations, who are below 50 years of age, to insure their life on payment of a fixedpremium for a particular period. It undertakes to pay a certain sum of money either on thedeath of the insured or on the expiry of a specified period.Rural Postal Life Insurance: Just like postal Life Insurance, the Post Offices also providelife insurance coverage to the people living in rural areas and the weaker sections of society,which is known as Rural Postal Life Insurance (RPLI). Under RPLI, the insured person paysa very low premium for the insurance coverage.Others Postal servicesApart from several postal services like mail, remittance, banking and insurance services, postoffice also provides various other services like-.Sale of stamps: In addition to postal stamps, various other types of stamp like revenuestamp, share transfer stamps, recruitment stamp etc. are also sold at post offices.Sale of Forms: Post office facilitates sale of different forms like passport forms, UPSC(Union Public Service Commission) forms, SSC (Staff Selection Commission) forms andforms of other national level competitive examinations.Bill Payment: Post office also collects payment of telephone, electricity, and water bills fromthe consumers. Indian Postal Service Vs Private Courier Service 18 | P a g e
  19. 19. Pension payment: For the convenience of pensioners, Government of India has madenecessary arrangement for payment of pension through post office. Military, railways,coalmines, telecom pensioners can avail of this facility from the nearest post offices. Postoffice also provides the facility of old age pension to senior citizens. Ministry of SocialWelfare and State Governments grant this old age pension.Post shops: Post shops are the small retail shops established for sale of postal stationeryitems, greeting cards and small gift items to the customers. These shops are found within thepremises of some post offices.Philately: Special and commemorative postage stamps as well as special covers (envelopes)are issued by the Postal Department that cover a wide range of themes reflecting the richnatural and cultural heritage of the country. Important national and international events,famous personalities and institutions are honoured through the medium of commemorativepostage stamps and envelopes. These stamps enjoy wide popularity in the world of philately.Gramin Sanchar Sewak Scheme: With a dream to provide telephone facility to every home,Gramin Sanchar Sewak Scheme has been launched. It is a joint effort of Department of Postand Bharat Sanchar Nigam Limited (BSNL) Under this scheme, the postmen while deliveringmails from door to door will also carry a mobile phone with them. People can make use ofthat phone by paying the specified charge to the postman. This facility is available only inrural areas of our country.Private Courier ServicesThere are some private operators who provide mail services to the public. They are knownas private couriers. They collect letters and parcels and deliver them at the place of theaddressee. Private couriers provide quick service in collection and delivery of letters, parcels,packets etc. No postage is required to be affixed on letters and parcels if sent throughcouriers. The charges payable for private courier service are generally higher in comparisonto post office. Again these charges are also not uniform. Private couriers are popular in bigcities and towns. OVERNITE EXPRESS, FIRST FLIGHT, DTDC, DHL, BLUE DARTEXPRESS are some of the private carriers operating in our country. The main features ofprivate courier services are as follows: • It provides a quick means of communication. • It provides facilities for national as well as international communication. • All kinds of articles are handled by it except gold and jewellery. Indian Postal Service Vs Private Courier Service 19 | P a g e
