a proper analysis on logistics sector

1. COLLOQUIUM
Logistics industry
Presented By
Anjali Ruhela
Anjani Singh
Ashish Yadav
Richa Juneja
Twinkle Kodwani

2. Introduction
 It may be defined as the
'management of inventory in
motion and at rest.'
 Logistics is about moving
materials, information and funds
from one business to another
business or from a business to the
consumer.
 Logistics includes roadways,
railways, waterways and airways.
 It encompasses activities like
freight transportation,
warehousing, material handling,
protective packaging, inventory
control, order processing,
marketing, forecasting and
customer service.

3. Introduction
 The annual logistics cost of the
world is estimated at about USD 3.5
Trillion
 India spends around 14.4% of its
GDP on logistics and transportation
as compared to less than 8% by the
other developing countries.
 Indian freight transport market is
expected to grow at a CAGR of
13.35% by 2020 driven by the
growth in the manufacturing,
retail, FMCG and e-commerce
sectors.

4. Mumbai dabbawala logistics

5. Founded 1969
Headquarters Bonn, Germany
Key people Ken Allen
Adrian Dalsey
Larry Hillblom
Robert Lynn
Number of employees 325,000+

6. Founded 1971; 45 years ago
(as Federal Express Corporation)
Little Rock, Arkansas
Founder Frederick W. Smith
Headquarters Memphis, Tennessee,U.S.
Area served Worldwide
Key people Frederick Smith
(Chairman, President & CEO)
Number of employees 400,000+ (2016)

7. Founded 1990
Headquarters Bangalore
Founder Subhasish Chakraborty
Number of employees 10000+

8. PESTEL Analysis

9. POLITICAL
 Government policies like FIPB.
 Industry licensing and liberalization of capital.
 Introduction of private sector participation,
especially in port sector.
 In order to liberalize the railway service, the
government opened its doors of container
business to private parties.

10. ECONOMIC
 Impact of GST.
 Fluctuation in fuel prices.
 Growth in GDP and trade.

11. SOCIAL
 Women joining the labor force.
 Highway improvement projects.
 Promote community values.
 Acceptability of different localities and regions.

12. TECHNOLOGICAL
 Inventory management and barcode systems.
 Transport and management systems.
 Radio Frequency identification.
 Web enabled communications.

13. ENVIRONMENT
 Transportation sustainability.
 Considering Green logistics with industry
perspectives.
 Global Warming.

14. LEGAL
 Data security.
 Risk allocation.
 The single window.
 Foreign corrupt practices Act and Anti – corruption
laws worldwide.

16. Fed Ex DHL DTDC
Services
offerings
• Home delivery services
• Insurance and custom
• Managing shipments
like – package,
envelope, express
freight, extra care
handling, Air/Ocean
Freight forwarding etc
• Third party logistics
• Warehouse services
• Express- Courier services
for urgent and reliable
transportation
• Global forwarding- Rail,
road, ocean & air services
• Supply chain- Warehousing,
Transportation
management and value
added services
• Premium services-
temperature controlled
storage as well as cold
storage.
• Online tracking
• Pin code finder
• SMS alert facility
• Premium express- assured next
day delivery, up to 100kg.
• Also offers franchisee
• Warehouse services
• E-commerce logistics
• DTDC plus- money back
guarantee, if not delivered on
time.
Price • Competitive pricing
• Differential pricing rates
• Although freight rates are
remarkably increasing,
company has kept its rates
mostly unchanged
• Recently adopted
Dimensional weight
pricing.
• Competitive pricing
• Differential pricing
• Customized DHL services
are highly priced
• Special discounts for loyal
customers
• Competitive pricing
• Differential pricing rates

17. Fed Ex DHL DTDC
Promotion • Different taglines
• Sports as a promotional
medium
• Sponsorship
• Logos & taglines on all
their delivery vehicles and
all their stationery
• Outdoor hoardings
• Television ads
• Newspaper ads
• Social media ads
• Television ads
• Newspaper ads
• Social media ads
• Magazines
• Sponsorship of national &
international events
• Go Green Campaign
• It was a part of Make in
India Campaign.
• Logos & taglines on all their
delivery vehicles and all their
stationery
• Different taglines
• Television ads
• Newspaper ads
• Social media ads
• Magazines
• Logos & taglines on all their
delivery vehicles and all their
stationery
Place • Headquarters- Memphis,
Tennesse, U.S.
• Place of distribution-
Worldwide
• FedEx’s own outlets
• Online(by creating account)
• Headquarters- Bonn,
Germany
•Worldwide distribution
•Terminals, Offices and 1590
Warehouses
• Multi-User & multi-Story
warehouses specially industrial
estates
• Headquarter- Banglore
•Worldwide distribution
• Branch Offices
• 5800 franchisees

18. Fed Ex DL DTDC
Process • Process of delivery:
> Status of the parcel
> facility of express
delivery in case of urgency
• Most of its processes are
automated and main focus is
given on reliability and
affordability of its services.
• Package Tracking
• Uses of soft trans program
• Questionnaires for
measuring customer
satisfaction
• Reports are recorded
through I-sell program.
• High cost for maintaining
customer loyalty
• Package Tracking
• Customized IT solutions
• Franchisees- access to
corporate and legal offices
• Accuracy and integrity of
transactions
• Centralization
• Transactions on IT systems
• Package Tracking
People • More than 4,00,000
employees
• Staff Training
• Timely Delivery
• More than 3,25,000
employees
•Training programs for
developing communication
skills & other skill sets.
• More than 10000 employees
• Equal opportunities to all
employees
• Training programs and multiple
development initiatives
Physical
Evidences
• Employee’s Uniform
• Several outlets & Offices
• Printed invoices
• Their delivery vehicles
• Website
• Business cards
• Packaging material and
buildings
• Website, brochures.
• Business cards
• Printed invoices
• Their delivery vehicles
• Employee’s Uniform
• Website, brochures.
• Business cards
• Printed invoices
• Their delivery vehicles

19. Financial Analysis

20. CURRENT RATIO
 Current ratio =current assets/current liabilities
 One of the most fundamental or classic measure
of liquidity ratio
 Indicates weather business can pay debt over the
next business cycle.
 Ideal ratio is 2:1 .

