Delhivery logistics

Industrial profile/Project report of Delhivery logistics. Includes information related to supply chain management, Distribution.
History of the company & growing position.

1. 1


INTRODUCTION
Topic

“The Effectiveness of Logistics, Distribution and Customer Satisfaction during COVID-19
Pandemic”
Reason for the selection of this topic
Indian‟s GDP is expected to reach 3.02 trillion in 2020, representing about 4% of the global
GDP. Strong growth supported by the government reforms, transportation sector development
plans, growing retail sales, and the E-commerce sectors are likely to be the key drives of the
logistics industry in India. The global crisis is an opportunity to revisit the logistics and supply
chain of the full spectrum of how the things that we really wants get from, where they are to,
where they are should be. As the COVID-19 crisis metastasizes, we will witness an
unprecedented exhaustion of our usually resilient people and system. Logistics and distribution
management is a critical functional area of the company. This field plays a key role in fulfilling
ordering and managing inventory, controlling inbound & outbound shipment, reducing cost,
saving time, customer demand and customer satisfaction. The challenges and possibilities are
endless in the logistics and distribution sectors during COVID-19.
Why this topic is important to the company
Delhivery private Ltd is India‟s largest B2B & C2C Logistics Courier Service Provider in India.
A courier company„s foremost clients are its customers and customer satisfaction remains a
primary priority to the company. Logistics and Distribution channels play a key role in the
functioning of the company and on-time delivery is the main goal of the company, which result
in client satisfaction. Thus, problem associated with the distribution and end-customer reactions
based on the accuracy of the delivery can be solved by deriving the link between the former and
the later. The logistics department handles the movement of goods/product/services package‟s
from one place to another. It ensue that the goods which are received for the delivery are
distributed effectively and efficiently, at the specified time period. Management of distribution
channels are an essential platform for the company to function in an optimum manner.
Leaning from the study
The logistics sector itself, is a competitive yet complicated part of the growing market. It is a
third-party service sector which acts as an intermediary between senders and receives of
consignment, thus providing it to be an important sector in the business world. Logistics start-up
in India gained a substantial foothold after the onset of E- commerce, and there are several new
companies that are gaining traction in the industry. Online platform have increased competition
and lowered freight costs with real-time availability and a transparent value chain.

2. 2


Industry Profile

The Third-PRTY-Logistics provider (TPL) is a firm that provides a one stop service to its customer
outsourced or third party logistics service for the part, or all of their supply chain management function.
Third party logistics provider specialize in integrated operation, warehousing and transportation service
that can be scaled and customized to customer‟s needs based on market conditions and the demands and
delivery service required for their products and material. According to the council of supply chain
management professionals, TPL can be defined as “A firm that provides multiple logistics service for
use by customer. Preferably these services are integrated or „bundled‟ together, by the provider. Among
the services, TPL provides transportation, warehouse, cross-docking, inventory management, packing
and freight forwarding”.

Company profile

Delhivery is a supply chain service provider encompassing over 18,000 PIN Codes in India. It was
founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, suraj Saharan, and Kapli Bharati
and is backed by the Carlyle Vision fund, Nexus Ventue Partners, Multiples, and CCP Investment Board
as investors. The Gurugram-based company has 75 fulfilment centres, 24 automated sort centres, 70
hubs, 2,500+ delivery centres,8,000+ partner centres,
14,000+ vehicles and 40,000+ employees. At present,
Delhivery has the capacity to process more than 1M+ parcels
per day. Delhivery operate Indian‟s largest express
parcel transportation network with fully integrated and self-
owned pickup, mid-mile and delivery operation that successfully reach 11 households every second
across India, Our in-house transport management platform enables our clients to schedule pickups,
tracks orders in real-time manage return and replacement with ease. We offer flexibility to clients
through delivery time choices and flexibility payment options. Delhivery operations include freight and
international parcel delivery services providing door to door delivery with end to end tracking. Delhivey
provides an integrated shipping network using its technology-driven mechanism for the price
optimization considering both freight and express services. Delhivery also provides services like export
shipping, reverse logistics, warehousing and freight services, among many others.

MISSION

Delhivery provides products and services with the aim of building trust and improving the lives of the
customers, small business, enterprises, and our growing team of employees and partners. We are
disrupting India‟s logistics industry through our proprietary network design, infrastructure, partnership
and engineering and technology capabilities. Delhivery brings unparalleled cost efficiency and pan-
India reach to the business of 10000 customers. Delhivery is driven by a mission to shrink time and
distance, making the world a smaller place for our customers and over a billion customers they serve.

3. 3


COMPANY HISTORY
2019
 Delhivery - Aramex sign strategic commercial partnership
 Expansion into 17500+ pin codes across 2300+ cities
 Team size: 40000+
 500 million shipments delivered and counting
2018
 250 million shipments completed
 Introduction of Full-Truckload Freight Services, Cross-Border Services
 6 million sq. ft. of established infrastructure across 18000+ pin codes and 2000+
cities
 Operate more than 30 fulfillment centers in 12 cities
 Team size: 25000+

2017
 May: Series E funding led by Carlyle Group, Tiger Global, and Fosun with
participation from other existing investors
 Expansion into 12000+ pin codes and over 1200 cities
 24 fulfillment centers with over 1 million sq ft of warehousing space.
 Team size: 15000+

2016
 Services availed by 3000+ clients including 150 of India's largest offline brands
 Introduction of Partial-Truckload Freight Services
 100 million Shipments completed

2015
 Express logistics services expanded to 350+ cities
 16 fulfillment centers with 1 million sq. ft. of warehousing including first FC in
Dubai for cross-border fulfillment
 Expansion of processing capacity to over 1.2 million shipments per day
 April: Series D funding led by Tiger Global Management with participation from
existing investors

