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PROJECT ON LOGISTICS COMPANY

sLOGISTICS HAS BEEN DEFINED AS MANAGEMENT OF

INVENTORY WHERE IN MOTION OR IN REST´



PROF- MONICA MOR
PROF-DR ANURUPA SINGH

:-
ANURAG SHARMA
BHARAT PRAHIAR
DEBENDAR RAJ PATRA
HIMANSHU SINGH
NARENDRA JHURIA
RAHUL KATOCH
ROHIT THARWANI

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‡ EXECUTIVE SUMMARY
2 INTRODUCTION
3 IMPORTANCE OF LOGISTICS
4 SUBDIVISION OF LOGISTICS MANGEMENT
5 LOGISTICS INDUSTRY IN INDIA
6 TOP ‡
LOGISTICS COMPANIES
7 COMPANY PROFILE
8 MISSION STATEMENT
9 HISTORY OF SAFEXPRESS
‡
 LOCATION & FACILITY
‡‡  SERVICES PROVIDED BY SAFEXPRESS
‡2  MARKET ANALYSIS
‡3  PRICING STRATEGIES
‡4  PROMOTION STRATEGY OF SAFEXPRESS
‡5  SWOT ANALYSIS
‡6  PORTER¶S FIVE FORCE MODEL

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Organized Logistics industry in India is at a nascent stage,

industry is dominated by unorganized players The annual
logistics cost is around ‡3% of GDP out of this almost 99% is
accounted by the unorganized and slightly more then ‡% by
organized players

Safexpress is India¶s largest logistics service provider which

provides all kind of logistics solution to its customers Company
is growing rapidly and key success factors are its wide network
across the country, its efficient service and its successful
marketing strategies Company¶s future plan is to make services
available to everybody at every location of the country VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

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Logistics: - Logistics is the ³process of planning, implementing,
and controlling the efficient, effective flow and storage of
goods, services, and related information from point of origin to
point of consumption for the purpose of conforming to customer
requirements ´ Today the complexity of production logistics can
be modeled, analyzed, visualized and optimized by plant
simulation software
Origins and definition :- The term "logistics" originates from the
ancient Greek "logos"²"ratio, word, calculation, reason,
speech, oration ³Logistics is considered to have originated in the
military's need to supply themselves with arms, ammunition and
rations as they moved from their base to a forward position In
ancient Greek, Roman and Byzantine empires, there were
military officers with the title µLogistics¶¶ who were responsible
for financial and supply distribution matters
Logistics is defined as a business planning framework for the
management of material, service, information and capital flows
Logistics systems have received considerable attention in the
last ‡
years as they constitute one of the cornerstones in the
design and control of production systems and the modeling of
supply chains

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Whether the forwarder is acting for an importer or an exporter,

the main service provided is the movement of goods The
forwarder¶s experience will enable the provision of advice on
the best routing (cheapest, quickest, safest), the best mode of
transport (air, sea, road, rail), customers requirements, packing,
insurance, security issues, and the myriad of regulations that
apply in both the country of destination and the country of
origin

Logisticsgemet
 Logistics management is that part
of the supply chain which plans, Implements and controls the
efficient, effective forward and reverse flow and storage of
goods, services and related information between the point of
origin and the point of consumption in order to meet customer &
legal requirements A professional working in the field of
logistics management is called a logistician A logistician is a
professional logistics practitioner
Professional logisticians are often certified by professional
associations Some universities and academic institutions train
students as logisticians, by offering undergraduate and
postgraduate programs
Logistics must make work effectively This is required by your
customers and, in turn, by your company For effective logistics,
there are four key issues--


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ime/service: - Hours may decide customer service,

competitiveness and value-added
Time/service is a factor of competition, customer requirements,
your company's position in the industry, your corporate culture,
how well everyone in the global supply chain works together,
and how well everyone works together in your company
Distance means time Yet time delays are not acceptable

ost
 Cost is the key measure by which logistics effectiveness
is often measured Cost control, containment, and management
are important for corporate profitability Cost has a relation to
service As we define our service against our costs or costs
against service, the give and take develops into our operating
costs and budgets Logistics cost measurement is a shortcoming
in the present accounting systems

vetorymgemet: Inventory requires to be maintained

to take care of needs between the time of demand and time of
supply Inventory management involved decisions concerning:
Buffer stock, Lead time, Replenishment of stocks