  20. 20. • Besides using railways, roadways and airways for carriage of articles, some agencies use telephone, telex and fax services for transmission of messages. • It undertakes full responsibility of safe and timely delivery of articles. • It collects articles from the doorstep of senders and delivers them to the receivers.Industry InvolvementIn Postal/Courier service Industry no. of other Industries are involved. An airline provides airtransport services. Airlines lease or own their aircraft with which to supply these services andmay form partnerships or alliances with other airlines for mutual benefit. Generally, airlinecompanies are recognized with an air opening certificate or license issued by a governmentalaviation body.Airlines vary from those with a single aircraft carrying mail or cargo through full-serviceinternational airlines operating hundreds of aircraft. Airline services can be categorized asbeing intercontinental, intra-continental, domestic, regional, or international, and may beoperated as scheduled services or charters.Further, there are various road transports and Rail transports are providing services forcarrying mail or cargo from one state to other. Also for local services, mail bags and smallcargos are carried through road ways like motor vehicles, auto rickshaws and cycles etc. fordelivering/collecting to/from the target destinations.Mail TransmissionPost office collects letters and parcels either through its counters or by installing letterboxes.People drop letters in these boxes at any time according to their convenience and post officecollects these once or twice everyday during office hours. This facilitates quick sorting anddelivery of letters. The different box collects different type of mail as given below: • Red boxes are meant for collection of mails, which are not local. • Green boxes are meant for collection of local mail. • Blue boxes are meant for collection of mails addressed to metro cities. • Yellow boxes are meant for collection of mails addressed to all capital cities.For short distance, mailbags are carried through roadways with the help of motor vehicles,auto rickshaws and cycles etc. But for long distance mails, the most convenient mode israilways. In our country Railway Mail Service (RMS) facilitates sending and receiving mail by Indian Postal Service Vs Private Courier Service 20 | P a g e
  21. 21. railway. You might have seen the offices of the RMS inside the premises of almost all bigrailway stations all over the country.The mails that move through railways, motor vehicle, cycles etc., are called Surface mail.Besides sending mails through roadways and railways, Indian Postal Department has alsomade necessary arrangement to send mails through airways wherever air linkage isavailable. All international mails are forwarded through airways. So the mail carried on by airtransport is known as Airmail.Present ScenarioCurrently, India Post does not provide services such as ‘pick-up’ services, ‘account holder’services, ‘hold-in-your-office’ services, and payment at receiver’s end services. Privatecourier companies have already started bringing in these concepts which enhance theefficiency of the courier sector. Several courier companies offer special international deliveryservices where a courier travels with the consignment and personally delivers it. Emergencymedicines and medical products, which require very rapid delivery, demand such services.Currently India Post is incurring losses in both letter-post as well as value-added services.Outright, we cannot privatize India Post as close to 5.5 lakh people are employed with IndiaPost. There are several innovative ways to revive public service provider companies andmany success stories. Those alternatives must be considered and debated before taking adecision. As service sector growth is higher than growth in the manufacturing sector, it ispossible to turn around a service providing company in the medium run. For this to happen,technology infusion, aggressive marketing, professional management, possible cooperationin some services with other companies, outsourcing some noncritical services, etc. arerequired.India Post generates sufficient revenue through mobilization of household savings andsavings may be utilized partially in the capital market for further