Blue Dart is a leading logistics company in India. It has two main competitive advantages - its strong human resource practices and economic prospects within the growing logistics market. Blue Dart ranked 12th in India's best places to work in 2012. It has a large market share and focuses on customer service, availability, performance and reliability. Blue Dart owns aircraft and has a wide domestic network, technology investments, and financial credibility as core competencies. It faces competition from other domestic and global players but has achieved various awards for its innovative HR practices.
3. Why BLUE DART
Two grounds:
Economic prospective.
Human resource prospective.
4. H.R prospective
Ranked 12 in the list of great place to work in India in 2012.
by : 2011 Great Place to Work®
Institute
http://www.greatplacetowork.in
5. Economic prospective
10-15 per cent of product costs are logistics related.
For any country, the logistics cost is estimated between
9 and 20 per cent of its GDP.
The logistics market in India is estimated to be
$ 385 billion by 2015 .
……BLUEDART is a market leader in
Indian organized logistics and
supply chain market.
6. The three fundamental dimensions of customer
service are:
Availability
Performance
Reliability
7. VALUE CHAIN
Michael Porter in his famous book "Competitive Advantage''
has emphasized logistics as one of the most important tools for
competitive advantage.
8. Principles of supply & logistics
Every company dreams of achieving the seven R's:
Delivering the Right product
In the Right quantity
In the Right condition
At the Right place
At the Right time
For the Right customer
At the Right cost
9. Anything can be ordered online, but receiving a tangible
product online is impossible.
The difference between e-business success and failure lies
in a company's ability to manage the logistics.
10. About BLUE DART
BLUE DART is South Asia's leading integrated air
express carrier and premium logistics-services provider.
Network covering over 13,880 locations and service
more than 220 countries.
Through its sales alliance with DHL, the premier global
brand name in express distribution services.
11. About BLUE DART
Began Operations : November 1983.
Headquarters: : Mumbai, India.
Managing Director : Anil Khanna.
12. Vision Of the Company
Is to establish continuing
excellence in delivery capabilities
focused on the individual
customer.
13. Mission Of the Company
To assure safe, secure, cost-effective and superior
service, to our customers through highly skilled
personnel, quality equipment, timely customer-
oriented response and professional management.
14. History BLUE DART
1991 - Blue Dart Express Ltd. was incorporated on 5th April.
The company was converted into a public limited company on
June 15th, 1994 .
The Company is engaged in the courier business for carriage
and door-to-door delivery of commercial documents, samples,
panels and printed matter in India and throughout the world.
16. MILESTONES BLUE DART
1991 - It develop its domestic tracking system, by own.
COSMAT-I.
1994 - COSMAT-II an advanced system which includes track
and trace.
- Becomes the first private company to receive government
permission for operation of cargo aircraft in India.
1995 - develops its SMART (Space Management Allocation
Reservations and Tracking)system for its aircraft, the first
cargo management system in the country.
18. Courier Industry
Operating Costs = Transportation Costs.
Industry growth linked to volume of the business generated.
19. Industry – Product Segment
Documents
Letters, Financial Instruments and Other Documents.
Typical weight per shipment is up to 500 gm.
Growth expectation: 12-15%.
Commercial goods
Electronic Products.
Samples.
Spare Parts.
Air Conditioners etc.
Air Shipment: high-value and time-sensitive shipments.
Ground Shipment : shipments have a transit time of 2-5 days. Both
High Value/Low Value
20. Industry – Product Segment
Currently it is only 1/6th of china.
Generated employment for 45 million people.
Unorganized sector -- 94%.
Organized sector -- 6%.
Expected to grow organized sector up to -- 12% by 2015 .
23. Product
Services offerings (Product)
1)Regional services : IN SAARC AREA Between India, Bangladesh,
Bhutan and Nepal.
Types of Services:
Domestic Priority - Service through air mode ( SAARC)
Service Line - Solution through surface mode ( Within India)
Dart Apex - Multi-modal system of transport ( Within India)
- Mix of air and surface
Charter Service, Smart Box etc.
