EXECUTIVE SUMMARY
In the field of management practical work plays a vital role, it is this practical knowledge which drives one to his or her ultimate desire. In the similar way company can achieve its ultimate goal only if it has sufficient service which contents prospective workers.
Title of the project:
“Logistics Management in VRL Logistics Limited at Varur”.
This fruitful venture was accomplished by undertaking the study at VRL Logistics Limited, which is well known for its quality and in time service. The pioneer provides service in goods transportation, passenger transportation and courier service.
The Logistics chain starts from suppliers or consigner, the strength of the chain would emerge from the relationship that are nurtured between the consignee (person to whom the goods are delivered) and transporter of each line and the flexibility would be a result of the transparency of communication, speed of reaction and the focus on core competence.
Need for the study:
To study the various aspects involved in the Logistics management. Objectives of the study:
i. To study the various costs involved in the Logistics management. ii. To the importance of warehousing in Logistics management. iii. To know overview of freight movement.
Limitations of the study:
The necessary information about the project was given by the company. Some of the study was depended on observation.
Findings:
i. The effective pricing strategy of VRL Logistics Limited. ii. The various kinds of services offered by them.
iii. The material handling in the Varur TPT. iv. The capacity of the warehouse.
v. The strategies of the VRL logistics Limited.
vi. Factors affecting road transportation. Suggestions:
i. It should emphasize on warehousing facilities provided.
ii. Transhipment labours should be given sufficient training to handle the goods.
iii. The company should build relationship with industries for more contracts.
iv. TPT labours may be divided into three shifts for the efficiency. At present they are working in two shifts of 12 hours each.
INTRODUCTION TO LOGISTICS
Logistics is a broad, far-reaching function which has a major impact on a society’s standard of living. In a modern society, we have come to expect excellent logistics services, and tend to notice logistics only when there is a problem.
The difficulty in shopping for food, clothing, and other items if logistics systems
do not conveniently bring all of those goods or items together in one place, such as a single store or a mall.
The challenge in locating the proper size or style of an item if logistical systems do not provide for a wide mix of products, colours, sizes, and styles through the assortment process.
The frustration of going to store to purchase an advertised item, only to find out the store’s shipment is late arriving.
There are only few of the issues for granted which illustrate how logistics touches many facets of daily lives. Because of the magnitude of the impact of logistics on society and individuals, a macro approach is taken to understand the logistics management.
Logistics is called by the many names, including the following:
Business logistics Distribution
Logistical management Supply chain management Supply management
What these terms have in common is that they deal with the management of the flow of goods or materials from one point of origin to point of consumption, and in some cases even to the point of disposal.
The Council of Logistics Management (CLM) describes logistics management as “The process of planning, implementing and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to the point of consumption for the purpose of conforming to customer requirements.”
KEY LOGISTICS ACTIVITIES
Outlined below are the key activities required to facilitate the flow of a product from point of origin to point of consumption. All of these activities, listed below, may be considered part of the overall logistics process.
Customer service Demand forecasting/planning Inventory management Logistics communication Material handling Order processing Packaging
Plant and warehouse site selection Procurement
Return goods handling Traffic and transportation Warehousing and storage
While all organization may not explicitly consider these activities to be part of logistics activities, each activity affects the logistics process.
Figure shows how logistics activities drive total logistics costs.
Place/customer service levels
• Customer service
• Parts and service support
Inventory carrying costs
• Inventory management
• Packaging
Transportation costs
• Traffic and Transportation
Lot quantity costs
• Material handling
• Procurement
Warehousing costs
• Warehousing and storage
• Plant and warehouse site selection
OBJECTIVES OF THE STUDY
1.
To understand the logistics management.
2.
To study the role of infrastructure in logistics management.
3.
To study various documents maintained while transportation of
goods.
4.
To study manpower used and material handling in loading and
unloading of trucks.
5.
To study various costs involved in logistics and steps to reduce
those costs.
6.
To study the booking and delivery process maintained in
organization.
7.
To study the importance of warehousing in logistics.
8.
To know the potential for logistics industry in fourth coming years.
Order processing and Information costs
• Order processing
METHODOLOGY
It’s not only the data; it is the way in which we collect the data. So
methodology is the sequence in which the data are collected. The tools for
collection of data for the present project work are the primary data and
secondary data. The information furnished in this report has been collected
primary data as well as secondary data.
The primary data is collected through the interaction with the
managers, supervisors, drivers, and labours of the company. The secondary data
has been collected from annual reports and company website.
INDUSTRY PROFILE
INDUSTRY OVERVIEWHealthy economic growth, rise in the production of key commodities, infrastructure investments and growth in import-export have led to growth in freight movement in the past 5 years, with roadways dominating freight movement on account of higher flexibility, reach and customer preference.
Domestic freight transportation service (DFTS) refers to transportation of goods within India; Here the mode of transportation also mainly refers to roadways and railways, as they carry nearly 90 per cent of the cargo in volume terms.
The domestic freight transport services may be characterized as a large growing sector. The size of the DFTS sector in India, comprising mainly transport by roads, railways, coastal shipping and pipelines is estimated at 1,590 billion tonne kilometres (btkm) in volume terms and at Rs. 1,990-2,010 billion in value terms in 2006-07. In volume terms, as per CRISIL Research it is estimated that the sector has grown at 10.5 per cent per annum during 2001-02 to 2006-07, whereas during 2006-07 to 2011-12, it is forecast to grow at 10.1 per cent per annum, and reach a projected size of 2,569 btkm by 2011-12.Going forward, given the buoyancy in the economy and expected completion of infrastructure projects, the overall freight movement is expected to remain strong. As a result, roadways will further gain market share, backed by its inherent advantages of flexibility and due to the growth in demand from redistribution segment.
On the other hand, railways’ share will decline on account of capacity constraints, until the dedicated freight corridors are completed.
In 2006-07, road transport services comprised nearly 58 per cent of the total freight share, followed by rail transport at around 32 per cent and coastal shipping and pipelines with relatively smaller shares of around 5 percent each. As per CRISIL Research roadways expects to continue to dominate freight movement, with its share expected to grow to a tidy 61 per cent in 2011-12.
On the other hand, the share of railways is expected to decline to 29 per cent in 2011-12, on account of capacity constraints during the same period, while the share of pipelines and coastal movements will remain small. Thus, road transport will remain the growing segment,
owing to its plus points such as greater coverage, higher flexibility and door-to-door delivery. The sector will enjoy the benefits out of its inherent advantages despite higher effective cost. Other factors like lower risk of handling loss, lesser loading and unloading of goods, investments made in the NHDP and relatively higher customer orientation as perceived by users also give road freight transport an edge.