gains which can be useddirectly for the betterment of India Post.Future Growth and CompetitionThe new national postal policy is seeking to strengthen India Post’s role in driving socio-economic development in India, providing a range of affordable services for the wholepopulation and to support business, particularly for SMEs. It lays out ambitions to expandand modernize the India Post network, extending services into more rural areas, using thenetwork to provide more retail services and promote financial inclusion and socio-economicequality in the subcontinent. Indian Postal Service Vs Private Courier Service 21 | P a g e
  22. 22. The policy states that India Post will need technology partners to help it modernize its owncommunications networks. The policy proposal also asks the question whether corporatesocial responsibility should be included as part of the universal service obligation and notesthe importance of using technology like better IT to reduce the usage of paper and improveenvironmental impacts at India Post.The postal policy proposal does raise the question whether multiple operators should run theuniversal service, but generally appears to favour more protection for theuniversal service including more clearly-delineated definitions.The policy considers the need for a separate industry regulator, and regarding thecompetitive side of the industry proposes more work to create a level playing field andincrease service standards for registered operators. More than 2,000 small-to-large playersoperate in the EUR 1bn Indian courier, express and parcel market, which has beenexperiencing annual growth rates as high as 20%. More Growth is expected as e-commercegains popularity in India.Future Growth could see courier, express and parcels operators sharing networks. Particularpotential for increased cooperation exists between India Post and multi-national operators inthe area of cross-border mail, parcels and logistics, the policy states, particularly with IndiaPost providing last mile delivery to all areas including rural and remote regions.The policy discusses the need to develop the national IT infrastructure to foster more e-commerce growth, and develop secure online payment systems, and for cross-bordershipping the need for an electronic interface between India Post, other market operators, theairlines and customs of facials.SurveyThe survey process was initiated at the pre identified sample time. After distribution of 350questionnaires I was received filled questionnaire only 311, out of which 11 were rejected Indian Postal Service Vs Private Courier Service 22 | P a g e
  23. 23. due to non clarity/unfairness. Finally total sample of 300 was put under analysis for deductingconclusion.Empirical Result & its AnalysisThis provides the facts of the result deriving from the responses of the questionnaires.1. Which Postal/Courier Service organization mostly do you prefer?On the Preference of Indian postal / Pvt. Courier service issue 137 respondents were in favorof Indian Postal and 163 against. It can say that there was a positive bias towards thepreference of Pvt. Courier Services which is 54.33%. 54.33% 45.67% Indian Post Pvt. Courier Fig: 1S: Respondent’s Choice Postal/Courier Service1(a). Which Pvt. Courier Service Co. do you mostly prefer? 30.00% 25.00% 20.00% 15.00% Level f Preference, % 10.00% 5.00% 0.00% Blu Dart DTDC First Flight Overnite Fig:2S: Respondent’s Choice of Pvt. Courier ServiceOut of 160 respondents who opted for Pvt. Courier service majority of them prefer Blue DartCourier Service (27%), followed by DTDC (15.67%), First Flight (8.67%) & Overnite (37%). Indian Postal Service Vs Private Courier Service 23 | P a g e
