Describe the current system

Audit

Establish requirement& constraints for the proposed system

Develop costs for the proposed system

Develop logistics management system

Operate Model & simulate the logistics network

Implement Develop logistics organization

Conduct financial analysis

Develop an implementation

Fig: Logistics and Distribution System Design Methodology

Development of recommendations

The findings from the optimum simulation must then be complied into a series of

specific, practical recommendations which can be implemented in the real world. The

best approach is to organize them in the form an action plan, showing the recommended

implementation sequence, milestones, deadlines and major resource requirement.

LOGISTIC MODEL FOLLOWED BY BLUE DART (Operations)

Shipper gets package ready and calls for pick up

Courier receives order and arrives at shipper

A courier boy picks up packageOrder received and entered

Carrier transport to outbound stations

Package sorted, scanned and placed in container

Station outbound package scan (sops) COSMAT

Container transported to hub by air or road

Container unloaded at hub

Packages sorted, scanned and reloadedInto containers

Hub out bound package scan (hops)

Container transported to inboundStation by air or road

Container unloaded and packages are sorted and scanned

Station inbound packageScan (sips) COSMAT

Packages sorted, scanned and loaded into vans

Packages transported to destination, scanned and delivered

Proofs of delivery scan

CURRENT MODEL EXISTING WITH IN CHENNAI

Blue Dart offers the country's most comprehensive communications technology

and customer software to support critical supply-chain distribution demands. Blue dart

mainly has two operations

INBOUND OPERATION:

The inbound operation starts with receiving the packages or the goods from the

out bound station and comes in to HUB and in hub the Dart apex and the Dart surface are

handled by the Blue Dart Aviation dept. Dart apex and the Dart surface are scanned and

by the Blue Dart Aviation dept.

Dart Apex is reaching directly to the specified destination anywhere in Chennai

through road ways or air ways and will reach the respective destination and gets delivered

by the Blue Dart Aviation dept

Dart surface is specifically through road ways and from hub it goes to the warehouses

and then it routed according to the specified destination through vans or trains or by

buses by the Blue Dart Aviation dept throughout Chennai

Domestic Priority (DP) are handled by the Blue Dart express and Blue Dart Aviation

dept will scan it (x-ray) and handle the shipment to Blue Dart express then the Blue Dart

express will further scan each and every document (i.e. in scan and out scan) and then

segregate it according to the route and are put in to the canvas bag according to the

destination and through vans are delivered to the various service centers in Chennai and

to other parts of Chennai.

Thus the inbound operation in Blue Dart is carried out at the fast phase. Blue Dart

Aviation dept will clear all the shipment within 45 -50 min after the shipment is arrived

and they load the shipments in to the service centers. Blue Dart express is responsible for

the Domestic Priority (DP) and they in scan it and out scan it and then load it to the vans

and sends to destination and again they in scan it and out scan it and delivery boys deliver

the goods to the end customer thus the whole process is carried out in the inbound

operations in the Blue Dart

The following figures shows the model they follow in Chennai for various operations

INBOUND OPERATIONS IN DOMESTIC SERVICES

Domestic Priority

INBOUND OPERATION

Container received in inbound Station by air or road (HUB)

Container unloaded and packages are sorted and scanned (x-ray scan)

Packages transported to various service centers (Domestic Priority)

A B C D E F………..

Nth

Container and packages are sorted and scanned, loaded into vans or to motor cycle

COSMAT

Packages transported to destination specified

Delivered to customer

DART APEX

INBOUND OPERATION

Container received in inbound Station by air or road (HUB)

Container unloaded and packages are sorted and scanned

Packages transported directly from HUB to destination (Dart Apex) via road/air

Container and packages are sorted andscanned, loaded into vans COSMAT

A B C D E F………..

Nth

Delivered to customer

DART SURFACE

INBOUND OPERATION

Container received in inbound Station by air or road (HUB)

Container unloaded and packages are sorted and scanned

Packages transported directly from HUB to service centers (Dart Surface) via road/air

COSMAT

Transported to ware houses and then to different service centers

A B C D E F……..

Nth

Container and packages are sorted and scanned, loaded into vans COSMAT

Packages transported to destination

Delivered to customer

OUT BOUND OPERATION:

In the outbound operation starts with the carrier receiving the order and arrives at

the shipper and then take the shipment to the respective service center. Then they will in

scan the document and further they segregate the shipment and out scan the shipment,

than load it to the hub. Again in the hub it is scanned (x-ray) and further loaded to the

destination.