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ýrehousegemetotrol ystem: - There is

some functionality overlap, the differences between Warehouse
Management Systems (WMS) and Warehouse Control Systems
(WCS) can be significant To put it simply, the WMS plans a
weekly activity forecast, based on such factors as statistics,
trends, and so forth, whereas a WCS acts like a floor supervisor,
working in real time to get the job done by the most effective
means For instance, a WMS can tell the system it¶s going to
need five of SKU A and five of SKU B, hours in advance, but
by the time it acts, other considerations may have come into play
or there could be a potential logjam on a conveyor A WCS can
prevent that problem by working in real time and adapting to the
situation by making a µlast-minute decision¶ based on current
activity and operational status Working synergistically, WMS
and WCS can resolve these issues and maximize efficiency for
companies that rely on the effective operation of their
warehouse or distribution centre

mportceofLogistics

Logistics is the bed rock of trade and business: - Without selling
and or buying there can be no trade and business Buying and or
selling takes place only when goods are physically moved into
and or away from the market Leads to customer satisfaction
through superior customer service:- Organizational objectives of
P [Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee
Morale],F [Flexibility],S [Safety],H [Health],E [Environment]
are set to meet customer expectations of Q,C,D Q, C, S, H, E is

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parts of must be quality that a customer expects Logistics

addresses D, F objectives which lead to customer satisfaction
through superior customer service
tegrtes logisticl ctivities
- In conventional management
environment, various activities of logistics work in isolation
under different management functions
ompetitive ege
- In the fiercely competitive environment
logistics provides the edge Due to technological revolution
most of the products are moving into commodity markets
Logistics is or loses rs
- British lost American war of
independence due to poor logistics
Supports critical functions like operations and marketing: -
Strong logistics support enables a company to move towards
JUST IN TIME production system for survival in a highly
competitive market
Logisticl costs
- For individual businesses logistics
expenditures are 5% to 35% of sales depending on type of
business, geographical areas of operation, weight/value ratios of
products and materials This is an expensive operation
Improvement in the efficiency of logistics function yields
savings as well as customer satisfaction




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 ubivisiosoflogisticsmgemet
Ý usiessLogistics
Procuring, moving and storing of R/M and
transporting, warehousing and distribution of F/G
Ý Facilitation of relevant manufacturing and marketing
Making finished goods available to the customers in the
market Procuring, moving and storing of agricultural
products Providing competitive edge in commodities
market
Ý vetLogistics :- The net work of activities, facilities and
personnel required to organize, schedule and deploy the
resources for an event to take place and to efficiently
withdraw after the event
Ý ervice Logistics :- The acquisition, scheduling and
management of the facilities/assets, personnel and materials
to support and sustain a service operation
Ý ilitryLogistics: - Design and integration of all aspects
of support for the operational capability of the military
forces [deployed or in garrison] and their equipment to
ensure
Ý Readiness, reliability and efficiency
Ý hirprtyLogistics: - Third-party logistics involves the
utilization of external organizations to execute logistics
activities that have traditionally been performed within an
organization itself According to this definition, third party
logistics includes any form of outsourcing of logistics

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activities previously performed in-house Example: - A

company with its own transport facilities decides to employ
external warehouse specialist, this would be an example of
third party logistics
Ý 6rouctio Logistics: - The term is used for describing
logistic processes within an industry The purpose of
production logistics is to ensure that each machine and
workstation is being fed with the right product in the right
quantity and quality at the right point in time Production
logistics is getting more and more important with the
decreasing batch sizes In many industries (e g mobile
phone) batch size one is the short term aim This way even
a single customer demand can be fulfilled in an efficient
way Track and tracing, which is an essential part of
production logistics - due to product safety and product
reliability issues - is also gaining importance especially in
the automotive and the medical industry