INTRODUCTION
Transportation is the process of moving goods and passengers from origin to destination in the timely and cost efficient manner possible with the available modes of transportation.
MODES OF TRANSPORTATION:
In order to transport material from one place to another transporters have to use Rail, Road, Air, Water and Pipe Line as the modes of Transportation. A brier introduction to the various mode of transportation is as follows
Rail: Used for delivery of a wide range of goods including coal, iron ore, cement, food grains, fertilizers, steel, petroleum products and other heavy goods.
Road: Used by suppliers to deliver goods in a cost effective manner. Many transport companies have expertise for fast delivery, packaging etc. for making scheduled delivery.
Air: Used mostly for delivery of high value and low volume goods from distant suppliers, usually not connected by any other mode of Transportation. It is also suitable for emergent item to be imported for some specific requirement.
Water: Used by firms for delivery of goods from distant suppliers, mostly conducted in containers of varied size. This mode is ideal for transportation of heavy and bulky goods and suitable for products with long lead times.
Pipe Line: Used by oil sector companies for mass movement of Petroleum products including gases. Due to quite low operating cost it is one of the preferred modes of transportation.
INDUSTRY CLASSIFICATION
DRIVERS THAT INFLUENCE FREIGHT MOVEMENT
The overall freight movement in the country depends significantly on the growth in industrial, agricultural production and imports. This is also reflected in the high degree of correlation (>0.99) between GDP (industrial plus agriculture) and imports (called adjusted GDP) versus freight movement during 1971-72 to 2006-07.Besides economic growth, the investments made in infrastructure of transport segments also are an important driver of freight movement in a particular mode of transportation.
Even though economic growth is the most significant driver for freight movement in a broad sense, the extent of influence specific demand drivers will have on a particular mode of transport may vary. For instance, freight movement in coastal shipping mainly depends on the extent of import-export in the country, while, rail and road freight movement has been significantly influenced by the hub and spoke model of freight distribution.
REVIEW OF FREIGHT MOVEMENT
During 1991-92 to 2006-07, the total freight movement is estimated to have increased at a CAGR of around 7.2 per cent, to 1,590 btkm in volume terms and at Rs 1,990-2,010 billion in value terms in 2006-07, in line with the CAGR of 5.9 per cent in adjusted GDP during the same period. Further, when the adjusted GDP growth declined from 7.3 per cent in 1996-97 to 2.3 per cent in 1997-98, demand for freight movement also declined from 5.2 per cent to 4.4 per cent. Similarly, over the past years, while adjusted GDP growth increased at a CAGR of 7.3 per cent, freight movement during the same period has increased at a CAGR of about 10.5 per cent.
DOMESTIC ROAD FREIGHT TRANSPORTATION SERVICE: Overview
Going forward, given the buoyancy in the economy and expected completion of infrastructure projects, the overall freight movement is expected to remain strong. As a result, roadways will further gain market share, backed by its inherent advantages of flexibility and due to the growth in demand from redistribution segment. On the other hand, railways’ share will decline on account of capacity constraints, until the dedicated freight corridors are completed. In 2006-07, road transport services comprised nearly 58 per cent of the total freight share, followed by rail transport at around 32 per cent and coastal shipping and pipelines with
to continue to dominate freight movement, with its share expected to grow to a tidy 61 per cent in 2011-12 (excluding demand from last mile). On the other hand, the share of railways is expected to decline to 29 per cent in 2011-12, on account of capacity constraints during the same period, while the share of pipelines and coastal movements will remain small. Thus, road transport will remain the growing segment, owing to its plus points such as greater coverage, higher flexibility and door-to-door delivery. The sector will enjoy the benefits out of its inherent advantages despite higher effective cost. Other factors like lower risk of handling loss, lesser loading and unloading of goods, investments made in the NHDP and relatively higher customer orientation as perceived by users also give road freight transport an edge.
FREIGHT MOVEMENT: BULK VERSUS NON-BULK
Freight movement can be divided into bulk and non-bulk freight. Bulk freight includes commodities like cement, fertilizer, food grains, POL, iron ore etc and non-bulk freight includes general cargo (increasingly containerized). In 2006-07, bulk commodities are estimated to have constituted about 70 per cent of the total freight movement. While 90-95 per cent of the railways’ freight constitutes bulk commodities, roadways’ freight is evenly balanced between bulk and non-bulk commodities, with the non-bulk commodities contributing 45-50 per cent of its total freight movement. Coastal shipping and pipelines largely move bulk commodities. Over the next 5 years, the share of non-bulk freight movement is expected to increase to 40 per cent of the overall freight movement, largely supported by road transport. While 60 per cent of the road freight transport is expected to be constituted by non-bulk commodities, the railways’
freight mix will continue to be dominated by bulk commodities at 90 per cent. (Estimations are on btkm terms.)
ROAD FREIGHT MOVEMENT: HAULAGE-WISE
The road transport sector can be broadly divided into two areas, primary transportation that is, long haul (>800 km), medium haul (350-800 km) and short haul (50-350 km)] and secondary transportation (referred to as last mile distribution with <50 km). In 2006-07, out of the total primary road freight movement (estimated in btkm terms), long haul contributed close to 20 per cent, medium haul contributed over 55 per cent and short haul around 25 per cent. Railways have an upper hand over roadways in long haul movement of commodities mainly on account of its favourable cost economics (lower freight rates) and tie up with government undertakings for freight movement. On the other hand, road transport has been a favoured mode of transport in the medium haul, due to competitive and effective freight cost, fuel efficient vehicles, improved highway infrastructure etc.
INHERENT ADVANTAGES INFRASTRUCTURE SUPPORT GIVE AN EDGE TO ROAD TRANSPORT
Historically, railways has remained a dominant mode of transport in India, over the past few decades, roadways has gained a significant share in the overall traffic movement, while railways has lost its market share.
The reasons that have helped roadways gain market share are as follows: Greater coverage as compared to any other mode of transport
Lower risk of handling loss, due to lesser loading and unloading of goods.
Investments made by the government in the NHDP.
Given the above-mentioned advantages and growth in road infrastructure, the road transport network has acquired a considerable advantage over a period of time. This is evident from the fact that during 2001-02 to 2006-07, while freight demand in road transportation sector is estimated to have grown by 12.3 per cent, the growth in the overall road freight movement was about 10.5 percent, and the growth in rail freight movement was just about 8.5 per cent. Consequently, over the past few decades, the share of road transport in the total freight movement has also been increasing; this share has been estimated to increase from 53.3 per cent in 2001-02 to around 57.8 percent in 2006-07, supported by strong economic growth, inherent advantages of roadways and initiatives in infrastructure development. (It may be noted that this share of road excludes last mile freight movement).