  24. 24. 2. What do you look first when you use Postal/Courier Service? 70.00% 60.00% 50.00% 40.00% 30.00% Leve of 20.00% Imortance, % 10.00% 0.00% s t ric e ty es es en nd P a fe l in tur m ra S e a e B Fe is Ti m e rt dv A Fig: 3S: Respondent Look FirstMajority of the respondent look first time (61.67%) and then safety (51.67%), when they useeither Indian Postal or Pvt. Courier Service.3 & 4. The Indian Postal Service/Pvt. Courier Services isMore Secure and reliable: More secure and reliability of Indian Postal Services was in thehigher side compare to the Pvt. Courier services. Therefore, Indian Postal service is moresecure and reliable.Provide Prompt service : For prompt service Pvt. Courier service was in the higher side,wherein 19.67% respondent were strongly agree and 0% strongly agree for Indian PostalService.Less costly: On the cost issue Indian postal service was in the lower side i.e. compare toPvt. Courier service, cost of Indian postal services are low.Wide range of service products: On the issue of service product range, no clear trendemerged as 64% (Moderately agree + Agree + strongly Agree) respondents were in favor ofIndian postal Services and 63.34% (Moderately agree + Agree + Strongly Agree) against.However, it can say that there was a slightly positive bias towards the India Postal Services.Customer feedback: There is enough data to conclude that Customer feedback of Indian Postal Service Vs Private Courier Service 24 | P a g e
  25. 25. Pvt. Courier Services is excellent. 100% 90% 80% Not Agree 70% 60% Somewhat Agree 50% Moderately Agree 40% Agree 30% 20% Srongly Agree 10% 0% b le i ce t ly uc ts ag e c k ag e nc e lia rv os er ba er ie Re S e sC d od ov v en pt s r ee Co nv & Le ice rf kC k ur e om er v e or or Co ec Pr fs to m tw tw er eS o Cu s Ne lN e to m or nge an ra us M Ra b Ru C Ur Fig:4S:The Reason For Using Indian Postal Service 100% 90% 80% 70% Not Agree 60% Somewhat Agree 50% Moderately Agree 40% Agree 30% Srongly Agree 20% 10% 0% le s b ic e tly ct ac k ge ge ce lia rv os du ra ra en Re Se C o db ve ve ni & pt Le ss er fe e Co Co ve e m vic er rk rk on ur Pr o se r om o w o er C Sec of st et w et m e Cu N N o or ge an al st M R an rb R ur Cu U Fig:5S:The Reason For Using Indian Pvt. Courier Service Indian Postal Service Vs Private Courier Service 25 | P a g e
  26. 26. Wide Urban network coverage: In case of Urban network coverage, again no clear trendemerged as 73.33% (Agree + strongly Agree) respondents were in favor of Indian postalServices and 66.67% (Agree + Strongly Agree) against. However, it can say that there was apositive bias towards the Indian Postal Services.Wide Rural network coverage: There is clear evidence that a rural network Coverage ofPvt. Courier service is very poor compare to Indian Postal services.Customer friendly/ convenience: In case of Customer convenience, majority of respondentstrongly supported the Pvt. Courier service organization.5. Age (Years)59.67% respondents were below 35 years, 17.33% were between 40 to 45 years, 17% werebetween 35 to 40 years and 65 were above 45 years. 6% below 35 17.33% 35-40 59.67% 17% 40-45 Above 45 Fig:6S: Respondent’s Age6. Educational Qualification?i) 39.33% were Post Graduateii) 35.33% were Graduateiii) 25.33% were Professional Indian Postal Service Vs Private Courier Service 26 | P a g e
  27. 27. 0% 25.33% Under Graduate 35.33% Graduate 39.33% Post Graduate Professional Fig:7S:Respondent’s Qualification7. OccupationMajority of the respondent were working in Pvt. Organization (61.67%), whereas 34%respondents were in Govt. sector. 0% 4.33% 0% Student Govt. 34% Private 61.67% Own business Others Fig:8S: Respondent’s OccupationLimitations Sample size was limited. Beside Primary data, the study is also based on secondary data published in books & journals of the researchers. Sometimes data which is published by the researchers cannot analyze fresh situation means old data and wrong data is collected by inherent error. Since the sample was taken from limited population, hence the finding cannot be generalized. Indian Postal Service Vs Private Courier Service 27 | P a g e