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LOGISTICS INDUSTRY IN INDIA

³Logistics is a process of planning, implementing and
controlling the efficient, effective flow of storage of goods,
services and relative information from point of origin to point of
consumption for the purposes of conforming to customer
requirements ´
Annual logistics cost in India is to be estimated to ‡4% of total
GDP, which translates into USD ‡4
billion assuming GDP of
India is slightly over USD ‡ trillion logistics cost is almost 99%
is accounted for about unorganized sector (such as owners of
less than 5 trucks, affiliated to a broker or a transport company,
small warehouse operator, custom broker, freight forwarder) and
slightly more than ‡% that is approximately USD ‡ 5 billion, is
contributed by organized sector So one can see that the logistics
industry in India is in Nascent Stage
How ever industry is growing at a fast pace and if India can
bring down its logistics cost from ‡4% to 9% of GDP ,saving to
the tune of USD 5
billion will be realized at the current GDP
level, making Indian Goods more competitive in global market
Moreover, growth in the logistics sector would imply improved
service delivery and customers¶ satisfaction leading to growth of
export of Indian goods and potential for creation of job
opportunities

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Ý Competition India freight forwarder face stiff

competition from multinational freight forwarders for
domestic and international freight movement
Ý Future Prospective of Indian Logistics The Indian
logistics industry is growing at 2
% vis-à-vis the average
world logistics industry growth of ‡
% Since the
organized sector accounts for merely ‡% of the annual
logistics cost, there is immense potential for growth of the
sector
Ý Since logistics service can be provided without assets, there
is growing interest among entrepreneurs to venture into this
business
Ý Indian shippers are gradually becoming more aware of the
benefits of logistics outsourcing They are now realizing
that customer service and delivery performance are equally
important as cost to remain competitive in this global
economy
Ý The Indian government has focused on infrastructure
development Examples include the golden quadrilateral
project, east-west and north-south corridors (connecting
four major metros), Free Trade and Warehousing Zones
(FTWZ) in line with Special Economic Zones (SEZ) with
‡

% Foreign Direct Investment (FDI) limit and public-
private partnerships (PPP) in infrastructure development It
is expected that infrastructure development would boost
investments in the logistics sector

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Ý In India, ‡

% FDI is allowed in logistics whereas in

China, until recently, foreign investment was not allowed in
domestic logistics Almost all large global logistics
companies have their presence in India, mainly involved in
freight forwarding For domestic transportation and
warehousing, they have tie-ups with Indian companies As
the Indian logistics scenario look promising, these MNCs
are expected to play a bigger role, probably forming
wholly-owned subsidiaries or taking the acquisition route
The latter may be the preferred route of investment since
the target company is readily acquired with its asset base
and distribution network, and the need for building
everything from scratch can thus be avoided The benefits
for the acquired company include the patronage of an MNC
and access to the MNC¶s global network

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   6L    6  

‡ TNT
2 AFL
3 DHL
4 BLUE DART
5 GATI
6 SAFEXPRESS
7 ASHOK LEYLAND
8 AGGRAWAL PACKERS AND MOVERS
9 DTDC
‡
FIRST FLIGHT

SAFEXPRESS

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COMPANY PROFILE



  


Safexpress ±India¶s leading Logistics Company renowned for

its domain expertise and experienced manpower in LSCM
sector Safexpress can best understand your logistics and
distribution and offer the most suitable logistics model and
solution to you Safexpress is the one of largest network
coverage across India traversing 35




km Every day
covering 55
location through more than 75
,operating 24 hour
in a day and 365 reaching these location through its fleet of
3


vehicle operating on

    
We shall adopt and internalize a work culture which
demonstrates a "we can we will" attitude to reflect in our daily
responsibilities so as to far exceed our objectives, consistently
striving towards market dominance We will create historical
landmarks forming a strong edifice for the future overcoming all
obstacles pro-actively as our personal responsibility and
commitment to create delight for the customer with impeccable
personalized services
VISION STATEMENT
To be a conscious learning organization maintaining flexibility
for change so as to provide the most customized solutions

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Striving towards global market share whilst maintaining

dominance in the domestic market through good hr practice and
excellent customer service

HISTORY OF SAFEXPRESS
 Safexpress launches as a door-to-door service with 4
routes, 9 offices, ‡2 container mounted vehicles and 2

employees Safexpress' door-to-door services include niche
products like DoD and To-Pay freight