BUSINESS OVERVIEW OF THE VRL LOGISTICS LIMITED
VRL Logistics is into the business of transportation and logistics service of goods and transportation of passengers by road. They have a long operating track record of more than two decades in this business. The chairman Mr. Vijay Sankeshwar has over three decades of experience in the transportation industry. They have also recently forayed into wind power generation and air charter business.
VRL Logistics offer following services which are summarized below -1. Goods Transportation
b. Less than full truck Load (Parcel) • General Parcel
• Express Cargo c. Courier
d. Passenger Travels 2. Wind Power Generation 3. Air Charter Business
VRL OPERATION
VRL LOGISTICS LIMITED
Transport and logistics Wind Power Generation Air Charter Operation
Passenger Travels Vijayanand Travels
Goods Transportation and distribution business is carried across 17 states and 7 Union
Territories i.e. Pondicherry, Daman, Silvassa, Chandigarh, Karaikal, Yanam, Mahe covering 649 cities through out India. They cover the states of Karnataka, Andhra Pradesh, Tamilnadu, Kerala, Maharashtra, Goa, Gujarat, Rajasthan, Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Chhattisgarh, Madhya Pradesh, West Bengal (Kolkata) and Uttarakhand under this business.
Passenger transport business is carried on under the name of “Vijayanand Travels”.
They carry on this business within the state of Karnataka, Maharashtra and Tamilnadu covering 56 cities in all. They have 40 branches and 466 franchisees across the states of Karnataka, Maharashtra and Tamilnadu for their passenger transport business.
The fleet strength as on February 29, 2008 comprises of 2,683 vehicles, all of which are owned by the Company. The fleet comprises of 2,446 vehicles for goods transportation, 197 vehicles for passenger travels and 40 vehicles for internal use which includes fork lifts, cranes, staff buses, water tankers, diesel tanker, tractors etc.
Wind power generation: In 2006 VRL Logistics commenced wind energy business in
southern India at Kappatgudda, Gadag district in the state of Karnataka. Company had issued various purchase and work orders to various Suzlon entities for the supply, commissioning and erection of 34 Wind Turbine Generators (WTGs). As on date all the 34 WTGs are operational. These WTGs are presently under warranty period which expires on March 31, 2008. Operations and maintenance of windmills are been taken care of by Suzlon Energy Limited by a team of experts at the site.
Full Truck Load
Express Cargo
Less Than Full Truck Load (Parcel) Maruti Parcel
Carriers
Air Rail Road GeneralParcel
CourierCompany has installed 34 wind turbine generators (10 WTGs in the month of September 2006 and 24 WTGs in the month of March 2007) with a capacity of 1250 KW (1.25MW) and all are operational. The total capacity of the wind turbine generators amounts to 42.5 MW. Between April 1, 2007 and February 29, 2008, 77818019(KW) units of power have been generated with a PLF of 22.77%.
Air charter business: VRL Logistics have entered into the air charter business by
providing services to individuals and corporate passengers. Recently, the Company has purchased premier 1A aircraft from Hawker Beech craft Incorporation, USA. Premier 1A is 2 pilots and 6 passenger seat aircraft (with 4 club configuration seats). They have also entered into MOU dated November 1, 2007 with Indamer Company Private Limited for the maintenance of the aircraft.
Company have also made an application to the Ministry of Civil Aviation, requesting for a no objection certificate which grants a Non Scheduled Operator Permit. They have been granted the initial NOC dated March 23, 2007 to operate Non Scheduled Operator Permit from the Ministry of Civil Aviation. They will operate on an all India basis subject to necessary government approvals. The air charter business is headed by Vice President- Air Charter, who looks after all the activities of this business. They also started recruiting the pilots, co pilots, security officers and other staff for the business. They will be on the payroll of the VRL Logistics Limited.
COMPANY PROFILE
BRIEF HISTORY OF THE COMPANY
The Managing Director Mr. V, B, Sankeshwar started as an individual transporter
in January 1976. Without any background and experience, initially for the first two years he suffered heavy losses, and then by end of 1977 he started as a local transporter between Hubli and Gadag. In 1978 due to personal management and effective service he purchased one old lorry and he observed activities of other well known transporter, and started first parcel service from Bangalore to Hubli, Garage, and Belgaum. With only two Lorries gradually business picked up.
Similarly Smt Lalita .V. Sankeshwar purchased one old lorry in the year 1979 and running individually and some times hiring out to Vijayanand Road Lines which was proprietary concern then, company came in to existence effective from 31st march 1983. Due to
efficient management and co-operation from the staff the total turn over and business picked up.
The above proprietorship firm was converted into a private limited company and sold its lorries to the company and the company came in to existence effective from 31st march 1983.
Since then, the business has grown leaps and bounds and VRL LOGISTICS LTD is presently engaged not only in the goods transportation business but in the passenger transportation and courier business. VRL LOGISTICS LTD today is the leader in the parcel transportation business in India – in fact the only organized segment player with a clear focus on the parcel segment- and has an extensive network of more than 800 branches throughout the country.
VRL LOGISTICS LTD’s revenue for the year ending March 2008 is 2750 million; the company got 81% of its revenues from goods transportation, 18% from passenger transportations 1% from other source.
COMPETITIVE STRENGTHS
An established brand having a good reputation:
They have built a brand over two decades, owing to their commitment to quality service standards, reliability and timeliness of services offered and long-standing presence in the industry. They have a long operating track record in the industry. They have expanded their service offerings over the years; having commenced operations with parcel cargo transportation, they presently offer other services such as express cargo, courier and passenger transportation. They provide several luxury offerings in passenger transportation business. They also share good relationships with their business associates such as truck manufacturers and equipment manufacturers who are very critical to the business.
Large and established size and scale of operations:
express cargo, full truck load and courier services in addition to passenger transportation. Company has an extensive network of operations which enables us to provide connectivity even to certain remote locations. As on February 29, 2008 they have a fleet strength of 2683 owned vehicles for carrying on the goods transportation and passenger transportation business. They have presented below a summary of the size of operations in the goods transportation and passenger transportation business:
Details Goods Transportation Passenger Travels
No. of vehicles owned 2479 222
No. of States covered 17 3
No. of Union Territories 7
-No. of cities covered 649 56
No. of transhipment hubs 43
-No. of branches (owned) 799 40
No. of Franchisees 1387 466
The large fleet size provides them multiple benefits like ability to provide the services in larger number of routes, better margins on consignments, less dependence on hired vehicles, and reputation for reliable delivery of the consignment / passengers in a timely manner. Also the variety of vehicles fleet enables them to service the diverse nature of consignments of their customers and requirements of their passengers.
