Courier Business In India Copy

Courier Business in India: Case study on PRIDE INTERNATIONAL,
International Courier & Logistics

SUBMITTED TO
UNIVERSITY OF MUMBAI

PROJECT REPORT ON
“Courier Business in India: Case study on
PRIDE INTERNATIONAL, International Courier & Logistics”

SUBMITTED BY
NAVIN G. TIWARI
T.Y.BMS SEMESTER - V

THROUGH
SMT. KAMALADEVI GAURIDUTT MITTAL
COLLEGE OF COMMERCE & MANAGEMENT

ACADEMIC YEAR
2011-2012

Page 1


DECLARATION

I, NAVIN G. TIWARI OF SMT. K.G.MITTAL COLLEGE OF T.Y.B.M.S
(SEMESTER-V), HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECT
ON “COURIER BUSINESS IN INDIA: CASESTUDY ON PRIDE INTERNATIONAL,
International Courier & Logistics” IN THE ACADEMIC YEAR -2011-2012.

THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO
THE BEST OF MY KNOWLEDGE...

Date:
___________________

(NAVIN G. TIWARI)

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GUIDE CERTIFICATE

I ―PROF. NAMRATA ARORA‖ HEREBY CERTIFY THAT NAVIN G. TIWARI OF
SMT. K.G.MITTAL COLLEGE T.Y.B.M.S (SEMESTER-V) HAS COMPLETED
PROJECT ON “COURIER BUSINESS IN INDIA: CASESTUDY ON PRIDE
INTERNATIONAL, International Courier & Logistics” IN THE ACADEMIC YEAR
2011-2012.

THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY
KNOWLEDGE.

___________________ ___________________ _________________ __
PROF. NAMRATA ARORA PROF. LEENA GADAKARI DR. JOHN D’MELLO
(PROJECT GUIDE) (BMS CO-ORDINATOR) (COLLEGE PRINCIPAL)

DATE:

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CERTIFICATE

This is to certify that, Mr. NAVIN TIWARI the student of T.Y.B.M.S. (Semester-V),
has successfully completed project on “COURIER BUSINESS IN INDIA: CASE
STUDY ON PRIDE INTERNATIONAL, International Courier & Logistics” in the
academic year 2011-2012 under the guidance of ―Prof. NAMRATA ARORA”

___________________ _________________________

PROF. LEENA GADAKARI DR.JOHND’MELLO
(BMS CO-ORDINATOR) (COLLEGE PRINCIPAL)

___________________ ___________________

PROF.NAMRATA ARORA EXTERNAL EXAMINER
(PROJECT GUIDE)

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ACKNOWLEDGEMENT

The Project on COURIER BUSINESS IN INDIA: CASE STUDY ON PRIDE
INTERNATIONAL, International Courier & Logistics was a great learning
experience. I was fortunate enough to undertake such a project. I wish to
acknowledge my thanks and gratitude to the following people who have helped in the
making of this project.

I record hereby my special thanks & gratitude to my Project Guide Prof. NAMRATA
ARORA, for her unflagging encouragement & affectionate guidance in the
completion of my project, without her this would not have been possible.

I would also like to thank our BMS Co-ordinator Prof. LEENA GADKARI, for her
unconditional support & valuable guidance.

My thanks are also due to all my friends as well as well wishers who have helped me
at various levels. I once again thank all of them whole heartedly.

DATE: -----------------------------

NAVIN G. TIWARI

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EXECUTIVE SUMMARY

A courier is much faster, safer and secured than ordinary mail. It is a specialized
service with authenticated signatures. It has tracking service with each service being
treated as a specific individual case. The courier industry specializes in time-definite,
reliable transportation services for documents, packages and freight. This is done via
a combination of transport networking that includes road, rail, sea and air for door-to-
door delivery. This extensive distribution system is supported by infrastructure that
comprises hubs, warehouses, IT technology and human resources, as well as offices
in various cities.

The courier industry has been the single largest beneficiary of a pickup in the
economy. Volumes of shipments have been on an upward trend and so have the
yields. This is in complete contrast to the situation a couple of years ago when the
industry's volumes were hampered on account of slowdown in industrial and export
demand.

Indian parcel courier market is estimated to be in the tune of 4000 crores and it has
witnessed an average yearly growth of 25%. Considering the fact that, market is
expected to keep up the growth and development momentum; there is a huge
opportunity for a person to start his own courier service. Courier service is such a
rewarding and lucrative industry for the entrepreneur that a person can consider how
to start a courier business of his own. This is a solid business idea because, while
there are already several internationally recognized courier services available, many
small courier businesses can find great success in picking up where the larger chain
couriers leave off. This leaves plenty of room for starting a courier business that
thrives and that provides a service many individuals and businesses are looking for.

Simply put, the courier market has grown due to demand from customers and
businesses. The study therefore focuses on the various aspect of the courier
industry & supply chain management in courier industry.

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INDEX

Sr. No. Topic Page No.

1 Introduction 8 – 13

2 Courier Services in India 14 – 19

3 How to start a Courier Service 20 – 33

4 Logistics in Courier Industry 34 – 39

5 Revenue of major players & Contribution of 40 – 43
Courier Industry to Indian GDP

6 Indian Courier Summit -2010 & 2011 44 – 48

7 Study of Inbound & Outbound Supply Chain 49 – 75

8 Case Study : Pride International, International 76 – 87
Courier and Logistics

 Conclusion 88 – 89

 Bibliography 90 – 91

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Chap. 1:- Introduction

 Courier Service
 Types of Courier Services

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Courier Service

Courier

Couriers are basically a service for sending money or goods at some extra cost.
It involves a person or a company engaged in transporting, dispatching and
distributing letters, parcels and mails. In a rather layman term, it can be said that,
compared to normal mail service, a courier possess many added features. A courier
is much faster, safer and secured than ordinary mail. It is a specialized service with
authenticated signatures. It has tracking service with each service being treated as a
specific individual case. Dedicated timely deliverance is its primary hallmark. These
features do cost a bit extra but with so many features available, the cost gets
leveraged.

Couriers are distinguished from ordinary mail services by features such as speed,
security, tracking, signature, specialization and individualization of services, and
committed delivery times, which are optional for most everyday mail services. As a
premium service, couriers are usually more expensive than usual mail services, and
their use is typically restricted to packages where one or more of these features are
considered important enough to warrant the cost.

Today the huge global companies have their own fleet of trucks and aircrafts solely
for the purpose of transporting the logistics whereas the mode of operation in cities is
influenced by bicycle and motorcycle. The transporting methodology involves truck
owners operating in tandem with the major logistics companies. They normally cover
the defined routes.

In cities, there are often bicycle couriers or motorcycle couriers but for consignments
requiring delivery over greater distance networks, this may often include Lorries,
railways and aircraft.

Many companies who operate under a Just-In-Time or "JIT" inventory method often
utilise on-board couriers. On-board couriers are individuals who can travel at a
moment's notice anywhere in the world, usually via commercial airlines. While this
type of service is the second costliest—general aviation charters are far more
expensive—companies analyze the cost of service to engage an on-board courier
versus the "cost" the company will realise should the product not arrive by a
specified time (i.e. an assembly line stopping, untimely court filing, lost sales from
product or components missing a delivery deadline, organ transplants).