24. Product
2) International services:
International services of Blue dart are taken over
DHL EXPRESS in 2002.
Types of Services
-- Express Document (DOX):
-- Worldwide Package Express (WPX):
-- The Jumbo Box & Jumbo Junior Box:
26. price
Premium Pricing
Higher cost than other competitors
Domestic Priority – High Cost
Blue Dart Surface Line – Economy Cost
Dart Apex – Medium Cost
27. Place
6 Regional Centers in Major Cities.
Blue Dart has direct collection center as well as operating
through franchisees.
Door to Door delivery, Airport to Door Delivery, Door to
Airport Delivery
28. Process
Hub and spoke model of distribution
One of the first to get ISO 9001 country wide certification by
Lloyd’s register quality assurance.
Efficient technology
Dedicated 7 Boeing
3- Boeing 737
4-Boeing 757
29. promotion
Via:
Business Magazines
Newspaper
mobile touch points
Dress codes
Advertising on electronic channels with the punch line
‘Solutions for peace of mind’
Focus on:
Timely delivery to get publicity by word of mouth
rather than advertising
30. Physical evidence
Consumers make positive perception about Blue Dart through its:
Speedy delivery service
Computerized Billing
invoices and challans
Mobile Dart, On-line Pick up, ShipDart
31. People
Having over 7900 work force.
Performance appraisal on net service level that they have achieved
during the year.
Modern HRD systems in use
Incentives to sales team and operations people for leads they provide
to sale team.
Each person is a salesman with a target to achieve and are addresd as
soldiers in the company
33. SWOT Analysis
Largest domestic player
Invests heavily in (I.T) infrastructure that is key
differentiator and value enabler.
Owns dedicated airline with 7 Boeing.
Market shares:
Domestic air express : 45.9%
Ground segment : 12.5% ( Annual report 2011)
DHL aquired 81% stock of BlueDart.
34. SWOT Analysis
High fixed costs
Founding shareholders don’t have
controlling stake.
35. SWOT Analysis
Indian courier industry growth 20% YOY
Increasing nos. of E-business players in
India and in world.
Allowing of FDI in Retail sector
36. SWOT Analysis
Other Foreign Players increasing their footprint
independently in India with advance
technology.
Rise of imitators providing similar services to
Blue Dart at lower cost.
Inability to differentiate itself from
competition.
Cheap service of “EMS Speed Post”,
signaling revival of Indian Postal Service.
Amendment of the Indian Post Office Act1898
38. Political
Political: political confliction over the FDI in
retail.
Govt. policies:
Amendment of the Indian Post Office Act, 1898.
39. Economical
Directly affected by Economic growth
Increase in trade, domestic consumption
Allowing FDI in multi-brand Retail will boost this sector.
40. Social
Digitalization can affect small informative
document movement.
But movement of commercial and bulky good
Can never be affect.
41. Technological
Need to continuous upgrade the tech. infra. to improve
productivity, efficiency levels and bring down operating
costs.
42. Core competencies
Vast and unparalleled Domestic Network
Wide spectrum of services to provide customized solutions.
Customs and Regulatory expertise
It’s Technology
It’s Air Network
Its financial credibility
43. Competitors Analysis
Parameters Blue Dart Gati
Turnover (2011-12) Rs 1492 cr. Rs 900 cr
Presence 35,902
Delivery locations
( India)
220 countries
20,000
Delivery locations
( India)
200 countries
Market shares
Dom. AIR express:
ground segment:
45.9%
12.6%
Ties up DHL Express Air India , CREIL
Transportation Own 7 flights, 6272
vehicles
1381 vehicles
44.
45. PROFIT AND LOSS ACCOUNT
PARTICULARS Dec.11 Dec.10
INCOME
SALES TURNOVER 1492.27 1149.90
NET SALES 1492.27 1149.90
OTHER INCOME 24.03 4.56
TOTAL INCOME 1516.30 1154.46
Cr. Rs.