4. 4



2014
 Express logistics services expanded to 175+ cities in India
 6 fulfillment centers with 2,50,000 sq. ft. of space to offer Delhivery Fulfillment
Services across India
 Expansion of processing capacity to over 250,000 shipments per day
 September: Series C funding by Renuka Ramnath led private equity firm Multiples
Alternate Asset Management with participation from existing investors Nexus
Venture Partners and Times Internet Limited
 Team size : 5,000+

2013
 Express logistics services expanded to 130+ cities
 Fulfillment services expanded to 3 cities with 40000+ sq. ft. of fulfillment space
 September: Series B funding led by Times Internet Limited and Nexus Venture
Partners
 Launched suite of commerce technology including Vendor Panel, Godam and
FALCON
 Team size: 2500+

2012
 April: Series A funding led by Times Internet Limited
 Launched fulfillment services in Delhi and Chennai with 10000+ sq. ft. of
fulfillment space
 Processed up to 50000 shipments a month delivering up to 9000 shipments a day
 Team size: 1000+


2011
 May: Delhivery is established
 June: Launched express logistics services in Delhi NCR
 December: Delivering 500+ shipments per day for five e-commerce clients in Delhi
NCR
 Team size : 150+

5. 5


SOME OF CLIENTS OF DELHIVERY
 Flipkart
 Snapdeal
 Paytm mall
 Ebay
 Amazon

SHIPPING SERVICE
 On-demand Delivery
 Return Management
 Same-day/Next-day Delivery
 Time-defined/slot-based Delivery


TECHNOLOGY SERVICES
 Fraud Detection
 Consignee Address Validation
 Flexibility Payment on Delivery
 Real-time Monitoring and Control
 Spot and forward freight Rate Trading

SPECIAL SERVICES
 Full-truckload Freight
 Partial-truckload Freight
 High-Large/Oversize Order Delivery
 HAZMAT/Dangerous Good Delivery
 Product Replacement/Exchange Service
VALUE ADDED SERVICES
 Network Design
 Inventory Placement & Optimization
 End-to-End Visibility and Control
 Decision Support System

6. 6


INDUSTRIES
 Automotive
 Consumer Products
 Retail
 Electronics
 Industrial Products
 Pharma & Healthcare
SAMPLE SOLUTIONS
 Distribution
 Vendor Managed Inventory
 Returns Management
 On-demand Fulfilment
 Direct to Retail
 Temperature controlled Freight Solutions

DELHIVERY EXPRESS
Delhivery operate India‟s largest express parcel transportation network with fully integrated and self-
owned pickup, mid-mile and delivery operations that successfully reach 14 households every second
across India. Delhivery in-house transport management platform enables our clients to schedule
pickups, track orders in real-time, manage returns and replacements with ease. We offer flexibility to
clients through delivery time choices and flexible payment options.
DELHIVERY FULFILMENT
Dlhivery operate over 85 fulfilment centers across India, with over 6 million sq ft of storage and
processing space. Delhivery proprietary warehouse management system is integrated with all the major
demand channels and courier partners. It is designed to enable efficient multi-tenant, multi-location
warehousing – allowing clients to quickly and flexibly scale operations across India with zero fixed
costs also offer integrated distribution solutions to enterprises by combining our warehousing and
freight solutions. This facilitates fast and cost-efficient offline distribution.

7. 7


DELHIVERY FREIGHT
Delhivery provides partial-truckload as well as full-truckload services to meet the customers‟ freight
requirements. Our services are designed to meet regular as well as seasonal requirements across the
country. Customers‟ freight requirements are serviced at the lowest costs – with a combination of our
own fleet and our network of pan-India professional truckload partners. All of this is done through
Optimus and Orion – simple freight booking and management interfaces of our PTL and FTL freight
exchanges
DELHIVERY CROSS-BORDER
Delhivery enable clients to buy and sell inventory from and to the markets across the world through
Starfleet – global alliance of leading logistics companies and a network of dedicated clearance agents
and forwarders. Delhivery offer multiple transport solutions for sea and air cargo, express fulfilment,
consolidation centers and free trade warehousing infrastructures.

DELHIVERY E2E
Delhivery provide End-to-End Supply Chain Solutions for Enterprises using our integrated fulfilment
platform. Delhivery build custom solutions to cater to your business requirements using our core
warehousing and transportation services, powered by our in-house technology products.
These solutions can be tailored for various use cases and appropriately designed based on key supply
chain optimization considerations and desired service levels.

8. 8



FINANCIAL STRUCTURE


E-commerce and payments companies in India have continued to post staggering losses and so are the
enablers such as supply chain and logistics companies. The case in point is Delhivery. Its losses surged
by 160% to RS 1,781.03 crore in financial year 2019 from RS 684.45 crore in the previous fiscal,
While the losses grew over 2.5 times, revenue has increased only by 58.2% to RS 1694.97 crore in
financial year 2019. The firm had a revenue of RS 1073.64 crore in financial year 2018.The expenses of
the SoftBank-backed company has also doubled to RS 3,463.3 crore in a year ending March 2019 from
RS 1,756.74 crore in financial year 2018.The gap in revenue and losses clearly shows that even though
the logistics Unicorn‟s
revenue grew steadily during
the year, the spike in its
losses and expenses is
relatively high. Importantly,
the company had shown a
positive change in topline
and bottom-line metrics
previous fiscal as compared
to financial year 2019. It‟s
worth noting that the
company also expanded
operations in a few offshore
markets including China.
This might have driven it
into losses.
Backed by the likes of Tiger
Global and SoftBank among
others, Delhivery has a reach to about 1,800 cities. Currently, the logistics major has about 30 fulfilment
centres in 12 cities for B2C and B2B services. So far, the company had received total funding of around
$763 million. Last month, Delhivery scored a $115 million round from Canadian pension fund CPPIB at
a valuation of around $1.5 billion. Meanwhile, SoftBank is reportedly in talks to increase its stake in
Delhivery to 25.72%. It had sought permission from the Competition Commission of India (CCI) to
increase its stake by 3.28%.Ecom Express, XpressBee, Buedart and Gati among others are its major
competitors. Unlike Delhivery, Ecom Express reduced losses to a large extent and had posted a 76%
jump in total revenue to RS 1,018.45 crore in financial year 2019. The company losses stood at Rs
129.60 crore in FINANCIAL YEAR19 from RS 526.70 in financial year 2018.