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Courier Service

Mary Breckinridge is credited to pioneer the courier service. Back in First World War,
she was working in an American committee that used to deal by taking personnel
into the service whose primary job was to deliver the medical supplies and assisting
the medical staffs in far flung places. The official year for record was 1928 and the
term given was courier. Sooner as was expected, its popularity increased with
changing time and mounting needs. By the end of Second World War, when the
need of the hour was urgent delivery of essential messages and commodities,
courier services witnessed many folded increase.

After Second World War, a plethora of courier companies have been launched
worldwide. Courier Company is primarily indulged in delivery of goods and mails to
any place of the world. The services offered by them are accessible almost all the
time.

In the current scenario, we are often faced with shortage of time in every activity we
do. Be it reaching the office or sending a parcel to a dearest one residing in a
different states or city, we always wait for the last moment. If you want your parcel to
be delivered in a short period of time, you need to utilize an Express courier
service that provides express delivery service like overnight or same day delivery.
Generally, such a service is available at a price higher than the standard express
courier services. The demand for express courier services and the external factors
involved are responsible for the higher cost of these services. At times, the service of
airplanes or cargo planes is the only way to ensure the delivery to overseas
destination in a short span of time. Therefore, additional costs are involved.
However, you should not avoid the use of such services when the parcel needs to be
delivered on time.

Majority of leading courier companies provide express service. Moreover, the large
companies also provide an express international courier service. This helps in
ensuring timely delivery of overseas parcels. However, the companies offering the
services of express delivery depend on a third party to carry the shipments to their
destinations. Generally, airline companies or shipping companies are the third
parties involved in these services.

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There are several courier companies that work closely with their clients. This is done
by offering personal courier services. In this case, a personal messenger is sent to
the recipient. The person holds the responsibility of delivering the package on time
and in the perfect condition. Express couriers have trucks for transportation of
shipments. However, bike messengers are also employed for urgent deliveries inside
the city.

Types Of Courier Services

There are many different types of courier services to suit the needs of businesses
and individuals across the country. Transporting goods and information is often
critical in terms of timing, security and correct delivery location, which is why couriers
are such an in-demand and essential service.

 On-Board Courier

Aside from chartering a plane, an on-board courier is the most expensive and in
depth courier service. While being extremely expensive, these types of couriers are
often necessary when items of extreme importance need to travel (often
internationally). This could be the case for things such as medical cargo (such as
organs needed for a transplant), critical parts or tools or sensitive business or legal
information.

 Personal Courier Services

This type of courier is often used in big cities or over relatively short distances. They
can carry a range of cargo from super-sensitive or delicate material to standard
office documents and files. Often, these types of couriers will be used in large
companies with complex mail systems to ensure that a package reaches the right
person in a timely manner.

In some cases, these couriers are also bike couriers in that they use a motorbike or
pushbike to navigate between locations quickly. However, they may also use typical
transport such as cars, vans and trucks.

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 Same Day Courier Services

Same day courier services are often available for locations within a reasonable
distance of the sender. It‘s normally items of an urgent or delicate nature that are
sent through a same day courier service, and this category may carry over to the
personal courier service, but not necessarily if a longer distance is covered.
Obviously, this type of courier service comes at an additional price.

 Overnight Courier Services

Many couriers offer overnight delivery services to certain destinations. These are
often cheaper than the courier services listed above, but can be more expensive
than standard courier services. The destinations offered vary, but many couriers can
cover a large distance in this time. Typically a courier network will take care of your
package, and normally conditions apply such as a cut-off time to put packages in for
this service.

 Standard Courier Services

Standard courier services are the most familiar and commonly used type of service
for individuals and businesses. While typically timely, these services are not normally
as fast as other courier services, and they are priced appropriately for this purpose.
With most courier services requiring a signature of receipt and the ability to track
your package, it offers security and timely delivery that regular mail often can‘t
provide.

 Back Loads and Part Loads Courier Services

This type of courier service is often beneficial for businesses that rely on frequent
delivery of items from a courier. This system operates on a commonsense delivery
system that operates less on the idea of urgency but can save the business money
while often still delivering a positive result.

In this case, packages are delivered either when the courier is visiting an area
anyway such as in the case of someone else ordering a same day delivery service.
Items to be delivered simply wait until the courier is travelling a particular direction. If
a certain timeframe elapses, the items may be delivered anyway.

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For example, a mechanic may order parts supply from a courier, but instead of
paying a premium price for immediate delivery, they wait until another business or
individual orders courier services in their area. When that happens, the courier
delivers their parts too as part of their journey. There may be a clause that if the part
is not delivered in a week, the parts are shipped anyway.

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Chap. 2:- Courier Services in
India
 Courier Services in India
 Salient features of the industry
 Courier companies in India

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Courier Services in India

Indian courier industry was initially limited to all the four metros. The reason was the
airport connection these metros were having. The industry had its start some 15-20
years ago. But with changing economy and technical advancement seen on a daily
basis, the industry has extended fast to several metropolis, township and even rural
areas. Train, bus, motorcycle and even bicycle have helped the industry in this
regard. Industry has traveled a long way and now it has become a very common
sight to see an office of Courier Company in the nearby locality.

A courier company in India has its primary virtue is its
efficiency. The more efficient it is, better the chances of survival. Considering this is
a manpower intensive industry, so the need for highly skilled and trained personnel
is of prime importance. The industry is booming and market is brutally competitive so
all the companies have to keep improving to sustain in the business. The
advancement of technology has also made things slight easier.

The Indian courier market is Rs 7,000-crore courier industry and it is
growing at 25% a year. Still, most of the business is in unorganized sector. Few
major players dominate the market .Earlier, it used to be a fragmented market but,
now the process of consolidation can be seen.

Courier Services in India can be segregated into few categories:

1. Intra-city services :- which are about speedy delivery of mails and goods
within the city.

2. Inter-city services :- surface cargo services where short distance and bulk
loads are handled.

3. Air express/Air cargo services :- Delivery through airways.

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SALIENT FEATURES OF THE INDUSTRY

The courier industry specializes in time-definite, reliable transportation
services for documents, packages and freight.

The industry has exhibited a growth of about 30% over the past four years
and is expected to grow at 25% for the next two to three years, making it one
of the fastest growing segments in the transportation of cargo.

International express cargo holds 6% of the express cargo industry, but is
forecasted to reach 40% by 2017.

The domestic courier industry with a turnover of Rs 20 bn is still at a nascent
stage as compared to developing countries like China where the industry is
five to six times bigger.

Currently there are about 2300 courier companies in India, but four major
players in the premium organized segment dominate the industry.

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Courier Companies in India

If one tries to find a courier company in India, one can find them in every nook and
corner of the large part of India. The numbers of courier companies in India have
seen a growth reminiscent of wildfire.

Many factors have contributed towards this huge spread. Economic growth,
technological advancements, escalation of industrial sector, increase in export and
import and large scale effect of liberalization are few of the major reasons. Now a
day, courier companies are considered as vital component of any economy.

In the earlier days, the major courier players were centered in major metros because
of their better connectivity with airport, ports and railways. But with India rapidly
becoming a major economic force, now more and more companies are covering
cities, towns and rural areas under their wide network. Despite that development, the
large and medium sized companies are still based in the metro cities of India.

There are large numbers of courier companies in India. It can be segmented into
organized, semi-organized and unorganized categories. The organized sector
players are quite large in magnitude. These players often have best of speed and
reliability. As the competition is heating up, companies are offering specialized
services including online tracking of the goods. In this service a customer can check
the route via which goods are being delivered and the exact location of the thing in
the specific time duration. Many large companies also offer multi-point coordination
and heat control facilities for the parcels.