LOCATION AND FACILITY

Safexpress-India¶s leading Logistics Company, has more than
55
Locations across India in its network Safexpress reaches
these locations through it¶s fleet of 3


vehicles operating on
more than ‡


routes, 24 hours a day 365 days a year All
Safexpress vehicles have all-weather proof containers for safe
transit Safexpress also operates through Air to locations directly
covered by flights and to all other locations on a multi modal
basis

Company provides an unrivaled range of logistics and supply

chain solution door to door distribution, single source invoicing,
Re -verse logistics, 3PL, packing solutions and e- logistics

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SERVICES PROVIDE BY SAFEXPRESS

press
 Express service is the services for carrying Goods
from one destination to another destination with the help of
weather proof containers This service is covering 55
location
across India through surface and air in optimum time
rftoelivery: Draft on delivery is a value-added service
wherein the seller can dispatch goods through Safexpress to the
buyer and be assured that the delivery would take place only
when the draft has been collected
In the Safexpress DOD system pre-alerts are sent to the
consignee to allow reasonable time for the draft to be made,
thus meeting the desired objective of express transit with the
amount ready for collection

llriskcover
 ³the company would redeem the value of the
loss in the uneventful case of any shortage or damage to the
consignment whilst in the custody of Safexpress, subject to the
risk charge having been paid by the sender or the recipient as per
the company policy The amount corresponding to the loss as
declared would be paid by the company to the sender or the
recipients as required without waiting for any request for the
same ´


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etyelivery
This service insures that delivery of goods
will be delivered on next day form the day of booking This
service is for the near by location for e g : (New Delhi to Noida
& Gurgaon)
eor ge vetory)
 VMI is unique service
provided by safexpress to manufacturing companies in which
safexpress keeps the stock of raw-material in there warehouses
used in manufacturing companies and provides them as per there
requirement This very helpful for the manufacturing companies
because they don¶t have to bother about there storage of
inventory and its reduce the cost of company Safexpress is
proving this service to HONDA MOTORS which stores
SAMKRG Pistons
everse Logistics
 Reverse logistics stands for all operations
related to re use of the product and material It is ³the process of
planning, implementing, and controlling the efficient, cost
effective flow of raw material, in process inventory, finished
goods and related information from the point of consumption to
the point of origin for the purpose of recapturing value or proper
deposal´
Safexpress use this service for many companies like United
color of benniton, company take back of the cloths in off season
and store it as well mend it for the next season
6L
³A firm (that) provides multiple logistics services for use
by customers Preferably, these services are integrated, or
³bundled´ together, by the provider Among the services 3PLs

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provide are transportation, warehousing, cross-docking,

inventory management, packaging, and freight forwarding´
Safexpress provide 3PL Logistics to many companies like
TATA Motors, it manage all the logistics part of TATA motors
from the procurement of raw material from the different
manufacturing companies to the stores of material in the
warehouse and also provide the raw material to TATA motors at
right time in required quantity It also delivers the finish product
of the TATA motors to the different dealer and showrooms so
from the availability of raw material to the storage of goods and
in last the delivery of finished goods all is managed by
Safexpress
The 3PL option would result in the reduction of overall costs,
but it must be a joint effort by the service provider and the
customer

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uyelivery
 This service was launched by the company
to provide services to Malls So that the goods can be easily
available on their racks even on Sunday
mpus to ome elivery
  This service is provided by the
company to the students to deliver their books and luggage to
their hometown This service is provided to the students at
reasonable price





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rketlysis

rketsegmettio

thebsisofcome
 company make segment on the basis
of Income of organization and Size and capacity of business
given to company
High income customers ± e g HILTI, TATA Motors, Madura
Garments, HONDA Motors and SAMKRG
Middle income customers- e g united color of , TnG Garments,
Penguin Publication, Cipla and Landmark
Low income customers- e g Landmark Publication and students

 the bsis of geogrphicl

 company divide its market on
the basis of size and location of the cities
Tier ‡Cities ± NCR resign, Mumbai, Kanpur, Kolkata, Pune,
Bangalore and Hyderabad
Tier 2 Cities- Jaipur, Lucknow, Jalandhar, Udaipur
Tier 3 Cities- Varanasi, Rajgir, Karnal,


rketre
V Logisticsiustrytres indicate that in
the years to come the following factors, which guide the
logistics industry is reckoned to strengthen further The factors