46. PROFIT AND LOSS ACCOUNT
PARTICULARS Dec.11 Dec.10
EXPENDITURE
EMPLOYEE COST 185.74 150.13
OTHER MANUFACTURING
EXPENSES
1008.10 748.76
SELLING & ADMIN EXPENSES 78.91 62.93
MISCELLANEOUS EXPENSES 40.94 31.42
TOTAL EXPENSES 1313.69 993.24
Cr. Rs.
50. Balance Sheet of Blue Dart Express
Dec.11 Dec.10
SOURCES OF FUNDS
TOTAL SHARE CAPITAL 23.76 23.76
EQUITY SHARE CAPITAL 23.76 23.76
RESERVES 639.97 521.29
NETWORTH 663.73 545.05
TOTAL LIABILITIES 663.73 545.05
APPLICATION OF FUND
GROSS BLOCK 395.23 327.52
LESS ACCUM.DEPRICATION 162.05 143.79
NET BLOCK 233.18 183.73
Cr. Rs.
51. Balance Sheet of Blue Dart Express
Dec.11 Dec.10
CAPITAL WORKING PROGESS 6.7 26.72
INVESTMENT 74.73 96.86
INVENTORIES 2.62 2.17
SUNDRY DEBTORS 188.99 153.29
CASH AND BANK BALANCE 38.09 35.2
TOTAL CURRENT ASSETS 229.7 190.66
LOANS AND ADVANCES 301.21 201.89
FIXED DEPOSITS 2.18 0.18
TOTAL CA, LOANS & ADVANCES 533.09 392.73
CURRENT LIABILITIES 169.39 143.39
Cr. Rs.
52. Balance Sheet of Blue Dart Express
Dec.11 Dec.10
PROVISIONS 14.58 11.58
TOTAL CL & PROVISIONS 183.97 154.97
NET CURRENT ASSETS 349.12 237.76
TOTAL ASSETS 663.73 545.07
Cr. Rs.
53. Cash Flow of Blue Dart Express
Dec.11 Dec.10
NET PROFIT BEFORE TAX 179.81 140.72
NET CASH FROM OPERATING
ACTIVITIES
107.03 37.65
NET CASH (USED IN) /FROM INVESTING
ACTIVITIES
-99.34 -25.46
NET CASH (USED IN) /FROM
FINANCING ACTIVITIES
-2.8 -2.81
Cr. Rs.
54. Cash Flow of Blue Dart Express
Dec.11 Dec.10
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS
4.9 9.38
OPENING CASH & CASH EQUIVALENTS 35.37 25.99
CLOSING CASH & CASH EQUIVALENTS 40.27 35.37
Cr. Rs.
62. BLUE DART GATI
Dec.11 JUN’ 11
Sources Of Funds
Equity Share Capital 23.76 17.2
Reserves 634.37 276.45
Total Liabilities 658.13 767.38
Net Block 232.73 390.83
Investments 72.25 77.37
Sundry Debtors 188.98 161.95
Cash and Bank Balance 37.55 21.48
Loans and Advances 299.88 232.86
Current Liabilities 168.35 115.23
Provisions 14.37 51.52
Total Assets 658.13 767.39
Cr. Rs.
63.
64. Recruitment And Selection
• Recruitment is done through
Recruitment Agencies.
• Final Interview is taken by Blue Dart
itself.
• Focuses on identifying the right
talent due to which HR has become
the part of it.
65. Training and Development
Ahmedabad (Gujarat) is the
training center where all the
recruited people takes
training.
The objective of the training
programmes is to help the
employees build positive
attitude, enhance personal
effectiveness/growth.
72. Human Resource Achievements
Won the Global excellence award in Innovative HR Practices.
Award for Innovative Retention Strategy by Employer Brand
Institute.
Global HR Excellence Award for outstanding contribution to
the cause of education.
Wins 'IMM Eminent Organization Award for Excellence 2010'
at the 37th World Marketing Congress.
73. All of Blue Dart’s achievements have been possible
because of the strong employee base that they have.
They are the valuable asset of the company that can’t
be replaced.