The major players in Indian courier industry are DHL, Blue Dart, First
Flight, Gati etc. Out of these players DHL courier definitely has an edge over the
competitors since its 68 percent acquisition of another big player Blue Dart. DHL is a
huge brand name in courier industry not only in Indian context but also worldwide. It
is right there on the top in services such as air shipment, worldwide express and
overland transport. Even in more specialized services such as ocean shipment and
contract related logistics, it is the number one. It has a synchronized operating
system. Its expertise lies in providing customized solutions to the customers. They
have a very potent combination of global reach and local knowledge. Whether, its
express document shipping managed through its wide-ranging network or entire
aspect of supply chain management; it has managed to carve its own niche in the
courier and logistic industry.

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These are some key players in Indian Courier Industry:

1. DHL

DHL is the global market leader in international express, overland transport and air
freight. It is also the world's number 1 in ocean freight and contract logistics. DHL
offers a full range of customised solutions - from express document shipping to
supply chain management.

DHL are the first letters of the last names of the three company founders, Adrian
Dalsey, Larry Hillblom and Robert Lynn.

2. DTDC:-

DTDC is India‘s Largest Domestic Delivery Network Company offering various
custom made services ranging from Domestic to International. DTDC delivers to the
remotest places in India with the help of 4,000 business partners spread across the
length and breadth of India.

DTDC Courier & Cargo Ltd. (DTDC) was incorporated in 1990. Within a span of 17
years, through its business associates DTDC expanded its delivery network across
the length & breadth of the country, thereby creating the nation's Largest Domestic
Delivery Network. Today DTDC is one of the largest Indian companies in the
Express industry. DTDC can also be credited with pioneering the franchisee concept
for the courier industry in India, and today has the largest franchisee network.

Its headquarter is at Bangalore, with 4 of its Zonal Offices at Delhi, Kolkata, Chennai
& Mumbai, DTDC currently serves around 10,000 pin code areas and has over 4,000
Franchised outlets, supported by 176 offices, which includes its Branch offices,
Regional offices, Area offices, Hubs and Sub-offices. It handles 10 million
consignments every month. DTDC serves over 240 international destinations.

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3. First Flight:

First Flight Couriers came into being on Monday, 17th November 1986. It all began
with the setting up of three offices at Kolkata, Mumbai and Delhi.

The overwhelming response from customers was not just a dream come true, but the
fruits of an early realization and recognition of the tremendous potential that the
Indian subcontinent offered in terms of market size.

It was the foresight and dynamism of the Founder Chairman and Managing Director,
O. P. Saboo which created a spring board for the organization to catapult into what it
is today – India‗s Largest Domestic Courier Company.

4. FedEx:-

Federal Express started operations in India in 1997, and currently operates
ten flights a week from Mumbai to Europe and Asia.

FedEx has an operations agreement with Prakash Airfreight Pvt. Ltd., which
provides all pick-up, and delivery services within India.

FedEx now services from eight centers as against four centers earlier and has
branch offices in Kolkata, Ahmedabad, Hyderabad and Coimbatore, in
addition to the current operating locations in Delhi, Mumbai, Bangalore and
Chennai.

5. Blue Dart:-

BLUE DART is South Asia's leading integrated air express carrier and
premium logistics-services provider. It has the most extensive domestic network
covering over 13,880 locations, and service more than 220 countries and territories
worldwide through its Sales alliance with DHL, the premier global brand name in
express distribution services.

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Chap. 3:- How to Start a Courier
Service

 Courier as a Business.
 Procedure to start a Courier Business

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Indian courier industry is blossoming giving opportunities to start
one's own courier service in India. With many global players entering into the
lucrative Indian market, there is huge untapped market which is still waiting to be
explored. Considering India's large geographical area, emerging economy, it's quite
prudent to venture into this vastly potential segment.

So, how to start a courier service? To begin with, any individual who is over 18 years
of age, has a good health and holds a legitimate passport can start his/her own
courier service.

Courier as a Business

At first glance, the courier industry looks easy to get into. It can appear that all a
person need is an office, a telephone and a set of wheels - either two or four. As a
result, there are a lot of new businesses starting up each year. Inevitably, there is a
lot more to making a success of it though: very few tend to start up a courier
company from scratch. Most of those who own courier enterprises are former
couriers themselves. Even a smallish motorbike or cycle company requires
considerable effort and knowledge.

Cycle couriers can, by definition, only exist in an urban setting. Most cyclists cover
around a two mile radius - otherwise the same day service and ability to deal with
urgent jobs is lost. As courier firms operate in cities, jobs tend to be office related -
lighter packages, urgent documents and so on.

Motorbike couriers are faster and can go further but, similarly, they would be more
likely to do town or city based work. For long distance journeys it makes economic
sense to do more than one job at once, for which a van is obviously better suited.

Prompt and courteous riders are a must as cycle couriers have had something of a
reputation for unreliability in the past.

Unless a person have unlimited money for a fleet of motor or push bikes, he will
generally have people working with him on a self-employed basis. They will be
responsible for providing their own bikes and equipment, as well as storing and
maintaining them.

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A business can therefore be run from a home office on this basis, with a computer
and mobile phones rather than a radio.

Although couriers are starting up all the time, this is a fluid industry. Firms merge and
change so if a person finds a niche within his area it is possible to work alongside
them. No firm turns a job down but in a busy city there should be enough for
everyone.

Cycle couriers are also a greener option with so many city centre‘s plagued by traffic
and plans for no-car zones to develop.

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Following is a procedure which can be followed to start a Courier
Business:

1. Initial requirements when starting out

With just a few essentials, you can start your own courier and delivery business in no time.

When starting a courier service, or other delivery service, there are certainly a few
things that a person will have to have in order to get off to a good and profitable start.

When it comes to tangible goods, there are a few obvious things. A car is the key
element of a delivery service, and is certainly a necessity.

If the company will be delivering large parcels or items, a truck may be a good
choice. When starting, though, a person will easily be able to work with what he has
by accepting jobs that fit the parameters.

Pay careful attention to insurance, however, a person will need to ensure that his
policy covers business use of his vehicle. He will also want to ensure that he have
the money needed to cover fuel for his first few weeks of work until his clients have
paid their invoices.

With the vehicle covered, a person will also need a few other basics, such as a cell
phone, a clipboard, and a map or GPS system. A GPS system, even if he uses the
one integrated into many cell phones, is an invaluable tool that can offer directions
even while drive, which saves both time and overall money.

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The starter will also need access to a computer and printer so that he can create
invoices, tax records, and other important documents. Owning own computer is
preferred.

In addition to these physical things, there are also some intangible items that are
absolutely essential to any starting business. A person needs to have the free time
needed to do the job and to do it properly. If he is planning to make great money
without having enough time to do the job, it simply isn‘t going to work.

A starter also needs to have a positive and friendly attitude and approach. He isn‘t
going to become a millionaire overnight, but with friendly, quality service he can build
a client list quickly.

This is all that a person needs to start a great business. While he may run into more
needs as his business grows, this is what he really needs to start.

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2. Research of Area

Even if a person thinks that he is familiar with the industry, it‘s very important to
research the area he is looking to set up in. Some things are obvious. Starting up a
cycle courier business in the middle of the countryside isn't a good idea because his
customers will be too spread out to make it viable.

Looking at his competitors' prices will help him decide what he can afford to charge
and whether it's possible to undercut them. It will also help him to see if there's a
niche in his local area. He might be near an airport and focus his business there or,
alternatively, he may focus his attention on delivering items such as foodstuffs.

