A

PROJECT REPORT

ON

“LOGISTICS AND TRANSPORTATION INDUSTRY IN INDIA”

With special reference to Marketing techniques ofD.A. Logistics/ Central Commercial Roadways

MASTER OF MANAGEMENT STUDIES (MMS)

UNIVERSITY OF MUMBAI

SUBMITTED TO

SINHGAD INSTITUTE OF BUSINESS MANAGEMENT

CHANDIVALI

UNDER THE GUIDANCE OF

Prof. Dev Koli

SUBMITTED BY

Devesh Dharmendra Tripathi

2013-2015 (A-30)

MARKETING

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CERTIFICATE

This is to certify that __________________________________has successfully completed the project work as a part of summer internship for the course of Masters of Management Studies (M.M.S.) semester II examination.

Name & Signature of Project Guide

Date : _________________DIRECTOR

SIBM

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DECLARATION

I, Devesh Dharmendra Tripathi of Master of Management Studies Semester-II of

Sinhgad Institute of Business Management (SIBM), hereby declare that I have

successfully completed this Project on “LOGISTICS AND TRANSPORTATION

INDUSTRY IN INDIA” With special reference to Marketing techniques of D.A.

Logistics/ Central Commercial Roadways in the academic year 2013-2015.

The information incorporated in this project is true and original to the best of my

knowledge.

_____________________________

Signature

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ACKNOWLEDGEMENT

I am grateful to D.A. Logistics for giving me the opportunity to do my Summer

Internship Project with the organization and for providing an opportunity to work on a

challenging project. I would like to extend my gratitude to various people who provided

their continuous support during these two months of my Project.

I would like to thank my project mentor Ms. Komal Ramgiri (Manager of Marketing

Department) for giving me the flexibility and freedom to understand the scope of the

project. I thank him for the support and patience with me despite being hard pressed for

time. His continuous guidance and support is deeply appreciated.

I would also like to acknowledge the nurturing hand extended by all staff members

during the course of the project. I greatly value the constant encouragement and direction

shown by them during my internship. Their views enabled me to gain practical insights

about the subject matter of this project.

I want to pay acknowledgements to our Institute Sinhgad Institute of Business

Management for instilling in me the confidence to work on such a wonderful project.

I would also like to thank my faculty guide Prof. Dev Koli for her constant guidance and

support during the course of internship.

I would also like to thank everyone else who at some point or the other in this short stint,

have helped me in innumerable ways.

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Table of Content

1. Title of the project……………………………………….….01

2. Certificate……………………………………………….......02

3. Declaration………………………………………………......03

4. Acknowledgement…………………………………………..04

5. Index………………………………………………………...05

6. Objective of the study………………………………….……06

7. Limitations of the study………………………………….….06

8. Research Methodology…………………………………..…..07

9. Introduction

Industry profile…………………………………….….....08

Company profile………………………..……………..…25

Product profile……………………………………..…….26

10. Marketing Mix…………………………………………..……29

11. Clients……………………………………………………..….35

12. SWOT…………………………………………………….…..37

13. Conclusions and Recommendations……………………...…..39

14. Product Photos…………………………………………….….43

15. Bibliography and Webliography………………………...…….46

Objective of study

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To present an introductory profile of D.A. Logistics.

To study in depth the marketing management of D.A. Logistics.

To draw a conclusion regarding marketing management of D.A. Logistics.

To study general management and organization of D.A. Logistics.

Limitation of the study

This study is limited to D.A. Logistics. This study is specially related with

marketing management techniques in particular. This study is presented on

the basis of information and knowledge which could be gained during the

course of SIP at D.A. Logistics.

Research Methodology

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To make this project two approaches are used primary and secondary data.

Primary Data:

This information is collected by working in the company D.A. Logistics which comes under the logistics and transportation industry.

Secondary Data :

This data is collected from various sources such as internet, different books, newspapers and magazines on logistics and transportation industry.

INTRODUCTION

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Industry profile

The term logistics is often misinterpreted to mean transportation. In fact, the scope of logistics goes well beyond transportation. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline. This includes transportation, packaging, storage and handling methods, and information flow.

The industrial policies in India have prompted manufacturers to build plants in remote, backward areas due to inexpensive land and tax benefits. This poses some serious logistical problems. Apart from a poor road and transportation network, the existing communications system in India leaves a lot to be desired by any international standard. It is in this context that logistics has to be considered in India.