Dart Apex is reaching directly picked up through road ways or air ways and will

reach the hub and gets scanned, than to the respective destination and gets delivered by

the Blue Dart Aviation dept

Dart surface is specifically through road ways and from the pickup point, it directly

goes to the warehouses and then it is transferred to the hub for the routing according to

the specified destination through vans or trains or by buses by the Blue Dart Aviation

dept throughout Chennai

Domestic Priority (DP) are handled by the Blue Dart express .The Blue Dart express

will first in scan the document and then out scan each and every document and then

segregate it according to the route and are put in to the canvas bag according to the

destination and through vans are delivered to the hub and then it is routed accordingly by

specified destination

Thus the out bound operation happens to be in the evening and the shipment will

be cleared by the night and shipped to the destination by various modes of transportation

and thus will be delivered to the customer within one day in metros and two days to

other parts of the Chennai. Thus the operation is carried over night and they are quick

enough to deliver to the customer with high speed.

OUTBOUND OPERATIONS IN DOMESTIC SERVICES

OUTBOUND OPERATION

Courier receives order and arrives at shipper

Carrier transport to outbound service centers

Package sorted, scanned and placed in containerIn the service centers

COSMAT

Container transported to HUB by road through vans

Container unloaded at hub Packages sorted, scanned and reloaded into containers

Container transported to specified service centers by air or road

Container unloaded in service centers and packages are sorted and scanned, loaded into vans

COSMAT

Packages transported to destination and delivered

INTERNATIONAL SERVICES:

In international logistics systems, there is need to determine the best ports of

loading and unloading, and the best border customs points. Another very important

consideration in international logistics systems is that of optimal transfer prices. The

logistics network must be designed in such a way that it takes maximum advantage of tax

differentials and other national factors in arriving at the optimal structure. DHL is

responsible for the International services has it has the strategic alliance with Blue Dart,

the model is shown below:

OUTBOUND OPERATION IN INTERNATIONAL SERVICES

OUTBOUND OPERATION

Courier receives order and arrives at shipper

Package sorted, scanned and placed in containerIn the service centers

Package sorted, scanned and placed in containerIn the service centers

COSMAT

Container transported toHUB by road through vans

Container unloaded at hub Packages sorted, scanned and reloaded into containers

Then taken over by DHL and Packages are transported to destination and delivered

Container transported to destination by air till a center in India

Problem Statement

A change in the lifestyle of consumer and increase in competition generate issues

like customer loyalty, pricing and quality of products and services offered taking

prominence. The logistics management for changing business environment is the main

area of consideration in the project.

Objectives of the study

To give suggestions to improve effectiveness and efficiency of logistics

management at Blue Dart.

Optimize the time taken to reach the destination in the Route.

Maximize the number of delivery points for sharing the load.

Purpose of the Study

To Evaluate the effectiveness/efficiency of logistics at Blue Dart from HUB or

Clearing point and Forwarding to end customers and to recommend methods of

improving its efficiency.

To make analysis and recommend on logistics management

Data Source

The sources of data are mainly the primary data by obtaining the customer or

industry information by interviewing the personnel. This project solely focuses on the

secondary data source that can be classified on the basis of sources as internal data as

extracted from companies’ Data Bases.

Data Collection:

Observational Studies

The data is collected by regular observation at Hubs & Service Centers. The

model is designed by involving in the fields and observation done on the various process

in the Hubs and different service centers in Chennai

The required details:

Information from the operations Department about the existing process followed

and the time associated with the existing process.

Logistics department provided information on pricing, customer database, service

centers, warehouses, means of transportation means etc.

Information from the service centre with respect to space requirements, routing,

delivery points and timing detail.

Information required being collected from Finance Department for knowing the

Investment pattern.

And on the basis of the collected information, inferences were drawn explaining

the effect of suggested logistic model.

Research Type:

Descriptive Research

As the research is based on the objective of evaluating the effectiveness of the logistics

and requires recommendation for improving its efficiency, requirement is to give a

precise model that will remove the flaws in the existing model. This required an in depth

study of current model

Research Limitations:

Since this study is company-specific and confined only to Chennai.

Findings of the study and the conclusion are drawn on the basis of observation

and interviews

Generation of new hypothetical datasheets was feasible but not revealing. As such

the study needs to be undertaken by generating datasheet under hypothetical

condition.

Investment pattern to the implementation of new model cannot be estimated

accurately because of lack of data and analysis.