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3. Considerations for Recruitment of Personnel in Courier Industry

The most viable way to recruit is to hire self-employed couriers. This means the
starter of the business won't have to fork out for a fleet of bikes or have the storage
space to cope with them.

Finding good riders can be difficult. It is very difficult to source an insurance
company that will insure motorcycle couriers aged under 25.

Advertising in the local paper is the best way to start off. A person can take on the
people who are available and train them up to be the riders he want.

Riders are the public face of business. They're the ones who are out meeting clients
and who can break the business if they have one too many 'bad days'. Strong
support at the company end can help head off potential trouble.

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4. Advertising

When the starter of the courier service is on a budget - as most people are when
starting up a business - advertising can be the biggest headache, but unfortunately
it‘s usually necessary. Making a simple but professional flyer and dropping it into
local businesses is a simple and cost effective first step. Free online listings services
are worth a look and Yellow Pages adverts are also good when money is not an
important factor.

However, word of mouth is the most important thing. In terms of business to
business courier work, there‘s no evidence that businesses find couriers through
advertising and marketing: it‘s mostly done through word of mouth. So a person can
spend a lot of money advertising in the Yellow Pages or on a website, but there‘s no
evidence that end users look at the websites when looking for a courier. They would
look to somebody else in the same business as them and ask which courier
company they use.

If the company deliver as promised, offers the best possible value and makes sure
that the riders give exemplary service, people will recommend it. This will be the best
start business could possibly have.

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5. Maintaining Brand Image of the Company

Cyclists and motorcyclists are vulnerable on the roads but they can also be very
visible. In creating image a person can therefore enhance both his rider‘s safety and
company advertising by bright, noticeable colours or logos.

A recognizable image will also make it look like the company is everywhere, even
when the numbers of riders are few on the road. It's important to establish the
identity from the beginning as the company can‘t afford to change its image every six
months - strong brands are built over time.

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6. Determine Charges for service

Determining what to charge is one of the most important steps you will take as you begin your courier service.
Luckily, several strategies that you can employ will ensure your competitiveness.

The one question we get more than all the others combined is: ―How do I figure out
what to charge for delivery services?‖

The answer is that much of the pricing depends on the answers to several questions:

 Where are you?

 How much competition do you have and what are they charging?

 What are you delivering? Is it an envelope or a big screen TV? Is this a one time
delivery or a repeating scheduled delivery?

 Is the delivery local or out of town?

 How much is your overhead? Do you have an expensive office or do you work
by yourself out of your house?

 How much profit do you want to make?

 How much does it cost to operate your vehicle? how much is your insurance?
What is the current price of fuel in your area?

These are just some of the many variables to consider when figuring out rates.

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There are several simple strategies for figuring out what should be charge from
clients.

Strategy One: Determine Competitors Rates

Find out what other courier and delivery services in the area are charging.

If a person charges more than the going rates, he will probably not get many clients.
If he charges less than the market rate, at best he is leaving money on the table. At
worst, he may go out of business because his profit margins will be too thin.

The most important factor is what people in the area used to and willing to pay for
delivery services. In other words, a person needs to determine the market price for
his services in his area.

Strategy Two: Determine What You Want To Make

Set a target revenue goal and then work backwards. If I want to make Rs.60 per
hour, then that means each minute of my time is worth Rs. 1.00. So, if a delivery
takes me 10 minutes, I‘ll charge Rs. 10. If a delivery takes me 25 minutes, I‘ll charge
Rs. 25 for that delivery.

This strategy can provide an easy way to provide quotes, but it‘s only effective so
long as the prices quoted are still competitive in the area. So, Strategy Two must be
used in conjunction with Strategy One.

Also, it should be pointed out that a person should be sure to factor his expenses
into his target income goal. Even if I am earning Rs. 60 per hour, I‘m going to have to
subtract my expenses from that income.

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Strategy Three: Survey Your Target Market

Similar to Strategy One, Strategy Three involves actually asking prospective clients
what they are paying, what they are willing to pay, and, essentially, how much
services offered are worth to them.

Now, rather than simply asking them ―How much do you want to pay me?‖ which is
not likely to provide with useful information, a person can instead ask questions to
write the amount of convenience.

Simply put, a person can ask them how many employees they have, who generally
make the deliveries, where the deliveries are going, what time of day their deliveries
go, etc. Gathering this type of information should give clues to how much he can
charge.

Page 31


Regulations: Laws of Courier Business
There are no specific laws attached to courier businesses. However, there are
insurance issues. The company must observe health and safety legislation and
standards.

It is good practice to have goods in-transit insurance to take care of the clients‘
property. There are specialist brokers that deal in insurance for couriers. For an
established company with vans as well as bikes a person might pay around Rs.5000
a year for this. Obviously with the reduced carrying capacity of a motorbike or cycle,
this would be significantly reduced.

Public and employers liability insurance for couriers and courier companies, as well
as courier vehicle breakdown cover, is something a person should look into unless
his fleet is made up entirely of self-employed riders, who are responsible for their
own insurance and relevant driving license for motorbikes. All riders need to have
EC standard clothes and helmets. Again any logoed or coloured jackets the
company wants them to wear should conform to the guidelines.

Although the temptation will be that rider‘s work as hard as possible to maximize the
earnings, they should have a 15 minute break every 2 hours, and can only work a
maximum of 10 hours.

Page 32


Courier Code: Responsibilities of Firm & Rider
It's important to be aware of the responsibilities not only that the company owe to
riders but also that they owe to the company. This is vital, both for the safety and for
the health of business. The government has a courier code. It's described as a code
of practice for firms in the courier industry and those who ride and drive for them.

Responsibilities of courier firms:

Riders and their vehicles need to be properly licensed, insured and roadworthy

Create realistic delivery schedules to ensure your couriers don't work more than
allowed working hours

Deliveries should not involve dangerous loads

Keep records and make regular inspections to ensure the requirements of the
code are complied with

Make sure riders are properly trained and licensed for dispatch operations

Provide clothing and equipment for riders which show the name of the company
and are suitable for their purpose

Do not require riders to use a mobile phone on the move

Responsibilities of riders:
To have a full license and to be properly insured for courier work. Cyclists don't have
to be insured but as a responsible road user, cover should be in place

Inexperienced riders should have further training before being engaged in courier
work

Being alert and personally fit when riding is important

Never operate under the influence of drink or drugs or use a handheld mobile
while driving

Cyclists should have lights for use at night, a bell and use a cycle helmet. All
should comply with relevant standards

Cyclists must not cycle on the pavement or across pedestrian crossings

Page 33


Chap. 4:- Logistics in Courier
Industry

 What is Logistics?
 About Logistics & Customer Service in Courier Industry.
 Logistics management process in Courier Industry.
 Future prospects of Logistics in Courier Industry.

Page 34


What is Logistics?

Logistics is concerned with getting the products and services where they are needed
when they are desired. It is difficult to accomplish any marketing or manufacturing
without logistical support. It involves the integration of information, transportation,
inventory, warehousing, material handling, and packaging.

Logistics is an organized process of managing the flow of merchandise from the
source of supply - the vendor, wholesaler or distributor - through internal processing
functions like warehousing and transportation, until the merchandise is sold and
delivered to the end customer.

Logistics management aims to reduce inventory-holding costs and improve
profits, while enhancing customer satisfaction.