Logistics call for an understanding of the total supply chain, the elements of which include inventories, packing, forwarding, freight, storage and handling. Logistics is responsible for all the movement that takes place within the organization whether it is inbound logistics of incoming, raw materials or movement within the company or the physical distribution of finished goods, logistics encompasses all of these.

Typical logistics framework mainly consists of Physical Supply, Internal Operations and Physical Distribution of Goods and Services. To put it more simply, the material supply logistics starts from the base level of “generation of the demand”, through the “process of purchase” and “supply of material from the vendor” right through to “final acceptance” and “payments to the supplier” and “issue to the indenter” and has to be considered as a “one whole activity” with each stage having an impact on price/cost of material supply.

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Logistics is, in itself, a system; it is a network of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel.

Travel and Transportation forms the backbone of infrastructure – the major sector of any economy. Millions of people and businesses rely on an extensive, inter-related network. The transportation industry is in an era of unprecedented change. Marked by unending demands for increased services and severely limited budgets for infrastructure, the industry faces continuous challenges.

The travel industry is exploring new horizons in the way it does business, thanks to technology. Today, with the help of technology the travel industry is creating new propositions for its customers - online booking, remote travel management, and new age CRM programs. On the other hand, 3PL and Logistics provider industry that is heavily dependent on infrastructure set by transportation has been embryonic to offer greater scope and more complex solutions.

Expansion of networks through rapid globalization with mergers and acquisitions amongst logistics providers and need to fulfill complex global contracts calls for higher performance through greater and deeper end-to-end integration and state of the art visibility tools. The underlying objective is, seamless flow of information across the complex and growing value chains, leading to effective and faster decision making which in turn leads to better transparency and visibility.

The Logistics & Transportation Industry

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Globally, the logistics industry is valued at US$ 3.5 trillion.

The U.S., which contributes to over 25% of the global industry value, spends close to 9% of its GDP on logistic services.

The Indian Logistics Industry is presently estimated at US$ 90 billion.

The industry has generated employment for 45 million people in the country in comparison with the IT and ITeS sector which employs approximately 4.3million people.

It is forecast to grow at a Compound Annual Growth Rate (CAGR) of approximately 8%over the next three to five years.

The primary growth drivers of this industry are as under:

• Investments in the infrastructure sector amounting to US$ 350 billion.

Increased efficiency and productivity of the transport system would result in lower transit times.

• Streamlining of the indirect tax structure:

The introduction of Value Added Tax (VAT) and the proposed introduction of a singular Goods and Services Tax (GST) are expected to significantly reduce the number of warehouses manufacturers are required to maintain in different states, thereby resulting in a substantial increase in demand for integrated logistics solutions.

• Robust trade growth.

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Strong economic growth and liberalization have led to considerable increase in domestic and international trade volumes over the past five years. Consequently, the requirement for transportation, handling and warehousing is growing at a robust pace and is driving the demand for integrated logistics solutions.

• Globalization of manufacturing systems.

Globalization of manufacturing systems coupled with advancements in technology are increasingly compelling companies across verticals to concentrate on their core competencies and avail the cost saving potential of outsourcing. This is expected to contribute to an increase in the need for integrated logistics solutions.

India Logistics& Transportation   Industry:  

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$125 Billion Goldmine India's logistics market is all set to experience a period of explosive organic growth, judging by independent market analyst Data monitor's latest research. The Data monitor report, "India Logistics Outlook 2007-2008" predicts high double-digit growth rates for both outsourced and contract logistics in India. With India's gross domestic profit (GDP) growing at over 9% per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion in year 2010.

Strong growth enablers exist in India today in the form of over $300 billion worth of infrastructure investments, phased introduction of value-added-tax (VAT), and development of organized retail and agri-processing industries. In addition, strong foreign direct investment inflows (FDI) in automotive, electronics,retail and telecom will lead to increased market opportunities for providers of logistics services in India.

However, as a result of the under-developed trade and logistics infrastructure, the logistics cost of the Indian economy is over 13% of GDP, compared to less than10% of GDP in almost the entire Western Europe and North America.