Long operating history in the transport and logistics business:
They have an operating track record of over 24 years in the transport and logistics business. The chairman Mr. Vijay Sankeshwar, who has been actively involved in the business and management of the Company enjoys over three decades of experience in the transport industry. They have extensive experience in the transport and logistics industry enables us to gauge and understand the changing trends and growth prospects in the industry. They have always believed that there is a growth potential in the transport and logistics industry. During 1991-92 to 2006-07, the total freight movement is estimated to have increased at a CAGR of around 7.2 per cent, to 1,590 btkm in volume terms and at Rs 1,990-2,010 billion in value terms in 2006-07, in line with the CAGR of 5.9 per cent in adjusted GDP during the same period.
They have developed strong in-house capabilities over a period of time which enables to improve the efficiency of the vehicles and improve their delivery model. Their in-house body designing facility enables us to build the structures for the vehicles based on their specifications, thereby maximizing utilisation of space and minimising the body weight by using light metals like aluminium along with the steel, rather than steel alone. The in-house competency also includes vehicle repair and maintenance facility at Varur where they focus on carrying on preventive maintenance measures to minimize the events of breakdown or damage to vehicles.
Long serving and experienced management team:
They believe that employing and retaining individuals with experienced backgrounds has enabled us to capitalize on their collective expertise in understanding this business and ensuring its growth. They are led by a management team with sound experience and expertise in the transport and logistics industry. The promoters are actively involved in management of the business operations. The Chairman and Managing Director, Mr. Vijay Sankeshwar, has over 3 decades of experience in the industry and provides the strategic direction to the operations.
Integrated Business model:
They offer a range of services that are complementary to each other and thus constitute a unique business framework. They have adopted a hub and spoke distribution model for delivery of their consignments, which entails establishment of several transhipment hubs and re-distribution of consignments there from to the respective destinations. This ensures significant cost savings, rationalization of routes covered by the vehicles and optimum utilization of resources including vehicles, manpower etc. They have 43 transhipments hubs, 799 owned branches and 1387 franchisees, which enables the smooth flow of goods and
services. They are an integrated transport solution provider with the variety of services that they offer. The service offerings enable us to access a diversified customer base comprising both institutional and retail customers. This enhances brand visibility among different customer segments.
CURRENT POSITION
The company currently is on a growth path having achieved a turnover exceeding Rs 2,750 million for the year ending March 2008. The company has the largest network of branches among all transport companies in south India with over 1000 branches in Karnataka, Tamil Nadu, Andhra Pradesh and Kerala. The company currently owns 2479 trucks and LCVs, 222 buses and regularly hires additional trucks from the market to render its services. This makes the company the largest individual owner of vehicles in India giving the company additional flexibility in its operating margins higher than other players in the organized transport industry. The company is known for its reliable quality service during its operation for the last two plus decades. VRL is an established brand name and this enables the company to charge premium rates to its customer.
Turnover of Logistics division increased to Rs.51258.80 lacs in the current year registering on increase of 17.20% over turnover of FY 2006-07. Express Cargo which is part of logistics has achieved considerable operational success to reach turnover of Rs.2663.69 lacs in FY 2007-08.
From the above figures we can say that there is steady increase in the growth of the turn over of the company. Within 25 years company has focused towards its Goals.
VISION, MISSION AND OBJECTIVES
VISION
To become the primer company that cuts across various segments and remaining
as the torchbearer of each segment that the group venture in to.
MISSION
To provide the highest quality service to our customers by continuously
increasing cost efficiency and maintaining delivery deadlines. To encourage our
employees /workforce to strive for quality and excellence in everything they do.
To promote team work and create a work environment that takes care of talent
THE VALUES
“PUNCTUALITY, INTEGRITY, HONESTY, LOYALTY AND
CREDIBILITY”
THE QUALITY POLICY
We are committed to provide Quality Logistics services consistently at
reasonable price and to continually improve the same to achieve customers’
delight on a sustainable basis.
OBJECTIVES OF THE COMPANY
The main objective of the company is to provide good service to customer with the reasonable rate and provide quick prompt and safe service.
To develop the transportation business in states like Andhra Pradesh, Tamilnadu and Kerala.
To have fixed-assets mainly own storehouse in big cities like Davanagere,
Gulbarga, Bangalore etc.
To have an independent own building with printing machines &computer for each &every district.
Training for all the employees. Quick and safe service.
Customer satisfaction. Competitive price. Attain market leadership.
ACHIEVEMENTS AND AWARDS
VRL LOGISTICS LTD well known as ‘VRL’ has been a staunch believer of ‘Symbol of Service’ and has become a familiar name in the country and in the state of Karnataka with more than 600 branches all over the country. The company has 1600 vehicles consisting of cargo and passenger buses and claims to be the largest single fleet owner in the world.
The company has been making all the efforts to have its own infrastructure facilities like trans shipment yards, etc, in all the key business places, by acquiring the immovable properties, the company has already established its own business activity centres and has also been acquiring land properties. Thus, the group has been acquiring valuable assets.
Managing director of VRL LOGISTICS LTD Sri V.B.Sankeshwar has been awarded
“Udyog Ratna Award” in 1994, “Sarige Ratna Award” in 1998 and “Vishveshwarayya Navaratna Award “in 2003.
CENTRALIZED BUILDING / LAND IS UTILIZED FOR THIS PURPOSE
Head office Building. Transhipment godown.
Work shop for existing vehicles. Canteen facilities for employees. Drivers rest room.
The company has own petrol bunks Indian Oil Corporation.
Effluent treatment plant with capacity of 1, 75,000.
Rain water harvesting plant’ surface rainwater harvesting. Surface rain water harvesting.
Roof water harvesting.
This company has been converted into a full-fledged public ltd company since 14-02-1997. The authorized, issued, subscribed and paid up share capital of the company as on date is 2000crores (200000 equity share of Rs 1000 each). To augment resources for its future infrastructure development, the company is envisaging a public deposit scheme for since infrastructure development such as purchase of buildings, godowns, etc, at various places where the company has established its activities.