Page 35


About Logistics & Customer Service in Courier Industry:

Logistics contributes to an organization‘s success by providing customers with timely
and accurate product delivery. The key question is who is the customer? For courier
industry, the customer is any delivery destination. Typical destinations range from
consumer‘s homes to offices or any other destination of delivery. In some cases the
customer is a different organization or individual who is taking ownership of the
product or service being delivered. Regardless of the motivation and delivery
purpose, the customer being serviced is the focal point and driving force in
establishing logistical performance requirements. It is important to fully understand
customer service deliverables when establishing logistical strategies.

Whereas logistics is not capability that contributes to overall success, it is
fundamental to servicing customers. In a typical marketing situation, the desired
customer service performance changes over time.

In terms of overall logistical performance, the basic customer service platform or
program should be the level of support provided to all customers.

Page 36


Logistics Management Process in Courier Industry:

The various processes and elements that are part of logistics in courier industry are
as below:

Inbound logistics: Inbound transportation, Inventory Management.

Outbound logistics: Order booking process, Distribution management,
outbound transportation, and Warehouse
management systems.

As customers started demanding improved servicing
standards, fast cycle time has become the key factor for courier business success,
whether it is a cargo shipment anywhere in the world or a local courier delivery.

Significant benefits can be reaped through the multiplier effect
of better logistics in the courier industry.

Page 37


Future Prospects of Logistics in Courier Industry:

There are three revolutionaries responsible for future growth
prospect of logistics in the courier industry. They are

(1) the globalisation of trade;

(2) the coming of the information era;

(3) more demanding consumers and continuously changing consumer
preferences.

The main characteristics of the future logistics development in the
courier industry are:

• Government role: To keep competitiveness of the courier industries, the
government has to lead the way to assist the logistics industries. For instance, the
idea of village courier provides the environment to promote logistics efficiency and to
reduce operation costs. However it involves large of investments and some problems
relating laws and national policies. Without the lead and support of government,
achieving the plan is difficult.

• Growth of international goods transport: The up-growth of international
freight transport is contributed by several factors. Firstly, the blossoming of E-
commerce pushes ahead the international business activities. Secondly, the change
of production strategy needs international co-operation, e.g. importing the semi-
finished products from countries and assemble the final goods. Thirdly, the pressure
of globalised market, such as World Trade Organization (WTO), pushes local
industries to promote themselves to reach an international standard and face the
worldwide competition.

• Improvement of services: Providing a good customer service becomes a
necessary requirement for any courier operation with the intense competition of
global market. The quality of services is the main factor to affect consumers. The
service systems involve several developed techniques now, such as Efficient
Consumer Response (ECR) and Quick Response (QR). In the near future, more new
techniques would be applied in providing better services for customers.

Page 38


• Freight transport: The alliance between middle-small size delivery companies
is an important trend in the future. The strategy could help to expand service areas
and increase service quality, and meanwhile raise the loads of single trips to reduce
delivery costs

• Specialized logistics delivery: One of the notable trends of courier & Cargo
industries is specialized delivery service. For instance, Computer chips, gases and
petroleum need particular conveyances to carry. These demands are rising since the
products became more and more delicate.

Page 39


Chap. 5:- Revenue of Major Players &
Contribution of Courier Industry to
Indian GDP

 Revenue of major Players in Indian Market.
 Contribution of Courier Industry to Indian GDP.

Page 40


Revenue of major Players in Indian Market (Rs. bn):

Blue Dart Express Ltd. (Blue Dart) is the market leader, with a 36% market share in
the domestic market, and Elbee Services Ltd., the second largest player, has a 20%
market share. AFL-DHL is primarily focused on the international segment, where it is
the market leader, whereas Gati Corporation Ltd. (Gati) is the market leader in the
domestic packages, ground distribution segment. In the domestic air packages
segment, Blue Dart, having developed its own air network and aircraft operations, is
currently the market leader.

Revenue in the financial year 2010 – 2011.

Page 41


Revenue in the financial year 2010 – 2011.

The organized segment dominates the package and the premium document
business since it requires a strong infrastructure and resources, while the low-yield
document business is the domain of the unorganized sector. However in value terms
the share of the organized sector is 64% and of the semi-organized and unorganized
sector is 36% in spite of the large volumes it handles.

Page 42


Contribution of Courier Industry to Indian GDP:

Indian GDP: Contribution by Sector:
Agriculture : 16.1%

Industry : 28.6%

Services : 55.3%

The contribution of Courier & Logistics Industry: 13 – 14%

Contribution of Courier & Logistics to GDP

Indian economy has been showing robust growth coupled with domestic
consumption and international trade (import & export) supporting growth in courier &
logistic industries. Moreover, during the period 1991-2005, India‘s imports have gone
up at an average rate of 8.8 %, while exports have registered a growth rate of about
9.27% annually. These have positive impacts on the courier & logistic industry as a
whole. Contribution of courier & logistics industry to India‘s GDP has risen in recent
years. Estimates from various published sources indicate that courier & logistics in
the country at present contributes around 13-14% of the GDP.

India's ascending fortunes in the manufacturing sector over the last few years has
opened several windows of opportunities for the courier & logistics market, and this
trend is likely to gain pace as the wave of global economic slowdown is gradually
receding and India emerging as one of the earliest major economies to recover from
recession. This fast-paced growth of the industrial sector, coupled with the more
sturdy progress of the agricultural sector, has necessitated extensive supply chains
across the country to facilitate sourcing and distribution of production.

Page 43


Chap. 6:- Indian Courier Summit–
2010 & 2011

 Event profile.
 About Organizer.
 Objective of the Summit.
 Areas covered.
 Exhibitors profile.
 Visitors profile.
 Highlights.

Page 44


Event Profile

India Courier Summit 2010 & 2011 offered an ideal platform to the courier industry to
discuss issues of common interest. India Courier Exhibition gave an opportunity to
the value partners of the industry, to showcase new trends and technologies that can
add value to the efficient working of the industry, to meet the desired demands of
discerning customer.

Organizer:- Manch Communication (P) Ltd, India

Date for 2010:- 6th & 7th April, 2010

Date for 2011:- 15th & 16th April 2011

Venue:- Hotel Le Meridian, New Delhi, India.

About Organizer

For more than a decade, Manch Communications has pioneered a different
approach of hosting shows and managing visitor‘s promotion. With major events
present in the profile, the company has efficiently emerged as a single viable
alternative for organizers to provide back end support. Based in New Delhi, the
company has effectively managed shows in Mumbai, Bangalore, Chennai,
Hyderabad, Dhaka and Colombo. In June, 2009 with a successful launch of Expo
Summit 09, Manch Communications has established itself as one of the most
reputed conference organizers. It has a uniquely talented team of professionals
which is backed with outstanding skills and other complementary disciplines.

Page 45


Objective of the Summit

India Courier Summit 2010 endeavored to bring all the frontline stakeholders of the
Industry in the country, under one roof, to deliberate on the challenges faced by the
Industry and also create opportunities for networking for mutual benefit.

The Summit offered an ideal platform to the Courier Industry to discuss issues of
common interest and also give an opportunity to the value partners of the Industry, to
showcase new trends and technologies that can add value to the efficient working of
the Industry, to meet the desired demands of the customer.

Areas covered:

Multinational players and Indian players on Indian Courier industry – Vision
2020.

Growth inhibitors of the sector – Price War: A limitation in the growth of the
sector.

Potential of Public Private partnership models in Indian Courier Post sector.

Growing need of security enhancement in the facility courier companies.