  28. 28. ConclusionThe Postal and Courier Sector have a prime opportunity to become a trusted partner in theregion. There is considerable good will for the sector. Postal organizations have captured theinterest of the Government because of efforts to reform operations and widen its scope.Performance of this service is strongly dependent on other industries like Airlines, Railwaysetc. Accordingly cost is also dependent on other industries.From the above analysis it can be concluded that Indian Postal service is more secure andreliable. On the contrary, Pvt. Companies are more customer convenience, provide promptservice & feed back to their customers. Though Indian Postal Services are less costly, moresecure and reliable but still they are lagging behind to provide prompt service, propercustomer feed back and customer convenience. Customer wants timeliness first, then safety.Therefore, to sustain in the competitive market for a long period, Indian Postal service mustimprove their Customer convenience, prompt service and customer feed back. They need toopen more outlets in market place. Also, India Post should started services such as ‘pick-up’services, ‘account holder’ services, ‘hold-in-your-office’ services, and payment at receiver’send services to compete with private competitors. Indian Postal Service Vs Private Courier Service 28 | P a g e
  29. 29. Bibliography  Express Industry Council of India (2007), Indian Post Office (Amendment) Bill 2006. http://www.eiciindia.org/FrontSite/Index.aspx  Association of International Courier and Express Services (2001), The impact of competition in the postal sector, June.  13 Jan 2010 – Indian Logistics Industry 2009: Project Report on Indian logistic industry: Rajnish Kumar, Student of PGDM, Swami vevekanad School of Management, Ramnagar (near Banur), Patiala: www.slideshare.net sunilmbsingh/16319859-indian-logistics-industry  Indian Postal Service - Wikipedia, the free encyclopedia: Block all en.wikipedia.org results: 13 th Feb 2012: en.wikipedia.org /wiki/ Indian_ Postal_Service  Redesigning India Post: Researched and documented by oneworld.net: One World Foundation India: February 2011: Governance Knowledge Centre (GKC) team. Documentation was created by Research Associate, Attrika Hazarika  Study of Indian Postal Services: Institute of Business management & Research, Ahmedabad, Gujarat: Migendra Kumar Shrivastava & Mohanish Kumar Singh, MBA+PGDM Indian Postal Service Vs Private Courier Service 29 | P a g e
  30. 30.  A text book of “Competitive Advantage: Michael E Porter: Published by Simon & Schuster, New York: First Free Press Export Edition 2004  A text book of “Marketing Research - An Applied Orientation: Naresh K. Malhotra: Published by Prentice Hall, Sixth Edition 2009 Annexure-A Indian Postal Vs Private Courier Services 1) Which postal/courier service organization mostly do you prefer?  Indian Postal service  Pvt. Courier service If your answer is “Private courier service” then answer question 1(a), else go to (2) 1(a) Which Pvt. Courier service Co. do you mostly prefer?  DTDC  Overnite  First Flight  Blue Dart 2) What do you look first when you use postal/courier service?  Price  Safety Timeliness  Features  Advertisement  Brand Each of the items listed below has been identified as studied determinants of service quality. How important do you personally consider each of the following in your decision making? 1(Low) 2 3 4 5(High)Not Agree Somewhat Agree Moderately Agree Agree Strongly Agree Indian Postal Service Vs Private Courier Service 30 | P a g e
  31. 31. Please circle a rating indicating your perceived level of importance 3) The Indian Postal Services is  More Secure and reliable 1 2 3 4 5  Provide Prompt service 1 2 3 4 5  less costly (Speed post) 1 2 3 4 5  Wide range of service products 1 2 3 4  Customer feedback 1 2 3 4 5  Wide Urban network coverage 1 2 3 4 5  Wide Rural network coverage 1 2 3 4 5  Customer friendly/ convenience 1 2 3 4 5 4) Private Courier Service is  More Secure and reliable 1 2 3 4 5  Provide Prompt service 1 2 3 4 5  less costly (in comparison with Speed post) 1 2 3 4 5  Wide range of service products 1 2 3 4 5  Customer feedback 1 2 3 4 5  Wide Urban network coverage 1 2 3 4 5  Wide Rural network coverage 1 2 3 4 5  Customer friendly/ convenience 1 2 3 4 5 5) Age (years):  Below 35 35 – 40  40-45  Above 45 6) Educational qualification:  Undergraduate  Graduate  Post graduate  Professional 7) Occupation:  StudentGovernment sector Private sector Own business  others ---------------Thanks for your co-operation ----------------- Indian Postal Service Vs Private Courier Service 31 | P a g e