21. CURRENT RATIO
1.96
2.74
1.34
1.21
1.12
1.69
1.96
1.82
1.84
1.50
2.90
2.02
2.28
2.07
1.88
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
2012 2013 2014 2015 2016
DHL FEDEX DTDC

22. ASSET TURNOVER RATIO
 Asset turnover ratio =Net sales/Average total
asset.
 The ratio of the company’s sales or revenue
generated relative to the assets.
 It measures the company’s ability to generates
sales from its average assets.

23. ASSET TURNOVER RATIO
1.41%
1.06%
0.66%
0.52%
0.68%
1.49% 1.40%
1.37% 1.35%
1.21%
2.48%
3.31%
3.01% 3.59%
3.75%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
2012 2013 2014 2015 2016
DHL FEDEX DTDC

24. DEBT EQUITY RATIO
 Debt Equity Ratio =Total liabilities/Shareholders
fund.
 Used to measure company’s financial leverage.
 Result may be presented in % or in numbers.

25. DEBT EQUITY RATIO
0.21%
0.18%
0.01% 0.03%
0.02%
0.08%
0.16%
0.31%
0.48%
1.00%
1.12%
0.83%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2012 2013 2014 2015 2016
DHL FEDEX DTDC

26. NET PROFIT MARGIN
 Net Profit Ratio= Net profit after tax /Net sales.
 It is popular profitability ratio that shows
relations between net profit and net sales.
 High ratio indicates efficient management
business affairs.

27. NET PROFIT MARGIN
2.81% 1.33%
21.84%
46.22%
18.69%
4.76% 3.52%
4.60%
2.21%
3.61%
8.20% 8.70%
6.43% 5.59%
7.34%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
2012 2013 2014 2015 2016
DHL FEDEX DTDC

28. DEBTORS TURNOVER RATIO
 Debtors turnover ratio =Net credit sales/Average
account receivable.
 An activity ratio measuring how efficiently firm
uses its assets.
 Higher ratio would be more favorable for
frequently collection of receivables.

29. DEBTOR RATIO
24.81%
20.44%
12.94%
9.63%
8.03%
15.73% 15.03%
16.51%
15.43% 15.74%
8.70%
10.41%
7.83%
8.13%
8.37%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2012 2013 2014 2015 2016
DHL FEDEX DTDC

30. Analysis

31. DHL : SWOT Analysis
Strengths Weaknesses
Opportunities Threats
1.It has the leading share of the
worldwide air cargo market
2.Network in more than 220
countries and territories.
3.Received position in the
magazine’s “World’s Top 50 Cargo
Airlines” list
1.Government owned competitors
2. Since this is a competitive segment,
the market share growth is limited
1. Tie-ups with corporate
and business houses
2. Opportunities in
Financial markets
3.Global expansion
1. Natural disasters and
turbulent economies
2. Declination of traditional
services (Letters) due to
electronic communication

32. FEDEX : SWOT Analysis
Strengths Weaknesses
Opportunities Threats
1. Network in more than 220
countries.
2. Dependable knowledge in the
delivery business
3. High investment in IT systems
4. More than three decades of
experience in logistics services
1.More dependence on US market
2. Since this is a competitive segment, the
market share growth is limited
1.To use cooperative strategies
2.Challenging competitors through
mergers and acquisitions
3.Local competitors with poor service
& products
1. Rising fuel prices could impact
company’s profit
2.Varying market demand
3. Vulnerable to increasing reach by
major competitors

33. DTDC : SWOT Analysis
Strengths Weaknesses
Opportunities Threats
1. Good delivery service in over 3700
Indian locations and 240 international
locations
2. Pioneers through Franchise Business
3. Good Sales and customer support
4. Web based tracking
5. Delivers approx 10 million Parcels a
month
1. New in e-commerce businesses
and retail stores that will sell air
tickets and phone recharges
2. Company finds it difficult to set
up retail stores and logistics
networks simultaneously
3.Lack of awareness among the
Indian shippers
1.Few players in the organized sector
2.It is a debt free company which can
be help for rapid expansion
3.Acquiring stake in other companies
can be utilized to penetrate and
consolidate its presence all over Asia
1.Taxes across the border can impede
DTDC’s growth plans
2.Service complains of customers can
portray bad image
3.Local companies with very low
charges

34. References
 www.fedex.com
 www.dhl.com
 www.dtdc.in
 www.mbaskool.com/brandguide/transport-and-logistics
 www.moneycontrol.com
 Indian institute of management, Ahmedabad ( report on logistics industry by
pankaj Chandra )
 ASSOCHAM report on “ National summit - LOGISTICS INDIA 2016 ”

35. Thank You
Any Questions ???