9. 9



HUMAN RESOURCE MANAGEMENT

Human resource department is critical component of employee wellbeing in the business. human
resource responsibility include payroll, benefits, hiring, firing, and keeping up to date with state and
federal tax laws. Human resource management involves developing and administering programs that are
designed to increase the effectiveness of an origination or business. It includes the entire spectrum of
creating, managing and cultivating the employer employee relationship.

Responsibility of HR department at delhivery
 Developing and overseeing employee benefits and wellness programs
 Developing promoting and enforcing personnel policies
 Promoting employee career development and job training
 Providing guidance regarding disciplinary actions
 Providing orientation programs for new hires

OBJECTIVE OF HUMAN RESOURCE
 Building coordination between organizational department
 Offering employee satisfaction
 Keeping up with the social and ethical modals

NUMBER OF EMPLOYEES OF THE ORGINATION
Delhivery maintain an employee level of 40000+ team members make it possible tp deliver a
millions of packages a day, 24 hours a day, 7 days a week, 365 days a year.

SELECTION PROCESS
 Preliminary interview
 Receiving application
 Screening application
 Employee test
 Interview
 Reference checking
 Medical examination
 Final examination

10. 10



MARKETING DEPARTMENT


Marketing of delhivery involves planning, delivering, controlling, the flow of physical goods
marketing material and information from the producer to the market. The aim is to meet customer
demand while still making a satisfactory profit. Also to maintain a competitive edge, need to create an
effective strategy regarding product, price, place and promotion. These four functions of marketing
logistics help the organization to reach the target customers and deliver the product or service sold by the
organization to these customers.

Product & Services
Delivery aims is to build the operating system for commerce in India. Delhivery provide paracel
transportation, warehousing, freight, reserve logistics, cross-boarding, and technology service to 10000
customers including all of India‟s largest e-commerce companies and leading enterprise

Pricing
Delhivery charges RS 30 to 35 to pick and deliver a 500gm. Packet in NCR, RS 40-45 for transferring a
packet (same weight) to metro cities and RS 50 for ties-2 and tier-3 cities for reserve logistics, it charges
anyway between 1.2X to 2.5X of forward logistics. Around 70 to80% warehousing space is being
utilized by vendors supplying to ecommerce marketplaces. Beside these offering are also handle drop
shipping for more than 1000 vendors across India.

Distribution
Delhivery operate over 85 fullfilment centers across India, with over 6 million sq ft of storage and
processing space. Proprietary warehouse management system is integrated with all the major demand
channels and courier partners. It is designed to enable efficient multi-tenant, multi-location,
warehousing-allowing clients too quickly and flexibility scale operations across India with zero fixed
cost. Also provide integrated distribution solutions to enterprises by combining warehousing and freight
solution these facilities maintain fast and cost effective offline distribution.

THE BENEFITS OF OPTING DELHIVERY FOR FULL-TRUCKLOAD SERVICES
Delhivery‟s FTL logistics services bring together not just specialized equipment to carry your heavy
cargo, but also efficient delivery services. There are a lot of benefits that you can avail through
Delhivery‟s FTL services, with the support of experienced professionals who are well-equipped to
provide all the assistance throughout the transaction. These include:
 Large Shipments: FTL shipping is the perfect choice when it comes to sending bulk items. This
way, you get to keep all the available space exclusive for you and your business. Our team, on
the other hand, is well aware of the permits and permissions that you will require to move the
bulk shipment within a defined timeframe.

11. 11



 High-Risk or Fragile Shipments: Owing to the fact that Delhivery pays complete attention to
the details when it comes to the loading and unloading of your FTL freight, Delhivery assures
that your goods are in safe hands across longer distances as well.
 Consistent Transportation: When you have exclusively booked space in a vehicle, there is no
switching or repacking involved in the entire transfer. From the source to the destination, the
shipment remains in the same truck, without changing hands or housing.
 Faster Delivery: As the delivery does not involve switching trucks throughout the transfer, the
freight can be sent in a time-efficient manner to the destination. These fast and reliable FTL
logistics shipments are perfect for when it comes to answering unusually high demands for
shipment, like during festive seasons or seasonal rushes.

THE PREVALENT TRENDS IN FTL LOGISTICS
The market for FTL freight and transport has been rather inefficient and fragmented. That is because the
sector has faced a dire need for the implementation of technology for delivery partners to increase the
visibility of information for their customers.
With an aim to offer businesses utmost transparency and real-time information about their full-truckload
freight, Delhivery deploys its proprietary technological capabilities to provide real-time updates for all
shipments. Delhivery ensures that the customers are able to send their full-truckload freight with utmost
ease, thus ensuring timely delivery and complete safety of their goods.

DELHIVERY’S FTL FREIGHT AND TRANSPORT SERVICES
It is a known fact that there are several businesses with regular trucking requirements, some which have
only seasonal freight requirements, and still other businesses which have regular trucking requirements
that tend to increase seasonally. The FTL freight transport services provided by Delhivery are designed
to efficiently meet not only your regular requirements for truck transportation but also to address
seasonal surges all across the country. With a combination of our own truck fleet as well as a pan-India
network of professional truckload partners, Delhivery ensures that all customers requirements are met at
all times, regardless of the quantum of services required.

DELHIVERY: THE EXPERTS IN TRUCKING SOLUTIONS

Being a marketplace for trucks, Delhivery works with 5000+ truck supply partners across the country.
These partners are empanelled onto the Delhivery platform for the due diligence of their fleet and their
years of experience in the industry. This helps us ensure that we can provide our customers with a
reliable pan-India coverage.
Among the countless shipment and delivery options we provide, we also take care of your FTL logistics
needs. At Delhivery‟s freight exchange platform, customers are offered:

12. 12




 Transparency: We use our inbuilt technology to increase the visibility of trucks in the market
across diverse lanes. The fuel expenses are also borne by us for completing deliveries across the
nation.