As leading manufacturers realign their global portfolios of manufacturinglocations, India will have to work on such systemic inefficiencies, in order to attract and retain long-term real investments. 3PL/outsourced logistics is the outsourcing of a company's logistics operations to a specialized firm, which provides multiple tactical logistics services for use by customers as opposed to the respective company having a business unit in-house to oversee its supply chain and transportation of goods. With increased geographical distribution of incomes in India, the consumer markets are extending beyond the five metros of Mumbai, Delhi, Bangalore and Chennai and Hyderabad. However, rather than being pre-

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emptive, the companies are only following with new distribution outlets. As such, the increased competition across industry verticals is forcing firms to focus on product distribution, and logistics outsourcing is gaining further momentum with this.

Industry Scenario

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The recent economic changes are proof enough to establish India as an evolving super power. The seventh-largest nation in terms of geographical area and a prominent force among emerging countries in terms of technology and infrastructure, India is now well ahead on the growing curve of the world economy.

In wake of this, India is witnessing a renaissance of sorts across all sectors, especially manufacturing, telecommunications, retail and services, as global as well as local players converge to cater to the world’s biggest marketplace and consumer community. As India surges ahead on transforming itself from a ‘developing’ nation to a ‘developed’ state, one of the core sectors that is a crucial part of an upward swing is- logistics.

As big money gets pumped into manufacturing and other growth-centric sectors, especially retail –the role and potential of logistics companies is on the upswing as crucial business operations like supply chain management and contract logistics become key issues of managing the titanic surge in national business, both locally, nationally and globally. As more and more organizations think and act “global”, it is time for third party logistics service providers to follow suit by establishing networks and logistics infrastructure across Asia.

On the logistics front, India has picked up good momentum over the last decade. With an estimated market worth Rs. 260,000 crores, the industry contributes13 per cent to the national GDP.

Changing logistics landscape in India

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India is already a heavyweight globally in the services sector. Manufacturing still makes up only a relatively small proportion of GDP—about 20 per cent compared to China's 45 per cent—but it is growing, both in terms of domestic focus and exports. India's container trade has been growing at around 15 per cent over the past five years. That means the logistics services business will be growing at a multiple of the box trade, probably around 20 per cent and more per year.

The growth in demand presents significant opportunities for the logistics industry, as also challenges. Looking ahead, India is going to play an increasingly important role in driving world economic trade; maybe even rivaling the phenomenal growth and transformation of China a manufacturing superpower. India's current trade profile provides important clues about the development of logistics industry In India the logistics costs are still higher than in the developed markets.

The transportation cost accounts for nearly 40 per cent of the cost of production, with more than half the goods in India being moved by road.Gaps that India Post can fill

Limited presence of operators in rural and semi-urban areas that are growing markets

Lack of door to door service

Lack of a national level integrated service provider, and Existence of multiple contact points like freight forwarders, aggregators, transport agents, multiple transporters.

Third Party Logistics

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To put simply, 3PL (Third Party Logistics) refers to the outsourcing of a logistics function. It could be the use of a transportation carrier, a warehouse, or a third party freight manager to perform all or part of a company’s production distribution functions. The industry has been at the receiving end of increasing interest from the private equity sector. The year 2007 witnessed just under US$ 1 billion in private equity investments in this industry, representing approximately 7% of total private equity investments during the year, against 3% in the previous year.

The principle reasons of for this function are as under:

• Globalization of sourcing, manufacturing and distribution leading to an increase in the complexity of material movement.

• Competition that has forced companies towards more responsiveness and a reduction in inventories. An increased need for small but frequent shipments with 100 percent reliability requires core competence in logistics management.

• Resource constraints that require companies to concentrate only on their core manufacturing or new product development activities The Indian logistics industry is characterized by dominance of a disorganized market. Transporters with fleets smaller than five trucks account for over two-thirds of the total trucks owned and operated in India and make up 80% of revenues.

The freight forwarding segment is also represented by thousands of small customs brokers and clearing & forwarding agents, who cater to local cargo requirements. In order to reduce logistics costs and focus on core competencies, Indian companies across verticals are now increasingly seeking and using the services of third-party logistics service providers (3PLs).

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Realizing the potential in the contract logistics market, 3PL service providers are expanding their basket of services as companies are now looking for more than just transportation of their products and raw materials. Trucking and courier companies are now leveraging their network to provide express distribution and warehousing. Similarly, freight forwarders are moving towards owning assets in the form of Container Freight Stations (CFS), Inland Container Depots (ICD) and container trains. Furthermore, 3PLs are also increasing investments to become end-to-end integrated players.