Taxation issues addressed by representative of KPMG / PWC.

Developing network round the globe.

The benefits of automating operation of Courier and Logistics sectors.

Importance of meeting time lines: A key to customer satisfaction.

Managing transport fleet to optimize collections and deliveries.

Emerging need of IT in this sector to squeeze the collection-delivery time
period.

Page 46


Exhibitors Profile:-

Targeted exhibitors at India Courier Summit were:

Vehicle Manufacturers

Material Handling Equipment Manufacturers

Barcode Sensors Companies

Weighing Machines Companies

Label Manufacturers, Ware-House suppliers

RFID Chips and Software

Storage Systems and Sorting Machines.

Visitor's Profile:

Visitors at India Courier Summit 2010 were:

Courier Companies

Courier Operations Experts

Courier Agents

Logistics Consultants

Service Providers

IT Consultants

Government and autonomous bodies of the Courier Industry.

Page 47


HIGHLIGHTS of the Summit:

India Courier Summit brought in the opportunity for the entire sector to give
the presentations on the potential and common challenges of the Industry in
front of the policy makers.

The Summit served as vehicle in the augmentation process of the Courier and
Logistics industry by generating the unanimous voice for its augmentation.

It showcased new trends & technologies that can add value to the efficient
working of the Industry to meet the desired demands of discerning customer.

It serves as an opportunity for the leading exhibitors, to demonstrate their
most recent products and services on the display.

It is an ideal event to exchange expertise and thoughts, with leading edge
professionals and to make professional approach in the Courier Industry.

With presentations from leading industry experts, Q&A sessions and open
forums, the conference provided valuable insight into some of the most
important issues within the industry.

The summit gave networking opportunity to meet the key decision makers
from many of the Leading companies in express, cargo & Logistics
companies, shipping & supply chain companies and concerned government
departments & Trade commissions.

Page 48


Chap. 7:- Study of Inbound &
Outbound Supply Chain in
Courier Industry

Page 49


Page 50


Page 51


Page 52


Page 53


Page 54


Inbound Supply Chain:

Q.1. How many parcels do your company receive every day?

200-400 [2] 400-600[4] 600-800[2] more than 800[2]

10

9

8

7

6

5

4

3

2

1

0
200-400 400-600 600-800 > 800

Analysis:- From the above response we can see that the number of parcel handling
lies around 400 to 600 parcels every day. Companies can increase this by increasing
the number of customer base and by incorporating information technology.

Page 55


2. How many authorized dealers of the company are there in the city?

10-20[2] 20-30[4] 30-40[2] 40-50[2]

10

9

8

7

6

5

4

3

2

1

0
10–20 20-30 30-40 40-50

Analysis:- The number of authorized dealer lies around 20 to 30 for 4 respondents,
and 30 to 40 for 2 respondents as well as 40 to 50 dealers for 2 respondents. This
could be seen that courier companies are trying to increase their customer network
throughout the city. More number of authorized dealers means better service to the
customer and addition of more number of customers.

Page 56


3. How many area hubs are there in the Mumbai city?

Less than 5[0] 5-7[2] 8-11[6] more than 11[2]

10

9

8

7

6

5

4

3

2

1

0
<5 5–7 8–11 40-50

Analysis:- Large number of courier company have around 8 to 11 area hubs. Area
hubs can be defined as a centralized location of a courier company in a location from
where it can collect/distribute parcels in and around the location. More numbers of
area hub could lead to better collection and distribution network and better customer
satisfaction.

Page 57


4. How are the receipts generated at the authorized dealer while
receiving the parcel?

Computerized receipt[2] Manual receipt[8]

10

9

8

7

6

5

4

3

2

1

0
Computerized receipt Manual receipt

Analysis:- Majority of the authorized dealers still use manual receipts to give to
customers this could be because of the fact that majority of the dealers are not
willing to use computer as it need extra skills and required investment.

Page 58


5. Please tick Yes/No for the information which is printed on the receipt:
Particulars Yes No
Customer Name 10
Recipient Name 10
Customer Address 10
Recipient Address 10
Customer Phone Number 10
Recipient Phone Number 10
Bar Code 10
Customer Care Number 10
Policies and Regulation 10

10
9
8
7
6
5
4
3
2
1
0

Analysis:- A receipts can be defined as a formal document which is received by the
customer who orders for a service. In a courier industry all the company‗s provide a
receipt to its customer during the time when the customer places a order for sending
a courier. The receipts consist of full details of the customer and recipients, along
with that all the courier company mention bar code as well as its customer care
number. In order to avoid any legal issues during the transaction of courier,
companies do mention about the policies and regulations at the back of the receipts
for the customers to read.

Page 59


6. How are parcels brought from the authorized dealer to the area hub?

Motorbikes[8] Small trucks[2]

10

9

8

7

6

5

4

3

2

1

0
Motorbikes Small Trucks

Analysis:- More number of courier company‗s prefer to use motorbikes to bring the
courier parcel from its authorized dealer to its area hub, the main reason for the use
of motorbikes is its cheap and easy to maintain compared to a small truck. Also
motorbikes give a good mileage compared to a small truck. Motorbikes can even go
to locations where small trucks can‘t enter.

Page 60


7. How many trips in a day are made for collecting parcels from the authorized
dealer?

1 trip[2] 2 trip[6] 3 trip[2] more than 4 trip[0]

10

9

8

7

6

5

4

3

2

1

0
1 trip 2 trip 3 trip > 4 trip

Analysis:- Majority of the courier operators have two trips per days to bring the
parcels from its various authorized distributors, one trip in the morning and the other
in the evening. The reason for having 2 trips can be attributed to the fact that it gives
sufficient time for the dealers to get more parcels to deliver when the next vehicle
comes for pick up. More of the courier companies limit their pick up upto 2 trips per
day as it is more economical.

Page 61


8. Total number of vehicles which are available to collect the parcels from the
dealer?

1-5[2] 5-10[6] 10-15[2] 15-20[0]

10

9

8

7

6

5

4

3

2

1

0
1–5 5–10 10–15 15–20

Analysis:- More number of courier operators possess around 5 to 10 number of
vehicles which included both 2 wheelers as well as 4-wheelers. The total number of
vehicles are decided by the courier company on the basis of the location of the area
hub, numbers of the authorized distributors, number of parcels received/dispatch in a
day, number of employees etc. therefore on an average we can see that for each of
the area hub the number of vehicles ranges from 5 to 10.

Page 62


9. What is the number of employees working in the area hub?

Less than 5[0] 5-10[4] 10-15[2] more than 15[4]

10

9

8

7

6

5

4

3

2

1

0
<5 5–10 10–15 >15

Analysis:- More number of employees refers to better management of the parcels,
quicker delivery of the parcels and other benefits.

Page 63


10. On an average how long does it take to do the segregation of parcels from
different location prior to dispatch?

15-30 min[2] 30-45 min[4] 45-60 min[4] more than 60 min[0]

10

9

8

7

6

5

4

3

2

1

0
15-30 min 30-45 min 45-60 min > 60 min

Analysis:- The segregation of the parcels in a particular area hub is carried out in an
average time of about 30 to 60 min. The segregation process includes the
differentiation of various parcels on the basis of the type, location, state, country etc.
the segregation is made much easier with the use of bar code machine which could
read each of the parcel and segregate it.