 Experience: We have a wide experience in network planning and execution with 12500+
monthly FTL trips in our Line Haul network.

 Flexible Contracts: We offer contracts that are tailored to the requirements of our customers,
including same-day spot contracts
(placement within 12 hours of request),
next day spot contracts, and forward
contracts to lock in long term freight rates.

 Dynamic Rate matching: We offer
highly competitive rates, along with
exchange works at the cluster level for
optimized matching of trucks, and greater
asset utilisation of partner vehicles as well
to ensure allocation of high-quality
vehicles at lower rates.

 Industry Leading Service Precision: We
employ verified vehicles and drivers to
ensure the safety of the shipment. You can
expect a “zero damage and loss” policy,
on-time truck placements, dispatches, and
deliveries from Delhivery.

 Multiple Service Speeds: Based on your urgency, we offer express and standard turnaround
times for deliveries.

 Technology Enabled Service and Support: We have dedicated “Control Tower” operations for
the 24x7 tracking of all GPS and non-GPS enabled trucks. Apart from this, Delhivery also offers
a dedicated customer service to help deal with customer queries throughout the day via SMS, E-
mail, and web-based alert systems.

 24X7 operations: We offer round-the-clock services with automated LR generation, instant e-
POD delivery, trucking partner management and also follow periodic end-to-end supply chain

13. 13


consulting and management to ensure we can deliver the best services to our customers.

What differentiated Delhivery with its Competitors?

Two aspects that differentiate Delhivery from other players like Dotzot Express and Ecom Express.
Firstly Delhivery to be a specialized play-actor in the logistics industry and, unlike older players; it does
not operate on a widely distributed franchise model, which often leads to difficulties in standardization
and control. “Our focus when building the company was never to blindly create a ground network of
delivery staff, but to invest heavily in technology, training and process engineering. This helped
Delhivery scale faster and sustain growth over the last four years, where most new players have
disappeared,” said.In fact, Delhivery is not merely an express logistics company but an e-commerce
fulfillment company. \Secondly Delhivery has built multiple revenue models to suit the requirements of
each client. For instance, its fulfillment and express shipping services are provided to merchants on a per
shipment basis, to ensure that merchants of all sizes work with it.
DISTRIBUTION STRATEGIES OF DELHIVERY LOGISTICS -
The company has invested in a technology platform that has allowed differentiation even in its delivery
business. it route packages faster via different flights throughout the days as well as using multiple
modes of transportation whenever a package need to be delivered, the backed system plots its faster
route automatically, including which flight it should take . The company also does not use the traditional
hub and spoke model for delivering parcels. In this model product order with in a city are always routed
through the hub before it reaches the spoke, leading to delays, delhivery uses a distribution model where
each branch can function like a hub and is a processing center by itself. They can route packages directly
to the customer, avoiding parking it in the hub. The order cycle used to be four to seven days for
customer before Delhivery fulfillment centres become operational.it can be also as 24 hours. Retailers
have the front end which is the website and the order management system. That does not always link up
to a good warehouse management system. Delhivery would test the products, packages and label them
before shipping. The company has warehouse in Delhi, Bangalore Mumbai and Kolkata

14. 14



 Efficiency and scalability: as one of the top e-commerce logistics providers delhivery‟s e-
commerce logistics solution come with the add advantage of accuracy, speed, and scalability.
being one of the top e-commerce delhivery partners, delhivery has the capacity to handle high
volume efficiency. with the centralized warehouse management system, Delhivery is able to
achieve coordination between retailers, outlets, and e-commerce platform.
 Wide distribution network: delhivery wide distribution network makes it one of the most
preferred delivery partners for e-commerce. The company‟s reach ensure that we are able to scale
and meet increased seasonal demand as well, utilizing e-commerce courier service in india by
Delhivery customer can ship any part of the world. Delhivery aims to faster long-term
relationship customer by providing them with innovative e-commerce logistics service and high
standard of customer service.

Dehlivery’s e-commerce service in India
Delhivery operate India‟s largest express parcel transportation network and e-commerce courier service
that also offers fully integrated and self-owned services. Recognized among the top shipping companies
for e-commerce in India delhivery have an in-house management transportation platform that enable the
customers to schedule pickups, track there order in real time, and manage any returns and replacement
with ease. Delhivery delivery partners for ecommerce that also offer flexibility to its customer by
providing delivery time preference and payment options.

DELIVERY STRATEGIES ADOPTED BY DELHIVERY IN AT COVID -193

 Compliance with all government regulations:
Delhivery corporate employees are working from home across all densely populated locations
since march 4th and will continue to do so till further notice.
 Institutionalizing who guidelines across our organization, including the supply chain:
Delhivery have eliminated biometric attendance, temporary hiring, and enhanced security
measures across our facilities. all locations have been on strict sanitization schedules (thrice daily
for all major facilities) since march 4th as well.

 Extending our safety provision to the point of delivery:
all teams are following stringent traceability protocols, undergoing daily health checks, and are
stocked adequately with face masks and sanitizers. staff is undergoing regular sensitization on
the importance of maintaining personal hygiene, repeated washing of hands, and keeping a
distance of at least 1-2m across interactions.

 Paid leave:
as a matter of policy, we provide paid sick leave for all 40000+ central and field employees, and
this policy will continue through the coronavirus outbreak, with no time stipulation. we believe

15. 15


this will allow our staff to monitor their health, rest, and recover completely, without worrying
about any loss of income or fear for their employment.

 Safety at your doorstep
Delhivery has implemented OTP confirmation for pre-paid orders and UPI interfaces for cash-
on-delivery, which allows for social distancing at the time of delivery.

 Added convenience:
Delhivery realize your package may be routed to your office while you are now working from
home. Customer can connect with your merchant for the package to be re-routed while still in-
transit, at no additional cost.