As per the investment plans of the leading 3PLs in India, the logistics industry's capital expenditure is progressively increasing to almost match its revenue growth, a strong indicator of both 3PLs desiring to become integrated service providers and the industry enjoying investment-driven growth. Infrastructure congestion: the key challenge According to Data monitor, the logistics industry in India is currently hampered due to poor infrastructure such as roads (over 70 % of freight transportation in India is via roads), communication, ports and complex regulatory structures. The National Highways (NH) form only 2% of the entire road network in India, but handle over 40% of the national road freight traffic, putting enormous pressure on the highway infrastructure.

Also, on an average a commercial vehicle in India runs at a speed of 20 miles per hour (mph) compared to over 60 mph in the mature logistics markets of Western Europe and the USA.

In addition, the twelve major ports of India handle volumes higher than their full capacity, resulting in pre-berthing delays and longer ship turn-around time compared to even the East Asian counterparts like China and South Korea. With the collective economic interaction of growing per capita disposable incomes, fast growing manufacturing and organized retailing sectors, increasing external merchandise trade, infrastructure investments by the government and 3PLcapex plans, both India's logistics industry and the 3PL sector of this market are set to witness explosive growth by 2019.

Transportation And Logistics

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Transportation

Transportation is the movement of people and goods from one place to another. The term is derived from the Latin Trans ("across") and portare("To carry"). Industries which have the business of providing transport equipment, transport services or transport are important in most national Economies, and are referred to as transport industries.

Aspects of transport:

The field of transport has several aspects: loosely they can be divided into infrastructure, vehicles, and operations. Infrastructure includes the transport networks (roads, railways, airways, waterways, canals, pipelines, etc.) that are used, as well as the nodes or terminals (such as airports, railway stations, bus stations and seaports).

Vehicles travelling on the networks will include automobiles, bicycles, buses, trains and aircraft. The operations deal with the way the vehicles are operated on the network and the procedures set for this purpose including the legal environment (Laws, Codes, Regulations, etc.) Policies, such as how to finance the system (for example, the use of tolls or gasoline taxes) may be considered part of the operations.

Modes and categories

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Modes are combinations of networks, vehicles, and operations, and include walking, the road transport system, rail transport, ship transport and modern aviation.

• Air transport

• Cable transport

• Conveyor transport

• Human-powered transport

• Hybrid transport

• New Mobility Agenda

• Rail transport

• Road transport, including human-powered transport such as walking and cycling.

• Ship transport

• Space transport

• Sustainable transportation

• Transport on other planets

• Proposed future transport

Logistics

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Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involve the integration of information, transportation and inventory, warehousing, material-handling, and packaging. The simplest way to describe logistics is to say that it is all about ways and means of meeting the demand for materials i.e. satisfying the customer with what he wants, when he wants, where he wants etc.

Definition includes outbound, inbound, internal and external movements and returns of material for environmental purposes. The logistics concentrate on dynamic processes, related to the flow of materials and the relationship between the materials and their use at different facilities.

The most wide spread definition from council of Logistics Management says that “Logistics is the part of the supply chain process and plans, implements and controls the efficient, effective flow and storage of goods, services.

Logistics Infrastructure in India:

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Logistics involved global movement of materials, information and funds from country to country.

Requires excellent state of the art infrastructure airports, sea ports, Internet and other related facilities.

Indian infrastructure is poor as compared to developed and developing countries and stands at 54 amongst the 59 countries.

Road …………………56/59

Rail……………………25/59

Seaport………………..51/59

Airport………………...10/59

The underlying institutional problem:

Fragmentation and overlapping of responsibilities among various government agencies.

Complexity of international trade documentation process and lack of IT infrastructure.

Complex tax laws

Lack of professionally competent logisticians

Industry readiness: weak asset or system management skills

Roadways

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• National Highway Development Project (NHDP), US $13 billion, 1998-2007

Four/six laning of the highway connecting Mumbai

North-South and East-West corridors (NS-EW)

Kashmir to Kanyakumari and Silchar to Porbandar

• The end to end transport to be optimized by controlling loading densities through packaging and palletizing standards and loading and unloading services automation.22

• Slow speeds, traffic congestion, high wear and tear of vehicles are some of the problems

Air

• The air cargo consists of express mail, computers, chips, electronic and optical equipment, precision instruments and perishable food stuffs.

• The six major airports carry 88% of the total cargo.

• Privatization of the major airport, airlines is a popular headline.