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facilitating the effective functioning of the logistics industry are

integration, confederations, technology, legislation and
globalization The 3PLs or the third party logistics providers are
required to carefully ascertain the market trends in the logistics
industry and accordingly sketch the plan of action of the logistic
companies

Expanding up on geographical boundaries is being given prime

importance It is considered that this logistics industry trends is
likely to continue for several years to come The logistics
industry trends imply that the role of the 3PLs is anticipated to
increase in future Collaborating efficiently and strengthening
alliances are two factors, which are expected to look up in the
logistics industry trends Companies with specializations
excelled in the logistics industry to a considerable extent
However, the success of these companies in the logistics
industry will be determined how effectively the companies
dealing in the logistics industry make use of the five factors
mentioned above The 3PLs belonging to the mid market
categories generate revenues every year as much as $‡

million
to approximately $5

million They comprise of companies
dealing in transport, warehouse facilities and brokers dealing
with freight related assignment

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MARKET GROWTH
Valued at $89
3 million in 2

5, the third party logistics (3PL)
market in India is projected to grow at a compound annual
growth rate (CAGR) of 2‡ 9 percent from 2

5 to 2
‡2,
reaching $3,556 7 million by the end of this period Rapid
growth in the Indian manufacturing sector is creating an
increasing need for seamless logistics solutions While the
Indian 3PL market is still very much in its infancy compared to
those in other countries, it is experiencing healthy growth and
attracting new companies eager to capitalize on the plentiful
opportunities it offers

Currently, the trend of outsourcing the entire logistics function

to a 3PL service provider is visible only in a few sectors in
India In the automotive sector, for instance, end-to-end
outsourcing is becoming increasingly popular as companies
realize the benefits of focusing on core competencies and
delegating the logistics to 3PL service providers Just-in-time
delivery (JIT) to the assembly line is another emerging concept
that is gaining acceptance in this sector "The penetration of 3PL
services is particularly high in the automotive sector," remarks
the analyst of this research service "Even companies that have
traditionally adopted a conservative business outlook have
started outsourcing logistics to 3PL service providers " The IT
hardware and electronics sectors are also witnessing a rise in this
trend, while those for fast moving consumer goods (FMCG) and
pharmaceuticals have relatively low penetration rates

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P¶s ANALYSIS OF SAFEXPRESS

6  
Safexpress follow a unique pricing
Strategy for its customer It follows two kind of price segment
for customer according to extent of business given to them
‡ Credit Basis
2 Retail Basis

 
This service is for the organization who give
huge amount of business to company and who are the long term
and regular customer
There is no fix charges for the services company decide price on
the basis of monthly billing the price is totally negotiation based
and payment form the companies is received at the end of the
month from the companies means it is totally credit based For
e g Tata and hility use credit basis price policy from the
company which is on the basis of extent of order to the company
and usage of warehouses

mportceofreitses

‡ Reduce the cost for the company

2 Helps in building relationship with company

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L 

The retail basis is the price for the customer who is not very
heavy user of the services The price depends upon following
charges
‡ Rs 2

fixed charge per safe box
2 Fuel surcharges
3 FTL charge
4 Insurance charge
The freight of the goods depends upon on the medium by which
they are carried
‡ By Road
2 By Train
3 By Air

The rate is calculated on the basis of

‡ By Weight
2 By Volume
By Weight Technique is used for heavy Weight Goods Such as
Machine Engine, parts of machine etc

By Volume technique is used for light weight products such

asT-shirt, shirts, medicines and FMCG products

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6L
Safexpress is located in all cities across country in
India even in the remote areas of country It has a large network
chain spread all across the country Safexpress has expanded its
reach over 56
destinations all across India Company divide
whole country in four different zone names only
st
ýest
orth
outh
Safexpress is coming up with warehouses at these places
Investments in cross-dock (hub) facilities in places like Pune,
Nasik, Ahmedabad, Chennai, Ambala and Jamshedpur are
strategic in nature and serve industries and manufacturers in
these regions thereby enhancing their logistics Company has its
own booking offices in almost all cities from where its takes
order from the customer and provide them services of delivering
goods at right place