 Providing guidance and the right information:
Delhivery security and people operations teams are providing information and daily training,
feedback, and oversight to operating teams to ensure safety across our network.

16. 16


Logistics in the times of COVID
When the COVID threat began spreading internationally, Delhivery was an early adopter of precautions
to prevent the spread of the virus. The foresight of our leadership team resulted in work from home for
our corporate staff from March 5. Strict sanitization, social distancing, protective equipment usage, and
best practices for a COVID afflicted world were already in effect throughout the network. Delhivery
stocked up on masks and sanitizers and distributed over a million kits to local authorities
On March 24, the nationwide lockdown came with little warning, as cases continued to escalate rapidly.
Overnight, the government issued instructions to allow movement of only essential goods, and no
physical movement would be allowed without specially issued passes to providers of essential goods and
services. The scramble for curfew passes, and intense coordination with local authorities was on. Utter
confusion and worry overshadowed the Indian business ecosystem. Sellers of essential goods were
ramping up supplies, while others were pivoting from extremely different businesses to cater to the
needs of the day. No one knew how the future was going to pan out. Most importantly, no one knew how
the goods they sold or manufactured would reach their eventual users.

Challenges faced during COVID
Taking stock

The Delhivery transportation network has been purpose-built to move goods faster than anyone
else, from one place to another. At the time the lockdown hit, and non-essential goods could no
longer be delivered, Delivery immediate prerogative was to separate the goods in the network
which could be shipped from those which couldn’t Different companies shipping with us use
different, unstructured, and often non-standard product codes, category codes, and descriptions for
their goods.
Over the years, Delhivery have learnt to categorize the type of goods that are shipped in the
network, from the point of view of security, safety, and evaluating whether a particular package can
be shipped by air. Catfight is Delhivery’s proprietary machine learning-based product categorization
tool that derives category and subcategory information from an unstructured product description.
Overnight, Delhivery repurposed the ability to identify essential and non-essential goods in the
network and separate the essential goods that needed to be moved, from those which needed to
be set aside for the time being.

Where can to deliver
Containment Zones were coming up across the country, in areas with high Covid incidence, with
limited access allowed to people within them. Shipments to be delivered here could be delayed at
the last mile as they would require the consignee to come to the access points at the edge of the
containment zones to collect their shipments. The ability to identify the shipments destined for

17. 17


these zones in advance, was key to managing the operations and in providing correct information
to shippers and consignees.



This allowed us to take different definitions of containment zones called out by state or city authorities
and understand the geographical element that
corresponded to the zone description. The second thing
it did, was to help understand whether a particular
shipment with a poorly written address (like the one in
the image above) belonged to a containment zone or
not. Close on the heels of the first lockdown came the
definition of red, orange, and green zones, which
added further complexity to what could be shipped and
made our ability to disambiguate addresses even more
critical than before. In addition, we discovered that
many areas were being locked down at the discretion
of the local authorities or residents with information
not published anywhere. Again, our ear to the ground
helped us to identify these localities with the help of
reason codes provided by our field operators. With
location intelligence engine purring gleefully in the
face of the challenges on the ground, we were able to immediately turn around to create a COVID Map
interface (https://maps.delhivery.com/covid/), not just for our own teams, but also for our client partners
and the general public.

18. 18


Visibility
Clear visibility about the eventual fate of their shipments was the most significant piece of information
that businesses needed to restart their operations. Delivery provided visibility to large, medium, small
businesses, and individual consumers on their respective interfaces from the moment the shipment
manifested to the moment it reached the consignee. This included information on the status of
restrictions at the consignee address, as well as the current essential/non-essential status of what they
were trying to ship. Delhivery also externalized its categorization and location intelligence APIs. Clients
could now use our capabilities to accelerate their reboot process
Activation
Many clients were not targeting business in different parts of the country as they were unaware of the
on-ground situation. Delhivey also noted that many clients previously shipping essential goods had
become inactive. A quick analytic interface was set up for our BD teams to see the activity patterns by
pin code and goods category for each client - large or small, and our BD team rapidly enabled businesses
to ship over a million shipments, from categories and to pin codes that they were unsure about shipping.
Many clients were not targeting business in different parts of the country as they were unaware of the
on-ground situation. We also noted that many clients previously shipping essential goods had become
inactive.
A quick analytic interface was set up for our BD teams to see the activity patterns by pin code and goods
category for each client - large or small, and our BD team rapidly enabled businesses to ship over a
million shipments, from categories and to pin codes that they were unsure about shipping.
Essential volumes

A brief period of degrowth can be seen in essential goods during Lockdown 1, as businesses were
focused on their ability to ship essential goods, getting permits for their operations, and own network
was completely shut down for two days.
Changing customer purchase behaviour, focused towards stocking up on food, medicine, grocery - the
essentials - and rapid enablement of movement of these goods led to a surge in essential goods
movement - higher than normal periods, despite on-ground challenges.
The subsequent period of growth was fuelled by client activation activities which included up-to-date
publishing of information on newly
designated essential goods categories derived
from our ground intelligence.

19. 19


Non-essential volumes
Non-essential goods saw the biggest period of inactivity. The flatlining of non-essentials through
lockdown 1 and 2 reveals the strict government clampdown. Delhivery guidance to clients to avoid
shipping non-essential goods that could not be delivered. However, the growth of non-essential volumes
remained critical for restarting the economic engine. Delhivery can see the rebound in non-essential
volumes as soon as the government introduced the concept of red/ orange/ green zones and relaxed
restrictions in green and orange zones. As further relaxations were introduced, our clients were the first
to be notified of what they can start shipping again, leading to steady increase in volumes, even in red
zones. By June, our volumes in this segment had left the pre-COVID volumes far behind

20. 20


OBJECTIVE OF THE PROJECT

Primary objectives

TO UNDERSTAND THE PROBLEMS RELATED TO LOGISTICS DEPARTMENT

a) To understand DEHLIVERY’s position –under COVID-19 pandemic.
In case of Courier/ third party logistics services providers, such as the DELHIVERY, transportation
and travel are filtered out the main source of revenue for the company. Every business firms aims
at maximizing their profit and focuses on the attainment of satisfaction to their customers with their
product and services under every situations of the economy (COVID-19).