Railways

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• During the last year the Indian Railway carried:-

513.5 million tones of freight Rs 23,305 crores (69%)

89% of its freight is commodities like coal, fertilizers, cement, petroleum products, food grains, finished steel, iron ore and raw material to steel plants.

5,150 million passengers, Rs 11,213 crores (31%)

• High Density Network (HDN) connecting Bombay, Delhi, Calcutta, and Madras, Carries 65% of the total rail freight and 55% of passenger traffic.

• Concur in the Flag ship route

• Freight is moving away from Indian railway although cheaper.

Seaports

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• Vast coast line of 7517kms handles 95% of foreign trade

• 12 major ports and 184 other (minor & intermediate) ports

• Traffic in major ports : 2007-08 was 333 million tones

Company Profile

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D.A. Logistics/Central Commercial Roadways is one of the leading Transport Contractors and Fleet Owners in India Since 2002.

In the last 10 years CCR has excelled in the field of road Transportation, not only because of their level of service but also because of well-trained and hard working employees. On-time delivery of goods, safety of goods in transit, competitive rates and 24x7 monitoring of the consignment are some basic rules that the company strictly follows since last two decades and have been a very important reason behind the success.

They are specialized for fleet 32 ft Close Container and have 20’ft, 40’ft trailers at their disposal; most of the vehicles have All India Permits. Thus they are in position to touch any long distance for normal and over dimensional consignments at very economical rates.

With a fleet of more than 35 vehicles including trucks, trailers & LCVs and with a network of warehouses in major cities in India, D.A. Logistics offers a truly integrated Logistics Services to its customer. Custom Bonded-warehousing, bonded-trucking and excise bonded warehousing are additional unique features of D.A. Logistics’ offerings to complete the bouquet of total Logistics Services. They are committed to service the customers by offering complete logistics &supply chain solutions. D.A. Logistics is being led by professionals with varied corporate backgrounds and rich industrial experience.

Product Profile

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D.A. Logistics provides complete logistics and transportation Solutions. It offers a truly integrated logistics services to its customer.

Custom Bonded-warehousing, bonded-trucking and excise bonded warehousing are additional unique features of its offerings to complete the bouquet of total Logistics Services.

It provides a variety of services to its customers that include Transportation solutions, Warehousing & distribution solutions, and International Freight Management Logistics & Supply chain solutions.

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Services Offered By D.A. Logistics

Transportation solutions:

D.A. Logistics has the capability to provide Transportation to all kind of material within India. The broadline segmentation of Transportation Services is as below;

o Domestics Transportation

o Bonded Trucking

o Project Transport

o Scheduled Transport

o Multi Modal Transport

o Customized Transport (Milk

run, Hub& Spoke etc.)

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Warehousing & Distribution Solutions

The ranges of warehousing services currently offered to the customers are following;

Bonded Warehousing (Custom bonded and excise bonded) General Warehousing (for all industry types) Export Stuffing warehouse Export Vendor Consolidation

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Marketing mix of D.A. Logistics

The service marketing mix comprises of:

• Product

• Price

• Place

• Promotion

• People

• Process

Product :

D.A. Logistics provides complete LOGISTICS AND TRANSPORTATION solutions. It offers a truly integrated Logistics Services to its customer. Custom Bonded-warehousing, bonded-trucking and excise bonded warehousing are additional unique features of its offerings to complete the bouquet of total Logistics Services.

Price:

On receiving the tender from the client the marketing department forwards

the details to the operations department in order to ascertain the

transportation cost.

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The operations department while determining the cost takes into

consideration:

Nature of Goods (consumer, durable, perishable etc)

Weight of Goods

Height of Goods

Government regulations

Distance to be covered

Market Price

Loading & unloading time

Fuel prices (rise in fuel prices adds to the total cost)

Transportation cost

Profitability

Insurance

Place:

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The company operates from Mumbai. It has network over various cities:

Goa

Vapi

Chennai

Erode

Ahmadabad

Mysore

Hyderabad

Kolkata

Delhi

Silvassa

Promotion:

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The company has promoted and advertised itself in magazines, transport modules and calendars etc.

The company has also advertised itself on its own fleets.

People:

An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptitude, and service knowledge to provide the service that consumers are paying for. It tells consumers that the staff is taken care of by the company and they are trained to certain standards.

An important marketing task is to set standards to improve quality of services provided by employees and monitor their performance. Without training and control employees tend to be variable in their performance leading to variable service quality.