  32. 32. Annexure-B Data SummaryTotal Respondent : 300 Q. Q. Question Description Question Description Total No. of Total No. of % of % ofNo.No. Respondents Respondents Respondents Respondents 1 e Which postal/courier service organization Customer Feed back mostly Not you prefer? • do Agree (1) 103 34.33 a Indian Postal service 137 45.67 • Somewhat Agree (2) 97 32.33 b Pvt. Courier service 163 54.33 • Moderately Agree (3) 72 241(a) Which Pvt. Courier service Co. do you mostly • prefer Agree (4) 28 9.3 • a DTDC Strongly Agree (5) 0 47 0 15.67 bf Overnite Wide Urban Network Coverage 9 3 • Not c First Flight Agree (1) 21 26 7 8.67 • Somewhat Agree (2) d Blue Dart 9 81 3 27 2 • Moderately first when What do you look Agree (3) you use 50 16.67 • Agree (4) postal/courier service 99 33 • a Price Strongly Agree (5) 29 121 9.67 40.33 b SafetyRural Network Coverage g Wide 155 51.67 c Timeliness Agree (1) • Not 185 11 61.67 3.67 d Features • Somewhat Agree (2) 0 19 0 6.33 e Advertisement • Moderately Agree (3) 0 50 0 16.67 f Brand Agree (4) • 20 77 6.67 25.67 3 The•Indian Postal Services is Strongly Agree (5) 143 47.67 a More Secure and reliable h Customer friendly/ convenience • Not Agree (1) • Not Agree (1) 29 81 9.67 27 • Somewhat Agree (2) • Somewhat Agree (2) 11 49 3.67 16.33 • Moderately Agree (3) • Moderately Agree (3) 60 88 20 29.33 • Agree (4) • Agree (4) 119 82 39.67 27.33 • Strongly Agree (5) • Strongly Agree (5) 81 0 27 0 4 b Provide Prompt Service The Private Courier Services is • Not Agree reliable a More Secure and(1) 69 23 • Somewhat (1) • Not Agree Agree (2) 41 49 13.67 16.33 • Moderately Agree (2) • Somewhat Agree (3) 91 41 30.33 13.67 • Agree (4) Agree (3) • Moderately 99 80 33 26.67 • Strongly Agree (5) • Agree (4) 0 91 0 30.33 c Less Costly • Strongly Agree (5) 39 13 • Not Agree (1) b Provide Prompt Service 9 3 • Somewhat (1) • Not Agree Agree (2) 0 11 0 3.67 • Moderately Agree (2) • Somewhat Agree (3) 71 0 23.67 0 • Agree (4) Agree (3) • Moderately 147 89 49 29.67 • Strongly Agree (5) • Agree (4) 73 141 24.33 47 d Wide Range of Service Products • Strongly Agree (5) 59 19.67 • Costly c Less Not Agree (1) 72 24 • Somewhat (1) • Not Agree Agree (2) 38 131 12.67 43.67 • Moderately Agree (2) • Somewhat Agree (3) 90 89 30 29.67 • Agree (4) Agree (3) • Moderately 61 70 20.33 23.33 • Strongly Agree (5) • Agree (4) 41 10 13.67 3.33 Indian Postal Service Vs Private Courier Service 32 | P a g e
  33. 33. • Strongly Agree (5) 0 0Q. Question Description Total No. of % ofNo. Respondents Respondents d Wide Range of Service Products • Not Agree (1) 39 13 • Somewhat Agree (2) 71 23.67 • Moderately Agree (3) 60 20 • Agree (4) 122 40.67 • Strongly Agree (5) 8 2.67 e Customer Feed back • Not Agree (1) 40 13.33 • Somewhat Agree (2) 9 3 • Moderately Agree (3) 51 17 • Agree (4) 181 60.33 • Strongly Agree (5) 21 7 f Wide Urban Network Coverage • Not Agree (1) 19 6.33 • Somewhat Agree (2) 11 3.67 • Moderately Agree (3) 70 23.33 • Agree (4) 153 51 • Strongly Agree (5) 47 15.67 g Wide Rural Network Coverage • Not Agree (1) 138 46 • Somewhat Agree (2) 82 27.33 • Moderately Agree (3) 48 16 • Agree (4) 32 10.67 • Strongly Agree (5) 0 0 h Customer friendly/ convenience • Not Agree (1) 11 3.67 • Somewhat Agree (2) 29 9.67 • Moderately Agree (3) 100 30.33 • Agree (4) 112 37.33 • Strongly Agree (5) 48 16 5 Age (years) a Belo 35 179 59.67 b 35 - 40 51 17 c 40 - 45 52 17.33 d Above 45 18 6 6 Educational qualification a Under Graduate 0 0 b Graduate 106 35.33 c Post graduate 118 39.33 d Professional 76 25.33 7 Occupation a Student 0 0 b Govt. Sector 102 34Q. Question Description Total No. of % ofNo. Respondents Respondents c Pvt. Sector 185 61.67 Indian Postal Service Vs Private Courier Service 33 | P a g e
  34. 34. d Own Business 13 4.33e Other 0 0 Indian Postal Service Vs Private Courier Service 34 | P a g e