b) Problems related to international and domestic segments.
DELHIVERY‟s headquarters is located a Gurgaon, India area served China United States. The
Gurugram-based company has 75 fulfillment centers, 24 automated sort centers, 70 hubs, 25000+
delivery centers, 8000+ partners‟ centers, 14000+ vehicles and 40000+ employees, Delhivery has
the capacity to process more than 1M+ Parcels per day. The company has the state of the art IT
infrastructure (Auto-updates & notification, Bulk trucking form multiple channels, missing
package) to support the operation and has built many customized applications for their national and
international clients. Although a perfect system cannot be achieved, the proximity of mishandling
the product is still a burden to the company.

c) To analysis the situation of distribution under COVID-19 outbreak
In these unprecedented times of the COVID-19 outbreak, distribution has implemented OTP
conformation for pre-paid order and UPI (Unified Payment Interface) for cash-on-delivery, which
allows for social distancing at the time of delhivery. Packages are routed though appropriate
channels/location for no time stipulation. Customer can connect with the merchant for the package
to be re- routed while in-transit, at no additional cost.

Secondary objective

To know the satisfaction level of the customers; under the outbreak of COVID-19
Good customer service is the lifeblood of a logistics business. It‟s all about retaining customers and
sending them away happy. The essence of customer service logistics is forming a relationship that
customer want to sustain over time. More people are spending more time in social Medias due to
COVID-19, it is vital for business to use social Medias to connect with customers by sharing
information regarding the delivery and reasons for the delay, this help to improve the customer
loyalty.

21. 21


RESEARCH METHODOLOGY

Research methodology is based on the project topic “The Effectiveness of Logistics Distribution and
Customer Satisfaction during COVID-19 Pandemic”. In order to analysis the problems related to
logistics, distribution and satisfaction of the end customers. The research plan for the project is mainly
involves the direct contact with the customer. Delhivery is a third-party-logistics service provide, mainly
concentrating on Transportation, warehousing and delivery of consignments from manufacture to end
customers. A more aggressive management approach to logistics and customer satisfaction can provide a
competitive edge in the disruptive and fiercely competitive business world firm‟s face in today‟s
market]. Companies such as Amazon, Chick-fil-A, Apple, Marriott, Starbucks, and American Express
have in common. They are all known for excellent customer service. Customer will blindly purchase
from this companies under any situation that some of their prices are higher than the competitors.
Customer service is not only important for customer- oriented business but also for businesses that
services other large corporations. Companies embrace customer service as a way to stand out from the
competitions when a product differentiation is low or customers are fickle.
COVID-19 is disrupting global distribution on a scale unseen in recent times. Increased border controls
and customs regulations resulting in longer wait times, and lack of capacity for long-haul and last-mile
fulfillment are creating extreme challenges for logistics organizations. As a result, organizations are
having to quickly adapt by accelerating their digital transformation agendas. This process has been
happening for several years, albeit slowly. Driven by heightened consumer expectations from
interactions with online retailers like Alibaba and Amazon, logistics businesses have started to introduce
capabilities like real- time order monitoring, end-to-end inventory visibility, and super reverse logistics
experiences. Incumbent businesses are being forced to innovate and adopt new digital tools faster than
ever to minimize disruptions. Leaders must take urgent action to RESPOND to new conditions, support
the workforce and sustain business operations. But they should also use this opportunity to RESET their
operations with digital capabilities and RENEW their logistics operating models. This reset will help
increase operational efficiency and effectiveness. By doing so, companies will emerge from the present
crisis with more resilient supply chains to future disruptions.

22. 22


Four key actions to address the COVID-19 impact on logistics

1. Improve visibility

Use an integrated logistics control tower to get real-time visibility into operations.To help leaders use
insights to respond with confidence, companies should use a logistics control tower to get a real-time
view of operations. This will require integrating logistics market information (e.g. truck border crossing
times), inventory levels, demand forecasts, and capacity constraints, both internally (e.g. warehouses)
and externally, (e.g. carriers and suppliers) to support better and faster decision making. At this point,
companies are going for scale rather than scope. It is better to focus on a core set of end-to-end global
priorities than get distracted by trying to implement sophisticated functionality in each locality.
2. Increase flexibility

Repurpose assets, inventory and capabilities to balance supply and demand. Companies should look for
ways to repurpose assets, inventory and capabilities to meet increased demand and act responsibly to
help local communities address the COVID-19 impact: Balance supply and demand on a micro and
macro scale .Increase spot-buying of freight to get additional capacity, leveraging online freight
platforms. Collaborate with other companies, individuals, and communities to bridge gaps in service.
The UPS Neighbor Captain initiative lets people offer their garages to hold packages and inventory for
neighbors, enabling after-hours pickups to avoid multiple delivery trips for the carrier. Leverage “Uber-
like” service models by thinking creatively about the use of non-traditional assets. Increase contactless
deliveries. Implement no contact services for pickup, delivery and payment options (such as scanning a
QR code or signing a digital image).

3. Communicate effectively

Ensure proactive communication with onsite and remote workers, suppliers, carriers and customers. In
this time of intense disruption, regular, clear and effective communication across the whole logistics
ecosystem is essential. Fulfillment and logistics teams should look to engage proactively with: Other
supply chain functions: Collaborate with and integrate the different supply chain functions, such as
procurement for new carrier agreements, planning for supply and demand alignment, and sales and
customer service for customer prioritization.
Suppliers/carriers: Look to manage expectations and proactively monitor their effectiveness against a
revised set of service level expectations.
Customers: Provide as much visibility as possible to wholesalers, distributors, channels and consumers
about the impact of COVID-19 disruption on service level agreements.
Remote workers: Quickly adopt new ways of working to manage remote workers. Look to keep them
engaged and productive by, for example, monitoring daily activities with transport planners. Inspire
them with a sense of purpose and commitment to pull through the crisis and retain trust.