SHIFT FROM UNORGANIZED SECTOR TO ORGANIZED SECTOR
Currently, it is estimated that the unorganized sector accounts for over 86% of the goods transport in the country. With the introduction of VAT, significant shift of the business is expected from the unorganized sector to the organized sector (given that sales tax evasion is no longer an attraction under the VAT scheme) and VRL LOGISTICS LTD is well poised to take advantage of this shift with its wide network and the image of being a reliable service provider.
Leadership position with revenue in excess of Rs 51258.80 lacs from the Logistics division for the year ending March 31, 2008, the company is a leader in this segment, in fact, the only organized sector player with a distinct focus on the parcel segment.
The companies further hopes to consolidate the position in this segment by increasing its thrust on marketing and establishing further stations across India to increase its reach.
With the largest reach in south India, the company has a well established network of branches enabling, procuring and distribution of goods across south India. The company currently has in excess of 350 branches in Karnataka, Tamil Nadu and Kerala making it the transporter with the largest reach in south India. Needless to say the impressive reach of VRL
LOGISTICS LTD within south India combined with its reliability has made VRL LOGISTICS LTD the preferred transport of many a corporate houses in the southern region.
BOARD OF DIRECTORS
Sri. VIJAY SANKESHWAR (Chairman and Managing Director)
Has ardent faith in transparency to the core. He is a cut throat business entrepreneur and a technocrat, highly professional in finance and accounts, legal and personnel, advertisements and in circulation or marketing.
Sri. ANAND SANKESHWAR (Managing Director of Vijayanand Logistic
Ltd)
Sri. L. RAMANAND BHAT (CTO VRL LOGISTICS LTD)
He is the brain behind the entire computer system, heads the entire activities of the workshop and garage for maintaining the bodybuilding of vehicles.
Sri. K. N. UMESH (Chief Executive Officer)
Heads the entire cargo transport activities of the southern and northern parts of the country with HQ in Bangalore.
Director of board at VRL handles finance and accounts wing of the group.
ORGANIZATION CHART
Anand Sankeshwar
Managing Director Vijay Sankeshwar
Chairman and Managing Director
K.N.Umesh CEO L.R.Bhat CTO V.V.Karmadi VP (Operation) G.S.Ayyer VP (Finance) R.P.Raichur Director (Finance) Anjan Rao VP (Aviation) D.N.Kulkarni VP (Finance) Sunil Nalavadi Chief Accounts Officer
DEPARTMANTS HELPING IN SMOOTH RUNNING OF ORGANIZATION
Legal department
Complaint department
Maintenance department.
H R Department (Personal Department)
Account and finance department
Garage Department Commission department Service department Information Technology S.L.Nagaraj Chief Accounts Officer S.G.Patil GM (HRD) Prabhu Salageri GM (Travels) Y.M.Hannalli GM (Infrastructure) S.R.Hatti GM (Administration) C.M.Baluthi GM (MPC)
Legal department
Legal department is one which plays most prominent part in the company. It focuses on all the legal aspects concerned to the company. It functions positively towards the success of the VRL LOGISTICS LTD group of companies.
Its functional activities are:
Settlement of industrial disputes
Industrial disputes include strikes; lockouts are settled under industrial dispute act. Thus settlement of these disputes is one of the activities concerned with trade unions.
Settlement of workmen compensation
This compensation, under workmen compensation act include accidents, matters related to gratuity pension etc are settled provided accidents to employees on job.
Settlement of accidents claims:
In case of accidents are losses to the vehicles of VRL LOGISTICS LTD of companies occurs then compensation can be claimed by this department.
To avoid illegal activities in the firm:
Illegal activities such as theft, robbery within premise are avoided thus this department is created.
Advice the departments in firm
This legal department acts as an advisor for the different department of the firm concerning with ethics, Social obligation towards the public.
Suit against debtors
third notice within 20 days and thereafter are not sent but personnel approach is given and then legal action is imposed, these notices are issued in order to avoid legal litigation, enmity.
Suit against bounced Cheque:
Customers paying by the cheque if return by bank when there is no enough money in an a/c for it to be paid then the company has right to the customers for such as act.
Settle legal charges.
It is the responsibility of this department to pay all legal charges charged by the court/govt.
Complaint department
Here is department to handle and settle the customer complaints, this department takes care of customers to keep up their interest in the companies service problem of customers will be handled efficiently and settled properly of their satisfaction.
Complaints settled by this department are Delays
Delay caused in delivering of materials to destination point. Delay due to delivers negligence inconvenience etc.
Settlement
When the customer complaints about delay in delivery of goods with LR no enquiry will be made from destination point about the undelivered goods. And the date of right delivery date will be given. If any loss is caused to customer due to delay, such loss is compensated based on value of goods.
Exchange of materials:
This is one complaint that customer may complain. Sometimes the goods may be misplaced by the consignor unknowingly. So the customer is not in a position to receive the goods. Therefore the above complaint is placed.
The company takes back the goods from wrongly delivered consignee and redelivers to the right consignee.
Road robberies, fire theft etc
The goods are undelivered to the destination point due to robberies fire theft etc. If the goods are lost during transit, short certificate will be issued to customer until the goods are traced. If fail to trace, loss is compensated on the basis of value of goods on certain condition.
Demurrage Collection Points
It is a point at which goods consigned will be stored when consignee fails to take responsibility of these goods that is when goods consigned reach the destination, point and fails to take delivering consignor. When they fail to respond the notice, goods will be sent to and stored in demurrage collection point.
The notice inform them to take delivering of the goods consigned and settled and unclaimed charges if any generally. 3 notices will be sent first 30 days, second 90 days, and third 120 days. And a notice will be sent from demurrage collection point. When goods are about to sell through auction.
Booking place – Destination (delivery point) 1st notice – 30 days
Department
Sold through – Final notice Auction _ before setting
Maintenance department and House Keeping Department
It means maintenance of various vehicles which includes bus, lorry and other goods carries. At present there are 2686 vehicles which include Volvo buses, luxury, buses, lorry, mini bus etc.
Functions of Maintenance Department:
Centralized purchasing Repairing the vehicles
Complete body building of vehicles
Changing of oil clutches as per the schedule for precautions. Hiring the lorries on the buses of locality and demand
Maintenance of drivers accounts i.e. payment of salary to drivers,
Maintenance department is playing an important role in the company because The Company can save the cost with proper maintaining of available resources and proper utilizing them.
Account and Finance department Significant of Accounting Policies.
Bases of preparation of financial statement
The financial statement are prepared on the historical cost convention basis in accordance with the generally accepted accounting principles and they accounting standards referred to in section 211(3C) of the companies act 1956 except otherwise stated.
Revenue recognition:
The company generally follow mercantile system of accounting expect on claims which is a counted on cash basis.
