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Vrl logistics
- 1. Ajay Kanithi Akshay Donadkar Anto A Sebastian Chakshu Raj Deep Patel Devansh Dhawan Hardik Madani Lokendra Singh Rathore Raghu Prashant Shivam Jain
- 3. Freight Rates • Governed by demand supply scenario • LFOs (Large fleet operators) have bargaining power Fleet utilization • Driven by demand and supply, goods transported and routes Load Flexibility • Parcel services and express cargo command better margins thereby providing VRL with better flexibility Regulations • Implementation of GST will lead to better prospects of road transport services PROFITABILITY DRIVERS
- 4. Parcel delivery (66.29%) is the key business segment
- 5. Increase goods transportation network and fleet size Enhance network of transshipment hubs Focus on higher margin parcel delivery services Enhance operational controls to ensure timely delivery and quality services Improve operational efficiencies through technology 1 2 3 4 5 COMPANY STRATEGY
- 6. Drivers Dedicated team In-House maintenance facilities Spares Procurement Fuel Procuremen t • Significant savings by means of redemption points availed by Fuel companies • Operate two own consumer diesel pumps to ensure quality fuel & reduced fuel costs • Maintain records in ERP system to maintain control over spare parts cost • Procurement of spare parts at factory rates and saving on carrying cost • Ensure optimal efficiency levels by minimizing vehicle time in the workshop • Allocation of unique laser marked identification to prevent substitution of tires • In-house E.R.P for Accounts Inventory and Maintenance • Real-time monitoring of operations and tracking of consignments • Integrated GPS tracking systems • Large pool of experienced and trained drivers • Drivers receive cash awards for providing superior service OPERATIONAL EFFICIENCIES
- 7. Type Numbers(as of April 2017) Small Vehicles 117 Light Commercial Vehicles 969 Heavy Commercial Vehicles 2723 Car Carrier 102 Tankers 17 Cranes 13 Buses 419 Total 4360
- 8. Average age of the fleet is around 9 years Enables better control and time bound delivery, thereby enhancing service quality Enables us to cover a large number of routes and reduce dependence on third party hired vehicles Technology to fabricate lighter and longer bodies Higher length chassis sourced from manufacturers Ashok Leyland and Volvo have spare part yards in VRL Workshops Company Wide ERP system Drivers recruited on a full time basis and are given insurance and other benefits
- 9. Express Cargo • Consists of services like On time delivery, warehousing & redistribution VRL courier • Dedicated route vehicles • On-line track and trace facility Passenger Transportation • ISO certified • Fleet of 230 buses with different configurations • Market leader in Karnataka • E-ticketing facility • Punctuality and separate seating for women Parcel Services • 6000 MT of parcels handled daily • Wide network spanning 12 states, 1000 branches and 40 hubs
- 10. Increasing focus on marketing • Senior level personnel hired to grow all business functions • Increase focus on Corporate business and express cargo business Focus on infrastructure • Uses hub and spoke model to operate yards and provide effective service in parcel segment Increasing focus on North Indian market • Established offices in Delhi, Punjab , UP and Haryana • TPT operations to be added in Guwahati Global Logistics Operations • Trying to establish offices in Singapore • Strategic alliances are being explored to have company’s logistics operations on global scale
- 11. Quality Initiatives • Effective processes are being used to support operations and internal controls • Travel divisions in Hubli and Bangalore accredited with ISO 9001-200 certificate Centralized Transport and Warehouse operations • Efforts have been made to establish identify strategic places and construct warehouses • E.g. Facility in Varur, Hubli Cost consciousness • Employee engagement and Innovative ideas encouraged • VRL has set up its own truck body building division and internal software team Diversification • Investments in wind power project
- 12. Strengths Non regulated industry •High entry barriers •Availability of manpower •Continuous improvement in Quality •Investors with long-term vision dictates VRL Logistics shareholdings Opportunities Provide employment opportunity Private domestic air services GST and final implementation of the e-way bill in April 2018 Weakness Dependent on economic scenario Bureaucracy Threats Economic slowdown Government regulations New technology Increasing competition due to liberalization SWOT Analysis
- 13. Increase goods transportation network and fleet size Expand pan India network for the goods transportation business Focus on northern central and eastern regions of India for expansion Expand fleet of trucks Enhance network of transhipment hubs Scale-up operations at existing transhipment hubs through Mechanized freight handling equipment Expansion of maintenance facilities Setting up fuel stations Improvement in the overall work environment Expand proportion of owned transhipment hubs
- 14. Improve operational efficiencies through technology Enhance in-house technology capabilities to: Effectively manage pan-india operations Maintain strict operational and fiscal controls Enhance customer service levels Preventive and predictive maintenance of vehicles through software development and improvement in software as required Consolidatio n of bus operations Focus on improving margins Optimal route planning Maximizing occupancy levels through direct marketing and commission agents Proposed transport bill to : Simplify registration process through a unified vehicle registration system Simplify system of vehicular and transport permits Reduce inter-state transportation costs
- 15. Focus on higher margin parcel delivery services Focus on increasing market share in parcel delivery business Relatively superior margins Diversified customer base Reliance on owned vehicles Target higher margins by ensuring optimal load factors Premium rates for remote locations Focus on small and medium sized enterprises Relatively diversified attractive and under- served customer segment Enhance operational controls to ensure timely delivery and quality services Key growth factors Timely delivery Quality service Profitability Stringent and integrated management control systems to optimize freight mix and maximize load factors Operational efficiency Measures such as deploying multiple drivers over long distances Security Close circuit cameras on passenger buses Employees Industry best practices and training Proposed GST bill Expected to remove the current multiple taxation and bring supply chain efficiencies