23. 23


4. Support the workforce
Address the physical health and mental well-being of the core workforce as well as the extended
logistics workforce. Both the core and extended logistics workforce is enduring an unfamiliar and often
highly stressful work environment. Companies should look to address their mental and emotional health
and well-being as well as their physical safety. Ensure strict compliance with all health regulations
(such as social distancing in canteens and workspaces). Set up interim workforce protection measures
like non-combined shifts and/or temperature checks during daily clock-ins. To support human resilience,
people need to trust that their leaders have a plan to support their health and productivity.

CHALLENGES FACED BY LOGISTICS INDUSTRY IN INDIA

In India road has become predominant mode of transportation of freight cargo. Estimate of the modal movement
of cargo highlights that in India nearly 60.2% of the cargo is moved by road, 32.1% by rail, and rest by the coastal
shipping, airways and inland waterways. Pipelines constitute a very minor proportion.

24. 24


PROBLEMS FACED IN RAIL TRANSPORTATION

 Technology up gradation
Rail transport technology has a great influence in the productivity and safety of the transport sector
Modernization of the transportation system and use of emerging technology are essential elements of
transport planning. There is need of comprehensive transport policy to tackle the above diverse
problems facing the railways especially the Rail Transport. The problems in the transport sector are so
huge and the financial resources required are so vast. There is every need to overcome the problems
and bottlenecks in the rail transport in India.

 Safety needs
Safety performance of Indian Railways measured in terms of number of consequential train accidents
with serious repercussions in terms of loss of human life or injury or damage to railway property or
interruption to work. Safety is a challenge but a close -to -zero accident goal is attainable. This issue
has to be addressed with proper planning and determination.

 Slowdown in Revenue Growth
With saturation of trunk routes and low quality of services and reliability, the revenue growth has
registered a slowdown. The railways are increasingly becoming a transporter of bulk commodities for
public sector (coal, iron ore, foodgrains, etc.) and are consistently losing to roadways. Most of the
national highways run parallel to railways and are consistently snatching revenues from the railways..

 Rail terminal quality is poor-
Most rail terminals (goods shed) used for loading/unloading
of freight are antiquated. They also suffer from issues of access and evacuation of traffic.

 Less flexibility in carrying different types of products-
Special wagons are not easily available for carrying specialized products. For eg- Special types of steel
required for automobile production have to be carried by trucks as the existing wagons do not offer the
kind of protection that these high value products require.

 Slow speed
The speed of freight trains on Indian Railways has stagnated at around 25 kmph for a long time.
Passenger services are also slow by international standards. The maximum permissible speed on
Indian Railways is 130 kmph for Rajdhani/Shatabdi trains and 110 kmph for other mail/express trains,
compared to a maximum permissible speed of 200 kmph on se veral European Railways on
conventional networks and more than 300 kmph on high speed corridors in Europe and Japan. Chinese
Railways are presently engaged in construction of 12,000 kms of dedicated passenger corridors with
speeds of 250-350 kmph.

25. 25


ROAD MOVEMENT HAS ITS OWN SET OF CHALLENGES.

1. Most of the Indian roads are unsurfaced (42.65%) and are not suitable for use of vehicular traffic. The
poor maintenance of the roads aggra­vates the problem especially in the rainy season
According to one estimate there is about per year loss of RS 200 crore on the wear and tear of the
vehicles due to poor quality of roads

2. One major problem on the Indian roads is the mixing of traffic. Same road is used by high speed cars,
trucks, two wheelers, tractors, animal driven carts, cyclists and even by animals. Even highways are not
free from this malady. This in­creases traffic time, congestion and pollution and road accidents.

3. There are multiple check-posts, toll tax and octoroon duties collection points on the roads which bring
down the speed of the traffic, waste time and cause irritation to transporters. Rate of road taxes vary
from state to state and inter-state permits are difficult to obtain.

4. Way side amenities like repair shops, first aid centers, telephones, clean toilets, restaurants, rest places
are lacking along the Indian roads. There is very little attention on road safety and traffic laws are
willfully violated.

5. There has been no stability in policy relating to highway development in the country. It has changed
with the change of government. There are a number of agencies which look after the construction and
maintenance of different types of roads. Since there is no co-ordination between these agencies their
decisions are often conflicting and contradictory.

6 The growth of commercial vehicles has been very slow because of higher operation costs. The rates of
fuel are growing up every now and then. The prices of vehicles are very high due to heavy excise duties.
The taxes on commercial vehicles are also exorbitant. All these factors are responsible for the slow
growth of commercial vehicles

7 Road direction to the railway department is always indifferent attitude The biggest barrier to the
transport in India is the Railway Crossings. Despite government permissions, the government employees
do not make reasonable contributions even after the bribe and time-consuming. Not only the transport
traders but also the large businessmen and businessmen also have to be raised.

26. 26


ISSUES OF PORT SECTOR

 High turnaround times
Data from Indian ports association shows that ports in India suffer from high turnaround times for ships.
JNPT, the premiere port in India, has more than two times the turnaround time of Colombo and
Singapore ports because of congestion on berths and slow evacuation of cargos unloaded at berths.
 Inadequate depth at ports
The depth at many ports in India is not enough and dredging tenders take a long time in getting awarded.
As a result with the existing dates many ports are unable to attract very large vessels.
 Inefficient port service
Shipping line avoid touching Indian port because of long waiting time and inefficient port services
 Outdated technology
Technology information and innovation has changed the way a good has been transported between
international ports and terminal. .India has implemented (NOT FUULY) EDI Electronic data
interchange and online tracking system the information exchange amongst the major trading/
operational partners, such as customs, ports, inland terminals and
Shippers involved in container trade is limited.
LOGISTICS- FUTURE TRENDS IN INDIA