Company has its own warehouses in Tier ‡ cities and most of

Tier 2 Cities where it store the raw material and finished goods
and hubs in main locations (big cities) of the country
Leading edge expertise is backed by formidable national
network comprising of over 55
location and more than 3



vehicles operating over ‡


routes, 365 days a year

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Its strong network all across the country enables it to deliver

goods to all big as well as remote parts of the country in right
time at right place so to present at right place is key success
factor of the company and it provide competitive edge to
company from the competitors

6 
Process start from take-in order from the customer
than booking the goods at desired location of customer then take
goods in vehicles to the warehouses and store there in safeboxes
at optimal temperature and at weather condition and then loads
the goods in different trucks of different locations as required
then takes the goods to the warehouses of desired cities and
store there for the optimum time and in proper condition so that
they can not damage, the last part of the process begins with
deliver of goods from the warehouses to the desired locations
or emple
- Company has to deliver goods from Delhi
manufacturing units of united colour of benetton to different
showrooms in Lucknow in 2 days Then first company will
take the goods from the manufacturing units in safe box
through vehicles to the warehouse which is in Delhi, then
goods will be stored in the racks which is made for the
Lucknow delivery in optimal conditions all this will take
about 7-8 hours then goods will be once again loaded in the
vehicles and taken to the ‡ by road or 2 By train or 3 By air
as required to the warehouse which is in Lucknow and stored
there and once again maintain by the people over there and
then delivered through the different vehicles to the desired
showrooms

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6rocessof feepress


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Company has a B2B business so they do not follow traditional

promotional tactics like advertisement and other promotional
campaigns
But for the brand building they strictly follow proper usage of
Safexpress logo on every vehicle other resources
For Promotion Company launch a new service which is campus
to home by them they target IIM students and build a strong
brand name among them

 ý  L     6 

tregths

‡ Distribution channels of safexpress
2 Working 7 days a week
3 Next day delivery services for near by location
4 Safety

pportuities

‡ Rise in demand for courier services
2 Global business diversification
3 Rise in manufacturing sector
4 Development in niche market


ýekess

!Less use of technology

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Ì!Manpower 
!Less of brand awareness among the people 

hrets

‡ Competitors (Blue Dart and unorganized sector)
2 Rise in operation cost


rketigpl
Marketing plan of safexpress should be to start courier services
all across India
isio sttemet
 provide fast courier services at economy
rate

"ps
6romotio- this services for B to B and B to C network so
company has to focus on two promotional strategies for BtoC &
BtoB BtoC advertisement can be done through T V
advertisement and newspapers and BtoB promotion can be done
through word of mouth

6rice The price strategies should on the basis of value base

pricing and competition base pricing


6rocess


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L
6  





6 #     L 

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!ivlrymogcompetitors
Rivalry among competitors
is often the strongest of the five competitive forces For
safexpress competition is from 
½ Unorganized transporters
½ International players like DHL
½ Domestic company GATI

Ì!hret from e etrts
  company may have the
market cornered with the product, but the success may
inspire others to enter the business and challenge your
position 
For safexpress
½ Threat is from various cargo companies which may
enter in logistics business
½ Threat is also from entry of other international players
like UPS

3 rgiig poer of uyers

 the power of buyers
describe the effect that your customers have on the
profitability of your business the transaction between the
seller and buyers create value for both parties
For safexpress
½ The bargaining power of buyers is medium because
of sufficient number of logistics companies

4 rgiig poer of suppliers

 any business requires
inputs-labors, parts, raw material and service The cost your
inputs have a significant effect on your companies
profitability
For safexpress

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The bargaining power of suppliers depends on the

½ Price of fuel
½ Government polices
½ Taxes
½ Cost of land
½ Increase in rents

5 hrets of substitutes

  products or services from one
business can be replaced by products or services from
another if you produce a commodity product that is
undifferentiated, customer can switch from your product
For safexpress
Substitute may be the transporters who give services at
cheaper rate

  

Information from Safexpress corporate office contact

person Mr Amit Chhari (Operation Manager)&Sanjeev
Kumar

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Web sites
Googledoc com
IBEF org
Economy watch com










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