Page 64


Outbound Supply Chain

1. How many vehicles are there to dispatch the parcels to the destination?

1-5[2] 5-10[6] 10-15[2] 15-20[0]

10

9

8

7

6

5

4

3

2

1

0
1–5 5–10 10–15 15–20

Analysis:- More number of courier operators possess around 5 to 10 number of
vehicles which included both 2 wheelers as well as 4-wheelers. The total number of
vehicles are decided by the courier company on the basis of the location of the area
hub , numbers of the authorized distributors, number of parcels received/dispatch in
a day, number of employees etc. therefore on an average we can see that for each
of the area hub the number of vehicles ranges from 5 to 10.

Page 65


2. Do your company outsource the logistics to the third party vendor?

Yes[2] No[8]

10

9

8

7

6

5

4

3

2

1

0
Yes No

Analysis:- Majority of the companies do no outsource their logistics to a third party
vendor, the main reason being courier company have better control of the vehicles
as the courier industry is fully dependent upon the logistics part, therefore the
company‗s do not want to compromise on the issues which could result with third
party company if it outsource.

Page 66


3. How many trips of vehicle are made for the dispatch of parcels to the
destination in a day?

1 trip[2] 2 trip[6] 3 trip[2] more than 4 trip[0]

10

9

8

7

6

5

4

3

2

1

0
1 trip 2 trip 3 trip > 4 trip

Analysis:- Majority of the courier operators have two trips per days to bring the
parcels from its various authorized distributors, one trip in the morning and the other
in the evening. The reason for having 2 trips can be attributed to the fact that it gives
sufficient time for the dealers to get more parcels to deliver when the next vehicle
comes for pick up. More of the courier company limit their picks up upto 2 trips per
day as it is more economical.

Page 67


4. Is the facility for tracking the package available online?

Yes[10] No[0]

10

9

8

7

6

5

4

3

2

1

0
Yes No

Analysis:- Almost all the courier companies have the facility to track the package
anywhere in the world with the help of internet. It is helpful for both company as well
as the customer to know the status of the parcel and also eliminate the chance of
any parcel getting lost.

Page 68


5. On an average how many days does it take to send a parcel anywhere in
India?

1 day[2] 2 days[6] 3 days[2] more than 4 days[0]

10

9

8

7

6

5

4

3

2

1

0
1 day 2 days 3 days >4 days

Analysis:- On an average it roughly takes 2 days to send a courier to anywhere in
India. The average number of days usually depends upon the availability of the
vehicle, delays of vehicle, delay in processing the parcel delivery etc. The delivery of
the parcel also depends upon the destination distance from the source. Close
destination could even be reached within 1 day.

Page 69


6. On an average how many days does it take to send a parcel outside India?

1 day[0] 2 days[0] 3 days[2] more than 4 days[8]

10

9

8

7

6

5

4

3

2

1

0
1 day 2 days 3 days >4 days

Analysis:- The average number of days for sending a parcel anywhere outside India
takes more than 4 days which again is a subject the location of the country and the
resources available at the right time. It also totally depends upon the use of
information technology for the transport of the parcels. Most of the delivery is carried
with the help of airplane as it is fast and reliable.

Page 70


7. What kind of vehicles are used to dispatch parcels from the area hub to the
customer’s address?

Motorbikes[8] Small trucks[2]

10

9

8

7

6

5

4

3

2

1

0
Motorbikes Small Trucks

Analysis:- More number of courier company‗s prefer to use motorbikes to bring the
courier parcel from its authorized dealer to its area hub, the main reason for the use
of motorbikes is its cheap and easy to maintain compared to a small truck. Also
motorbikes give a good mileage compared to a small truck. Motorbikes can even go
to locations where small trucks can‘t enter.

Page 71


Role of Information Technology in Supply Chain Management

1. Does your courier company use computer application to process packages?

Yes[10] No[0]

10

9

8

7

6

5

4

3

2

1

0
Yes No

Analysis:- The importance of computer application can be understood with the fact
that all the courier companies are using it to deal with the business. The computer
application has helped to better manage the whole process. It has helped to reduce
the overall cost to a greater extent and also helped to automate few processes.

Page 72


2. Please rate response on the scale of 5 (1-stongly disagree 5-strongly agree)

a) Has the computer application helped in?

1 2 3 4 5
Fulfilling the overall need of the company 0 0 2 2 6
Reduce the package processing time 0 0 2 6 2

Improve the delivery speed 0 0 2 6 2

Improvised logistics management 0 0 2 6 2

Reduce the overall cost 0 2 4 2 2

10
9
8
7
6
5
4
3
2
1
0
Strongly Disagree Disagree neither agree or Agree Strongly Agree
diagree

Page 73


b) Occurrence of waste.

1 2 3 4 5
Are the vehicles well maintained? 0 0 2 4 4

Are regular emission are inspections are 0 4 2 2 2
conducted?
Do paper & office waste occur? 0 0 2 4 4

Route planning for vehicle is done for 0 0 0 4 6
shortest delivery time?

10
9
8
7
6
5
4
3
2
1
0
Strongly Disagree neither Agree Strongly
Disagree agree or Agree
diagree

Page 74


Limitations of the study :-

The research work carried to understand the various aspects of supply
chain management in the courier industry gives us the snapshot of the activities
carried out in the industry. Therefore the courier locations sites selected for
conducting the study may not be true representation of the supply chain
management carried out in various Courier companies worldwide. The data collected
were from only from 5 courier companies having hubs in different parts of Mumbai
city. Further, as the concept of Supply Chain Management is complex, its entire
domain cannot be covered in just one study.

The views of the respondents are doubled to provide efficient graphical
representation of the study.

Page 75


Chap. 8:- Case Study:
PRIDE INTERNATIONAL
Couriers & Logistics

Page 76


FACT SHEET

 Company Name : PRIDE INTERNATIONAL

 Year of Establishment : 2006

 Legal Status of the Firm : Sole Proprietorship (Individual)

 Owner : Mr. Rajeev Dubey

 Nature of Business : Service Provider

 Number of Employees : 46

 Number of Branches in Mumbai : 6

 Head Office : A/407, Western Tower,
Above Amaron Batteries,
Western Express Highway, Andheri (East).
Mumbai – 99

 Major Markets : USA, CANADA, UK, CHINA, UAE

Page 77


PRIDE INTERNATIONAL COURIER & LOGISTICS

Pride International is the leading reputed service provider of cargo in Mumbai. Their
Organization is capable of transporting consignment via air and sea; depending upon
the requirement and budget of the client. They provide Sea Shipping Services to
clients who need to ship their bulk consignments to different parts of the world. Their
sea shipping services are mainly availed by companies which need to transport
heavy goods and products to different parts of the world. Some of the features of
their sea shipping services are as follows:

• Suitable for shipping bulk and heavy goods

• Ensured safety of products

• Can reach to otherwise inaccessible coastal areas

The organization also specializes in providing excellent Air Shipping Services to its
clients. These are suitable for shipping of products and material via air, which is the
fastest mode of transportation. Their services are also availed by individuals who
want their goods and cargo to be shipped in shortest possible time. Some of the
features of their air shipping services are as follows:

• Impeccable delivery time

• Fast and secured

The firm is expeditiously guided by its owner, Mr. Rajeev Dubey, who has 10 years
of valuable experience. He is well assisted by a team of diligent professionals,
comprising field officers, packaging experts and logistic experts. Their motto is to
further expand the business operations in international markets, and bring laurels
and accolades for the organization.

Page 78


 Pride International is integrated air express carrier and logistics-services
provider. It has the extensive network covering over 13,880 locations, and
service more than 220 countries and territories worldwide through its
distribution alliance with DHL, the premier global brand name in express
distribution services.