One of the biggest assets for D.A. Logistics is its people. This is a place where employees are fully aware of their job duties and responsibilities and posses the required knowledge and skills to perform their day to day activities. It adopts an open door policy where employees can directly communicate their views and ideas to the top level management. The people working in the marketing department directly report to the managing director and there is no hierarchy as such that prevails in the department. Each individual is aware of the role they need to play in order to contribute

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to individual and organizational success. DAL as an organization believes in satisfying its internal customers (employees) which in turn would keep the ultimate customer (external customers) satisfied.

Process :

Refers to the systems used to assist the organization in delivering the service. Process – this means procedures, mechanism and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers. It includes several processes e.g. first contact with customers, administrative procedure regarding course delivery, preparation, delivery and evaluation of the courses.

The process at D.A. Logistics: ensures that marketing happens at all levels from the marketing

department to where the service is provided considers introducing flexibility in providing the service; when

feasible customize the service to the needs of customers recruits high quality staff, treats them well and communicates clearly

to them the attitudes and behavior of the employees are the key to service quality and differentiations

attempts to market to existing customers to increase their use of the service, or to take up new service products

sets up a quick response facility to customer problems and complaints employs new technology to provide better services Uses branding to clearly differentiate service offering from the

competition in the minds of target customers.

D.A. Logistics’ Fleet

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With a fleet of more than 35 vehicles including Trucks, Trailers and LCVs, the company has the capability to carry all types of goods for transport within India. The profile of the customers varies from Indian MNCs, Indian Corporate house, Start Trading house, Trading houses and Importers & Exporters.

The industries and the products that D.A. Logistics caters to currently include pharmaceuticals, Chemicals, Lubricants, Engineering, Automotive, Electronics, News Print, Papers, Fibers, Polymers, Steel, Project machinery, Plant & Equipments, odd dimensional cargo and Import & Export containers.

With thorough knowledge of Indian Transport regulations, customers trust the company and entrust with responsibilities to deliver goods in time, every time.

D.A. Logistics has been approved by CONCOR (Container Corp of India), a PSU of Govt. of India, to operate bonded-trucking services within India and is one of the few transportation companies in the panel of Concor to offer this service. It has been given this approval by CONCOR after a due diligence on the capability, security and quality parameters.

Clients of D.A. Logistics

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D.A. Logistics has a huge customer base. It Deals with variety of goods and services

listed below:

• Atul Limited. Atul (Valsad)• Airpro Engg. Pvt. Ltd. (Wada)• Amcol Minerals & Materials India Pvt. Ltd. (Mumbai)• Asain Containers (Daman)• Berger Paints India Ltd. (Goa)• Clear Mi-Pack Packaging solution Ltd.• Classy Kontainers (Mumbai)• Express Global Logistics Pvt. Ltd. (Mumbai)• G G I Clearing & Forwarding Agency Pvt. Ltd. (Mumbai)• Gold Star Polymers Pvt. Ltd. (Daman)• Helios Food Additives Pvt. Ltd. (Mumbai)• Isagro (Asia) Agrochemicals Pvt. Ltd. (Mumbai)• Jolly Containers. (Daman)• Mold- Tek Packaging Ltd. (Daman)• P I Industries Ltd. Panoli (Ankleshwar)• PalanPur Engg. & Fab. Pvt. Ltd. (Mumbai)• Prima Packaging & Products. (Delhi)• R.K. Metal & Plastics Pvt. Ltd. (Daman)• Royal Forwarding Pvt. Ltd. (Mumbai)• Shree Rubber Plast Co. Pvt. Ltd. (Mumbai)• Sunrise Containers Ltd. (Silvassa)• Searwards Packaging Pvt. Ltd. (Goa)• Sheela Foam Pvt. Ltd. (Silvassa)• Suraksha Packers Pvt. Ltd. (Pune)• Time Technoplast Pvt. Ltd. (Mumbai)• Neosym Industries Ltd. (Mumbai)• Vns Industries Pvt. Ltd. (Dombivali)

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SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or

in a business venture. It involves specifying the objective of the business

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venture or project and identifying the internal and external factors that are

favorable and unfavorable to achieving that objective. In SWOT, strengths

and weaknesses are internal factors and opportunities and threats are

external factors.

SWOT Analysis of D.A. Logistics:

Strengths: Strong Brand Image

Quality and reliability.

Superior performance vs. competitors in terms of delivery.