Fixed assets
Fixed assets are started at cost of acquisition construction except in certain fixed assets. Which has been revaluing less depreciation? All cost relating to the acquisition and
Depreciation
Depreciation on fixed assets has been provided on straight line method at rates prescribed in schedule XIV to the companies’ Act 1956.
Borrowing cost
Borrowing cost directly attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of the assets up the date assets is put to use other borrowing cost are charged to the profit and loss account in the year in which they are incurred.
Taxation
Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of income tax act 1961 and considering assessment order and decision of appellate authorities in company’s case.
Goods and passenger transport business are subject to various taxes, which may significantly affect profits. VRL is exposed to various taxes imposed by the State and the Central government which include Wheel Tax for seater and sleeper buses, Inter State Transportation Tax for buses operating between two states and service tax which are levied upon private operators. The rates of these taxes have steadily increased in the past three years.
For example, the Wheel Tax which is payable by a private transport operator has increased from Rs. 3,300/- per quarter in fiscal 2005 to 43.03% Rs. 4,720/-, in fiscal 2007 (per quarter), for sleeper busses, and, Rs. 750/- in fiscal 2005 to 200% Rs. 2,250/-, in fiscal 2007 (per quarter), for seater busses. As they plan to expand their services and enter different states, they may be exposed to different tax regimes in different states, which may adversely affect profitability.
In goods transportation they pay tax to the municipal corporation which is called as octroi. They pay octroi in Maharashtra, Andaman and Nicobar, and Manipur. If the octroi is
paid by the company then the penalty will be received from the customer. The company also pay State entrance tax which is 1% of the value of the goods.
H R Department
It is heart of VRL LOGISTICS LTD group. It is department where matters relating to recruitment, settlement of grievances etc taken place. A well experienced person any manager of personnel department looks it after. Its activities are spread out over large area, some are:
Employment
Well force of employees
Facilitating for provident fund gratuity Facilities of ESI
Matters relating to leave, salary, bonus etc Improving employer employee relation
Providing facility to relating employer or by termination
Training can be defined as the process whereby people learn the knowledge, behaviour, skills needed in order to perform the job more effectively. It is the systematic process of matching employee characteristics and employer requirements. So, it is closely linked to other human resources. It is designed for non-managers. It is for a short duration and for specific job related purpose. It is essential for all the employees in the organization because trained person/manpower is the biggest asset to an organization.
Objectives of HR Department
To increase productivity of the organization To reduce cost
To prepare for future assignment To reduce labour absenteeism
To minimize the operational errors
To establish a sound relationship between worker and his job To increase employees moral and confidence.
Importance of Training
Better quality work; if the training (formal) is provided with the best methods and standardized norms, then it will help to improve the quality of service. Trained employees will do less operational mistakes and perform the work effectively.
Less learning period; a systematic training program helps to reduce the time and cost involved in learning. Employees can easily reach the acceptable level of performance. They need not waste their time and effort in learning through trail and error. Higher productivity; as training improves the skill and knowledge of employee’s increases which helps to increase output have quality and quantity.
More economical use of machineries and resources can be done through training, which will in turn reduce the cost of operation per unit.
Supervision
Well-trained employees tend to be self-reliant and motivated Therefore, supervisory burden is reduced and the span of supervision can be enlarged.
STAFF SELECTION IS ON THE BASES OF CERTAIN COMPANY RULES AND REGULATIONS
Employees who complete 5 years in the company get gratuity funds and insurance facilities. VRL LOGISTICS LTD implemented these schemes for all employees Pension schemes are based on salary + dearness allowance at the rate of 12% from employee’s salary matching amount is also contributed by the company and deposited in the account of employees...There has not been a single instance of labour unrest. This is due to the strong employee-employer relationship and various.
Welfare ensures adopted by the company such as provident fund, educational benefits, gratuity scheme, medical reimbursement, pension scheme, maternity benefits.
The company has introduced various novel schemes like payment to drivers based mileage driven by them. Even the labour and drivers of the organization are given benefits of ESI/PF etc.
Apart from direct employment, the company has introduced a self-employment scheme for local entrepreneurs by appointing them as agents of the company. The company has found that in small places, local people are in a better position to cater to the needs of customers without adding overheads to the company. It is estimated that at least 15000 people are benefited by way direct and indirect employment from this company.
ENTERPRISING MANAGEMENT TEAM
The top management of the team is a highly proven team in planning and implementing new plans and consolidating leadership position in their business. The team has over 20 years experience in running a leading transport business.
Management Responsibilities (ISO 9001- 2000)
Customer satisfaction.
Statutory or regulatory requirement needed to conduct business. Management requirement
Employee’s satisfaction
The repairs and maintenance of all the vehicles including buses are undertaken at the centralized garage located at Varur Hubli. Shirr. L. Ramananda Bhat, CTO of the company heads the garage operation. They have been maintaining stock of all spares and tyres and oil required for the up keep of the vehicles. The total stock of spares and tyres and others on any given date is of the order of Rs. 3.50 cores.
The minimum reorder level depends upon the type of vehicles and availability of spares. This is being monitored both at the garage as well as the head office. The entire operation and the infrastructure control have been computerized and the efficiency is to the extent of 95%.
BODY BUILDING OF VECHICLES AND OTHER ACTIVITES
In the beginning VRL LOGISTICS LTD was arranging the truck bodies built the other bodybuilding located at Namakkal and Mettupalyam. The company has since taken up with the body building activities of VRL LOGISTICS LTD vehicles with all modern facilities. This part VRL LOGISTICS LTD activity has been self-sufficient. All the heavy goods vehicles and LCVs purchased during 1996-97 are mounted with in-house bodybuilding. With this view in mind VRL LOGISTICS LTD has been procuring all the inputs such as aluminium sheets, iron and steel bars, etc, required for the body building activities. There is
considerable saving by way of excise duty and central tax by virtue of VRL LOGISTICS LTD activities having taken up all acts it’s on own.
Information Technology
The information technology division is located in the workshop in Varur. This division oversees the information technology requirements of Company including the computerizing of their branches, hubs and offices. The computerization of hubs has facilitated mailing of delivery reports and quick flow of information between different offices, delivery offices and transhipment hubs of the Company. This enables effective coordination and tracking of the consignment.
Information technology division prepares software which are hardware-related such as office automation-related, courier tracking and accounting software. Global Positioning System (“GPS”) – they have developed their own GPS based tracking device which they have installed in selected vehicles. In addition to helping us keep track of the movement of the vehicles, the GPS system also tracks the time spent by the vehicle when not in motion, the location it has stopped in addition to tracking pre assigned route to be followed by the vehicle. This discourages the drivers from not complying with the instructions given to them regarding the route and time sheets that they are required to comply with.