 Pride International‘s vision is to establish continuing excellence in delivery
capabilities focused on the individual customer. In pursuit of sustainable
leadership in quality services, they have evolved an infrastructure unique in
the country today.

 Pride International was established in the year 2006 by Mr. Rajeev Dubey.

 State-of-the-art Technology, indigenously developed, for Track and Trace,
MIS, ERP, Customer Service, Space Control and Reservations.

Page 79


Its Competitive Advantage lies in:-

Pride International’s Domestic & International Network:
Linked by some of the most advanced communications systems and positioned to
offer a consistent, premium, standardized quality of service. It has the extensive
network covering over 13,880 locations, and service more than 220 countries and
territories worldwide through its distribution alliance with DHL, the premier global
brand name in express distribution services.

A spectrum of services to provide customized solutions.
Pride International offers an entire range of services that extend from a document to
a charter-load of shipments.

It’s Customs and Regulatory expertise
Company had a dedicated team of specialists who provide the expertise for customs
as well as regulatory clearances to support seamless service to the customer.

It’s Technology
Designed to enhance the reliability of operations and process efficiency, and add
value to the customer through time and cost savings.

Its People force
They have a team who believes in themselves and their company, a team with a
winning attitude.

Page 80


LOGISTICS IN Pride International:-
The Information Technology industry is, perhaps, typical of the
changing and escalating logistic demands of various industries today, irrespective of
their category as 'old' or 'new' economy. In the IT industry, the difference between
success and failure is closely linked to the supply/value chain integration, of which
there are two distinct processes:

1. The delivery of goods to the customer in the most reliable transit period (and
preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed
transit time for packages to reach customers or the response that
organizations need in the event of any exceptions.

2. The reverse flow of acknowledged signed delivery records without which, in
many cases, recovery of bills are virtually impossible. Especially so in the
case of companies placing multi-location orders that could cover hundreds of
cities. The task for the supplier is staggering - plan logistics for deliveries to all
these locations, and hope for 100% of the delivery records to be returned
before bills can be submitted to the customer. In most IT companies, the role
of 'logistics' or 'fulfillment' is key.

 With organizations moving towards close to perfect standards like Six Sigma,
interaction with logistics suppliers has taken on a critical role moving up
sometimes to the level of the CEO of the organization.

 Pride International applied and found solutions to these critical demands through
its exceptional people processes, superior technology, and stress on quality
systems.

 It offers a pre-determined delivery schedule with close to 100% accuracy. The IT
industry could plan its production with precision and avoid expensive inventory
build-up.

 Retrieval of signed delivery records posed the industry's most intriguing problem.
Pride International was quick to understand this requirement and put in place a
100% retrieval system.

 Pride International not only handles large volumes and oversize packages
overnight - it also provides the industry with status of their shipments and
retrieves such records as are necessary for billing. The entire cycle has been
considerably shortened, enabling the industry to achieve healthy bottom-line.

Page 81


Services of Pride International:

Pride International provides different range of services as follows:

• International Courier

• Door to Door Express – Courier & Airfreight-Import Export

• Door to Door Economy Cargo – Sea Freight – Import Export

• Door to Airport-Airfreight-Import/Export-Air/Sea

• Airport to Door-Airfreight-Import/Export-Air/Sea

• Airport to Airport-Airfreight-Import/Export-Air/sea

Network

The company is associated with major International Global Courier & Cargo Service
Providers which enables them to provide most competitive rates and the best
available services to and from any part of the world.

Page 82


PRIDE PRIORITY
The fastest, most reliable, door-to-door delivery service within India, Bangladesh,
Nepal and Bhutan for documents and small shipments under 32kgs per package.

The special benefits of this service are:

Delivery to over 13,000 locations in India

Free pick-up from your location

Real-time Tracking

Regulatory Clearances

Free Computerized Proof of Delivery

Page 83


PRIDE APEX

Pride Apex is a door – to – door delivery service for shipments weighing
10kgs and above. It is the fastest, most efficient delivery solution for commercial
shipments that are time-bound and are required to undergo regulatory clearances, or
require special handling.

Pride Apex offers you an economical option of an Airport-to-Door service
from the airports of Mumbai to all the locations serviced.

Pride Apex offers the following benefits:

Wide Market Reach

Single-window Clearance

Real-time Information

Time-Definite Delivery

Free Proof of Delivery on Demand

Speed

Flexibility

Page 84


Economical

PRIDE SURFACELINE

Pride Surfaceline is an economical, door-to-door, ground distribution service
for shipments weighing 10 kgs and above. It offers a cost-effective logistics option for
your less time-sensitive shipments, with the following value-added benefits:

Time-bound Delivery

Track your Shipment

Regulatory Clearances

Pick-up Convenience

Secure Shipments

Economical Tariff

Page 85


SMART BOX

Smart Box is a convenient, economic, packaging unit priced to include a door-to-
door delivery service. The units come in 2 sizes, 10kgs and 25 kgs, and are
designed to accommodate a variety of products. The special benefits of using
Smart Box are:

A wide market reach

Speedy Delivery

Free pick-up

Real-time Tracking

Page 86


REGIONAL SERVICES IN SAARC AREA

Between India, Bangladesh, Bhutan and Nepal.

Pride International offers the fastest, most reliable, door-to-door express deliveries
for your documents and packages to countries in the SAARC region through
Regional Priority. The service offers access to over 13,000 locations in India, and
over 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coverage
in the region through a quality network, an integrated air and ground infrastructure
dedicated to express transportation and innovative technology support.

Page 87


Conclusion

Page 88


As I have surveyed few companies in Mumbai, the result states that the companies
are trying to increase their customer network by incorporating information
technology. More number of authorized dealers means better services to customers
and addition of more number of customers. Information technology increases
efficiency of the company. Outsourcing logistics has not been a trend as majority of
companies do not outsource their logistics to a third party vendor. The main reason
being courier company have better control of the vehicles as the courier industry is
fully dependent upon the logistics part, therefore the company‗s do not want to
compromise on the issues which could result with third party company if it outsource.

Courier Industry is one of the most promising and fastest growing industries in India.
It has contributed 13 – 14% annually to the GDP. It is giving opportunities to new
people to start their own services by investing few thousands. Its contribution to the
employment has been significant. With the growth of city culture in India and
emergence of many tier-2 cities apart from metropolitan cities, companies see them
as a new market and trying to explore them by opening new branches and offering
new and affordable services.

Courier industries in India face many problems due to lack of infrastructure which
makes it difficult to reach far inner places. This also increases the cost of service. Till
today most of the courier companies don‘t offer services to most of the villages due
to their bad connectivity with the cities. In India courier is more confined to cities. The
bad roads cause delay in transportation. According to a survey, Indian trucks travel
on an average 250 to 300 kilometers in a day as compared to 450 to 500 kilometers
in developed countries. The reason for this is bad roads, many check points, octroi
clearance etc. The government‘s role in such situation becomes important. For
instance, the idea of village courier provides the environment to promote logistics
efficiency and to reduce operation costs. However it involves large of investments
and some problems relating laws and national policies. Without the lead and support
of government, achieving the plan is difficult.

Page 89


Customer service is the most important aspect in the courier industry. A starter in
this business faces this difficulty due to few numbers of delivery destinations. In such
a case small companies can tie up with major companies for their delivery by sharing
the profit.

Bibliography

Page 90

Courier Business In India Copy

Courier Business In India Copy

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