Some staff has experience of end-user sector.

Direct delivery capability.

Product innovations ongoing.

Management is committed and confident.

Willingness of staff to adapt to change

Weaknesses:

Customer lists not tested.

Paperwork .

We cannot supply end-users abroad.

Need more sales staff.

Refresher training not practiced.

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Delivery-staff need training.

Opportunities: Large, Potential Domestic and International Market.

Could extend to overseas.

New specialist applications.

Could seek better supplier deals.

Threats:

Bad roads.

Retention of key staff critical.

Vulnerable to reactive attack by major competitors.

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Conclusions and Recommendations

Conclusion

Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support

Logistics is important in India because of the country's size, geography, population variety, natural and man-made calamities etc. The transport facilities are inadequate in India and roads are bad. India lacks a well-developed road network and waterways are still unexploited.

Due to competition, globalization and information availability, logistics has gained extra importance. First: the days are gone when a manufacturer had a better raw material supplier than competitors. Then, the operations in a manufacturing process are well known to all. The processes are more or less standard. Also, technology is available to all. The only area where one can score over competitors is logistics. If logistics cost is reduced, there is a gain.

Logistics is a critical factor for effective marketing too: for, if a company cannot reach the right thing at the right place etc., then, regardless of the marketing efforts, the business comes down

Logistics is one of the areas of the supply chain i.e. growing at a tremendous case as the Internet and E-Commerce is drastically changing the range, delivery time and the speed of information as well as ordering and payment process. Due to the big boon of information technology, greatly influencing and enhancing the effectiveness of logistics, the time is not far when logistics services would prove to be one of the major contributors to the National Income.

The industrial policies in India have prompted manufacturers to build plants in remote, backward areas due to inexpensive land and tax benefits. This

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poses some serious logistical problems. Apart from a poor road and transportation network, the existing communications system in India leaves a lot to be desired by any international standard.

With increased geographical distribution of incomes in India, the consumer markets are extending beyond the five metros of Mumbai, Delhi, Bangalore, Chennai and Hyderabad. However, rather than being pre-emptive, the companies are only following with new distribution outlets. As such, the increased competition across industry verticals is forcing firms to focus on product distribution, and logistics is gaining further momentum with this.

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Recommendations

1. Market Research

The Logistics and Transportation industry is one of the booming sectors of the Indian Economy and India's market is all set to experience a period of explosive organic growth and thus market research plays a vital role in the expansion of the Industry.

Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market.The company can go ahead and conduct a systematic market research so as to understand and explore the potential markets where more business can be generated.

Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats.

Examples of market information questions are:

Who are the customers? Where are they located and how can they be contacted? What quantity and quality do they want?

2. Timely Supervision of Vehicles:

The logistics and the transportation industry is concerned with the movement of goods from the place of manufacturing to the place of consumption for this it requires trucks, trailers, low bed trailers etc The cost incurred to maintain these modes of transports contributes to a large amount of the total expenses incurred.

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D.A. Logistics may appoint a Dedicated Vehicle supervisor to look after the replacement, maintenance, performance etc of the vehicles on a regular basis. This in turn would help in determining when the vehicles needs to be serviced, whether they need to be replaced etc which would help in reducing cost to a great extent. The appointment of a vehicle supervisor would definitely lead to regular maintenance and in turn would reduce the cost and to minimize wastages which in turn would contribute to the Organizations success.

3. Appropriate Credit Policy:

There should be an appropriate credit policy developed as per the convenience of the organization. As a higher credit collection period can lead to idle funds and contribute to the inefficiency of the organization, credit should be assigned to the client based on some research done about the turnover, financial position etc of the client. With proper assignment of credit one can avoid the blockage of funds which in turn can be used for other business activities and in turn would contribute to the organizations success.

When the services are provided by the company on credit basis, the Company should keep a record of the number of days the client takes to pay the amount back, say a client in particular has been delaying payments on a regular basis, the company should consider altering its credit policy for the particular client may be by ways of asking for a greater amount of advance or may be completely on cash basis etc.

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Product photos

LCV

CONTANIRISED LCV

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Open Truck

40 Feet Trailer

Low Bed Trailer

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Well Bed Trailer

Distribution

Warehousing

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Bibliography & Webliography

http://www.wikipedia.org/

http://managementparadise.com/

http://marketingteacher.com/

Economic Times

Exim India

Business Standard

DNA Money

Transportation Magazines

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