Most of the software requirements are met in-house and in the event that any activity is outsourced by the company, the source code is retained by the Company to ensure that it can be used at a later stage as per the requirements of the Company.
Some of the important developments of information technology division include:
Vehicle Maintenance Tracker: This application schedules the maintenance of the
entire fleet and generates reminders and alerts automatically when any maintenance events become due. These reminders help in avoiding the premature failure and the excess consumption of parts.
Vehicle Traffic Application: This application controls the entire movement of the vehicles and keeps track of the drivers’ performances in terms of the fuel average and the distance travelled. This also tracks the advance amount paid to the drivers and the diesel vouchers issued for en route fuelling. This application is online and ensures access to this data from any part of the world.
Consignment Delivery Application: This application is used in delivery branches to
raise online cash receipts and track the consignment. This application also maintains a record of the stock in the Company’s godowns and is used to answer queries from the customers regarding the arrival of consignments. The records of stock and the delivery particulars are updated every 24 hours.
Hub Application: This application receives the consignment from other hubs and
booking branches and dispatches them to the final destination and some times reroute to other hubs.
On line bus ticket booking system: This application is hosted online on the web
server and all agents and passengers log on to this application for booking passenger tickets.
Accounting package: This application consolidates all accounting programs and
helps in the preparation of periodical financial statements, MIS reports etc.
Remote access to networked computers: This application enables the Company to take remote access of any computer system linked to the network. This facility is used for monitoring the operations of the employees and also for conducting training sessions for employees in remote locations.
SWOT ANALYSIS
STRENGHTNone regulated industry:
Since, it is a courier service industry it needs no license to enter this industry, it is a non control industry.
High entry barriers:
The courier companies have to make a lot of investment in establishing a national network and for it the requisite, infrastructure and technology has to be set up. This
discourages new entrants to a large extent, for instance Elbe has 124 branches. 1200+servicesable locations and 10 major hubs
WEAKNESS
Dependent on economy scenario:
In the mid-80 the Industry grew at a rapid rate. This growth rate was sustained in the 90’s but with the revival of the economy and the greater reach of major players in the segment, the industry is expected to ground at an increasing rate.
Have to face the bureaucracy:
Express companies like other multinationals have introduced new technology and standards PF efficiency into India, The major courier companies, which have tie ups with international giants are facing problems with bureaucratic setup in India
OPPORTUNITIES
Value added services:
The courier companies endeavour to add to the products of their customers to differentiate themselves from their competitors.
Backward integration:
The companies cease to be dependent on others for the service they need and have integrated backwards; this is explained by the huge distribution network and the number of vehicle owned by these companies.
THREATS
Economy showdown:
Being driven by the general economic scenario there is always the threat of it being affected by showdown in the economy.
New technology:
The company also needs to be constantly in touch with the latest technology to help them provide the best service possible; today a thing like tracking are fairly common and has become a norm.
TRANSPORT AND LOGISTICS BUSINESS
The Transport and logistics Business is divided into two segments:-1. Goods Transportation
GOODS TRANSPORTATION
VRL Logistics, goods and logistics services include Full Truck Load, Less than full truck load (Parcel) and courier service. Less than full truck load is further divided into express cargo and general parcel service.
They have a fleet strength of 2479 vehicles, which includes:
Light Commercial Vehicles (“LCV”) with a gross vehicle weight of up to 7500
Kg,
Medium Commercial Vehicles (“MCV’) with a gross vehicle weight between 7500 Kg and 12,000 Kg,
Heavy Commercial Vehicles (“HCV”) with a gross vehicle weight of more than 12,000 Kg,
Trailers with carrying capacity up to 49 tonnes
Small vehicles for internal use like collection and delivery of goods in the cities and towns.
All these 2479 vehicles are owned by the company. However, in peak seasons company also take vehicles on hire for transporting goods. This ensures that customers are not put to any inconvenience. Therefore, last minute bookings are usually not turned away.
OFFERING IN THE GOODS TRANSPORT BUSINESS ARE AS FOLLOWS:
FULL TRUCK LOAD
Under full truck load, they provide door to door service to the customer, wherein the goods are loaded at the premises of the customer and are delivered to a certain delivery point as specified by the customer. Here the customer hires full truck for transport of goods from one location to another. This service is used by customers / manufactures who have large quantities of goods to be transported. This service is offered to the customer at a pre determined price.
In this the whole and sole responsibility will be on the driver only. He only has to react to the negotiations of the customers.
In full truck load price will be determined on per tonne base. Now the price is 3020 Rs/tonne. Here the driver will be provided with three water proof covers to provide good service to customer. Before rise in the fuel prices the full truck load service was available for 2900Rs/tonne.
Some of the organizations which take help of this service are West coast paper mill Dandeli.
Kalyani steels Ltd.
Sri Renuka sugar’s Munavalli.
Bell ceramic’s for clay transportation Omkar purified water Ltd
Vijay Karnataka Paper Industry
All pharmaceutical’s situated in Hubli, Belgaum, Bijapur and Banglore etc.
The company provided this facility to transport mines from Hospet to Manglore which was then exported. This service was dropped as it was not profitable.
To trace the misuse of full truck load organization takes help of certain weighbridges situated in different places.
LESSTHAN FULL TRUCKLOAD (PARCEL)
Less than Full Truckload service is categorised into two categories; parcel and express cargo. Under Less than Full Truckload the customers do not hire the entire truck.
GENERAL PARCEL
VRL Logistics provides general parcel services in 17 states, 7 Union Territories covering 649 cities in India. The parcel business is not a time bound service. However the company aims at faster deliveries to enhance customer satisfaction. Booking of the parcel is done at booking office, and then sent through one or more transhipment hubs. At each of the transhipment hubs the goods are segregated and finally delivered to delivery office. The customer then collects it from delivery office. However in case customers demand, they provide door to door also on extra charges. If the parcel is not collected by the consignees from their branches within the specified periods they collect demurrages charges and also send reminders to the consignor and the consignee. In case such reminders are not responded to within the specified period they intimate the customer that the consignment is sent back to head office at Varur. If the parcel is still not collected within the time specified in the intimation letter, a notice of auction is sent to the consignor and consignee, after which the consignment is disposed off in accordance with the notice.
In this category the charges made on the bases of weight and space occupied by the consignment which ever is higher.