Logistics has been the holding beam for almost every business structure across the world since the rise
of the economy. The towering needs of businesses to transport goods and services must be addressed by
the logistics sector with best-in-class infrastructure and effective logistics management system. The
economic survey of India for 2017-18 has projected the logistics sector to rise from the current worth of
$160 billion to RS 215 billion by 2020. In a PPP (Public Private Partnership) model, the government of
India efforts to improve India‟s ranking in World Bank LPI (Logistics Performance Index) from 35 to 15
in the coming years.
The government of India has established a separate logistics division in the department of commerce to
work for the integrated development of the industry both in the domestic and the international domain.
In fact, the Ministry of Commerce and Industry (MoCI) has proposed framing of a unique dedicated
online portal to accentuate logistics services in the country and bringing together the buyers, logistics
service providers, and the related government agencies. The Ministry of Transport is also playing a key
role in upbringing the logistics sectors by strengthening the land connectivity through various programs
like „Sagarmala‟ project.
The economic survey 2017-18 presented in the parliament has speculated the Indian logistics Industry to
grow at a CAGR of 10.5% crossing the 200 billion USD mark in coming time. With currently 22 million
people employed in the industry, logistics is expected to extend employment to over 40 million people
by 2020. With such a promising future, the Indian logistics sector has become the new sensation
encouraging GoI to frame a dedicated IT backbone for this industry. Even the import-export system has
been upgraded reducing the cargo release time to only 2 or 3 days.

27. 27


The Goods and Service Tax (GST) framed under the center and state list has paved the path for a better
logistics sector. The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance
also has brought new provision under CSB IV and CSB V to the Courier Imports and Exports
(Electronic Declaration and Processing) Regulations, 2010 providing people 100% GST refunds in the
logistics services. Customers can easily move their shipments with minimal paperwork and faster
delivery and customs clearances with the new policy change by the GoI. Apart from this, to foster the
growth of logistics sectors many start-ups and established enterprises have entered the market equipped
with the latest technology, quality warehousing, and functional transport facility to provide world-class
services in the Indian market. The recent entry of international logistics players has also ensured the
boost of the Indian logistics industry. This will be a sight to behold the glorious rising of logistics
industry in coming years, especially marking 2020.
Indian Companies is also supporting customers by offering Return Management, Fulfillment,
Warehousing and 3PL services in all major ecommerce markets like USA, Europe, Australia and Middle
East countries through their worldwide network. Which is creating a larger scope for Indian sellers to
sell their products globally with a competitive edge Also now Indian logistics companies are creating
opportunities for other counties sellers to sell their products in India by providing seamless custom
clearance and distribution across the country. Therefore Indian logistic industry is having more
opportunities in the future time.
NEW LOGISTICS TECHONOLGY

 The Internet of Things (IoT)
This is the technology that connects devices without much human intervention. It is expected that in future, IoT
will increase the connectivity speed and reduce the overall costs by providing access to real-time visibility of
operations.

 Driverless Vehicles
It can be agreed upon that driverless electric vehicles are the brainchild of Google and people believe that the
future belongs to self-driving cars. Without any human input, a driverless-vehicle will be able to navigate itself
with the help of the equipped navigational hardware and software. With the introduction of these driverless
vehicles, it is expected that there will be a huge reduction in the costs of logistics.

 Drone Delivery
This is the latest trend that has caught a lot of attention and is changing the logistics and supply chain industry. It
was first used by Amazon. However, the idea of drone delivery is new and many firms are still sceptical about its
usage

 Cloud Computing
Cloud-based solutions for logistics companies allow for pay-per-use models that require low capital investment.
This minimizes the risk and cost of maintaining the IT infrastructure. Cloud-based logistics solutions also address
communication hurdles and allow companies to collaborate and share data in a secure way. In addition, cloud-

28. 28


integration allows data collection from management systems to analyze overall logistic processes. Finally, cloud-
integrated logistics offers universal accessibility and is not confined to any physical space

 Shipment Tracking Systems
Internet and software advances allow customers access to shipping and tracking systems 24/7.
Shipment tracking system tailored for our customers that allows to them to monitor and manage their
shipments. It features shipment notifications and messages, customizable reporting, and customer
accounts with information specific to the cargo destined to them in accordance,

 GPS Accuracy
The advanced accuracy of GPS allows for increased productivity and satisfied customers, by
tracking trucks‟ locations and improving hauls through access to updated traffic data. The accuracy
of these devices has drastically increased throughout the years, not only helping frustrated, lost
drivers but also improving the supply chain.
PERIOD OF STUDY

The study was conducted for the period of 1 month from JUNE-8-2020 TO JULY-03-2020.

COLLECTION OF DATA COLLECTION

a) Primary data
 Personal interview
 Questionnaires
b) Secondary data
 Web reference
 Existing company report
 Third party reference

LIMITATION OF THE STUDY

 Limitation base time for the project
 Lack of face to face interaction with persons due to COVID-19
 Study only cover limited geographical location
 Some respondents are biased in answering the questions.

29. 29


CONCLUCTION

Nokia CEO, Stepen Elop, delivered an elegy for the companies mobile phone business, ending
it by saying, “We did nothing wrong, but somehow we lost”. Nokia filed for much reason-
leadership issue, inability of inventory & innovation, investing in the wrong technology, and
other. I believe Nokia failed primarily due to the company‟s refusal to partner with wireless
operators, which hampered its ability to innovate with smart-phone
Most supply chain and logistics are comfortable with the
traditional role, as they know as the expectation they must meet and understand what it takes to
meet them. Many originations implies that they do not need to change and cannot contribute
further. Leaders of these originations ask. “why fixing something that isn‟t broken”? while
forcing changes always risks pushback, the fact is that if companies do not attempt to change ,
some competitor that is more determined and aggressive will break open the constraints and
make the first mover advantage.

30. 30


BIBLOGRAPHY

 BOOKS
1. Sarkar suman “ The supply chain revolution innovation sourcing and logistics
for a fiercely competitive world”
2.


 WEBSITES
1) https://www.delhivery.com
2) https://www.cii.in
3) https://www.ascm.org

31. 31