On the basis of weight:
Min weight considered is 40 kg i.e. if the weight of the consignment is below 40 kg then also it will be considered as 40 kg only. Freight also varies according to distance it has to cover.
For example: to transport the parcel of 7 kg from Dharwad to Banglore the company charges 60/- Rs
On the basis of space:
For determining the rate the parcel is weighted at the booking house on the bases of CFT. The organization considers 1 CFT = 10kg.
CFT=Length*Breadth*Height/1728
Example: For the container of 18 ft length, 8 ft width and 7 ft height CFT is calculated as
CFT=18*12*8*12*7*12/1728 kg =1741824/1728 kg
=10.08 kg =10 kg
If the goods are of light weight and bigger in size then the goods are measured. The height, width and length are measured in terms of inches and multiplied.
If the CFT cannot be measured, rate is charged as per the weight and distance. After determining the rate, the WAYBILL No. Is marked or labelled on the goods. The goods are then forwarded.
Competitors:
In Karnataka
a. Ghatge Patil Transportation Ltd b. Prakash Roadlines c. DHL d. Deluxe In Andhra Pradesh a. Kirti b. Navatha c. SMRT
MARUTI PARCEL CARRIERS
Maruti Parcel Carriers (MPC) is one of the goods carrier divisions which operate independently under its own name “Maruti Parcel Carriers”. Under this they provide services from booking office to delivery office without routing it through the transhipment hubs. MPC offers its services in the state of Karnataka covering 17 cities in all. MPC has a total network of 25 branches. Currently it has two booking centres one at Bangalore and other at Hubli. Rest of the 23 branches act as delivery offices. Parcels are collected from the booking centres and transported to various delivery offices.
SHIVA ROADLINES
Shiva Roadlines was started in the year 2003 as a separate division by the company. Shiva Roadlines provides service only in the state of Karnataka covering 6 cities. Shiva Roadlines has 6 owned branches. It provides door to door services without routing it through transhipment hubs. It carries goods weighing more than two tonnes only.
VRL EXPRESS CARGO "Anywhere Anytime"
Delivery on time zero excuses. This mantra is driving force behind the success of VRL Express Cargo.
Surface, Train & Air Cargo mode services. Dedicated Company owned vehicles. Door pick-up and door delivery. On-time delivery.
Online track & trace facility. 24X7X365 days operations.
Dedicated & well-groomed customer care windows. Extensive nation-wide network.
The express cargo business of company is done on a door to door basis and in a time bound manner using road/rail/air as a mode of transport. The express cargo business was initially started for booking and delivery of goods within Karnataka; however today express cargo service is available in 17 states, 7 Union Territories covering 649 cities in India. Express cargo mainly focuses on the requirements of their corporate customers who want time bound deliveries of goods to their various locations. The company charges higher freight amount towards the transportation of goods under this service. Company transport a substantial part of
their express cargo using roads as mode of transport. In certain instances they may transport express cargo using roads and the services of railways or airlines.
Under this category the charges will be 4 times than the general parcel. In this service the company uses two drivers to provide quick and safe service. There will be time bound for the drivers. If drivers are late then penalty will be paid by them.
VRL COURIER SERVICE "On Time Every Time"
Capitalising on the synergy of their transport network that connects all over Karnataka, they are into Courier Services focusing on delivering documents and small parcels in a time bound manner.
Storing & dedicated Operating Team.
Time Bound Delivery with an Emphasis "On Time Every Time".
Delivery Schedules ranging From 24/48/72/96 hours. Dedicated Route Vehicles.
VRL LOGISTICS LTD started courier services in the year 1992, which marks the beginning of courier services in company. The turnover of courier service was Rs 4 corers per annum in the year 2007-08. It has become famous at the national level. But on July 17, 2007 it has reduced to only Karnataka.
Company now offers courier services in the state of Karnataka, covering 27 districts and 164 cities. Under this service, they receive non-bulky parcels which include small articles/documents from consignors to be delivered to the consignees in a time bound manner and on a door-to-door basis. The price charged by the company for transporting parcel through courier service is determined on the basis of the weight or volume of the goods and the distance of the delivery at customer’s place.
Under this company has divided customers in to categories i.e. walking and regular customers. Door pick-up facility is provided for the regular customers. Regular customers are also awarded with some credits in the payments. They can pay monthly once.
Charges for courier service:
For one dock of 250 Grams: 10/-Rs For 1 kg the charge will be: 20/-Rs
250 Grams is considered as the minimum weight. Above 250 Grams and below 1 kg is considered as 1 kg only.
This dept is having its branches and agencies in various cities. The branches are maintained by the organization only. The agents have to deposit certain amount in the favour of the organization. The agents in Bangalore city deposit 20000/- Rs and in other cities 10000/-Rs are deposited.
LIST OF DAILY CUSTOMER OF COURIER SERVICES IN HUBLI
• ICICI BANK
• STATE BANK OF INDIA
• WEST COAST PAPER MILLS
THE COMPETITORS OF VRL LOGISTICS LTD (COURIER SERVICE)
1)
DTDC Courier service.2)
Professional couriers.3)
Teja courier.4)
First flight courier5)
Parkash courier.6)
Other couriersTERMS USED IN LOGISTICS
ConsignmentsVRL will transport all types of goods like cloth, medicines electrical parts, motors parts, stationary etc.
Consigner
A consigner is the party who books the consignment for transport through VRL.
Consignee
A consignee is the party who takes delivery of goods booked on presentation of his copy of waybill
Types of Risk Beard
Carriers Risk:
Explains that all risks are borne by the transporter while in transportation. Owner Risk:
DRIVERS
Drivers are the life & blood of VRL Logistics Ltd. Wages & salary is given to drivers is on per km basis1Km = 70 paise. The drivers have to cover 40 kms per hour.
Driver are also hired on fixed salary basis Rs. 1,950/- per month For Long distance journey
Double Drivers - 400 Kms 40 paise per km Single Driver - 400 Kms 70 paise per km
Facilities for drivers
1) House rent allowance is given to drivers. This allowance is given at 20% of the salary
2) Education allowance all the drivers are also provided with education allowance. This facility is given only to that person who has completed one year of service in the organization
3) Provident fund- all drivers are enjoying this facility. Employee have to contribute 12% towards provident fund & the employer has to contribute the same amount
4) Employee state insurance- employees are contributing 1.75% of their basic salary & DA. Employer is contributed 4.75% of the total salary paid by them.
5) Gratuity- This is available to only those who has completed 5 year of services. Company also provide various types of incentive schemes to truck drivers besides the fixed amount paid to them for their services.
